PASADENA, Calif., Aug. 6 /PRNewswire-FirstCall/ --
Highlights
Second Quarter 2009:
- Second Quarter 2009 Funds from Operations Per Share (Diluted) Attributable to Alexandria Real Estate Equities, Inc.'s Common Stockholders of $1.59, up 10%, Compared to Second Quarter 2008 Funds from Operations Per Share (Diluted) Attributable to Alexandria Real Estate Equities, Inc.'s Common Stockholders of $1.44
- Second Quarter 2009 Earnings Per Share (Diluted) Attributable to Alexandria Real Estate Equities, Inc.'s Common Stockholders of $0.82, up 34%, Compared to Second Quarter 2008 Earnings Per Share (Diluted) Attributable to Alexandria Real Estate Equities, Inc.'s Common Stockholders of $0.61
- Second Quarter 2009 GAAP Same Property Revenues Less Operating Expenses up 2.2%
- Executed 49 Leases for 473,000 Rentable Square Feet; Six Months Ended June 30, 2009 Executed 82 Leases for 936,000 Rentable Square Feet
- Second Quarter 2009 GAAP Rental Rate Increase of 3.3% on Renewed/Released Space
- Second Quarter Occupancy Increases to 94.5%
- Operating Margins Steady at 74%
- Closed 8% Unsecured Convertible Notes Offering with Net Proceeds of $233 Million
- Repurchased, in Privately Negotiated Transactions, $75 Million (Par Value) of Our 3.70% Unsecured Convertible Notes
- Reduced $100 Million of Secured Debt Obligations
- Extended 2009 Maturity to 2012 of a Secured Note Payable Aggregating $38 Million; Since January 1, 2008, Extended or Refinanced $448 Million of Secured Notes Payable
July 2009:
- Entered Into 15-Year Lease with Eli Lilly and Company as Anchor Tenant at Alexandria Center for Science and Technology at East River Science Park, New York City
- Executed Term Sheet for 10-Year Secured Loan for $120 Million
- Krupal Raval Joins Alexandria as Vice President - Capital Markets, Former Fidelity Management and Research Analyst and Citi/Smith Barney REIT Equity Research Analyst
Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced operating and financial results for the second quarter ended June 30, 2009.
For the second quarter of 2009, we reported Funds from Operations ("FFO") attributable to Alexandria Real Estate Equities, Inc.'s common stockholders of $68,401,000, or $1.59 per share (diluted), compared to FFO attributable to Alexandria Real Estate Equities, Inc.'s common stockholders of $45,779,000, or $1.44 per share (diluted), for the second quarter of 2008. Comparing the second quarter of 2009 to the second quarter of 2008, FFO attributable to Alexandria Real Estate Equities, Inc.'s common stockholders and FFO attributable to Alexandria Real Estate Equities, Inc.'s common stockholders per share (diluted) increased 49% and 10%, respectively. For the six months ended June 30, 2009, we reported Funds from Operations ("FFO") attributable to Alexandria Real Estate Equities, Inc.'s common stockholders of $129,764,000, or $3.43 per share (diluted), compared to FFO attributable to Alexandria Real Estate Equities, Inc.'s common stockholders of $84,047,000, or $2.65 per share (diluted), for six months ended June 30, 2008. Comparing the six months ended June 30, 2009 to the six months ended June 30, 2008, FFO attributable to Alexandria Real Estate Equities, Inc.'s common stockholders and FFO attributable to Alexandria Real Estate Equities, Inc.'s common stockholders per share (diluted) increased 54% and 29%, respectively. In the second quarter of 2009, we recognized a gain on early extinguishment of debt of approximately $11,254,000 related to the repurchase, in privately negotiated transactions, of approximately $75 million (par value) of our 3.70% unsecured convertible notes. Additionally, during the second quarter of 2009, we recognized income of approximately $7,242,000 for a cash payment related to real estate acquired in November 2007. For purposes of this paragraph, FFO attributable to Alexandria Real Estate Equities, Inc.'s common stockholders includes the effect of the assumed conversion of our 8% unsecured convertible notes.
FFO is a non-GAAP measure widely used by publicly traded real estate investment trusts. We compute FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in its April 2002 White Paper and related implementation guidance. A reconciliation of GAAP net income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders to FFO attributable to Alexandria Real Estate Equities, Inc.'s common stockholders is included in the financial information accompanying this press release. The primary reconciling item between GAAP net income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders and FFO attributable to Alexandria Real Estate Equities, Inc.'s common stockholders is depreciation and amortization expense. Depreciation and amortization expense for the three months ended June 30, 2009 and 2008 was $29,722,000 and $27,003,000, respectively. Depreciation and amortization expense for the six months ended June 30, 2009 and 2008 was $61,168,000 and $52,813,000, respectively. Net income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders for the second quarter of 2009 was $35,498,000, or $0.82 per share (diluted), compared to net income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders of $19,421,000, or $0.61 per share (diluted), for the second quarter of 2008. Net income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders for the six months ended June 30, 2009 was $68,287,000, or $1.81 per share (diluted), compared to net income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders of $52,195,000, or $1.65 per share (diluted), for the six months ended June 30, 2008. For purposes of this paragraph, net income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders includes the effect of the assumed conversion of our 8% unsecured convertible notes.
For the second quarter of 2009, we executed a total of 49 leases for approximately 473,000 rentable square feet of space at 27 different properties (excluding month-to-month leases). Of this total, approximately 368,000 rentable square feet related to new or renewal leases of previously leased space and approximately 105,000 rentable square feet related to developed, redeveloped or previously vacant space. Of the 105,000 rentable square feet, approximately 65,000 rentable square feet were delivered from our development or redevelopment programs, with the remaining approximately 40,000 rentable square feet related to previously vacant space. Rental rates for these new or renewal leases were on average approximately 3.3% higher (on a GAAP basis) than rental rates for expiring leases.
For the six months ended June 30, 2009, we executed a total of 82 leases for approximately 936,000 rentable square feet of space at 38 different properties (excluding month-to-month leases). Of this total, approximately 618,000 rentable square feet related to new or renewal leases of previously leased space and approximately 318,000 rentable square feet related to developed, redeveloped or previously vacant space. Of the 318,000 rentable square feet, approximately 108,000 rentable square feet were delivered from our development or redevelopment programs, with the remaining approximately 210,000 rentable square feet related to previously vacant space. Rental rates for these new or renewal leases were on average approximately 4.0% higher (on a GAAP basis) than rental rates for expiring leases.
During the six months ended June 30, 2009, we sold three properties aggregating 64,218 rentable square feet to a life science user. These properties were located in San Diego and were sold for approximately $14,449,000 at a gain of approximately $2,234,000. As of June 30, 2009, one property with approximately 92,711 rentable square feet was classified as "held for sale" and is expected to be sold to a life science user.
In July 2009, we announced that we entered into a 15-year lease with Eli Lilly and Company ("Lilly") as the anchor tenant at the Alexandria Center for Science and Technology at East River Science Park ("the Alexandria Center"), a highly advanced state-of-the-art urban science park. Lilly has leased approximately 91,000 rentable square feet, as well as an additional approximately 9,000 rentable square feet of core services space, at the Alexandria Center, which will become the new research headquarters for ImClone Systems, a wholly-owned subsidiary of Lilly, and New York City's life science collaboration and translational research epicenter.
In July 2009, we executed a term sheet with an insurance company for a secured loan approximating $120 million. The term sheet includes a 10-year term and is secured by several operating properties.
Additionally in July 2009, we announced that Krupal Raval will join the Company as Vice President - Capital Markets. Mr. Raval joins the Company with seven solid years as a real estate equity research analyst. Mr. Raval's career experience includes being a top ranked research analyst at Fidelity Management and Research and Citi/Smith Barney in addition to recognition as a National Scholar from Cornell University. While at Citi/Smith Barney, the REIT equity research team was ranked number one for several years by Institutional Investors.
As of June 30, 2009, approximately 89% of our leases (on a rentable square footage basis) were triple net leases, requiring tenants to pay substantially all real estate taxes and insurance, common area and other operating expenses, including increases thereto. In addition, approximately 8% of our leases (on a rentable square footage basis) required the tenants to pay a majority of operating expenses. Additionally, approximately 92% of our leases (on a rentable square footage basis) provided for the recapture of certain capital expenditures, and approximately 93% of our leases (on a rentable square footage basis) contained effective annual rent escalations that were either fixed or indexed based on the consumer price index or another index.
Based on our current view of existing market conditions and certain current assumptions, our updated guidance for FFO per share (diluted) attributable to Alexandria Real Estate Equities, Inc.'s common stockholders and earnings per share (diluted) attributable to Alexandria Real Estate Equities, Inc.'s common stockholders are as follows:
2009
----
FFO per share (diluted) (1) $5.60 (1)
Earnings per share (diluted) (1) $2.58 (1)
(1) Our guidance for 2009 has been updated to reflect the $7.2 million
gain for a cash payment related to real estate acquired in November 2007
and also reflects the $11.3 million gain on early extinguishment of debt.
Our guidance for FFO per share (diluted) for the twelve months ended
December 31, 2009 assumes conversion of our 8% unsecured convertible
notes as the impact of the notes is expected to be dilutive under the
"if-converted" method pursuant to Statement of Financial Accounting
Standards No. 128, "Earnings per Share". Our guidance for earnings per
share (diluted) for the twelve months ended December 31, 2009, however,
does not assume conversion as the "if-converted" method for our 8%
unsecured convertible notes is expected to be anti-dilutive.
Alexandria Real Estate Equities, Inc. ("Alexandria") has a very broad and diversified quality client tenant base. As of June 30, 2009, on a rental revenue basis by sector, Alexandria's multinational pharmaceutical client tenants represented approximately 27% of its client tenant mix, led by its top three client tenants Novartis AG, GlaxoSmithKline plc and Roche Holding Ltd; public biopharmaceutical companies represented approximately 21% and included the three largest in the sector, Amgen Inc., Gilead Sciences, Inc. and Celgene Corporation; revenue producing life science product and service companies represented approximately 17%, led by Quest Diagnostics Incorporated, Laboratory Corporation of America Holdings and Qiagen N.V.; government agencies and renown medical and research institutions represented approximately 14%, including The Scripps Research Institute, Massachusetts Institute of Technology, Fred Hutchinson Cancer Research Center, University of Washington, the Burnham Institute for Medical Research and the United States Government; private biopharmaceutical companies represented approximately 13% and were dominated by high-quality, leading-edge companies with blue chip venture and institutional investors, including Ambrx, Inc., BrainCells Inc., Ikaria Holdings, Inc., Macrogenics Inc. and Proteostatsis Therapeutics, Inc.; the remaining approximately 8% consisted of traditional office tenants. The two fastest growing sectors by revenue currently include leading institutional and multinational pharmaceutical client tenants. Alexandria's innovative business model, very strong and unique life sciences and underwriting skills with substantial experience and expertise, long-term life science industry relationships and sophisticated management with both real estate and life science operating experience and expertise, set Alexandria apart from all other publicly-traded real estate investment trusts ("REITs").
Alexandria Real Estate Equities, Inc., Landlord of Choice to the Life Science Industry(R), is the largest owner and pre-eminent first-in-class REIT focused principally on science-driven cluster formation. Alexandria is the leading provider of high-quality environmentally sustainable real estate, technical infrastructure, and services to the broad and diverse life science industry. Client tenants include institutional (universities and independent not-for-profit institutions), pharmaceutical, biopharmaceutical, medical device, product, service and translational entities, as well as government agencies. Alexandria's operating platform is based on the principle of "clustering," with assets and operations located in key life science markets. Our asset base approximates 12.8 million rentable square feet consisting of 156 properties approximating 11.7 million rentable square feet (including spaces undergoing active redevelopment) and properties undergoing ground-up development approximating an additional 1.1 million rentable square feet.
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 2009 earnings per share (diluted) attributable to Alexandria Real Estate Equities, Inc.'s common stockholders, 2009 FFO per share (diluted) attributable to Alexandria Real Estate Equities, Inc.'s common stockholders and our redevelopment and development projects. Our actual results may differ materially from those projected in such 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 tenants, general and local economic conditions and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission ("SEC"). All forward-looking statements are made as of today, and we assume no obligation to update this information. 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.
Condensed Consolidated Income Statements
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2009 2008 (1) 2009 2008 (1)
---- ------- ---- -------
Income statement data
Total revenues $121,432 $108,778 $253,303 $217,465
Expenses
Rental operations 29,059 27,145 61,189 55,029
General and
administrative 8,803 8,447 18,219 17,232
Interest 21,063 18,739 40,956 41,885
Depreciation and
amortization 29,525 26,735 60,794 52,122
Non-cash impairment
on investments 1,985
------ ------ ------ ------
Total expenses 88,450 81,066 181,158 168,253
Gain on early
extinguishment of
debt 11,254 11,254
------ ------ ------ ------
Income from
continuing
operations 44,236 27,712 83,399 49,212
(Loss) income from
discontinued
operations, net (120) 64 1,966 15,715
------ ------ ------ ------
Net income 44,116 27,776 85,365 64,927
Net income
attributable to
noncontrolling
interests 4,362 948 5,237 1,899
Dividends on
preferred stock 7,089 7,118 14,178 10,046
Net income
attributable to
unvested
restricted stock
awards 367 290 868 790
------ ------ ------ ------
Net income
attributable to
Alexandria Real
Estate Equities,
Inc.'s common
stockholders $32,298 $19,420 $65,082 $52,192
======= ======= ======= =======
Earnings per share
attributable to
Alexandria Real
Estate Equities,
Inc.'s common
stockholders -
basic
Continuing
operations $0.83 $0.61 $1.77 $1.16
Discontinued
operations, net 0.05 0.49
------ ------ ------ ------
Earnings per share
- basic $0.83 $0.61 $1.82 $1.65
====== ====== ====== ======
Earnings per share
attributable to
Alexandria Real
Estate Equities,
Inc.'s common
stockholders -
diluted
Continuing operations $0.82 $0.61 $1.76 $1.16
Discontinued
operations, net 0.05 0.49
------ ------ ------ ------
Earnings per share
- diluted $0.82 $0.61 $1.81 $1.65
====== ====== ====== ======
(1) Includes the retrospective impact of FASB Staff Position No. APB 14-1,
"Accounting for Convertible Debt Instruments That May Be Settled in
Cash Upon Conversion (Including Partial Cash Settlement)" ("FSP APB
14-1"), FASB Staff Position No. EITF 03-6-1, "Determining Whether
Instruments Granted in Share-Based Payment Transactions Are
Participating Securities" ("FSP EITF 03-6-1") and Statement of
Financial Accounting Standards No. 160, "Noncontrolling Interests in
Consolidated Financial Statements" ("SFAS 160").
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, December 31,
2009 2008 (1)
---- -------
Assets
Rental properties, net $3,483,679 $3,325,201
Properties undergoing development
and redevelopment, and land held
for development 1,406,451 1,398,895
Cash and cash equivalents 70,313 71,161
Tenant security deposits and other
restricted cash 51,683 67,782
Tenant receivables 4,665 6,453
Deferred rent 87,697 85,733
Investments 66,068 61,861
Other assets 116,097 114,991
---------- ----------
Total assets $5,286,653 $5,132,077
========== ==========
Liabilities and Equity
Secured notes payable $941,600 $1,081,963
Unsecured line of credit and
unsecured term loan 1,307,000 1,425,000
Unsecured convertible notes 577,984 431,145
Accounts payable, accrued expenses
and tenant security deposits 312,313 386,801
Dividends payable 20,005 32,105
---------- ----------
Total liabilities 3,158,902 3,357,014
Redeemable noncontrolling interests 41,012 33,963
Alexandria Real Estate Equities,
Inc. stockholders' equity:
Series C preferred stock 129,638 129,638
Series D cumulative convertible
preferred stock 250,000 250,000
Common stock 390 319
Additional paid-in capital 1,718,737 1,407,294
Accumulated other comprehensive loss (53,013) (87,241)
---------- ----------
Total Alexandria Real Estate
Equities, Inc. stockholders' equity 2,045,752 1,700,010
Noncontrolling interests 40,987 41,090
---------- ----------
Total equity 2,086,739 1,741,100
---------- ----------
Total $5,286,653 $5,132,077
========== ==========
(1) Includes the retrospective impact of FSP APB 14-1, FSP EITF 03-6-1
and SFAS 160.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Earnings per Share
(Unaudited)
Earnings per Share ("EPS")
The following table presents the computation of basic and diluted EPS
for the three and six months ended June 30, 2009 and 2008 (in thousands,
except share and per share data):
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2009 2008 (1) 2009 2008 (1)
---- ------- ---- -------
Net income attributable
to Alexandria Real
Estate Equities, Inc.'s
common stockholders -
numerator for basic
earnings per share $32,298 $19,420 $65,082 $52,192
Assumed conversion of 8%
unsecured convertible
notes (2) 3,197 3,197
Net income attributable
to unvested restricted
stock awards 3 1 8 3
--------- --------- --------- ---------
Net income attributable
to Alexandria Real
Estate Equities, Inc.'s
common stockholders -
numerator for diluted
earnings per share $35,498 $19,421 $68,287 $52,195
========== ========== ========== ==========
Weighted average shares
of common stock
outstanding for
calculating earnings per
share attributable to
Alexandria Real Estate
Equities, Inc.'s common
stockholders -
denominator for basic
earnings per share 38,929,971 31,615,359 35,722,375 31,580,974
Effect of dilutive
securities and assumed
conversion:
Dilutive effect of stock
options 1,167 124,932 6,662 133,225
Assumed conversion of 8%
unsecured convertible
notes (2) 4,140,787 2,081,832
---------- ---------- ---------- ----------
Weighted average shares
of common stock
outstanding for
calculating earnings per
share attributable to
Alexandria Real Estate
Equities, Inc.'s common
stockholders -
denominator for diluted
earnings per share 43,071,925 31,740,291 37,810,869 31,714,199
========== ========== ========== ==========
Earnings per share
attributable to
Alexandria Real Estate
Equities, Inc.'s common
stockholders
Basic $0.83 $0.61 $1.82 $1.65
========== ========== ========== ==========
Diluted $0.82 $0.61 $1.81 $1.65
========== ========== ========== ==========
(1) Includes the retrospective impact of FSP APB 14-1, FSP EITF 03-6-1
and SFAS 160.
(2) We applied the "if-converted" method of accounting in accordance with
Statement of Financial Accounting Standards No. 128, "Earnings per
Share" ("SFAS 128)" for our 8% unsecured convertible notes.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Funds from Operations
(Unaudited)
Funds from Operations ("FFO") (1)
The following table presents a reconciliation of net income attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders, the most
directly comparable GAAP financial measure to FFO, to FFO attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders for the
three and six months ended June 30, 2009 and 2008 (in thousands, except
share and per share data):
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2009 2008 (2) 2009 2008 (2)
---- ------- ---- -------
Net income attributable to
Alexandria Real Estate
Equities, Inc.'s common
stockholders $32,298 $19,420 $65,082 $52,192
Add: Depreciation and
amortization (3) 29,722 27,003 61,168 52,813
Add: Net income
attributable to
noncontrolling interests 4,362 948 5,237 1,899
Add: Net income
attributable to unvested
restricted stock awards 367 290 868 790
Subtract: Gain on sales
of property (4) (182) (2,234) (20,395)
Subtract: FFO attributable
to noncontrolling interests (842) (1,018) (1,919) (1,985)
Subtract: FFO attributable
to unvested restricted
stock awards (740) (684) (1,687) (1,272)
---------- ---------- ---------- ----------
FFO attributable to Alexandria
Real Estate, Inc.'s common
stockholders - numerator for
basic FFO per share 65,167 45,777 126,515 84,042
Add: Assumed conversion
of 8% unsecured convertible
notes (5) 3,197 3,197
Add: FFO attributable to
unvested restricted stock
awards 37 2 52 5
---------- ---------- ---------- ----------
FFO attributable to Alexandria
Real Estate, Inc.'s common
stockholders assuming effect
of dilutive securities and
assumed conversion - numerator
for diluted FFO per share $68,401 $45,779 $129,764 $84,047
========== ========== ========== ==========
Weighted average shares of
common stock outstanding for
calculating FFO per share
attributable to Alexandria
Real Estate Equities, Inc.'s
common stockholders -
denominator for basic
FFO per share 38,929,971 31,615,359 35,722,375 31,580,974
Effect of dilutive
securities and assumed
conversion:
Dilutive effect of stock
options 1,167 124,932 6,662 133,225
Assumed conversion of 8%
unsecured convertible
notes (5) 4,140,787 2,081,832
---------- ---------- ---------- ----------
Weighted average shares of
common stock outstanding
for calculating FFO per
share attributable to
Alexandria Real Estate
Equities, Inc.'s common
stockholders - denominator
for diluted FFO per share 43,071,925 31,740,291 37,810,869 31,714,199
========== ========== ========== ==========
FFO per share attributable
to Alexandria Real Estate
Equities, Inc.'s common
stockholders
Basic $1.67 $1.45 $3.54 $2.66
========== ========== ========== ==========
Diluted $1.59 $1.44 $3.43 $2.65
========== ========== ========== ==========
(1) See definition on page 34.
(2) Includes the retrospective impact of FSP APB 14-1, FSP EITF 03-6-1
and SFAS 160.
(3) Includes depreciation and amortization for assets "held for sale"
reflected as discontinued operations (for the periods prior to when
such assets were designated as "held for sale").
(4) Gain on sales of property relates to the disposition of three
properties sold during the first quarter 2009, one property sold
during the second quarter 2008 and six properties sold during the
first quarter 2008. Gain on sales of property is included in the
income statement in income from discontinued operations, net.
(5) We applied the "if-converted" method of accounting in accordance
with Statement of Financial Accounting Standards No. 128, "Earnings
per Share" ("SFAS 128") for our 8% unsecured convertible notes.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
2009 Guidance Summary
June 30, 2009
(Unaudited)
FFO per Share
(Diluted)
Attributable to
Common
Event Stockholders
----- ------------------
Guidance as reported on February 9, 2009 in
connection with our fourth quarter 2008 earnings call $6.26
Follow-on common equity offering on March 19, 2009 (0.74)
Issuance of 8% $240 million unsecured convertible
notes on April 21, 2009 (0.38)
Estimate of gain on early extinguishment of debt 0.28
Other 0.01
----
Guidance provided on April 23, 2009 5.43
Other income related to cash payment for asset
acquired in 2007 0.17
----
Guidance as reported on August 6, 2009 in connection
with our second quarter 2009 earnings call $5.60
=====
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Reported FFO per Share (Diluted)
June 30, 2009
(Unaudited)
The following table presents a summary of reported FFO per share (diluted)
attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders for the fourth quarter of 2008, first quarter of 2009 and
the second quarter of 2009 and the impact of certain items in reported
FFO per share (diluted) from quarter to quarter. Various items impact
actual FFO per share (diluted) results period to period including, among
many others, capital events, non-recurring items, leasing activity,
timing of lease commencement and lease end dates, operating expenses,
cost of borrowings and general and administrative expenses.
