Alexandria Real Estate Equities, Inc. Reports Second Quarter Ended June 30, 2013 Financial and Operating Results

 Alexandria Real Estate Equities, Inc. Reports Second Quarter Ended June 30,
                     2013 Financial and Operating Results

FFO Per Share - Diluted, as Adjusted, of $1.07 for 2Q13

AFFO Per Share - Diluted of $1.00 for 2Q13

EPS Per Share − Diluted of $0.38 for 2Q13

Total Revenues of $154.2 Million for 2Q13

NOI of $107.9 Million for 2Q13

Continued Solid Life Science Space Demand in Key Cluster Submarkets

PR Newswire

PASADENA, Calif., July 29, 2013

PASADENA, Calif., July 29, 2013 /PRNewswire/ --Alexandria Real Estate
Equities, Inc. (NYSE: ARE) today announced financial and operating results for
the second quarter ended June 30, 2013.

Second quarter ended June 30, 2013, highlights

Results

  oFunds from operations ("FFO") attributable to Alexandria Real Estate
    Equities, Inc.'s ("Alexandria's") common stockholders – diluted, as
    adjusted:

       o$71.6 million, or $1.07 per share, for 2Q13 compared to $65.8
         million, or $1.07 per share, for 2Q12
       o$141.6 million, or $2.18 per share, for YTD 2Q13 compared to $132.0
         million, or $2.14 per share, for YTD 2Q12

  oAdjusted funds from operations ("AFFO") attributable to Alexandria's
    common stockholders – diluted:

       o$66.8 million, or $1.00 per share, for 2Q13 compared to $64.0
         million, or $1.04 per share, for 2Q12
       o$134.7 million, or $2.07 per share, for YTD 2Q13 compared to $126.4
         million, or $2.05 per share, for YTD 2Q12

  oNet income attributable to Alexandria's common stockholders – diluted:

       o$25.5 million, or $0.38 per share, for 2Q13 compared to $17.6
         million, or $0.29 per share, for 2Q12
       o$47.9 million, or $0.74 per share, for YTD 2Q13 compared to $36.0
         million, or $0.58 per share, for YTD 2Q12

Core operating metrics

  oTotal revenues from continuing operations:

       o$154.2 million for 2Q13, up 5.9%, compared to $145.6 million for 2Q12
       o$304.6 million YTD 2Q13, up 8.3%, compared to $281.3 million for YTD
         2Q12

  oNet operating income ("NOI") from continuing operations:

       o$107.9 million for 2Q13, up 4.3%, compared to $103.5 million for 2Q12
       o$213.1 million for YTD 2Q13, up 7.2%, compared to $198.7 million for
         YTD 2Q12

  oSame property NOI performance:

       o7.2% and 3.2% increases on a cash and GAAP basis, respectively, for
         2Q13 compared to 2Q12
       o8.3% and 2.0% increases on a cash and GAAP basis, respectively, for
         YTD 2Q13 compared to YTD 2Q12

  oLeasing activity solid during the three months ended June 30, 2013:

       oExecuted 66 leases for 768,000 rentable square feet ("RSF"),
         including 270,000 RSF of development and redevelopment space
       oRental rate increase of 6.7% and 12.7% on a cash and GAAP basis,
         respectively, on renewed/re-leased space
       oKey life science space leasing:

            oInvestment-grade entity leased 121,632 RSF at 430 East 29^th
              Street development in the Greater NYC market
            oIllumina, Inc. leased 97,702 RSF at 499 Illinois Street
              development in the San Francisco Bay Area market
            oSarepta Therapeutics, Inc. leased 46,376 RSF at 215 First Street
              in the Greater Boston market
            oEli Lilly and Company leased 27,950 RSF at 620 Professional
              Drive in the Suburban Washington, D.C. market

       oNominal remaining expiring leases in 2013 of 410,254 RSF, or 3% of
         total operating RSF

  oOccupancy for North American Properties, as of June 30, 2013:

       o94.6% for operating properties and 92.9% for operating and
         redevelopment properties, up 40 bps and 110 bps, respectively, since
         March 31, 2013

  oOperating margins remained steady at 70% for 2Q13 and YTD 2Q13
  oInvestment-grade client tenants represented 46% of total annualized base
    rent ("ABR")
  oInvestment-grade client tenants represented 72% of ABR from our top 10
    client tenants
  oContractual annual rent escalations in 95% of our leases

Balance sheet

  oCompleted in 2Q13 secondary offering of 7.6 million shares of common stock
    at a price of $73.50 per share. The net proceeds of $535.5 million were
    used to repay outstanding balances under our unsecured senior line of
    credit.
  oCompleted in 2Q13 $500 million 3.90% 10-year unsecured senior notes
    payable offering. Net proceeds of $495.3 million were used to reduce
    outstanding variable rate bank debt, including a $150 million partial
    repayment of our $750 million 2016 Unsecured Senior Bank Term Loan and to
    increase our available cash balance. In connection with the partial
    repayment of our 2016 Unsecured Senior Bank Term Loan, we recognized a
    loss on the early extinguishment of debt related to the write-off of
    unamortized loan fees totaling $0.6 million, or $0.01 per share.
  oLiquidity of $1.8 billion, including $1.5 billion available under our
    unsecured senior line of credit and $302.2 million in cash and cash
    equivalents as of June30, 2013.
  oClosed in 2Q13 secured construction loan, with aggregate commitments of
    $36 million at a rate of LIBOR + 1.40%, for 100% pre-leased development
    project at 269 East Grand Avenue in the San Francisco Bay Area market.
  oNet debt to EBITDA of 6.6x for the twelve months ended June 30, 2013.
  oFixed charge coverage ratio of 2.7x for the twelve months ended June 30,
    2013.
  oUnhedged variable rate debt totaling 11% of total consolidated debt as of
    June 30, 2013.
  oCompleted in 2Q13 $22.5 million of real estate property sales, at a gain
    of $1.0 million, as follows:

       o$4.4 million of non-strategic income producing assets at a gain of
         $0.2 million
       o$18.1 million of non-income-producing land at a gain of $0.8 million

Subsequent events

Ariad Pharmaceuticals, Inc. expansion

On July 3, 2013, Ariad Pharmaceuticals, Inc. executed an LOI to lease an
additional 139,374 RSF for a 15 year term at our 75/125 Binney Street
development in the Cambridge submarket of Greater Boston. An amendment to
their lease is under negotiation to increase their lease to 383,497 RSF, or
99% of the total RSF of the project.

Sale of land parcel at 1600 Owens Street

On July 8, 2013, we executed a purchase and sale agreement to dispose of our
land parcel at 1600 Owens Street in the Mission Bay submarket of the San
Francisco Bay Area for an aggregate sales price of $55.2 million, inclusive of
certain parking spaces. Ownership of the parcel was strategically important
to the buyer and we will earn a fee to manage the construction of the
building. This sale is expected to close in December 2013.

Acquisition of 10121/10151 Barnes Canyon Road

On July 5, 2013, we acquired 10121/10151 Barnes Canyon Road, an approximate
116,000 RSF office property located in the Sorrento Mesa submarket of San
Diego, for a total purchase price of $13.1 million. The acquisition will be
funded in two installments: i) $5.4 million to be funded in August, 2013
(which will earn a 7% return until the next payment is made), and ii) $7.7
million to be funded no later than October 2014. The property is currently
100% occupied with leases that expire in 2014 and 2015. We intend to convert
the existing office space into laboratory spacethrough redevelopment when the
space becomes available. Initial stabilized yields will be provided in the
future upon commencement of the redevelopment.

Unsecured senior bank loan financings

On July 26, 2013, we amended our $600 million 2016 Unsecured Senior Bank Term
Loan to reduce our interest rate on outstanding borrowings. We did not extend
the maturity of this loan as we expect to repay the loan over the next one to
three years. In addition, we expect to complete amendments to our $1.5
billion unsecured senior line of credit and our $600 million 2017 Unsecured
Senior Bank Term Loan in the third quarter of 2013 to reduce our interest rate
on outstanding borrowings, extend the maturity dates and amend certain
financial covenants. The commitments available for each facility will not
change.



                     Maturity Date
                     (including          Applicable Rate     Facility Fee
                     extensions)
                    Prior/   Extended/  Prior/   Extended/  Prior/   Extended/
Facility
           Status    Current  Proposed   Current  Proposed   Current  Proposed
$600
million
2016                 June                L
Unsecured  Complete  2016     July 2016  +1.75%   L +1.20%   N/A      N/A
Senior
Bank Term
Loan
$600
million
2017       In        January  January    L
Unsecured  Progress  2017     2019       +1.50%   L +1.20%   N/A      N/A
Senior
Bank Term
Loan
$1.5
billion
unsecured  In        April    January    L        L +1.10%   0.25%    0.20%
senior     Progress  2017     2019       +1.20%
line of
credit

Guidance

Based on our current view of existing market conditions and certain current
assumptions, we have updated guidance for earnings per share attributable to
Alexandria's common stockholders – diluted and FFO per share attributable to
Alexandria's common stockholders – diluted for the year ended December 31,
2013, as set forth in the table below. The table below provides a
reconciliation of FFO per share, a non-GAAP measure, to earnings per share,
the most directly comparable GAAP measure, as well as other key assumptions
included in our guidance for the year ended December 31, 2013. To the extent
our full year earnings guidance is updated during the year, we will provide
additional disclosure supporting reasons for any significant changes to such
guidance.



Guidance for the Year Ended            Reported on           Reported on
December 31, 2013
                                       July 29, 2013         May 13, 2013
Earnings per share attributable to
Alexandria's common stockholders –     $1.53 to $1.63        $1.50 to $1.60
diluted
Depreciation and amortization          $2.76 to $2.86        $2.80 to $2.90
(Gain) loss on sale of real estate     $(0.01)               $0.01
Other                                  $(0.01)               $(0.01)
FFO per share attributable to
Alexandria's common stockholders –     $4.32 to $4.42        $4.35 to $4.45
diluted
Add back: actual 2Q13 per share
loss on early extinguishment of        $0.01                 N/A
debt (1)
Add back: projected 3Q13 per share
loss on early extinguishment of        $0.02                 N/A
debt (1)
FFO per share attributable to
Alexandria's common stockholders -     $4.35 to $4.45        $4.35 to $4.45
diluted, as adjusted
Key projection assumptions:
Same property NOI growth – cash        5% to 7%              5% to 7%
basis
Same property NOI growth – GAAP        1% to 3%              1% to 3%
basis
Rental rate steps on lease
renewals and re-leasing of space –     3% to 5%              1% to 3%
cash basis
Rental rate steps on lease
renewals and re-leasing of space –     11% to 13%            7% to 12%
GAAP basis
Occupancy percentage for all
operating properties at December       94.3% to 94.7%        94.3% to 94.7%
31, 2013
Straight-line rents                    $24 to $26            $24 to $26
                                       million               million
Amortization of above and below        $3 to $4 million      $3 to $4 million
market leases
General and administrative             $48 to $51            $48 to $51
expenses                               million               million
Capitalization of interest             $51 to $57            $51 to $57
                                       million               million
Interest expense, net                  $71 to $81            $71 to $81
                                       million               million
Net debt to adjusted EBITDA for
the annualized three months ended      6.5x                  6.5x
December 31, 2013
Fixed charge coverage ratio for
the annualized three months ended      3.0x                  3.0x
December 31, 2013
Non-income-producing land as a
percentage of gross real estate by     15% to 17%            15% to 17%
December 31, 2013
(1) Represents loss on early extinguishment of debt related to the write-off
of unamortized loan fees of $0.01 per share as a result of the $150 million
partial repayment of our 2016 Unsecured Senior Bank Term Loan during the three
months ended June 30, 2013, and the estimated loss on early extinguishment of
debt related to the write-off of unamortized loan fees of $0.02 per share as a
result of amendments of our 2016 Unsecured Senior Bank Term Loan, 2017
Unsecured Senior Bank Term Loan, and $1.5 billion unsecured senior line of
credit which we expect to complete in the third quarter of 2013.

We expect that our principal liquidity needs for the year ended December 31,
2013, will be satisfied by the following multiple sources of capital as shown
in the table below. There can be no assurance that our sources and uses of
capital will not be materially higher or lower than these expectations.



                      Reported on                                  Reported on

                      July 29, 2013                                May 13, 2013
Sources and Uses of
Capital for the Year  Completed  Projected             Total       Total
Ended December 31,
2013 (in millions)
Sources of capital:
Net cash provided by  $      $ 64 -     $ 130   $ 130
operating activities        84                    - 150       - 150
less dividends        66
Non-income-producing  18          131 -   (1)  149   149
land sales                       171                   - 189       - 189
Income producing      129              129   125
asset sales                      0 - 5                 - 134       - 138
Secured construction  26          19        
loan borrowings                  - 39                  45 - 65     45 - 55
Unsecured senior      500        −                     500          350
notes payable                                                      - 450
Common stock          536        −                     536          415
offering                                                           - 490
Available cash and
borrowings on         −           324 -        324  −
unsecured senior                 369                   - 369
line of credit (2)
Total sources of      $      $ 538 -        $   $ 1,214 -
capital                       668                   1,813 -     1,472
                      1,275                            1,943
Uses of capital:
Development,          $      $ 346 -        $ 599   $ 617
redevelopment, and           376                   - 629       - 667
construction          253
Seller financing of   39         −                     39          39
asset sales
Acquisitions:
 Completed/in        13         64                    77          −
process acquisitions
 Additional          −          123 - 223             123 - 223   200 - 300
acquisitions
Secured notes         32         5                     37          37
payable repayments
Unsecured senior                                                    125
bank term loan        150        −                     150         - 175
repayment
Excess cash retained
from issuance of
unsecured senior
notes payable/        788        −                     788          196
                                                                   - 254
 pay down of
unsecured senior
line of credit
Total uses of         $      $ 538 -        $   $ 1,214 -
capital                       668                   1,813 -     1,472
                      1,275                            1,943
(1) See Balance Sheet section of our Supplemental Package for additional
information.
(2) We had $302.2 million in cash and cash equivalents as of June 30, 2013.

The key assumptions behind the sources and uses of capital in the table are a
favorable capital market environment and performance of our core operations in
areas such as delivery of current and future development and redevelopment
projects, leasing activity, and renewals. Our expected sources and uses of
capital are subject to a number of variables and uncertainties, including
those discussed under the "Forward-looking statements" section under Part I,
the "Risk Factors" section under Item 1A, and the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" section under Item
7, of our annual report on Form 10-K for the year ended December31, 2012. We
expect to update our forecast of sources and uses of capital on a quarterly
basis.

Earnings Call Information

We will host a conference call on Tuesday, July 30, 2013, at 3:00 p.m. Eastern
Time ("ET")/12:00 p.m. noon Pacific Time ("PT") that is open to the general
public to discuss our financial and operating results for the three months
ended June 30, 2013. To participate in this conference call, dial (888)
724-9493 or (913)312-1456 and confirmation code 7393551, shortly before 3:00
p.m. ET/12:00 p.m. noon PT. The audio web cast can be accessed at:
www.are.com, in the "For Investors" section. A replay of the call will be
available for a limited time from 6:00 p.m. ET/3:00 p.m. PT on Tuesday, July
30, 2013. The replay number is (888)203‑1112 or (719) 457-0820 and the
confirmation code is 7393551.

Additionally, a copy of this Earnings Press Release and Supplemental
Information for the second quarter ended June 30, 2013, is available in the
"For Investors" section of our website at www.are.com, or by following this
link: http://www.are.com/fs/2013q2.pdf.

About the Company

Alexandria Real Estate Equities, Inc. (NYSE: ARE), a self-administered and
self-managed investment-grade REIT, is the largest and leading REIT focused
principally on owning, operating, developing, redeveloping, and acquiring
high-quality, sustainable real estate for the broad and diverse life science
industry. Founded in 1994, Alexandria was the first REIT to identify and
pursue the laboratory niche and has since had the first-mover advantage in the
core life science cluster locations including Greater Boston, the San
Francisco Bay Area, San Diego, New York City, Seattle, Suburban Washington,
D.C., and Research Triangle Park. Alexandria's high-credit client tenants
span the life science industry, including renowned academic and medical
institutions, multinational pharmaceutical companies, public and private
biotechnology entities, United States government research agencies, medical
device companies, industrial biotech companies, venture capital firms, and
life science product and service companies. As the recognized real estate
partner of the life science industry, Alexandria has a superior track record
in driving client tenant productivity, collaboration, and innovation through
its best-in-class laboratory and office space adjacent to leading academic
medical research centers, unparalleled life science real estate expertise and
services, and a longstanding and expansive network in the life science
community. We believe these advantages result in higher occupancy levels,
longer lease terms, higher rental income, higher returns, and greater
long-term asset value. For additional information on Alexandria, please visit
www.are.com.

This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended.Such forward-looking statements
include, without limitation, statements regarding our 2013 earnings per share
attributable to Alexandria's common stockholders − diluted, 2013 FFO per share
attributable to Alexandria's common stockholders − diluted, NOI and our
projected sources and uses of capital for the year ended December 31, 2013.
These forward-looking statements are based on our current expectations,
beliefs, projections, future plans, strategies, anticipated events, trends,
and similar expressions concerning matters that are not historical facts, as
well as a number of assumptions concerning future events. These statements
are subject to risks, uncertainties, assumptions and other important factors
that could cause actual results to differ materially from the results
discussed in the forward-looking statements. Factors that might cause such a
difference include, without limitation, our failure to obtain capital (debt,
construction financing, and/or equity) or refinance debt maturities, increased
interest rates and operating costs, adverse economic or real estate
developments in our markets, our failure to successfully complete and lease
our existing space held for redevelopment and new properties acquired for that
purpose and any properties undergoing development, our failure to successfully
operate or lease acquired properties, decreased rental rates or increased
vacancy rates or failure to renew or replace expiring leases, defaults on or
non-renewal of leases by client tenants, general and local economic
conditions, and other risks and uncertainties detailed in our filings with the
SEC. Accordingly, you are cautioned not to place undue reliance on such
forward-looking statements. All forward-looking statements are made as of the
date of this press release, and we assume no obligation to update this
information and expressly disclaim any obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise. For more discussion relating to risks and uncertainties
that could cause actual results to differ materially from those anticipated in
our forward-looking statements, and risks to our business in general, please
refer to our SEC filings, including our most recent annual report on Form 10-K
and any subsequent quarterly reports on Form 10-Q.



ALEXANDRIA REAL ESTATE EQUITIES, INC.
June 30, 2013



Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
               Three Months Ended                            Six Months Ended
               6/30/13  3/31/13  12/31/12  9/30/12  6/30/12  6/30/13  6/30/12
Revenues:
Rental         $      $      $       $      $      $      $  
               114,743  111,776  112,048   106,216  104,329  226,519  205,530
Tenant         35,923   35,611   35,721    34,006   31,881   71,534   63,763
recoveries
Other income   3,569    2,993    3,785     2,628    9,383    6,562    12,011
Total revenues 154,235  150,380  151,554   142,850  145,593  304,615  281,304
Expenses:
Rental         46,323   45,224   46,176    44,203   42,102   91,547   82,555
operations
General and    12,472   11,648   12,635    12,470   12,298   24,120   22,655
administrative
Interest       15,978   18,020   17,941    17,092   17,922   33,998   34,148
Depreciation
and            46,580   46,065   47,515    46,584   50,741   92,645   92,527
amortization
Impairment of  −        −        2,050     −        −        −        −
land parcel
Loss on early
extinguishment 560      −        −         −        1,602    560      2,225
of debt
Total expenses 121,913  120,957  126,317   120,349  124,665  242,870  234,110
Income from
continuing     32,322   29,423   25,237    22,501   20,928   61,745   47,194
operations
Income (loss)
from
discontinued
operations:
Income from
discontinued
operations
before        243      814      5,171     5,603    4,713    1,057    9,358


impairment of
real estate
Impairment of  −        −        (1,601)   (9,799)  −        −        −
real estate
Income (loss)
from
discontinued   243      814      3,570     (4,196)  4,713    1,057    9,358
operations,
net
Gain on sale   772      −        −         −        −        772      1,864
of land parcel
Net income     33,337   30,237   28,807    18,305   25,641   63,574   58,416
Net income
attributable
to             980      982      1,012     828      851      1,962    1,562
noncontrolling
interests
Dividends on
preferred      6,471    6,471    6,471     6,471    6,903    12,942   14,386
stock
Preferred
stock          −        −        −         −        −        −        5,978
redemption
charge
Net income
attributable
to unvested
restricted   403      342      324       360      271      745      506

 stock
awards
Net income
attributable
to             $     $     $      $     $     $     $   
Alexandria's   25,483   22,442   21,000    10,646   17,616   47,925   35,984
common

stockholders
Earnings per
share
attributable
to
Alexandria's
common
stockholders –
basic and
diluted:
Continuing     $     $     $      $     $     $     $   
operations                     0.27                        
               0.38     0.35               0.24     0.21     0.72     0.43
Discontinued
operations,    −        0.01     0.06      (0.07)   0.08     0.02     0.15
net
Earnings per   $     $     $      $     $     $     $   
share – basic                  0.33                        
and diluted    0.38     0.36               0.17     0.29     0.74     0.58
Weighted
average shares
of common
stock
outstanding
for
calculating
earnings per
share
attributable
to
Alexandria's
common
stockholders:
– Basic        66,973   63,161   63,092    62,364   61,663   65,078   61,586
– Diluted      66,973   63,161   63,092    62,364   61,664   65,078   61,586





ALEXANDRIA REAL ESTATE EQUITIES, INC.
June 30, 2013



Consolidated Balance Sheets
(In thousands)
(Unaudited)
                        June 30,   March 31,  December   September  June 30,
                                              31,        30,
                        2013       2013       2012       2012       2012
Assets
Investments in real     $       $       $       $       $   
estate, net             6,453,379  6,375,182  6,424,578  6,300,027  6,208,354
Cash and cash           302,205    87,001     140,971    94,904     80,937
equivalents
Restricted cash         30,914     30,008     39,947     44,863     41,897
Tenant receivables      7,577      9,261      8,449      10,124     6,143
Deferred rent           177,507    170,100    170,396    160,914    155,295
Deferred leasing and    164,362    159,872    160,048    152,021    151,355
financing costs, net
Investments             122,605    123,543    115,048    107,808    104,454
Other assets            120,740    135,952    90,679     94,356     93,304
Total assets            $       $       $       $       $   
                        7,379,289  7,090,919  7,150,116  6,965,017  6,841,739
Liabilities,
Noncontrolling
Interests, and Equity
Secured notes payable   $      $      $      $      $    
                        711,029   730,714   716,144   719,350   719,977
Unsecured senior notes  1,048,395  549,816    549,805    549,794    549,783
payable
Unsecured senior line   −          554,000    566,000    413,000    379,000
of credit
Unsecured senior bank   1,200,000  1,350,000  1,350,000  1,350,000  1,350,000
term loans
Accounts payable,
accrued expenses, and   368,249    367,153    423,708    376,785    348,037
tenant security
deposits
Dividends payable       52,141     43,955     41,401     39,468     38,357
Total liabilities       3,379,814  3,595,638  3,647,058  3,448,397  3,385,154
Commitments and
contingencies
Redeemable 
noncontrolling          14,505     14,534     14,564     15,610     15,817
interests
Alexandria Real Estate
Equities, Inc.'s
stockholders' equity:
Series D Cumulative
Convertible Preferred   250,000    250,000    250,000    250,000    250,000
Stock
Series E Cumulative
Redeemable Preferred    130,000    130,000    130,000    130,000    130,000
Stock
Common stock            710        633        632        632        622
Additional paid-in      3,596,477  3,075,860  3,086,052  3,094,987  3,053,269
capital
Accumulated other       (39,565)   (22,890)   (24,833)   (19,729)   (37,370)
comprehensive loss
Alexandria's            3,937,622  3,433,603  3,441,851  3,455,890  3,396,521
stockholders' equity
Noncontrolling          47,348     47,144     46,643     45,120     44,247
interests
Total equity            3,984,970  3,480,747  3,488,494  3,501,010  3,440,768
Total  liabilities,     $       $       $       $       $   
noncontrolling          7,379,289  7,090,919  7,150,116  6,965,017  6,841,739
interests, and equity





ALEXANDRIA REAL ESTATE EQUITIES, INC.
June 30, 2013



Funds From Operations and Adjusted Funds From Operations
(In thousands, except per share amounts)
(Unaudited)
The following table presents a reconciliation of net income attributable to
Alexandria's common stockholders − basic, the most directly comparable financial
measure presented in accordance with GAAP, to FFO attributable to Alexandria's common
stockholders − diluted, FFO attributable to Alexandria's common stockholders – diluted,
as adjusted, and AFFO attributable to Alexandria's common stockholders – diluted, for
the periods below:
                      Three Months Ended                            Six Months Ended
                      6/30/13  3/31/13  12/31/12  9/30/12  6/30/12  6/30/13   6/30/12
Net income
attributable to       $     $     $      $     $     $      $   
Alexandria's common   25,483  22,442  21,000   10,646  17,616  47,925   35,984
stockholders – basic
 Depreciation    46,580   46,995   48,072    48,173   52,355   93,575    95,760
and amortization
 Loss (gain) on  (219)    340      −         (1,562)  (2)      121       (2)
sale of real estate
 Impairment of   −        −        1,601     9,799    −        −         −
real estate
 Gain on sale of (772)    −        −         −        −        (772)     (1,864)
land parcel
 Amount
attributable to
noncontrolling
interests/unvested
restricted stock
awards:
 Net       1,383    1,324    1,336     1,188    1,122    2,707     2,068
income
 FFO       (1,437)  (1,064)  (1,109)   (1,148)  (1,133)  (2,501)   (2,305)
FFO attributable to
Alexandria's  common  71,018   70,037   70,900    67,096   69,958   141,055   129,641
stockholders – basic
Assumed conversion of
8.00% Unsecured       5        5        5         5        6        10        11
Senior Convertible
Notes
FFO attributable to
Alexandria's common   71,023   70,042   70,905    67,101   69,964   141,065   129,652
stockholders –
diluted
 Realized gain
on equity investment
primarily related to
one non-tenant life   −        −        −         −        (5,811)  −         (5,811)
science 

  entity
 Impairment of   −        −        2,050     −        −        −         −
land parcel
 Loss on early
extinguishment of     560      −        −         −        1,602    560       2,225
debt
 Preferred stock −        −        −         −        −        −         5,978
redemption charge
 Allocation to
unvested restricted   (12)     −        (19)      −        35       (12)      (20)
stock awards
FFO attributable to
Alexandria's common   71,571   70,042   72,936    67,101   65,790   141,613   132,024
stockholders –
diluted, as adjusted

Non-revenue-enhancing
capital expenditures:
 Maintenance    (337)    (596)    (329)     (935)    (594)    (933)     (804)
building improvements
 Tenant
improvements and      (2,990)  (882)    (3,170)   (1,844)  (2,148)  (3,872)   (4,167)
leasing commissions
 Straight-line   (8,239)  (6,198)  (9,240)   (5,225)  (5,195)  (14,437)  (13,991)
rent revenue
 Straight-line
rent expense on       539      538      471       201      1,207    1,077     2,613
ground leases
 Capitalized
income from           9        22       45        50       72       31        550
development projects
 Amortization of
acquired above and    (830)    (830)    (844)     (778)    (778)    (1,660)   (1,578)
below market leases
 Amortization of 2,427    2,386    2,505     2,470    2,214    4,813     4,857
loan fees
 Amortization of
debt                  115      115      110       112      110      230       289
premiums/discounts
 Stock           4,463    3,349    3,748     3,845    3,274    7,812     6,567
compensation
 Allocation to
unvested restricted   50       19       63        19       15       69        48
stock awards
AFFO attributable to
Alexandria's common   $     $     $      $     $     $       $  
stockholders –        66,778  67,965  66,295   65,016  63,967  134,743   126,408
diluted





The following table presents a reconciliation of net income per share attributable to
Alexandria's common stockholders − basic, to FFO per share attributable to
Alexandria's common stockholders − diluted, FFO per share attributable to
Alexandria's common stockholders – diluted, as adjusted, and AFFO per share
attributable to Alexandria's common stockholders – diluted, for the periods below.
For the computation of the weighted average shares used to compute the per share
information, refer to the "Definitions and Other Information" section in our
supplemental information:
                      Three Months Ended                            Six Months Ended
                      6/30/13  3/31/13  12/31/12  9/30/12  6/30/12  6/30/13  6/30/12
Net income per share
attributable to       $0.38    $0.36    $0.33     $0.17    $0.29    $0.74    $0.58
Alexandria's common
stockholders – basic
 Depreciation    0.69     0.74     0.76      0.78     0.84     1.43     1.56
and amortization
 Loss (gain) on  −        0.01     −         (0.03)   −        0.01     −
sale of real estate
 Impairment of   −        −        0.03      0.16     −        −        −
real estate
 Gain on sale of (0.01)   −        −         −        −        (0.01)   (0.03)
land parcel
 Amount
attributable to
noncontrolling
interests/unvested
restricted stock
awards:
 Net       0.02     0.02     0.02      0.02     0.02     0.04     0.03
income
 FFO       (0.02)   (0.02)   (0.02)    (0.02)   (0.02)   (0.04)   (0.04)
FFO per share
attributable to       1.06     1.11     1.12      1.08     1.13     2.17     2.11
Alexandria's  common
stockholders – basic
 Assumed
conversion of 8.00%   −        −        −         −        −        −        −
Unsecured Senior
Convertible Notes
FFO per share
attributable to
Alexandria's common   1.06     1.11     1.12      1.08     1.13     2.17     2.11
stockholders –
diluted
 Realized gain
on equity investment
primarily related to
one non-tenant life   −        −        −         −        (0.09)   −        (0.09)
science 

  entity
 Impairment of   −        −        0.04      −        −        −        −
land parcel
 Loss on early
extinguishment of     0.01     −        −         −        0.03     0.01     0.03
debt
 Preferred stock −        −        −         −        −        −        0.10
redemption charge
 Allocation to
unvested restricted   −        −        −         −        −        −        −
stock awards
FFO per share
attributable to
Alexandria's common   1.07     1.11     1.16      1.08     1.07     2.18     2.14
stockholders –
diluted, as adjusted

Non-revenue-enhancing
capital expenditures:
 Maintenance    (0.01)   (0.01)   (0.01)    (0.01)   (0.01)   (0.01)   (0.01)
building improvements
 Tenant
improvements and      (0.04)   (0.01)   (0.05)    (0.03)   (0.03)   (0.06)   (0.07)
leasing commissions
 Straight-line   (0.12)   (0.10)   (0.15)    (0.08)   (0.08)   (0.22)   (0.23)
rent revenue
 Straight-line
rent expense on       0.01     0.01     0.01      −        0.02     0.02     0.04
ground leases
 Amortization of
acquired above and    (0.01)   (0.01)   (0.01)    (0.01)   (0.01)   (0.03)   (0.03)
below market leases
 Amortization of 0.03     0.04     0.04      0.03     0.03     0.07     0.09
loan fees
 Stock           0.07     0.05     0.06      0.06     0.05     0.12     0.11
compensation
 Allocation to
unvested restricted   −        −        −         −        −        −        −
stock awards
 Other           −        −        −         −        −        −        0.01
AFFO per share
attributable to
Alexandria's common   $1.00    $1.08    $1.05     $1.04    $1.04    $2.07    $2.05
stockholders –
diluted





SOURCE Rx Communications Group LLC

Website: http://www.are.com
Contact: Joel S. Marcus, Chairman, Chief Executive Officer, & Founder,
Alexandria Real Estate Equities, Inc., (626) 578-9693