Alexandria Real Estate Equities, Inc. · NYSE:ARE
Alexandria Real Estate Equities — Q4 2024 Earnings Presentation
68 slides from Alexandria Real Estate Equities's earnings presentation, Jan 27, 2025
Slide 1: Reserved . © 2025
Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2025
Slide 2: Reserved. © 2025 iv
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 iv
Slide 3: (1) Source: U.S. House Committee on Energy and Commerce, “The 21st Century Cures Discussion
(1) Source: U.S. House Committee on Energy and Commerce, “The 21st Century Cures Discussion Document White Paper,” January 27, 2015. Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 v
Slide 4: Alexandria's Competitive Advantages
IRREPLACEABLE LABSPACE ® REAL ESTATE PLATFORM THAT LEADS THE ASSET CLASS WE PIONEERED THE ALEXANDRIA MEGACAMPUS ™ PLATFORM 77% 71% OF OUR ANNUAL RENTAL REVENUE OF OUR OPERATING RSF CLUSTERED IN THE BEST LOCATIONS LARGEST, HIGHEST-QUALITY LABORATORY PLATFORM SECTOR-LEADING CLIENT BASE OF ~ 800 TENANT
Slide 5: Megacampus Platform Drives Superior Operating Results
77% 71% 68% of Alexandria’s Annual Rental Revenue of Alexandria’s Operating RSF of Total Development and Redevelopment Pipeline RSF MEGACAMPUS PLATFORM MEGACAMPUS OCCUPANCY OUTPERFORMANCE Average Occupancy (1) Since 2020 96% 92% 4% Alexandria’s Megacampus Properties Alexandria’s Non-Megacampus Prope
Slide 6: Strong Five-Year Growth in FFO Per Share vs Health Care REITs
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details. Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 viii ALEXANDRIA’S STRONG FIVE-YEAR GROWTH IN FUNDS FROM OPERATIONS PER SHARE COMPARED TO FTSE NAREIT EQUITY HEALTH CARE REITS
Slide 7: Five-Year Growth in FFO Per Share, Diluted, As Adjusted
FIVE-YEAR GROWTH IN FUNDS FROM OPERATIONS PER SHARE – DILUTED, AS ADJUSTED (2019-2024) Source: S&P Global Market Intelligence data for peers within the FTSE NAREIT Equity Health Care REITs, available as of January 23, 2025. ARE results represent the five-year period for the years ended December 31,
Slide 8: Alexandria's Outstanding Long-Term Value
HEALTHCARE REALTY TRUST WELLTOWER 2,801% FTSE NAREIT EQUITY HEALTH CARE INDEX 1,241% NATIONAL HEALTH INVESTORS 1,149% LTC PROPERTIES 1,086% UNIVERSAL HEALTH REALTY INCOME TRUST 1,068% VENTAS 1,031% MSCI US REIT INDEX 870% OMEGA HEALTHCARE INVESTORS 706% HEALTHPEAK PROPERTIES 632% Total Shareholder R
Slide 9: Gh) ALEXANDRIA.
Gh) ALEXANDRIA.
Slide 10: S ource: S&P Global Market Intelligence. Assumes reinvestment of dividends. The REITs presented individually
S ource: S&P Global Market Intelligence. Assumes reinvestment of dividends. The REITs presented individually in the chart above are only those constituents of the FTSE NAREIT Equity Health Care Index as of December 31, 2024 for which total shareholder return information since May 27, 1997 is availab
Slide 11: Alexandria's Internal Growth
ALEXANDRIA’S INTERNAL GROWTH Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 xi ALEXANDRIA’S CONTINUED SOLID LEASING VOLUME IN 2024 UP 19% OVER 2014–2020 AVERAGE
Slide 12: Leasing Volume in 2024
4.3M RSF Annual Average (2014–2020) RSF OF LEASES EXECUTED 5.1M RSF Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 xii ALEXANDRIA’S 4Q24 LEASING VOLUME REPRESENTS FOURTH CONSECUTIVE QUARTER ABOVE 1 MILLION RSF AND IS UP 19% OVER PRECEDING FIVE-QUARTER AVERAGE
Slide 13: 4Q24 Leasing Volume
1.3M RSF 1.1M RSF Quarterly Average (3Q23–3Q24) RSF OF LEASES EXECUTED Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 xiii ALEXANDRIA’S OPERATIONAL EXCELLENCE DRIVES STEADY AND CONSISTENTLY HIGH OCCUPANCY
Slide 14: Consistently High Occupancy
Slide 15: Occupancy Percentage
OCCUPANCY PERCENTAGE (1) (1) Rep resents occupancy percentage of operating properties in North America as of each year-end. Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 xiv
Slide 16: Sector-Leading Client Base
ALEXANDRIA’S SECTOR-LEADING CLIENT BASE OF APPROXIMATELY 800 TENANTS DRIVES STABLE, RESILIENT, AND LONG-DURATION CASH FLOWS
Slide 17: Tenant Mix by Annual Rental Revenue
Life Science Product, Service, and Device Multinational Pharmaceutical Public Biotechnology – Approved or Marketed Product Public Biotechnology – Preclinical or Clinical Stage Private Biotechnology Other Investment-Grade or Large Cap Tech Other (1) Biomedical and Government Institutions 92% of Top 2
Slide 18: Strength in Tenant Collections
ALEXANDRIA’S SUSTAINED OPERATIONAL EXCELLENCE AND STRENGTH IN TENANT COLLECTIONS 99.8% Average Tenant Collections 1Q21– 4Q24 Tenant Receivables Represent 0.8% of 4Q24 Rental Revenues
Slide 19: Tenant Rents and Receivables Collected
TENANT RENTS AND RECEIVABLES COLLECTED (1) (1) Represents t enant rents and receivables collected for each quarter-end as of each respective earnings release date . Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 xvi
Slide 20: Fortress Balance Sheet and Capital Recycling Strategy
ALEXANDRIA’S FORTRESS BALANCE SHEET AND STRONG EXECUTION OF CAPITAL RECYCLING STRATEGY Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 xvii
Slide 21: Key Balance Sheet Accomplishments
2024 ALEXANDRIA’S IMPRESSIVE KEY BALANCE SHEET ACCOMPLISHMENTS CAPITAL RECYCLING through $1.4B of dispositions LOW LEVERAGE at 5.2 x (1) One of the LOWEST DEBT MATURITIES for 2025–2027 among all S&P REITs (3) $1.0B BOND ISSUANCE at 5.48% with a 23 -year term (2) $0.7B of JV COMMITMENTS to fund futur
Slide 22: Strong and Flexible Balance Sheet
TOP 10% CREDIT RATING RANKING AMONG ALL PUBLICLY TRADED U.S. REITS (4) ALEXANDRIA’S STRONG AND FLEXIBLE BALANCE SHEET WITH SIGNIFICANT LIQUIDITY Baa1 Stable PERCENTAGE OF DEBT MATURING IN NEXT 3 YEARS REMAINING DEBT TERM INTEREST RATE 14% 12.7 3.86% BBB+ Stable SIGNIFICANT LIQUIDITY (1) 4Q24 NET DEB
Slide 23: Dividend Yield and Growth
5.4% Dividend Yield 5.4% Average Annual Dividend Per-Share Growth $2.2B Net Cash Provided by Operating Activities After Dividends (1) (2) (2)
Slide 24: Annual Common Stock Dividend Per Share
ANNUAL COMMON STOCK DIVIDEND PER SHARE 55% 4Q24 Payout Ratio (1) Dividend y ield is calculated as the dividend declared for the three months ended December 31, 2024 of $1.32 per common share annualized divided by the closing price of our common stock on December 31, 2024 o f $97.55 . (2) Represents
Slide 25: Strong Execution of Capital Recycling Strategy
ALEXANDRIA’S STRONG EXECUTION OF CAPITAL RECYCLING STRATEGY STRATEGIC DISPOSITIONS AND SALES OF PARTIAL INTERESTS 2019–2024 $9.6B TOTAL SALES $2.9B NET GAIN (1) (3) 73 TOTAL TRANSACTIONS 5.4% CAPITALIZATION RATE 5.1% CAPITALIZATION RATE (Cash Basis) (2) (2) (1) I ncludes amounts related to real esta
Slide 26: Heart of the $5.5 Trillion Life Science Industry
ALEXANDRIA: AT THE VANGUARD AND HEART OF THE $5.5 TRILLION SECULARLY GROWING LIFE SCIENCE INDUSTRY (1) Source: Evaluate Pharma. Represents aggregate total market capitalization for the life science industry, including global major, regional major, and specialty pharmaceutical companies and excluding
Slide 27: Novel FDA Approvals (CDER)
Source: U.S. Food and Drug Administration. Novel therapies approved by the FDA (Center for Drug Evaluation and Research (“CDER”)) include new molecular entities and new biologics defined as products containing active moieties that have not previously been approved by the FDA. Alexandria Real Estate
Slide 28: Innovative FDA Approvals (CBER)
Source: U.S. Food and Drug Administration. Innovative medicine approvals by the FDA (Center for Biologics Evaluation and Research (“CBER”)) include novel v accines and next-generation modalities such as cell therapies, gene therapies , mRNA products, live biotherapeutics, and oncolytic viruses. (1)
Slide 29: (1) Source: PhRMA, “Understanding Prescription Medicine Spending,” 202 2. (2) Source: U.S. House Committee
(1) Source: PhRMA, “Understanding Prescription Medicine Spending,” 202 2. (2) Source: U.S. House Committee on Energy and Commerce, “The 21st Century Cures Discussion Document White Paper,” January 27, 2015. (3) Source: Centers for Medicare & Medicaid Services, “National Health Expenditures 2022 High
Slide 30: Industry and Corporate Responsibility Leadership
ALEXANDRIA’S INDUSTRY AND CORPORATE RESPONSIBILITY LEADERSHIP Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 xxvi
Slide 31: Reserved . © 2025
Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2025 1
Slide 32: Reports 4Q24 and 2024 Results
Alexandria Real Estate Equities, Inc. Reports: 4Q24 and 2024 Net (Loss) Income per Shar e – Diluted of $(0.38) and $1.80 , respectively; 4Q24 and 2024 FFO per Share – Diluted, as Adjusted, of $2.39 and $9.47 , respectively PASADENA, Calif. – January 27, 2025 – Alexandria Real Estate Equities, Inc. (
Slide 33: Tenant Mix by Annual Rental Revenue
Life Science Product, Service, and Device Multinational Pharmaceutical Public Biotechnology – Approved or Marketed Product Public Biotechnology – Preclinical or Clinical Stage Private Biotechnology Other (1) Other Investment-Grade or Large Cap Tech Biomedical and Government Institutions As of Decemb
Slide 34: Occupancy by Market
94.6% i) T T T T T T T Mr North Greater San San Seattle Maryland Research New Texas America Boston Francisco Diego Triangle York Bay Area City
Slide 35: Megacampus Core and Non-Core
Megacampus ™ Core and Non-Core As of December 31, 2024 . Annual rental revenue represents amounts in effect as of December 31, 2024 . Refer to “Definitions and reconciliations” in the Supplemental Information for additional details. (1) Represents the average occupancy percentage of operating proper
Slide 36: 3.4% 1.2% 2023 2024
3.4% 1.2% 2023 2024
Slide 37: Cash Basis
4.6% 4.6% 2023 2024 Cash Basis
Slide 38: 29.4% 16.9% 2023 2024
29.4% 16.9% 2023 2024
Slide 39: Same Property Performance
Refer to “Same property performance” and “Definitions and reconciliations” in the Supplemental Information for additional details. “Definitions and reconciliations” contains the definition of “Net operating income” and its reconciliation from the most directly comparable financial measure presented
Slide 40: Future Growth in Annual NOI from Deliveries
ALEXANDRIA’S FUTURE GROWTH IN ANNUAL NET OPERATING INCOME FROM DEVELOPMENT AND REDEVELOPMENT DELIVERIES $395 MILLION (1) P laced Into Service Expected to Be Placed Into Service 2024 4Q24 $118M $55M 1.5M RSF 602,593 RSF 98% Occupied 2025 1Q26 – 2Q28 $83M $312M 89% Leased/Negotiating Aggregating 4.4M
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Slide 43: Recent Deliveries
10935, 10945, and 10955 Alexandria Way (2) 4155 Campus Point Court 9808 Medical Center Drive San Diego/Torrey Pines San Diego/ University Town Center Maryland/Rockville 93,492 RSF 171,102 RSF 95,061 RSF 100% Occupancy 100% Occupancy 69% Occupancy
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Slide 46: Recent Deliveries (continued)
(1) Image represents 500 North Beacon Street on The Arsenal on the Charles Megacampus. (2) Image represents 10955 Alexandria Way on the One Alexandria Square Megacampus. Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2025 36 New Class A/A+ Development and Redevelopment Properties: Rec
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Slide 50: Current Development and Redevelopment Projects
421 Park Drive 40, 50, and 60 Sylvan Road 1450 Owens Street 651 Gateway Boulevard Greater Boston/Fenway Greater Boston/Route 128 San Francisco Bay Area/ Mission Bay San Francisco Bay Area/ South San Francisco 392,011 RSF 596,064 RSF 109,435 RSF 259,689 RSF 13% Leased/Negotiating 31% Leased/Negotiati
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Slide 54: Current Projects (continued)
(1) Image represents 500 North Beacon Street on The Arsenal on the Charles Megacampus. (2) Image represents 60 Sylvan Road on the Alexandria Center ® for Life Science – Waltham Megacampus. The project is expected to capture demand in our Route 128 submarket. (3) I mage represents a multi-tenant proj
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Slide 56: < Lijee a i. ‘al pelt
Ji < Lijee a i. 2 ‘al pelt
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Slide 58: Current Projects
10075 Barnes Canyon Road 701 Dexter Avenue North 8800 Technology Forest Place San Diego/Sorrento Mesa Seattle/Lake Union Texas/Greater Houston 253,079 RSF 227,577 RSF 73,298 RSF 70% Leased/Negotiating —% Leased/Negotiating 41% Leased/Negotiating
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Slide 61: Current Projects (continued)
(1) Image represents 10955 Alexandria Way on the One Alexandria Square Megacampus . Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2025 39 New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)
Slide 62: Megacampus Future Development
Refer to “ Megacampus™ ” under “Definitions and reconciliations” in the Supplemental Information for additional details. Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings cu
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Slide 64: Investments
14% Public 26% Tenant 86% Private 74% Non-Tenant (1) Consists of realized gains of $32.1 million and $117.2 million , partially offset by impairment charges of $20.3 million and $58.1 million during the three months and year ended December 31, 2024 , respectively. (2) Consists of re alized gains of
Slide 65: Liquidity
(in millions) Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program $ 5,000 Cash, cash equivalents, and restricted cash 560 Availability under our secured construction loan 46 Investments in publicly traded companies 106 Liquidity as of
Slide 66: Net Debt to Adjusted EBITDA
5.1X 5.2X $5.2x 12/31/23 12/31/24 12/31/25 Target
Slide 67: Net Debt and Preferred Stock to Adjusted EBITDA Target
4.0x to 4.5x Refer to “Definitions and reconciliations” in the Supplemental Information for additional details. (1) Quarter annualized . Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2025 52 Summary of Debt
Slide 68: Summary of Debt (continued)
Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2025 53 Summary of Debt (continued)
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