Alexandria Real Estate Equities, Inc. (ARE) is a Maryland-based Real Estate Investment Trust (REIT) specializing in the life science, agtech, and advanced technology sectors. The company is renowned for owning, operating, and developing collaborative life science mega campuses in major innovation hubs such as Greater Boston, San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle **[0001035443-24-000072_are-20231231.htm:3]** **[0001035443-24-000298_are-20240930.htm:56]**. ARE's portfolio includes Class A/A+ properties that foster dynamic and collaborative environments for tenants, which consist of multinational pharmaceutical companies, biotechnology firms, and academic institutions **[0001035443-24-000072_are-20231231.htm:3]** **[0001035443-24-000298_are-20240930.htm:56]** **[0001035443-24-000133_are-20240403.htm:10]**. The company's revenue is primarily generated from rental payments and operating expense reimbursements under leases, with a significant portion of tenants being investment-grade or publicly traded large cap companies **[0001035443-24-000298_are-20240930.htm:56]** **[0001035443-24-000158_are-20240331.htm:51]**. Additionally, ARE diversifies its revenue through venture capital investments in transformative life science companies **[0001035443-24-000072_are-20231231.htm:3]** **[0001035443-24-000298_are-20240930.htm:56]**.

1. **Real Estate Operations** - Owns, operates, and develops Class A/A+ life science mega campuses in key innovation clusters, providing dynamic environments for tenants.
2. **Leasing** - Generates revenue from rental payments and operating expense reimbursements, with a focus on investment-grade or publicly traded large cap tenants.
3. **Venture Capital Investments** - Engages in investments in transformative life science companies to diversify revenue streams.

6fefba99d0dc241e5673e357fa1ffeaa3be8bc2007be4ac7758353b64df1e58a

| Metric / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| RSF of Class A/A+ Properties Undergoing Construction (Million RSF) | **5.6**  **[0001035443-23-000100_a4q22ex991supp.htm:8]**  | **5.5**  **[0001035443-23-000199_a1q23ex991supp.htm:6]** **[0001035443-23-000198_are-20230331.htm:103]**  | **5.3**  **[0001035443-23-000244_are-20230630.htm:54]** **[0001035443-23-000245_a2q23ex991supp.htm:16]**  | **5.6**  **[0001035443-23-000303_are-20230930.htm:57]** **[0001035443-23-000303_are-20230930.htm:118]**  | **5.5**  **[0001035443-24-000072_are-20231231.htm:3]** **[0001035443-24-000073_a4q23ex991supp.htm:23]**  | **5.048810**  **[0001035443-24-000159_a1q24ex991supp.htm:44]**  | **5.3**  **[0001035443-24-000228_a2q24ex991supp.htm:16]** **[0001035443-24-000228_a2q24ex991supp.htm:11]** **[0001035443-24-000225_are-20240630.htm:7]**  | **5.3**  **[0001035443-24-000299_a3q24ex991supp.htm:18]** **[0001035443-24-000299_a3q24ex991supp.htm:12]** **[0001035443-24-000298_are-20240930.htm:56]**  |
| Percentage of Annual Rental Revenue from Mega Campuses (%) | N/A | **68% RSF**  **[0001035443-23-000198_are-20230331.htm:118]**  | **75%**  **[0001035443-23-000245_a2q23ex991supp.htm:85]**  | **75%**  **[0001035443-23-000304_a3q23ex991supp.htm:85]** **[0001035443-23-000303_are-20230930.htm:136]**  | **75%**  **[0001035443-24-000073_a4q23ex991supp.htm:85]** **[0001035443-24-000072_are-20231231.htm:216]** **[0001035443-24-000072_are-20231231.htm:155]**  | **74%**  **[0001035443-24-000159_a1q24ex991supp.htm:34]** **[0001035443-24-000159_a1q24ex991supp.htm:3]** **[0001035443-24-000159_a1q24ex991supp.htm:80]**  | **74%**  **[0001035443-24-000228_a2q24ex991supp.htm:3]** **[0001035443-24-000228_a2q24ex991supp.htm:84]** **[0001035443-24-000225_are-20240630.htm:125]**  | **76%**  **[0001035443-24-000299_a3q24ex991supp.htm:41]** **[0001035443-24-000299_a3q24ex991supp.htm:3]** **[0001035443-24-000299_a3q24ex991supp.htm:7]**  |
| Percentage of Annual Rental Revenue from Investment-Grade or Publicly Traded Large Cap Tenants (%) | **90% (Top 20 Tenants)**  **[0001035443-23-000099_are-20221231.htm:99]** **[0001035443-23-000100_a4q22ex991supp.htm:30]**  | **49%**  **[0001035443-23-000198_are-20230331.htm:52]** **[0001035443-23-000199_a1q23ex991supp.htm:19]**  | **49%**  **[ARE_3385641_7]** **[0001035443-23-000245_a2q23ex991supp.htm:3]** **[0001035443-23-000244_are-20230630.htm:55]**  | **49%**  **[0001035443-23-000303_are-20230930.htm:57]** **[0001035443-23-000304_a3q23ex991supp.htm:23]**  | **52%**  **[0001035443-24-000073_a4q23ex991supp.htm:3]** **[0001035443-24-000072_are-20231231.htm:155]**  | **52%**  **[0001035443-24-000158_are-20240331.htm:51]** **[0001035443-24-000159_a1q24ex991supp.htm:19]**  | **53%**  **[0001035443-24-000228_a2q24ex991supp.htm:6]**  | **53%**  **[0001035443-24-000298_are-20240930.htm:56]** **[0001035443-24-000298_are-20240930.htm:57]**  |
| Occupancy of Operating Properties in North America (%) | **94.8%**  **[0001035443-23-000099_are-20221231.htm:98]**  | **93.6%**  **[0001035443-23-000199_a1q23ex991supp.htm:2]** **[0001035443-23-000198_are-20230331.htm:66]** **[0001035443-23-000199_a1q23ex991supp.htm:30]**  | **93.6%**  **[0001035443-23-000245_a2q23ex991supp.htm:3]** **[0001035443-23-000244_are-20230630.htm:69]** **[0001035443-23-000245_a2q23ex991supp.htm:27]**  | **93.7%**  **[0001035443-23-000304_a3q23ex991supp.htm:4]** **[0001035443-23-000303_are-20230930.htm:72]**  | **94.6%**  **[0001035443-24-000072_are-20231231.htm:3]** **[0001035443-24-000073_a4q23ex991supp.htm:3]** **[0001035443-24-000073_a4q23ex991supp.htm:37]**  | **94.6%**  **[0001035443-24-000158_are-20240331.htm:66]** **[0001035443-24-000159_a1q24ex991supp.htm:23]**  | **94.6%**  **[0001035443-24-000225_are-20240630.htm:66]** **[0001035443-24-000228_a2q24ex991supp.htm:27]**  | **94.7%**  **[0001035443-24-000298_are-20240930.htm:71]** **[ARE_3403311_7]** **[0001035443-24-000299_a3q24ex991supp.htm:29]**  |
| Weighted-Average Remaining Lease Term for Top 20 Tenants (Years) | **7.1**  **[0001035443-23-000099_are-20221231.htm:100]**  | **9.5**  **[0001035443-23-000199_a1q23ex991supp.htm:29]** **[0001035443-23-000199_a1q23ex991supp.htm:2]**  | **9.4**  **[0001035443-23-000245_a2q23ex991supp.htm:34]** **[0001035443-23-000244_are-20230630.htm:67]**  | **8.9**  **[0001035443-23-000304_a3q23ex991supp.htm:4]** **[0001035443-23-000304_a3q23ex991supp.htm:28]** **[0001035443-23-000303_are-20230930.htm:64]**  | **9.6**  **[0001035443-24-000073_a4q23ex991supp.htm:36]** **[0001035443-24-000073_a4q23ex991supp.htm:3]**  | **9.7**  **[0001035443-24-000159_a1q24ex991supp.htm:24]** **[0001035443-24-000159_a1q24ex991supp.htm:23]** **[0001035443-24-000159_a1q24ex991supp.htm:31]** **[0001035443-24-000158_are-20240331.htm:64]**  | **9.4**  **[0001035443-24-000228_a2q24ex991supp.htm:35]** **[0001035443-24-000225_are-20240630.htm:64]**  | **9.5**  **[0001035443-24-000299_a3q24ex991supp.htm:39]** **[0001035443-24-000298_are-20240930.htm:69]**  |
| Unlevered Yields (Weighted Average Initial Stabilized Yield / Cash Basis) (%) | **6.8%**  **[0001035443-23-000100_a4q22ex991supp.htm:44]**  | **7.3% / 6.6%**  **[0001035443-23-000198_are-20230331.htm:69]**  | **N/A** | **6.5% / 5.9%**  **[0001035443-23-000304_a3q23ex991supp.htm:48]** **[0001035443-23-000303_are-20230930.htm:78]**  | **7.0% / 6.3%**  **[0001035443-24-000072_are-20231231.htm:127]** **[0001035443-24-000073_a4q23ex991supp.htm:50]**  | **N/A** | **N/A** | **6.4% / 6.0%**  **[0001035443-24-000299_a3q24ex991supp.htm:53]**  |
| Square Footage of Development and Redevelopment Projects (Million SF) | **7.6**  **[ARE_3351218_4]**  | **37.889157**  **[0001035443-23-000198_are-20230331.htm:67]**  | **38.071029**  **[0001035443-23-000244_are-20230630.htm:86]** **[0001035443-23-000245_a2q23ex991supp.htm:60]**  | **37.671762**  **[0001035443-23-000303_are-20230930.htm:73]**  | **35.162203**  **[0001035443-24-000073_a4q23ex991supp.htm:48]**  | **35.637461**  **[0001035443-24-000158_are-20240331.htm:80]**  | **35.365603**  **[0001035443-24-000225_are-20240630.htm:78]**  | **35.214447**  **[0001035443-24-000299_a3q24ex991supp.htm:52]**  |
| RSF Placed in Service (RSF) | **497,755**  **[0001035443-23-000100_a4q22ex991supp.htm:6]** **[0001035443-23-000099_are-20221231.htm:155]**  | **453,511**  **[0001035443-23-000199_a1q23ex991supp.htm:42]** **[0001035443-23-000198_are-20230331.htm:69]** **[0001035443-23-000198_are-20230331.htm:56]**  | **387,076**  **[0001035443-23-000245_a2q23ex991supp.htm:5]** **[0001035443-23-000245_a2q23ex991supp.htm:47]** **[0001035443-23-000244_are-20230630.htm:74]**  | **450,134**  **[0001035443-23-000304_a3q23ex991supp.htm:48]** **[0001035443-23-000303_are-20230930.htm:78]**  | **1,228,604**  **[0001035443-24-000073_a4q23ex991supp.htm:5]** **[0001035443-24-000073_a4q23ex991supp.htm:4]**  | **343,445**  **[0001035443-24-000159_a1q24ex991supp.htm:5]** **[0001035443-24-000158_are-20240331.htm:55]**  | **284,982**  **[0001035443-24-000228_a2q24ex991supp.htm:8]** **[0001035443-24-000225_are-20240630.htm:57]** **[0001035443-24-000225_are-20240630.htm:70]** **[0001035443-24-000228_a2q24ex991supp.htm:49]**  | **316,691**  **[0001035443-24-000298_are-20240930.htm:60]** **[0001035443-24-000299_a3q24ex991supp.htm:51]** **[0001035443-24-000299_a3q24ex991supp.htm:9]** **[0001035443-24-000299_a3q24ex991supp.htm:53]** **[0001035443-24-000298_are-20240930.htm:77]** **[0001035443-24-000298_are-20240930.htm:76]**  |

5b312572cbc93c5c6c5f5688e9983e6891ae22297219993cec8880cf9c348cc1

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

91363310241b8c529dc3e2235e15c9d6333fc10cfda058a75a7f3035fa50035d

69826cf41512950d2b0f6a22eb9e1615d9c764b2cf643afda5ea04e7168dacb3

1. Given that tenants are transitioning to a "just-in-time" model for space and leasing cycles are taking longer due to increased Board scrutiny  **[ARE_3403311_2]** **[ARE_3403311_24]** , how do you plan to maintain occupancy levels and lease growth in this more conservative environment?

2. With high cost of capital and increasing financing costs impacting your ability to fund new developments  **[ARE_3403311_0]** **[ARE_3403311_21]** , how are you evaluating the trade-offs between asset sales to fund construction and maintaining future growth opportunities?

3. Considering that companies without clear catalysts are struggling to access additional capital, affecting pre-commercial public biotech companies which constitute 9% of your ARR  **[ARE_3403311_3]** **[ARE_3403311_2]** , how does this impact your tenant base and what strategies are you employing to mitigate potential occupancy risks?

4. As sublease space in key markets like Boston and the Bay Area remains available despite stabilization  **[ARE_3403311_23]** , how are you addressing the competition from sublease space, and what impact do you anticipate this will have on your leasing activities and rental rates?

5. With AI advancements potentially optimizing drug discovery and clinical trials, possibly reducing the need for physical lab space  **[ARE_3403311_22]** **[ARE_3403311_27]** , how are you positioning Alexandria to adapt to these technological changes and ensure sustained demand for your lab facilities?

fc378511c10043d03e284504881ad334f27331ff4285dd8c1630e35613a7c4f5

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **EPS**: $2.60 to $2.64  **[ARE_3403311_8]** .
  2. **FFO Per Share**: Midpoint of $9.47, 5.6% growth  **[ARE_3403311_8]** .
  3. **Rental Rate Growth**: 11% to 19%, 5% to 13% on a cash basis  **[ARE_3403311_6]** .
  4. **Same-Property NOI Growth**: 1.5% to 4% on a cash basis  **[ARE_3403311_6]** .
  5. **Occupancy**: 94.6% to 95.6%  **[ARE_3403311_7]** .
  6. **Realized Gains**: $95 million to $125 million  **[ARE_3403311_13]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **EPS**: $2.98 to $3.10  **[ARE_3394057_10]** .
  2. **FFO Per Share**: Midpoint of $9.47, 5.6% growth  **[ARE_3394057_10]** .
  3. **Rental Rate Growth**: 11% to 19%, 5% to 13% on a cash basis  **[ARE_3394057_7]** .
  4. **Same-Property NOI Growth**: 1.5% to 4% on a cash basis  **[ARE_3394057_7]** .
  5. **Capitalized Interest**: 10% decline in average basis  **[ARE_3394057_9]** .
  6. **Dispositions and Equity Sales**: $912 million, 59% of $1.55 billion guidance  **[ARE_3394057_9]** .
  7. **Retained Cash Flows**: $450 million  **[ARE_3394057_9]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **FFO Per Share**: Midpoint of $9.47, 5.6% growth, range $9.41 to $9.53  **[ARE_3380381_7]** **[ARE_3380381_9]** .
  2. **EPS**: $3.60 to $3.72  **[ARE_3380381_9]** .
  3. **Rental Rate Growth**: 11% to 19% on GAAP, 5% to 13% on cash basis  **[ARE_3380381_7]** .
  4. **Same-Property NOI Growth**: 1.5% to 4% on a cash basis  **[ARE_3380381_7]** .
  5. **Capitalized Interest**: Double-digit decline in average basis  **[ARE_3380381_8]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **EPS**: $3.49 to $3.69  **[ARE_3371299_11]** .
  2. **FFO Per Share**: $9.37 to $9.57, midpoint $9.47, 5.6% growth  **[ARE_3371299_11]** .
  3. **Realized Gains**: $95 million to $125 million  **[ARE_3371299_11]** .
  4. **Same-Property NOI Growth**: 1.5% to 4% on a cash basis  **[ARE_3371299_9]** .
  5. **Occupancy**: Midpoint 95.1%  **[ARE_3371299_10]** .
  6. **Cash Flows from Operating Activities**: $450 million  **[ARE_3371299_10]** .
  7. **Rental Rate Growth**: Midpoint 15% and 9% on a cash basis  **[ARE_3371299_9]** .

27411e85b16bdaf659ee3f9dca7b35c7940a939f11a0ae7cff0fd6d5c8dd7e06

Occupancy rate for operating properties in North America (percentage)

Same property net operating income growth (percentage)

Same property net operating income growth (cash basis) (percentage)

Rental rate changes on lease renewals and re-leasing of space (percentage)

Rental rate changes on lease renewals and re-leasing of space (cash basis) (percentage)

Tenant rents and receivables collected (percentage)

Weighted-average remaining lease term for top 20 tenants (years)

Weighted-average remaining lease term for all tenants (years)

Net debt and preferred stock to Adjusted EBITDA (quarter annualized) (times)

Net debt and preferred stock to Adjusted EBITDA (trailing 12 months) (times)

Fixed-charge coverage ratio (quarter annualized) (times)

Fixed-charge coverage ratio (trailing 12 months) (times)

4b1acd16dfc991dbdd1ecaf4f0fa3702480197f2574229bf2466ee93079e4ffd

RSF of Class A/A+ Properties Undergoing Construction (Million RSF)

Percentage of Annual Rental Revenue from Mega Campuses (%)

Percentage of Annual Rental Revenue from Investment-Grade or Publicly Traded Large Cap Tenants (%)

Occupancy of Operating Properties in North America (%)

Weighted-Average Remaining Lease Term for Top 20 Tenants (Years)

Unlevered Yields (Weighted Average Initial Stabilized Yield / Cash Basis) (%)

Square Footage of Development and Redevelopment Projects (Million SF)

RSF Placed in Service (RSF)

c0ac0ae126646ab886ebbaae59973df4e3cb0b55edbb6f06de1f2d311ef3da38

d2f987be8258c65b90ef0e3c6faf19b4d0f78d1a24ccb550bd3c0892985db804

| Name                        | Position                                                                 | Start Date     | Short Bio                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------|--------------------------------------------------------------------------|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Joel S. Marcus              | Executive Chairman and Founder                                           | 1994           | Joel S. Marcus co-founded Alexandria Real Estate Equities, Inc. in **1994** as a garage startup with $19 million in Series A capital. Under his leadership, Alexandria has grown into a leading S&P 500 company focused on life science mega campuses in key innovation cluster locations  **[0001035443-24-000133_are-20240403.htm:40]** **[0001035443-23-000178_are-20230414.htm:50]** .                                                                                                                                                                                                 |
| Peter M. Moglia             | Chief Executive Officer and Chief Investment Officer                     | July 2022      | Peter M. Moglia has been serving as the Chief Executive Officer since **July 2022** and as the Chief Investment Officer since **September 2023**. He has been with the company since **April 1998**  **[0001035443-24-000133_are-20240403.htm:52]** **[0001035443-24-000133_are-20240403.htm:51]** .                                                                                                                                                                                                                                                                                     |
| Daniel J. Ryan              | Co-President and Regional Market Director – San Diego                    | September 2023 | Daniel J. Ryan has been with Alexandria since **June 2010**. He has served as Co-President and Regional Market Director – San Diego since **September 2023**  **[0001035443-24-000133_are-20240403.htm:52]** **[0001035443-24-000133_are-20240403.htm:51]** **[0001035443-23-000178_are-20230414.htm:63]** .                                                                                                                                                                                                                                                                                                                        |
| Hunter L. Kass              | Co-President and Regional Market Director – Greater Boston               | September 2023 | Hunter L. Kass has been with Alexandria since **2018**. He currently serves as Co-President and Regional Market Director for Greater Boston, a position he has held since **September 2023**  **[0001035443-24-000133_are-20240403.htm:53]** **[0001035443-24-000133_are-20240403.htm:51]** .                                                                                                                                                                                                                                                                                            |
| Marc E. Binda               | Chief Financial Officer and Treasurer                                    | September 2023 | Marc E. Binda has served as the Chief Financial Officer since **September 2023** and as Treasurer since **April 2018**. He joined the company in January 2005  **[0001035443-24-000133_are-20240403.htm:53]** **[0001035443-24-000072_are-20231231.htm:95]** .                                                                                                                                                                                                                                                                                                                          |
| Vincent R. Ciruzzi          | Chief Development Officer                                                | October 2015   | Vincent R. Ciruzzi has served as the Chief Development Officer since **October 2015**. He joined the company as Vice President in **September 1996**  **[0001035443-24-000133_are-20240403.htm:54]** **[0001035443-23-000178_are-20230414.htm:64]** **[0001035443-24-000133_are-20240403.htm:126]** .                                                                                                                                                                                                                                                                                                                                |
| Lawrence J. Diamond         | Co-Chief Operating Officer and Regional Market Director – Maryland       | April 2018     | Lawrence J. Diamond has served as Co-Chief Operating Officer since **April 2018** and as Regional Market Director – Maryland since **July 2005**  **[0001035443-24-000133_are-20240403.htm:56]** **[0001035443-23-000178_are-20230414.htm:66]** .                                                                                                                                                                                                                                                                                                                                     |
| Joseph Hakman               | Co-Chief Operating Officer and Chief Strategic Transactions Officer      | July 2020      | Joseph Hakman has served as Co-Chief Operating Officer since **July 2020** and as Chief Strategic Transactions Officer since **June 2019**  **[0001035443-24-000133_are-20240403.htm:56]** **[0001035443-23-000178_are-20230414.htm:66]** .                                                                                                                                                                                                                                                                                                                                            |
| John Hart Cole              | Executive Vice President – Capital Markets/Strategic Operations and Co-Regional Market Director – Seattle | January 2024   | John Hart Cole has served in his current roles since **January 2024**. He was previously the Senior Vice President – Strategic Market Director – Seattle from **October 2017 to December 2023**  **[0001035443-24-000133_are-20240403.htm:57]** **[0001035443-24-000133_are-20240403.htm:51]** .                                                                                                                                                                                                                                                                                        |
| Jackie B. Clem              | General Counsel and Secretary                                            | July 2020      | Jackie B. Clem has served as General Counsel and Secretary since **July 2020**. She has been with the company since **2006**  **[0001035443-24-000133_are-20240403.htm:59]** **[0001035443-23-000178_are-20230414.htm:69]** .                                                                                                                                                                                                                                                                                                                                                        |
| Gary D. Dean                | Executive Vice President – Real Estate Legal Affairs                     | July 2020      | Gary D. Dean has served as Executive Vice President – Real Estate Legal Affairs since **July 2020**. He joined the company in **2004**  **[0001035443-24-000133_are-20240403.htm:59]** **[0001035443-23-000178_are-20230414.htm:70]** .                                                                                                                                                                                                                                                                                                                                               |
| Andres R. Gavinet           | Chief Accounting Officer                                                 | June 2012      | Andres R. Gavinet has served as the Chief Accounting Officer since **June 2012**. He oversees the company's accounting and financial reporting functions  **[0001035443-24-000133_are-20240403.htm:59]** **[0001035443-23-000178_are-20230414.htm:69]** .                                                                                                                                                                                                                                                                                                                             |
| Orraparn C. Lee             | Executive Vice President – Accounting                                    | March 2022     | Orraparn C. Lee has served as Executive Vice President – Accounting since **March 2022**. She has been with the company since **October 2009**  **[0001035443-24-000133_are-20240403.htm:60]** **[0001035443-23-000178_are-20230414.htm:72]** .                                                                                                                                                                                                                                                                                                                                        |
| Kristina A. Fukuzaki-Carlson| Executive Vice President – Business Operations                           | March 2022     | Kristina A. Fukuzaki-Carlson has served as Executive Vice President – Business Operations since **March 2022**. She joined the company in October 2005  **[0001035443-24-000133_are-20240403.htm:61]** **[0001035443-23-000178_are-20230414.htm:72]** .                                                                                                                                                                                                                                                                                                                               |
| Madeleine T. Alsbrook       | Executive Vice President – Talent Management                             | March 2022     | Madeleine T. Alsbrook has served as Executive Vice President – Talent Management since **March 2022**. She joined the company in 2012  **[0001035443-24-000133_are-20240403.htm:61]** **[0001035443-23-000178_are-20230414.htm:73]** .                                                                                                                                                                                                                                                                                                                                                |

1c222fd2c0b2fc6f5483d86839d4776089dd40b59b0a211f903858b91eb66f93

Income from Rentals

- Same Properties

- Non-Same Properties

- Operating Leases

- Direct Financing Leases

Tenant Recoveries

Other Income

Revenues Subject to Lease

Revenues Subject to Revenue

Parking and Other Revenues

Total Revenue

a86ba5455205a66052e5079877f4d4f01441e3a27afc0e3146cce271bc8f97b3

Greater Boston

San Francisco Bay Area

New York City

San Diego

Seattle

Maryland

Research Triangle

Texas

Canada

Non-cluster/other markets

Properties held for sale

23305e6eb7e3bc905ac22e681ced6120109285519b9c8e927e8fd76c4ede39b0

**Annual guidance for FY 2024:**
- **EPS**: $2.60 to $2.64  **[ARE_3403311_8]** (lowered from $2.98 to $3.10  **[ARE_3394057_10]** )  
- **FFO Per Share**: Midpoint of $9.47, 5.6% growth  **[ARE_3403311_8]** (no change from prior guidance  **[ARE_3394057_10]** )  
- **Rental Rate Growth**: 11% to 19%, 5% to 13% on a cash basis  **[ARE_3403311_6]** (no change from prior guidance  **[ARE_3394057_7]** )  
- **Same-Property NOI Growth**: 1.5% to 4% on a cash basis  **[ARE_3403311_6]** (no change from prior guidance  **[ARE_3394057_7]** )  
- **Occupancy**: 94.6% to 95.6%  **[ARE_3403311_7]** (no prior guidance)  
- **Realized Gains**: $95 million to $125 million  **[ARE_3403311_13]** (no prior guidance)  

de9bf5c59c01541dc5f7979c308df7e01587e656d6fc5f9625a8c19a5848e29a

Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

SG&A [USD, Thousands]

R&D [USD, Thousands]

D&A [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

EPS - Basic [USD]

EPS - Diluted [USD]

a2bce661bda5a3e880e1172af668c03bfb9e6a0118b3a441efd48d31922158e9

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP  | 1994  **[0001035443-25-000067_are-20241231.htm:215]**    | Present  | Current auditor   |

3e601b9bed839fe8e0469f2ff926737716b95c91c0c7e96c0f6f486d106b49f3

4626384feb6dbd5270f74dcd471c1b3b6d2c9ddd900177b79840c154560af387

- **Alexandria Real Estate Equities is running ahead of plan on leasing**, indicating strong demand for their properties. Joel Marcus confirmed they are ahead of plan regarding the **768,000 square feet** and the **336,000 square feet** that have been leased or are under discussion.  **[ARE_3413408_12]**
- **The company is confident in achieving expected cap rates on property dispositions**, despite the current interest rate environment. Peter M. Moglia affirmed they are comfortable achieving the cap rate numbers provided at their Investor Day, even considering changes in interest rates.  **[ARE_3413408_31]**
- **Strong leasing momentum is expected in the first quarter of 2025**, with activity spread across various sectors and properties. Joel Marcus mentioned they are seeing a strong leasing picture, and it's spread among various items, indicating healthy demand across their portfolio.  **[ARE_3413408_9]**

8ced91a1b8d23965ce19fa8e6b20a4fb1ebadc8bfe4ffe63308e21e615cf9b93

- **Dependence on Macroeconomic Factors for Leasing Success**: The company's future leasing success relies heavily on macroeconomic conditions, particularly the Federal Reserve lowering interest rates to stimulate the biotech sector. CEO Joel Marcus mentioned that "the biotech sector... that's going to take really the Fed to get their b*** in gear." This dependence on factors outside the company's control introduces uncertainty and risk.  **[ARE_3413408_17]**
- **Low Leasing Activity and Unleased Future Projects**: Development and redevelopment leasing activity for the quarter was low at **13,000 square feet**, partly due to "lingering conservatism from life science company boards." Projects delivering in **2027 or beyond are only 15% leased or under negotiation**, indicating potential challenges in securing tenants for future developments. Executive Peter Moglia acknowledged, "we have a lot of work to do on those projects."  **[ARE_3413408_4]**
- **Slow Leasing in Key Submarkets like South San Francisco**: The company is experiencing slow leasing activity in important markets such as **South San Francisco**. Joel Marcus stated, "The slow one, as I mentioned, was South San Francisco," highlighting potential regional weaknesses that could impact overall performance.  **[ARE_3413408_16]**

2da93fd2a67f11782df823029a9e3fa9f9ef5e288f0365ba5de07c889ff8cd86

1. **Leasing Progress Ahead of Plan**  
   **Q:** Are you running ahead of your leasing plan?  
   **A:** Yes, we are **ahead of plan**, with strong leasing progress across various projects.  **[ARE_3413408_12]** 

2. **G&A Savings for 2025**  
   **Q:** Can you discuss the G&A savings for 2025?  
   **A:** We've achieved savings in legal, IT, payroll, benefits, and other G&A expenses, contributing over **$30 million** in reductions for 2025.  **[ARE_3413408_13]** 

3. **Capital Allocation and Share Buybacks**  
   **Q:** Will you consider reallocating capital to more share buybacks?  
   **A:** The majority of our **$1.75 billion** development spending is on active projects, with **$1.2 billion** allocated there. We've completed **$150 million** in buybacks and will update our guidance in the first quarter; it could change.  **[ARE_3413408_10]** **[ARE_3413408_11]** 

4. **No Changes to Development Plans**  
   **Q:** Will you pause any developments in 2025 or 2026?  
   **A:** We don't expect any material changes to our 2025 or 2026 development plans, and our capital allocation aligns with the demand we're seeing.  **[ARE_3413408_19]** 

5. **Strong Demand from AI Tenants in Mission Bay**  
   **Q:** Are AI tenants entering your portfolio?  
   **A:** Yes, we're seeing a huge boom in AI companies like **OpenAI** moving into Mission Bay, making San Francisco a critical base for AI talent.  **[ARE_3413408_16]** **[ARE_3413408_18]** **[ARE_3413408_20]** 

6. **Leasing Economics Stabilizing**  
   **Q:** Have leasing economics stabilized?  
   **A:** Tenant improvements for new construction are now essentially turnkey for biotech tenants, still **50% higher** than pre-2020 levels, but incentives and free rent are stabilizing, reaching the bottom of the downturn.  **[ARE_3413408_23]** 

7. **Impact of Wildfires on California Assets**  
   **Q:** How have wildfires affected your California assets?  
   **A:** Our assets are in good shape and well-protected; we have no plans to exit California, as it's essential for our industry clusters.  **[ARE_3413408_28]** **[ARE_3413408_29]** 

8. **Outlook on Leasing Velocity**  
   **Q:** How do you anticipate leasing inflecting going forward?  
   **A:** We'd prefer to discuss this in the first quarter but expect to have some pretty good news.  **[ARE_3413408_17]** 

9. **M&A Impact on Biotech Investment**  
   **Q:** Is M&A enough to boost early-stage biotech investment?  
   **A:** Yes, M&A alone can fuel investment in private biotech companies even without a rebound in IPO activity; they are not mutually exclusive.  **[ARE_3413408_22]** 

10. **Leasing of Vacant Spaces**  
    **Q:** Is there a trend in leasing up vacant spaces?  
    **A:** It's case-specific and hard to generalize; with 800 tenants, we have good insight into different sectors' needs.  **[ARE_3413408_26]** 

4c5ef9193f64c78da11708eb700d5bdc52b0dcdab9e9f9d25df57f3679a43f84

ARE surpasses leasing targets: 768k sq ft leased + 336k under discussion. Q4 saw only 13k sq ft, but 2025 momentum remains strong. G&A savings hit $30M, offsetting macro risks. Management sticks to planned developments, expecting robust leasing ahead.

1e03a236c3c682af9b86776fa0ab91c7f30a1da941da66ed9adf95067e9e1fd8

**Annual guidance for FY 2025:**
- **EPS**: $2.67  **[ARE_3413408_8]**  (raised from $2.60–$2.64  **[ARE_3403311_8]** )  
- **FFO per Share**: $9.33  **[ARE_3413408_8]**  (lowered from $9.47  **[ARE_3403311_8]** )  
- **Same-Property NOI Growth**: Down 2%, flat on a cash basis  **[ARE_3413408_7]**  (lowered from 1.5%–4% on a cash basis  **[ARE_3403311_6]** )  
- **Occupancy**: 92.4%  **[ARE_3413408_7]**  (lowered from 94.6%–95.6%  **[ARE_3403311_7]** )  
- **Retained Cash Flows from Operating Activities After Dividends**: $475 million  **[ARE_3413408_8]**  (no prior guidance)  
- **Development Spending**: $1.75 billion  **[ARE_3413408_10]**  (no prior guidance)  
- **Dispositions**: $539.5 million  **[ARE_3413408_8]**  (no prior guidance)  
- **Share Buybacks**: $0–$200 million  **[ARE_3413408_25]** **[ARE_3413408_7]**  (no prior guidance)  
- **Incremental Annual Net Operating Income from Development Pipeline**: $83 million  **[ARE_3413408_7]**  (no prior guidance)  

618c0741f77f06690afe2c33deb4b300223e98c155ca3d89f1dbca2e17b9b208

96b9b4faaffe02a57408b27bdc90b6ca6bb55e05dec0e4d54969e887b7e0dab3

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $788.97 million (+4% YoY)  **[0001035443-25-000067_are-20241231.htm:271]** **[0001035443-24-000072_are-20231231.htm:265]** 

a4a16259ebde7d36af72ecc7e094a4ed22d3d4fb458b0e43cd4308ae3b349a08

99db1b705d65847ffa5d4d10741078900362e61075eaab59c90a065258e4fed7

9a17232f90b773b6a7a9a861a5761c5589d8e5a382757e975c274bd8ceaac222

| Year | Amount Due (in billions) | Debt Type                           | Interest Rate | % of Total Debt |
|------|--------------------------|-------------------------------------|---------------|-----------------|
| 2025 | 0.600                    | Unsecured Senior Notes Payable      | 3.45% **[0001035443-25-000067_are-20241231.htm:261]** | 4.9% = (0.600 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2025 | 0.600                    | Unconsolidated Joint Venture Debt   | 4.57% **[0001035443-25-000067_are-20241231.htm:150]** | 4.9% = (0.600 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:150]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2026 | 0.800                    | Secured Notes Payable               | 4.30% **[0001035443-25-000067_are-20241231.htm:261]** | 6.5% = (0.800 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2026 | 0.800                    | Unsecured Senior Notes Payable      | 3.80% **[0001035443-25-000067_are-20241231.htm:261]** | 6.5% = (0.800 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2027 | 0.350                    | Unsecured Senior Notes Payable      | 3.95% **[0001035443-25-000067_are-20241231.htm:261]** | 2.9% = (0.350 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2028 | 0.425                    | Unsecured Senior Notes Payable      | 3.95% **[0001035443-25-000067_are-20241231.htm:261]** | 3.5% = (0.425 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2029 | 0.700                    | Unsecured Senior Notes Payable      | 4.50% **[0001035443-25-000067_are-20241231.htm:261]** | 5.7% = (0.700 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2030 | 1.150                    | Unsecured Senior Notes Payable      | 4.70% **[0001035443-25-000067_are-20241231.htm:261]** | 9.4% = (1.150 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2031 | 0.750                    | Unsecured Senior Notes Payable      | 3.375% **[0001035443-25-000067_are-20241231.htm:261]**| 6.1% = (0.750 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2032 | 0.900                    | Unsecured Senior Notes Payable      | 2.00% **[0001035443-25-000067_are-20241231.htm:261]** | 7.4% = (0.900 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2033 | 1.000                    | Unsecured Senior Notes Payable      | 1.875% **[0001035443-25-000067_are-20241231.htm:261]**| 8.2% = (1.000 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2034 | 0.800                    | Unsecured Senior Notes Payable      | 2.95% **[0001035443-25-000067_are-20241231.htm:261]** | 6.5% = (0.800 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2035 | 0.500                    | Unsecured Senior Notes Payable      | 4.75% **[0001035443-25-000067_are-20241231.htm:261]** | 4.1% = (0.500 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2036 | 0.400                    | Unsecured Senior Notes Payable      | 5.25% **[0001035443-25-000067_are-20241231.htm:261]** | 3.3% = (0.400 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2049 | 0.300                    | Unsecured Senior Notes Payable      | 4.85% **[0001035443-25-000067_are-20241231.htm:261]** | 2.4% = (0.300 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2050 | 0.700                    | Unsecured Senior Notes Payable      | 4.00% **[0001035443-25-000067_are-20241231.htm:261]** | 5.7% = (0.700 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2051 | 0.850                    | Unsecured Senior Notes Payable      | 3.00% **[0001035443-25-000067_are-20241231.htm:261]** | 6.9% = (0.850 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2052 | 1.000                    | Unsecured Senior Notes Payable      | 3.55% **[0001035443-25-000067_are-20241231.htm:261]** | 8.2% = (1.000 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2053 | 0.500                    | Unsecured Senior Notes Payable      | 5.15% **[0001035443-25-000067_are-20241231.htm:261]** | 4.1% = (0.500 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |
| 2054 | 0.600                    | Unsecured Senior Notes Payable      | 5.625% **[0001035443-25-000067_are-20241231.htm:261]**| 4.9% = (0.600 / 12.244) * 100 **[0001035443-25-000067_are-20241231.htm:261]** **[0001035443-25-000067_are-20241231.htm:261]** |

5cac2ffef0ad02d72f0e20476c576f4b7dffd026bc606a1eea33639e65b5c9c1

- **Increased supply in key markets is expected to weigh on rental rates, leading to a flat rent environment.** The company anticipates that supply will "weigh on rents," resulting in a "very flat environment" for rent growth in the near future. ( **[ARE_3380381_26]** )
- **Adjustment of FFO guidance amid macroeconomic uncertainties.** The company narrowed its FFO guidance range, citing reasons such as "macro at home," "geopolitical issues," and an upcoming election, indicating a conservative stance due to the uncertain environment. ( **[ARE_3380381_15]** )
- **Potential slowdown in leasing activity and pending deals.** An analyst noted a decrease in pending deals or letters of intent compared to the prior quarter, asking if "anything [was] falling out," which may suggest a slowdown in leasing momentum. ( **[ARE_3380381_11]** )

a273b83758bbc58f7d6a6bdef75fefffdc9938e1493510851cde77ee1ff6db74

1. **Guidance Adjustment**  
   **Q:** Why adjust FFO guidance early?  
   **A:** We narrowed our FFO guidance range, lowering the top and bottom ends but keeping the midpoint unchanged. This is standard as we gain visibility through the year. We still expect solid growth of **5.6% over 2023**.  **[ARE_3380381_15]**  Given macroeconomic, geopolitical issues, and the upcoming election, we wanted to be conservative.  **[ARE_3380381_15]** 

2. **Supply Outlook**  
   **Q:** Are we nearing peak supply?  
   **A:** We believe we're approaching peak supply additions in 2024. After 2025, we expect minimal new supply since few projects are starting now.  **[ARE_3380381_13]**  The supply tail depends on demand absorption, which we anticipate to be strong due to increased funding generating demand.  **[ARE_3380381_18]** 

3. **Demand Recovery in 2025**  
   **Q:** What gives confidence in demand recovery into '25?  
   **A:** Across our tenant segments—private biotechs, public biotechs, large pharma—we see strength. Venture capital remains robust with **34 mega rounds** this quarter, indicating near-term demand. Public biotech financing is strong, and pharma companies have large space requirements. Despite macro challenges, we expect demand to accelerate from 2024's bottom into 2025.  **[ARE_3380381_17]** 

4. **Development Strategy**  
   **Q:** Will you slow development starts?  
   **A:** We've been disciplined, pausing some projects amid market volatility. Our development decisions are driven by tenant demand, cost of capital, and yields. We focus on meeting growing tenants' needs and are not tied to a specific volume of starts.  **[ARE_3380381_19]** 

5. **Development Yields and Rates**  
   **Q:** Is 7% yield sufficient in current rates?  
   **A:** We assess developments based on long-term internal rate of return (IRR), not just initial yields. Even with a **6–7% yield** today, improving fundamentals and adjusting cap rates over time can yield returns above our cost of capital. We take a longer view to pursue strategic, shareholder-beneficial opportunities.  **[ARE_3380381_24]** 

6. **Funding Plans**  
   **Q:** Will you issue equity to fund development?  
   **A:** Our guidance assumes **no equity issuance**, same as in 2023. We focus on funding through non-core asset dispositions outside our mega campuses. We regularly reevaluate capital sources, as in past practice.  **[ARE_3380381_25]** 

7. **Market Rent Outlook**  
   **Q:** What's the outlook for market rents?  
   **A:** We anticipate a very flat rental environment near term. Alexandria's mega campuses will outperform new supply. While supply pressures rents, we don't expect retrenchment beyond 2017–2019 levels in our submarkets, which we believe will be the bottom, with growth from there.  **[ARE_3380381_26]** 

8. **Impact of New Supply**  
   **Q:** How does new supply affect expiring leases?  
   **A:** New supply isn't competing well with us, as shown by our high occupancy and strong rent spreads. Our mega campuses are highly valued by tenants. Much new supply is in tertiary markets and isn't attracting significant leasing. Tenants prefer our expertise and scalability.  **[ARE_3380381_22]** 

9. **Opportunities from Distress**  
   **Q:** Will you capitalize on distressed assets?  
   **A:** We'll consider opportunities that align with our strategy. Branding a building, even in a new market, can be successful, as with our **201 Brookline** acquisition, which went from **17% to fully leased in three quarters**.  **[ARE_3380381_23]**  However, many new supply areas lack desired fundamentals. Some unused lab buildings may convert to office use; we'll evaluate carefully.  **[ARE_3380381_23]** 

10. **Short-term Renewals Increase**  
    **Q:** Why more short-term renewals into 2025?  
    **A:** Short-term renewals are common as tenants await key clinical data or business catalysts. They seek flexibility until their future space needs are clear. This practice is typical in our industry over many years.  **[ARE_3380381_16]** 

11. **Leasing Trends and Rates**  
    **Q:** Do higher rates impact tenants' capital raising?  
    **A:** No, leasing decisions are event-driven, not directly tied to interest rates. When tenants hit milestones, they secure financing regardless of rates. Venture firms have significant **dry powder** ready to deploy, unaffected by rates  **[ARE_3380381_29]** ,.  **[ARE_3380381_30]** 

12. **Potential Demand Drivers**  
    **Q:** Will CDMO and AI drive demand soon?  
    **A:** These are important but are just parts of our overall demand mix. We have tenants in AI and CDMO sectors with significant lab needs. These drivers impact over years, not months, and aren't currently the main demand push.  **[ARE_3380381_21]** 

61dcde093aad8497f2f841b8b182c0524254e861b03710945338c592493b5056

- **Strong start in Q1 2024 with solid same-store NOI growth, exceeding expectations.** Management expects this strength to continue throughout the year.  **[ARE_3380381_20]**
- **Alexandria's strong occupancy and impressive cash and GAAP rent spreads demonstrate the resilience of its mega-campus strategy, despite new supply entering the market.**  **[ARE_3380381_32]**
- **Company reiterates confidence in guidance, expecting FFO per share growth of 5.6% in 2024 over 2023, showing strong financial performance.**  **[ARE_3380381_5]**

91eb43d845a4233d63673c82fb894049cb1f360429cb92665b3f8d0480dcb00a

1. **Cap Rates and Property Values**  
   **Q:** What's the update on cap rates and property values?  
   **A:** Cap rates on our pending **$806 million** in sales are in line with our commentary that good quality assets are still in demand.  **[ARE_3394057_14]**  Noncore assets may not represent our prime assets held long-term. Cap rates are tough to figure out due to varying cost of capital, but we'll provide more specifics next quarter.  **[ARE_3394057_14]** 

2. **Mega Campus Strategy**  
   **Q:** What's the plan for shedding noncore assets?  
   **A:** We aim to increase our mega campus annual rental revenue into the **high 80s or low 90s** percent over the next few years.  **[ARE_3394057_15]**  We're focusing on disposing of noncore assets and doubling down on mega campuses to align with our long-term strategy.  **[ARE_3394057_15]** **[ARE_3394057_21]** 

3. **Leasing Environment**  
   **Q:** Why did average lease terms decline this quarter?  
   **A:** The decline is due to more leasing with early-stage companies, who sign shorter-term leases since they expect to grow.  **[ARE_3394057_16]**  It's not a trend but rather coincidental this quarter.  **[ARE_3394057_16]** 

4. **Supply Outlook**  
   **Q:** Any updates on supply deliveries in key markets?  
   **A:** Supply is progressing as expected. Under **5%** of total inventory is left to deliver this year, and about half that amount next year.  **[ARE_3394057_25]**  No significant new supply is being added or removed.  **[ARE_3394057_25]** 

5. **Leasing Spreads and Guidance**  
   **Q:** Are leasing spreads expected to decline in the second half?  
   **A:** While first-half numbers were strong and above our midpoint, we feel comfortable with our guidance, which implies slightly lower numbers but remains strong in this environment.  **[ARE_3394057_19]** 

6. **Retention Rates**  
   **Q:** Is the lower retention rate a concern?  
   **A:** When normalized for factors like tenants moving within our portfolio (e.g., Moderna's new **462,000** square foot lease), we haven't seen a drop-off in retention.  **[ARE_3394057_33]** 

7. **Early-Stage Leasing Activity**  
   **Q:** Will leasing continue to come from early-stage companies?  
   **A:** The activity with early-stage companies this quarter is consistent with our demand trends.  **[ARE_3394057_24]**  We expect middle-stage companies to become more active over time.  **[ARE_3394057_24]** 

8. **Development Pipeline Delays**  
   **Q:** Why was the 651 Gateway project pushed to 2026?  
   **A:** Due to outsized supply in South San Francisco, the project timeline shifted.  **[ARE_3394057_18]**  However, we have several transactions progressing that weren't active last quarter.  **[ARE_3394057_18]** 

9. **Core vs. Noncore Cap Rates**  
   **Q:** Is there a cap rate spread between core and noncore assets?  
   **A:** Yes, there might be a **100 to 200 basis point** spread between prime mega-campus assets and noncore properties.  **[ARE_3394057_20]** 

10. **Large Tenant Demand**  
    **Q:** What will drive larger tenants to be more active?  
    **A:** A key factor would be the true reopening of the IPO market, signaling confidence from long-term investors and enabling companies to expand.  **[ARE_3394057_32]** 

75da8b369a54a95a2de252b1e1c8bfa7c77174d384a4381415c531a8a6d01139

- **Alexandria is intensifying its focus on highly valuable core mega campus assets**, selling non-core properties to fund their development pipeline without issuing new equity, which enhances their portfolio quality and maintains a strong balance sheet  **[ARE_3403311_17]** .
- **Tenant demand remains strong**, with **80% of leasing activity over the last year coming from existing tenants**, demonstrating high tenant retention and demand for their lab spaces  **[ARE_3403311_22]** .
- **Sublease space in key markets like Boston and the Bay Area has stabilized**, with high-quality sublease space being quickly absorbed, indicating positive market dynamics for Alexandria's properties  **[ARE_3403311_23]** .

d7188e9db11a0dbfdf40e74a4647698a07d9dd4adb25828ee4d6bd4cbdad07a1

- **ARE recognized significant impairments totaling $271.9 million** in the fourth quarter of 2023, including **$93.5 million** related to a Manhattan office property they decided to sell instead of redevelop due to challenging governmental policies.  **[ARE_3371299_10]**
- The company lowered its same-property NOI growth guidance for 2024 to a midpoint of **1.5%** and **4%** on a cash basis, down from **3.4%** and **4.6%** in 2023, indicating expectations of slower growth.  **[ARE_3371299_9]**
- ARE is facing increased **tenant improvement (TI) costs**, with TIs "already pretty high," impacting net effective rents; the oversupply in the market is giving tenants more pricing power and affecting rental rates.  **[ARE_3371299_13]**

8b519c8745c35bfbd45c3fa978841e986bbd40fd60cdf2a58c0f725ff208c576

- **Alexandria is selling non-core assets to fund its development pipeline, which may indicate potential challenges in capital funding and could impact future revenue.** [Indices: [5],  **[ARE_3403311_12]** ,  **[ARE_3403311_21]** ]
- **Demand for lab space is currently conservative due to a disciplined funding environment, potentially affecting leasing demand and revenue growth.** [Index: [8]]
- **The company is focusing on its mega campus strategy to mitigate increased supply in core markets, which may require significant capital investment and could strain resources.** [Indices: [5],  **[ARE_3403311_12]** ]

15e5693c969fc9a1d0d61bfc51f822789ee0b56f68e62bcfaba7ef464651fcdc

- **Strong leasing activity with stable occupancy levels**: Alexandria maintained stable occupancy at **94.6%**  **[ARE_3394057_8]**  and reported solid leasing volumes in the first half of 2024, consistent with historical averages. The company is pleased with its leasing numbers and expects to achieve strong rental rate growth for the full year.  **[ARE_3394057_19]**
- **Strategic asset recycling to strengthen the balance sheet**: ARE plans to sell non-core assets, including approximately **10 million square feet of non-mega campus development potential**  **[ARE_3394057_22]** , to fund its current and future pipeline, focusing on its core mega campus strategy.
- **Positioned for long-term growth in the life science sector**: Despite near-term challenges, ARE is optimistic about the future, emphasizing the critical importance of the life science industry as the "crown jewel" of the country. The company is adjusting its assets and capital plan, focusing on mega campuses to capitalize on long-term growth opportunities.  **[ARE_3394057_27]**

c7beb6164c66876064751cf2948cd22185c4b04fc1222367902e3c175f590f46

1. **Leasing Pipeline and Occupancy**  
   **Q:** How much of occupancy uplift is from signed leases?  
   **A:** We have **300,000 square feet** of leases already signed but not commenced, which will begin next year, giving us a good head start into **2024**.  **[ARE_3371299_12]**  After accounting for space going into redevelopment, we have about **1.8 million square feet** of lease rolls not resolved, which feels manageable relative to our historical leasing run rate.  **[ARE_3371299_12]** 

2. **Trends in Rents and Concessions**  
   **Q:** When will net effective rents bottom out?  
   **A:** It's hard to predict, but net effective rents have been impacted by the **2023 supply**.  **[ARE_3371299_13]**  Tenant improvements (TIs) have increased remarkably but aren't expected to rise further as they're already high.  **[ARE_3371299_13]**  Outside of large tenant requirements, things have been holding relatively well.  **[ARE_3371299_13]** 

3. **Dispositions of Noncore Assets**  
   **Q:** Are you focusing on noncore asset sales?  
   **A:** Yes, we are focused on selling **noncore, noncampus assets** and feel good about that strategy.  **[ARE_3371299_15]** 

4. **Impairment Charges**  
   **Q:** Expect more impairments with asset sales in 2024?  
   **A:** As we commit to certain sales, it's possible to have additional impairments under accounting rules, but it's hard to say as we're refining our approach and which assets to sell.  **[ARE_3371299_18]** 

5. **Investment Gains Guidance**  
   **Q:** Can you achieve $95–$125 million gains despite impairments?  
   **A:** Yes, despite recent impairments, we've averaged **$96 million** in investment gains over the last three years.  **[ARE_3371299_27]**  We have over **$300 million** of unrealized gains we could tap  **[ARE_3371299_28]** , and we're comfortable with our guidance heading into next year.  **[ARE_3371299_27]** 

6. **Free Rent Trends**  
   **Q:** How does free rent burn compare to the past?  
   **A:** We have **$114 million** of free rent burning off  **[ARE_3371299_19]** , which is modest given our **$265 million** annual NOI.  **[ARE_3371299_19]**  Free rent has ticked up from **0.3 months** per year to **0.6 months** but remains relatively modest.  **[ARE_3371299_19]**  During the financial crisis, it was around **1 month**, so we're still healthy.  **[ARE_3371299_19]** 

7. **Impact of M&A on Space Demand**  
   **Q:** Does M&A lead to more space demand?  
   **A:** It varies. Strategic acquisitions, especially for technology platforms with multiple products, often lead to expansions.  **[ARE_3371299_22]**  Smaller bolt-ons may not impact space demand.  **[ARE_3371299_22]** 

8. **Tenant Office vs. Lab Space**  
   **Q:** How are tenants viewing office space needs?  
   **A:** Nontechnical space adjacent to labs is essential and not being rationalized.  **[ARE_3371299_17]**  Biogen is rationalizing pure office space, not lab space.  **[ARE_3371299_17]**  We generally cater to lab-based infrastructure which is not going away.  **[ARE_3371299_17]** 

9. **Leasing Activity and Tenant Decisions**  
   **Q:** Is tenant leasing activity picking up?  
   **A:** It depends on the sector. Big pharma depends on needs, while clinical-stage biotech may delay until hitting milestones.  **[ARE_3371299_29]**  Boards are cautious not to get ahead of their skis.  **[ARE_3371299_29]** 

10. **Increase in Tenant Improvements Costs**  
    **Q:** Are higher TI costs the new normal?  
    **A:** Yes, driven by market competition and increased construction costs.  **[ARE_3371299_31]**  TIs have risen from around **$200** to **$300 per square foot** and are expected to stay at this level.  **[ARE_3371299_31]**  Structural inflation contributes to this trend.  **[ARE_3371299_31]** 

11. **CARGO Therapeutics Lease**  
    **Q:** What drove the decline in rents with CARGO?  
    **A:** It was a unique situation matching vacant space from Atreca with CARGO, leading to a deal with very little downtime and no TIs.  **[ARE_3371299_20]**  It was about finding the perfect tenant for the space.  **[ARE_3371299_20]** 

12. **Concessions in Leasing**  
    **Q:** How are concessions trending in leases?  
    **A:** Increase in tenant improvement concessions is mainly in new development space, rising from around **$200 to $300 per square foot**.  **[ARE_3371299_25]**  In existing properties, concessions aren't needed as the space is already built out.  **[ARE_3371299_25]** 

13. **Same-Store NOI Guidance**  
    **Q:** What’s needed to achieve 3% same-store NOI growth?  
    **A:** We have about half of the **64%** vacancy leased and the other half under negotiation.  **[ARE_3371299_23]**  Progress on leasing and contractual free rent will benefit the second half of the year.  **[ARE_3371299_23]** 

14. **2024 Expirations and Redevelopment**  
    **Q:** Why did expirations moving into redevelopment decline?  
    **A:** We decided to sell the **219 East 42nd Street** asset instead of redeveloping it, accounting for the decline.  **[ARE_3371299_26]**  It's possible more assets could be sold as we evaluate noncore assets.  **[ARE_3371299_26]** 

15. **Asset Sales and Yields**  
    **Q:** What's the yield on recent asset sales?  
    **A:** Stabilized assets in Boston have traded in the **low to mid-5% cap rates**.  **[ARE_3371299_21]**  Well-located assets with good credit and lease terms are expected in the low 5% cap rates; sub-5% cap rates are no longer due to rates.  **[ARE_3371299_21]** 

16. **Tenant Leasing Behavior**  
    **Q:** Are tenants still favoring just-in-time leasing?  
    **A:** Decision-making has been slow; tenants prefer available built space to avoid investing in new space.  **[ARE_3371299_24]**  Larger companies need to plan ahead due to less availability in larger sizes.  **[ARE_3371299_24]** 

17. **Leasing Prospects for 2025 Projects**  
    **Q:** How are leasing prospects for 2025 projects?  
    **A:** We'll address this specifically on our first-quarter call.  **[ARE_3371299_30]** 

18. **Dispositions Buyer Profiles**  
    **Q:** Who are the buyers for noncore assets?  
    **A:** We'd rather not discuss that on an earnings call.  **[ARE_3371299_32]** 

341268564db2f6882b71a32aaf9016fda8e6bb1245abf9b7d107b91415cd6831

1. **Cap Rates on Asset Sales Gap**  
   **Q:** What's causing the gap between asset sales at 4.9% and 7.5% cap rates?  
   **A:** The gap is due to the nature of assets sold. The **4.9%** cap rate sale in Seattle was a core asset sold to a user, while the assets sold at a **7.5%** cash cap rate are stabilized, non-core properties with longer lease terms, particularly in suburban Greater Boston. The wider gap between cash and GAAP cap rates is because of these long-term leases in non-core assets.  **[ARE_3403311_9]** **[ARE_3403311_11]** 

2. **Selling at Higher Cap Rates Than Development Yields**  
   **Q:** Is selling at a 7.5% cap rate to fund developments at a 6.4% yield dilutive to FFO?  
   **A:** Although assets are sold at higher cap rates like **7.5%**, they often require significant capital to re-tenant. By selling these non-core assets, we redeploy proceeds into developing mega campuses with yields around **6.4%**, which aligns with our strategy and reduces future capital expenditures. This approach strengthens long-term growth and value.  **[ARE_3403311_16]** **[ARE_3403311_19]** 

3. **Non-Core Asset Sales and Portfolio Strategy**  
   **Q:** What's the dollar value of non-core assets that can still be sold?  
   **A:** Approximately **24%** of our Annual Rental Revenue comes from non-mega campus assets. Some of these may be sold over time to focus on mega campuses, but others are high-quality assets we'll keep. We also have land not in mega campuses that could be a capital source. The exact dollar value isn't specified.  **[ARE_3403311_12]** **[ARE_3403311_16]** 

4. **Straight-Line Rent Write-Offs**  
   **Q:** Could we see more straight-line rent write-offs like the recent reduction in guidance?  
   **A:** The recent write-off was a one-time event with a specific tenant winding down operations after nearly **20 years**. We consider this an isolated incident and don't expect similar occurrences. Our portfolio remains strong due to our disciplined underwriting and tenant selection.  **[ARE_3403311_20]** 

5. **Leasing Trends and Demand**  
   **Q:** Are you seeing larger space requirements pick up?  
   **A:** Demand is strong among early-stage and revenue-generating companies, while the middle market remains challenging. Companies with good clinical data and approvals are driving leasing activity.  **[ARE_3403311_15]** **[ARE_3403311_26]** 

6. **Sublease Space Stabilization**  
   **Q:** Has sublease space in Boston and the Bay Area stabilized?  
   **A:** Yes, sublease space has stabilized. Quality sublease space doesn't stay on the market long, and we're not seeing significant new additions. Tenants prefer direct leases when possible.  **[ARE_3403311_23]** 

7. **Lengthening Deal Cycles**  
   **Q:** How have leasing deal cycles changed?  
   **A:** Leasing cycles are taking longer as tenants' boards closely scrutinize growth and expenses. Tenants are thorough in evaluating market options, leading to extended timelines for deal completion.  **[ARE_3403311_24]** 

8. **Impact of AI on Future Demand**  
   **Q:** How will AI affect lab space demand?  
   **A:** AI is in early stages but is expected to enhance drug development, particularly in clinical trials. This will increase opportunities for new targets and medicines, positively impacting lab space demand over the long term.  **[ARE_3403311_22]** **[ARE_3403311_27]** 

9. **Disposition Guidance and Capital Use**  
   **Q:** Could you exceed the midpoint of disposition guidance, and what's the use of proceeds?  
   **A:** Given the time of year, we don't expect to exceed the guidance midpoint. Proceeds from asset sales are primarily used to fund our development pipeline, reduce debt, and support our mega campus strategy.  **[ARE_3403311_21]** 

10. **Transaction Market and Investor Appetite**  
    **Q:** Is there appetite from traditional real estate investors for life science assets?  
    **A:** While user sales have been common, investor activity depends on financing conditions. As lending markets improve, we expect increased investor interest and transaction activity in life science real estate.  **[ARE_3403311_25]** 

11. **Realized Gains Guidance**  
    **Q:** Does the full-year realized gains guidance imply significant gains in Q4?  
    **A:** Realized gains for the nine months are **$85.2 million**, aligning with our full-year guidance of **$95 million to $125 million**. We don't expect significant additional gains in Q4 beyond this range.  **[ARE_3403311_13]** 

12. **Texas Tech Tenant Lease Extension**  
    **Q:** What are your long-term plans for the Texas tech tenant space you extended for five years?  
    **A:** Due to confidentiality, we can share that the renewal is integral to the tenant's adjacent campus. The buildings are highly improved for their use. While converting to lab space is an option, the current cash flow and potential future opportunities make this extension prudent.  **[ARE_3403311_14]** 

13. **99 Coolidge Stabilization Delay**  
    **Q:** Why was the stabilization of 99 Coolidge pushed out by a year?  
    **A:** As a brand-new building, it's taking more time to build out space and deliver to tenants in the current market. We recently signed a new lease there, ensuring space is available when tenants need it.  **[ARE_3403311_18]** 

14. **Pockets of Demand for New Space**  
    **Q:** Where are the better pockets of demand for new space?  
    **A:** Demand is strongest among early-stage companies and clinical-stage companies with positive developments. These segments are the most common drivers of new leasing activity.  **[ARE_3403311_15]** **[ARE_3403311_26]** 

15. **Use of Capital from Asset Sales**  
    **Q:** What's the best use of capital from asset sales?  
    **A:** Proceeds are primarily used to fund construction of our development pipeline, reduce debt, and support our mega campus strategy. This reduces the need to issue common equity and strengthens our balance sheet.  **[ARE_3403311_21]** **[ARE_3403311_17]** 

16. **Impact of AI on Lab Space Demand**  
    **Q:** Does AI help or hinder demand for lab space?  
    **A:** AI is expected to positively impact demand by accelerating drug development and increasing opportunities for new medicines. It should lead to more targets and improved outcomes, benefiting our industry.  **[ARE_3403311_22]** **[ARE_3403311_27]** 

17. **Demand Evolution as Funding Improves**  
    **Q:** How do you see demand evolving as funding improves?  
    **A:** While the current environment is conservative, innovation continues, and the industry's long-term outlook is positive. As funding improves, we expect demand to grow, driven by ongoing scientific advancements and unmet medical needs.  **[ARE_3403311_22]** 

d14db7fe113537442f614fd886eca463219994f27d7728b589e02200aca0c736

- **Leasing spreads have weakened, with more muted gains in the second quarter compared to an extremely strong first quarter, particularly due to lower activity in the public biotech segment.**  **[ARE_3394057_31]**
- **Rents have come down from the peaks of 2021-2022, and the company now needs to offer more concessions, such as higher tenant improvements, for newly built space, which could impact profitability.**  **[ARE_3394057_35]**
- **The company's development pipeline may shrink in the future, and they may need to sell non-income-producing assets, like land, to fund current and future projects, indicating potential capital constraints and reduced growth prospects.**  **[ARE_3394057_22]**

2fbec5841d36a84cfb602279086a6fb081ca0340040e1e74b12f073f8648af42

- **Alexandria Real Estate Equities has strong confidence in achieving \$95 million to \$125 million of investment gains in earnings for the coming year**, supported by a historical average of \$96 million in gains over the past three years and anticipated M&A activity in the life science sector.  **[ARE_3371299_28]** ,  **[ARE_3371299_27]**
- **The company has already signed approximately 300,000 square feet of leases that will commence in 2024**, providing a solid head start for occupancy uplift and income growth.  **[ARE_3371299_12]**
- **Despite increased supply and higher tenant improvement costs, net effective rents are holding relatively well in their core markets**, indicating market stability and supporting future revenue prospects.  **[ARE_3371299_13]**

3fbb87bc9413dd0d7927af59823b94d3262102fe51d547f2522a25b9d7339d6c

Alexandria Real Estate Equities Inc (ARE)

Financials