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

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

EPS - Diluted of $0.35

FFO Per Share - Diluted, as Adjusted, of $1.06

AFFO Per Share - Diluted of $0.99

Total Revenues of $158.6 Million

NOI of $110.9 Million

Significant Delivery of Value-Creation Projects

PR Newswire

PASADENA, Calif., Oct. 28, 2013

PASADENA, Calif., Oct.28, 2013 /PRNewswire/ --Alexandria Real Estate
Equities, Inc. (NYSE: ARE) today announced financial and operating results for
the third quarter ended September 30, 2013.

Results

  oNet income attributable to Alexandria Real Estate Equities, Inc.'s
    ("Alexandria's") common stockholders – diluted:

       o$24.6 million, or $0.35 per share, for 3Q13 compared to $10.6
         million, or $0.17 per share, for 3Q12
       o$72.5 million, or $1.08 per share, for YTD 3Q13 compared to $46.6
         million, or $0.75 per share, for YTD 3Q12

  oFunds from operations ("FFO") attributable to Alexandria common
    stockholders – diluted, as adjusted:

       o$75.0 million, or $1.06 per share, for 3Q13 compared to $67.1
         million, or $1.08 per share, for 3Q12
       o$216.6 million, or $3.23 per share, for YTD 3Q13 compared to $199.1
         million, or $3.22 per share, for YTD 3Q12

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

       o$70.2 million, or $0.99 per share, for 3Q13 compared to $65.0
         million, or $1.04 per share, for 3Q12
       o$205.0 million, or $3.06 per share, for YTD 3Q13 compared to $191.4
         million, or $3.09 per share, for YTD 3Q12

Core operating metrics

  oTotal revenues from continuing operations:

       o$158.6 million for 3Q13, up 11.0%, compared to $142.9 million for
         3Q12
       o$463.2 million YTD 3Q13, up 9.2%, compared to $424.2 million for YTD
         3Q12

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

       o$110.9 million for 3Q13, up 12.4%, compared to $98.6 million for 3Q12
       o$324.0 million for YTD 3Q13, up 8.9%, compared to $297.4 million for
         YTD 3Q12

  oSame property NOI performance:

       o4.7% and 1.9% increases on a cash and GAAP basis, respectively, for
         3Q13 compared to 3Q12
       o6.5% and 2.0% increases on a cash and GAAP basis, respectively, for
         YTD 3Q13 compared to YTD 3Q12

  oLeasing activity strong during the three months ended September 30, 2013:

       oExecuted 57 leases for 829,533 rentable square feet ("RSF"),
         including 228,311 RSF of development and redevelopment space
       oRental rate increase of 4.1% and 16.5% on a cash and GAAP basis,
         respectively, on renewed/re-leased space

  oOccupancy for North American properties, as of September 30, 2013:

       o95.0% for operating properties and 94.5% for operating and
         redevelopment properties, up 40 basis points ("bps") and 160 bps,
         respectively, compared to June30, 2013

  oOperating margins steady at 70% for 3Q13 and YTD 3Q13
  oInvestment-grade client tenants represent 50% of total annualized base
    rent ("ABR")

Value-creation projects and external growth

Value-creation development and redevelopment projects delivered in 3Q13

  oOn September 30, 2013, we delivered a build-to-suit development project
    located at 225 Binney Street in the Greater Boston market:

       o305,212 RSF, 100% leased to Biogen Idec Inc. for 15 years
       oInitial stabilized yields of 7.7% and 8.2% for cash and GAAP,
         respectively; average cash yield of 8.2%

  oDuring the quarter ended September 30, 2013, we delivered an aggregate of
    155,818 RSF at four redevelopment projects in North America:

       oTotal redevelopment spaces aggregating 222,082 RSF with occupancy of
         83%, including 155,818 RSF delivered in 3Q13 at an average occupancy
         of 76%, and 66,264 RSF placed in service prior to 3Q13 with occupancy
         of 100%
       oAverage initial stabilized yields for the 222,082 RSF of 7.0% and
         7.1% for cash and GAAP, respectively; average cash yield of 7.3%

Acquisitions

On September 16, 2013, we acquired 407 Davis Drive, a Class A
laboratory/office property in our Research Triangle Park market for a total
purchase price of $19.4 million. The building consists of 81,956 RSF and is
100% leased to Bayer AG, an existing client tenant of the Company. The
initial stabilized cash and GAAP yields are 7.8% and 8.7%, respectively. The
average cash yield for the project is 8.7%.

On July 5, 2013, we acquired 10121/10151 Barnes Canyon Road, a 115,895 RSF
office property located in the Sorrento Mesa submarket of San Diego, for a
total purchase price of $13.1 million. The property is currently 100%
occupied with leases that expire in 2014 and 2015. We intend to convert the
existing office space through redevelopment when the spaces become available.
Initial stabilized yields and average cash yield will be provided upon
commencement of the redevelopment.

Dispositions

On July 2, 2013, we executed a purchase and sale agreement to sell 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. Ownership of the
parcel was strategically important to the buyer and we will earn a fee to
manage the building construction. This sale is expected to close in December
2013.

Balance sheet

  oReduced outstanding debt under our unsecured senior line of credit and
    unsecured senior bank term loans by $802.0 million since December 31, 2012
  oClosed a secured construction loan with aggregate commitments of $245.4
    million at a rate of LIBOR + 1.35%, for our development project at 75/125
    Binney Street in the Greater Boston market
  oLiquidity of $1.54 billion, consisting of $1.49 billion available under
    our unsecured senior line of credit and $53.8 million in cash and cash
    equivalents as of September 30, 2013
  oNet debt to adjusted EBITDA of 6.8x for the three months ended September
    30, 2013 (annualized)
  oFixed charge coverage ratio of 2.8x for the three months ended September
    30, 2013 (annualized)
  oUnhedged variable rate debt at 10% of total consolidated debt as of
    September 30, 2013
  oNon-income-producing assets (CIP and land) at 19% of gross investments in
    real estate as of September 30, 2013, down from 23% as of December 31,
    2012, due to deliveries of development and redevelopment projects noted
    above

Unsecured senior bank loan financings and repayments

On July 26, 2013, we amended our 2016 unsecured senior bank term loan ("2016
Unsecured Senior Bank Term Loan") to reduce the interest rate on outstanding
borrowings. We expect to repay the loan over the next one to three years. In
addition, on August 30, 2013, we amended our $1.5 billion unsecured senior
line of credit and our 2019 unsecured senior bank term loan ("2019 Unsecured
Senior Bank Term Loan") to reduce the interest rate on outstanding borrowings,
extend the maturity dates, and amend certain financial covenants. Also on
August 30, 2013, we amended our 2016 Unsecured Senior Bank Term Loan to
conform certain financial covenants to those contained in the amended credit
agreement related to the unsecured senior line of credit and the 2019
Unsecured Senior Bank Term Loan. The maturity dates below reflect available
extension options that we control.

                   Balance  MaturityDate     ApplicableRate   FacilityFee
                   at
Facility           9/30/13  Prior    Amended  Prior   Amended   Prior  Amended
2016 Unsecured     $500     June     July     L
Senior Bank Term   million  2016     2016     +1.75%  L +1.20%  N/A    N/A
Loan
2019 Unsecured     $600     January  January  L
Senior Bank Term   million  2017     2019     +1.50%  L +1.20%  N/A    N/A
Loan
$1.5 billion       $14      April    January  L
unsecured senior   million  2017     2019     +1.20%  L +1.10%  0.25%  0.20%
line of credit

On September 30, 2013, we paid down $100 million on our 2016 Unsecured Senior
Bank Term Loan to a total outstanding balance of $500 million. During the
three months ended September 30, 2013, in conjunction with the refinancing of
our unsecured senior bank term loans and the partial repayment of $100 million
of our 2016 Unsecured Senior Bank Term Loan, we recognized a loss on early
extinguishment of debt totaling $1.4 million, due to the write-off of
unamortized loan fees.

Subsequent events

Update on our ground-up development at 499 Illinois Street

In October 2013, we executed a 10-year lease with a high-quality
biopharmaceutical company for 43,625 RSF at 499 Illinois Street in the Mission
Bay submarket of the San Francisco Bay Area which is now 77% pre-leased.

Update on our ground-up development at 75/125 Binney Street

During the third quarter of 2013, ARIAD Pharmaceuticals, Inc. ("Ariad")
executed an amendment to their lease at 75/125 Binney Street and increased
their RSF by 141,988 to a total of 386,111 RSF, or 99.4% of the entire
property. This project represents a ground-up development of two buildings
consisting of 167,909 RSF at 75 Binney Street and 220,361 RSF at 125 Binney
Street. Each building may accommodate flexible laboratory/office
multi-tenancy with relatively minor modifications. During the third quarter
of 2013, we updated the design and budget for the expansion requirements for
Ariad. Based upon the preliminary design and budget for Ariad's interior
improvements, we expect an increase in both estimated net operating income and
estimated cost at completion, with no significant change in our initial cash
and GAAP yields and average cash yields. We expect to finalize the design and
budget for the interior improvements in the future and will provide an update
on our estimated cost at completion and targeted yields.

In October 2013, Ariad announced changes in the clinical development program
of Iclusig and discontinuation of the phase 3 Evaluation of Ponatinib versus
Imatinib in Chronic Myeloid Leukemia ("EPIC") trial of Iclusig (ponatinib) in
patients with newly diagnosed chronic myeloid leukemia. Ariad's chief
scientific officer stated in a recent press release that their decision to
stop the EPIC trial was based on the current evaluation of safety data in the
trial. Ariad further announced that Iclusig is commercially available in the
U.S. and EU for patients with resistant or intolerant CML and
Philadelphia-chromosome positive acute lymphoblastic leukemia. Additionally,
in a recent investor conference call, management of Ariad indicated that they
are working on a substantially revised financial plan. Due to the recent
nature of these events, it is too early to predict the impact of these events
and we will continue to intensively monitor Ariad's plans.

Guidance

Based on our current view of existing market conditions and other assumptions,
we have updated guidance for earnings per share attributable to Alexandria's
common stockholders – diluted, FFO per share attributable to Alexandria's
common stockholders – diluted, and FFO per share attributable to Alexandria's
common stockholders – diluted, as adjusted, each for the year ended December
31, 2013. The table below provides a reconciliation of FFO per share
attributable to Alexandria's common stockholders – diluted, and FFO per share
attributable to Alexandria's common stockholders – diluted, as adjusted,
non-GAAP measures, 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.

Guidance for the Year Ended December31,    Reported on        Reported on
2013
                                            October 28, 2013   July 29, 2013
Earnings per share attributable to          $ 1.54 - 1.58      $ 1.53 - 1.63
Alexandria's common stockholders – diluted
Add back: depreciation and amortization       2.81 - 2.85        2.76 - 2.86
Less: gain on sale of real estate             (0.01)             (0.01)
Other                                         (0.01)             (0.01)
FFO per share attributable to
Alexandria's common stockholders –            4.35 - 4.39        4.32 - 4.42
diluted
Add back: loss on early extinguishment of     0.03               0.03
debt
FFO per share attributable to Alexandria's  $ 4.38 - 4.42      $ 4.35 - 4.45
common stockholders – diluted, as adjusted
Key projection assumptions:
Same property NOI growth – cash basis         5% - 7%            5% - 7%
Same property NOI growth – GAAP basis         1% - 3%            1% - 3%
Rental rate steps on lease renewals and       3% - 5%            3% - 5%
re-leasing of space – cash basis
Rental rate steps on lease renewals and       14% - 16%          11% - 13%
re-leasing of space – GAAP basis
Occupancy percentage for operating            94.3% - 94.8%      94.3% - 94.7%
properties at December31, 2013
Straight-line rents                         $ 24 - 26 million  $ 24 - 26
                                                                 million
Amortization of above and below market      $ 3 - 4 million    $ 3 - 4 million
leases
General and administrative expenses         $ 48 - 51 million  $ 48 - 51
                                                                 million
Capitalization of interest                  $ 51 - 57 million  $ 51 - 57
                                                                 million
Interest expense, net                       $ 71 - 81 million  $ 71 - 81
                                                                 million
Net debt to adjusted EBITDA – three
months ended December31, 2013 –              6.5x               6.5x
annualized
Fixed charge coverage ratio – three
months ended December31, 2013 –              3.0x               3.0x
annualized
Non-income-producing assets as a percentage
of gross real estate as of December 31,       15% - 17%          15% - 17%
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.

Sources and Uses of Capital   Reported on                         Reported on
for the Year Ended December                                       July 29,
31, 2013 (in millions)        October 28, 2013                    2013
                              Completed  Projected     Total        Total
Sources of capital:
Net cash provided by
operating activities less     $  93     $ 32 - 42    $ 125 - 135  $ 130 - 150
dividends
Land sales                    18          55           73           149 - 189
Income-producing asset sales  129         —            129          129 - 134
Secured construction loan     26          14 - 34      40 - 60      45 - 65
borrowings
Secured loans assumed in      —           48           48           —
connection with acquisitions
Unsecured senior notes        500         —            500          500
payable
Common stock offering         536         —            536          536
Available cash and borrowings
on unsecured senior line of   271         58 - 108     329 - 379    324 - 369
credit
Total sources of capital      $  1,573  $ 207 - 287  $ 1,780 -    $ 1,813 -
                                                       1,860        1,943
Uses of capital:
Development, redevelopment,   $  429    $ 137 - 167  $ 566 - 596  $ 599 - 629
and construction
Seller financing of asset     39          —            39           39
sales
Acquisitions                  33          67 - 117     100 - 150    200 - 300
Secured notes payable         34          3            37           37
repayments
Unsecured senior bank term    250         —            250          150
loan repayment
Excess cash retained from
issuance of unsecured senior
notes                         788         —            788          788
 payable/paydown of
unsecured senior line of
credit
Total uses of capital         $  1,573  $ 207 - 287  $ 1,780 -    $ 1,813 -
                                                       1,860        1,943

The key assumptions behind the sources and uses of capital in the table above
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 and the "Risk Factors" section under Item 1A of our annual report on
Form 10-K for the year ended December 31, 2012, and in subsequent quarterly
reports on Form 10-Q. 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, October29, 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 September 30, 2013. To participate in this conference call, dial
888-637-7738 or 913-312-0403 and confirmation code 7917011, shortly before
3:00 p.m. ET/12:00 p.m. noon PT. The audio webcast 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,
October29, 2013. The replay number is 888-203-1112 or 719-457-0820 and the
confirmation code is 7917011.

Additionally, a copy of this Earnings Press Release and Supplemental
Information for the third quarter ended September 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/2013q3.pdf.

About the Company

Alexandria Real Estate Equities, Inc. (NYSE: ARE), a self-administered and
self-managed investment-grade real estate investment trust ("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.

  oPioneered Labspace® niche in 1994, leading to considerable first-mover
    advantage in AAA cluster locations
  oCore 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
  oHigh quality Class A laboratory/office assets and operations
  oHigh-credit client tenants spanning the life science industry, including:

       oAcademic and medical institutions
       oMultinational pharmaceutical companies
       oPublic and private biotechnology entities
       oUnited States government research agencies
       oMedical device companies
       oIndustrial biotech companies
       oVenture capital firms
       oLife science product and service companies

  oUnparalleled real estate and life science management expertise and
    experience with fully-integrated regional teams
  oUnique and proven proprietary products, services, and amenities designed
    to foster life science collaboration, innovation, productivity and
    wellness
  oGlobal network of deep and longstanding relationships
  oLandlord of choice to the life science industry

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 document 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.
You can identify the forward-looking statements by their use of
forward-looking words, such as "believes," "expects," "may," "will," "should,"
"seeks," "intends," "plans," "estimates," "anticipates," or "projects," or the
negative of those words or similar words. These forward-looking statements
are based on our current expectations, beliefs, projections, future plans and
strategies, anticipated events or 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 Securities and Exchange
Commission ("SEC"). Accordingly, you are cautioned not to place undue
reliance on such forward-looking statements. All forward-looking statements
are made as of October 28, 2013, the date this document was first made
available on our website, 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.

Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)
               Three Months Ended                                     Nine Months Ended
               9/30/13    6/30/13    3/31/13    12/31/12   9/30/12    9/30/13    9/30/12
Revenues:
Rental         $ 116,302  $ 114,743  $ 111,776  $ 112,048  $ 106,216  $ 342,821  $ 311,746
Tenant         38,757     35,923     35,611     35,721     34,006     110,291    97,769
recoveries
Other income   3,571      3,569      2,993      3,785      2,628      10,133     14,639
Total revenues 158,630    154,235    150,380    151,554    142,850    463,245    424,154
Expenses:
Rental         47,742     46,323     45,224     46,176     44,203     139,289    126,758
operations
General and    11,666     12,472     11,648     12,635     12,470     35,786     35,125
administrative
Interest       16,171     15,978     18,020     17,941     17,092     50,169     51,240
Depreciation
and            49,102     46,580     46,065     47,515     46,584     141,747    139,111
amortization
Impairment of  —          —          —          2,050      —          —          —
land parcel
Loss on early
extinguishment 1,432      560        —          —          —          1,992      2,225
of debt
Total expenses 126,113    121,913    120,957    126,317    120,349    368,983    354,459
Income from
continuing     32,517     32,322     29,423     25,237     22,501     94,262     69,695
operations
(Loss) income
from
discontinued
operations:
(Loss) income
from
discontinued
operations     (64)       243        814        5,171      5,603      993        14,961
before
impairment of
real estate
Impairment of  —          —          —          (1,601)    (9,799)    —          (9,799)
real estate
(Loss) income
from
discontinued   (64)       243        814        3,570      (4,196)    993        5,162
operations,
net
Gain on sale   —          772        —          —          —          772        1,864
of land parcel
Net income     32,453     33,337     30,237     28,807     18,305     96,027     76,721
Net income
attributable
to             960        980        982        1,012      828        2,922      2,390
noncontrolling
interests
Dividends on
preferred      6,472      6,471      6,471      6,471      6,471      19,414     20,857
stock
Preferred
stock          —          —          —          —          —          —          5,978
redemption
charge
Net income
attributable
to unvested    442        403        342        324        360        1,187      866
restricted
stock awards
Net income
attributable
to             $ 24,579   $ 25,483   $ 22,442   $ 21,000   $ 10,646   $ 72,504   $ 46,630
Alexandria's
common
stockholders
Earnings per
share
attributable
to
Alexandria's
common
stockholders –
basic and
diluted:
Continuing     $ 0.35     $ 0.38     $ 0.35     $ 0.27     $ 0.24     $ 1.07     $ 0.67
operations
Discontinued
operations,    —          —          0.01       0.06       (0.07)     0.01       0.08
net
Earnings per
share – basic  $ 0.35     $ 0.38     $ 0.36     $ 0.33     $ 0.17     $ 1.08     $ 0.75
and diluted
Weighted
average shares
of common
stock
outstanding
for
calculating
earnings per
share
attributable
to
Alexandria's
common
stockholders:
– Basic        70,900     66,973     63,161     63,092     62,364     67,040     61,847
– Diluted      70,900     66,973     63,161     63,092     62,364     67,040     61,847





Consolidated Balance Sheets

(In thousands)

(Unaudited)
                 9/30/13      6/30/13      3/31/13      12/31/12     9/30/12
Assets
Investments in
real estate,     $ 6,613,761  $ 6,453,379  $ 6,375,182  $ 6,424,578  $ 6,300,027
net
Cash and cash    53,839       302,205      87,001       140,971      94,904
equivalents
Restricted cash  30,654       30,914       30,008       39,947       44,863
Tenant           8,671        7,577        9,261        8,449        10,124
receivables
Deferred rent    182,909      177,507      170,100      170,396      160,914
Deferred
leasing and      179,805      164,362      159,872      160,048      152,021
financing
costs, net
Investments      129,163      122,605      123,543      115,048      107,808
Other assets     159,567      120,740      135,952      90,679       94,356
Total assets     $ 7,358,369  $ 7,379,289  $ 7,090,919  $ 7,150,116  $ 6,965,017
Liabilities,
Noncontrolling
Interests, and
Equity
Secured notes    $ 708,653    $ 711,029    $ 730,714    $ 716,144    $ 719,350
payable
Unsecured
senior notes     1,048,190    1,048,395    549,816      549,805      549,794
payable
Unsecured
senior line of   14,000       —            554,000      566,000      413,000
credit
Unsecured
senior bank      1,100,000    1,200,000    1,350,000    1,350,000    1,350,000
term loans
Accounts
payable, accrued
expenses, and    452,139      368,249      367,153      423,708      376,785
tenant
 security
deposits
Dividends        54,413       52,141       43,955       41,401       39,468
payable
Total            3,377,395    3,379,814    3,595,638    3,647,058    3,448,397
liabilities
Commitments and
contingencies
Redeemable
noncontrolling   14,475       14,505       14,534       14,564       15,610
interests
Alexandria Real
Estate
Equities,Inc.'s
stockholders'
equity:
SeriesD
cumulative       250,000      250,000      250,000      250,000      250,000
convertible
preferred stock
SeriesE
cumulative       130,000      130,000      130,000      130,000      130,000
redeemable
preferred stock
Common stock     711          710          633          632          632
Additional       3,578,343    3,596,477    3,075,860    3,086,052    3,094,987
paid-in capital
Accumulated
other            (40,026)     (39,565)     (22,890)     (24,833)     (19,729)
comprehensive
loss
Alexandria's
stockholders'    3,919,028    3,937,622    3,433,603    3,441,851    3,455,890
equity
Noncontrolling   47,471       47,348       47,144       46,643       45,120
interests
Total equity     3,966,499    3,984,970    3,480,747    3,488,494    3,501,010
Total
liabilities,
noncontrolling   $ 7,358,369  $ 7,379,289  $ 7,090,919  $ 7,150,116  $ 6,965,017
interests, and
equity



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:

                      ThreeMonthsEnded                                NineMonthsEnded
                      9/30/13   6/30/13   3/31/13   12/31/12  9/30/12   9/30/13    9/30/12
Net income
attributable to       $ 24,579  $ 25,483  $ 22,442  $ 21,000  $ 10,646  $ 72,504   $ 46,630
Alexandria's common
stockholders – basic
Depreciation and      49,102    46,580    46,995    48,072    48,173    142,677    143,933
amortization
(Gain) loss on sale   —         (219)     340       —         (1,562)   121        (1,564)
of real estate
Impairment of real    —         —         —         1,601     9,799     —          9,799
estate
Gain on sale of land  —         (772)     —         —         —         (772)      (1,864)
parcel
Amount attributable
to noncontrolling
interests/unvested
restricted stock
awards:
Net income            1,402     1,383     1,324     1,336     1,188     4,109      3,256
FFO                   (1,494)   (1,437)   (1,064)   (1,109)   (1,148)   (3,995)    (3,452)
FFO attributable to
Alexandria's common   73,589    71,018    70,037    70,900    67,096    214,644    196,738
stockholders – basic
Assumed conversion of
8.00% unsecured       5         5         5         5         5         15         16
senior convertible
notes
FFO attributable to
Alexandria's common   73,594    71,023    70,042    70,905    67,101    214,659    196,754
stockholders –
diluted
Realized gain on
equity investment
primarily related to  —         —         —         —         —         —          (5,811)
one non-tenant life
science entity
Impairment of land    —         —         —         2,050     —         —          —
parcel
Loss on early
extinguishment of     1,432     560       —         —         —         1,992      2,225
debt
Preferred stock       —         —         —         —         —         —          5,978
redemption charge
Allocation to
unvested restricted   (11)      (12)      —         (19)      —         (23)       (21)
stock awards
FFO attributable to
Alexandria's common   75,015    71,571    70,042    72,936    67,101    216,628    199,125
stockholders –
diluted, as adjusted
Non-revenue-enhancing
capital expenditures:
Maintenance building  (1,481)   (337)     (596)     (329)     (935)     (2,414)    (1,739)
improvements
Tenant improvements
and leasing           (3,739)   (2,990)   (882)     (3,170)   (1,844)   (7,611)    (6,011)
commissions
Straight-line rent    (5,570)   (8,239)   (6,198)   (9,240)   (5,225)   (20,007)   (19,216)
revenue
Straight-line rent
expense on ground     374       539       538       471       201       1,451      2,814
leases
Capitalized income
from development      40        9         22        45        50        71         600
projects
Amortization of
acquired above and    (830)     (830)     (830)     (844)     (778)     (2,490)    (2,356)
below market leases
Amortization of loan  2,487     2,427     2,386     2,505     2,470     7,300      7,327
fees
Amortization of debt  153       115       115       110       112       383        401
premiums/discounts
Stock compensation    3,729     4,463     3,349     3,748     3,845     11,541     10,412
Allocation to
unvested restricted   28        50        19        63        19        105        67
stock awards
AFFO attributable to
Alexandria's common   $ 70,206  $ 66,778  $ 67,965  $ 66,295  $ 65,016  $ 204,957  $ 191,424
stockholders –
diluted

The following table presents the reconciliation above on a per share basis.
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:

                      ThreeMonthsEnded                            NineMonthsEnded
                      9/30/13  6/30/13  3/31/13  12/31/12  9/30/12  9/30/13   9/30/12
Net income per share
attributable to       $  0.35  $  0.38  $  0.36  $  0.33   $  0.17  $   1.08  $  0.75
Alexandria's common
stockholders – basic
Depreciation and      0.69     0.69     0.74     0.76      0.78     2.13      2.34
amortization
Loss (gain) on sale   —        —        0.01     —         (0.03)   —         (0.03)
of real estate
Impairment of real    —        —        —        0.03      0.16     —         0.16
estate
Gain on sale of land  —        (0.01)   —        —         —        (0.01)    (0.03)
parcel
Amount attributable
to noncontrolling
interests/unvested
restricted stock
awards:
Net income            0.02     0.02     0.02     0.02      0.02     0.06      0.05
FFO                   (0.02)   (0.02)   (0.02)   (0.02)    (0.02)   (0.06)    (0.06)
FFO per share
attributable to
Alexandria's common   1.04     1.06     1.11     1.12      1.08     3.20      3.18
stockholders – basic
and diluted
Realized gain on
equity investment
primarily related to  —        —        —        —         —        —         (0.09)
one non-tenant life
science entity
Impairment of land    —        —        —        0.04      —        —         —
parcel
Loss on early
extinguishment of     0.02     0.01     —        —         —        0.03      0.03
debt
Preferred stock       —        —        —        —         —        —         0.10
redemption charge
FFO per share
attributable to
Alexandria's common   1.06     1.07     1.11     1.16      1.08     3.23      3.22
stockholders –
diluted, as adjusted
Non-revenue-enhancing
capital expenditures:
Maintenance building  (0.02)   (0.01)   (0.01)   (0.01)    (0.01)   (0.04)    (0.03)
improvements
Tenant improvements
and leasing           (0.05)   (0.04)   (0.01)   (0.05)    (0.03)   (0.11)    (0.10)
commissions
Straight-line rent    (0.08)   (0.12)   (0.10)   (0.15)    (0.08)   (0.30)    (0.31)
revenue
Straight-line rent
expense on ground     0.01     0.01     0.01     0.01      —        0.02      0.05
leases
Amortization of
acquired above and    (0.01)   (0.01)   (0.01)   (0.01)    (0.01)   (0.04)    (0.04)
below market leases
Amortization of loan  0.03     0.03     0.04     0.04      0.03     0.12      0.11
fees
Stock compensation    0.05     0.07     0.05     0.06      0.06     0.17      0.17
Other                 —        —        —        —         —        0.01      0.02
AFFO per share
attributable to
Alexandria's          $  0.99  $  1.00  $  1.08  $  1.05   $  1.04  $   3.06  $  3.09
commonstockholders–
diluted





SOURCE Alexandria Real Estate Equities, Inc.

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