Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively


(MENAFN- PR Newswire) PASADENA, Calif., Oct. 21, 2024 /PRNewswire/ -- Alexandria Real estate Equities, Inc. (NYSE: ARE ) announced financial and operating results for the third quarter ended September 30, 2024.

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Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

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Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. Reports: 3Q24 And YTD 3Q24 Net Income Per Share - Diluted Of $0.96 And $2.18, Respectively    And 3Q24 And YTD 3Q24 FFO Per Share - Diluted, As Adjusted, Of $2.37 And $7.08, Respectively Image

Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)
Alexandria Real Estate Equities, Inc. All rights reserved. ©2024 (PRNewsfoto/Alexandria Real Estate Equities, Inc.)

Key highlights














YTD


Operating results

3Q24


3Q23


3Q24


3Q23


Total revenues:









In millions

$

791.6


$

713.8


$

2,327.4


$

2,128.5


Growth

10.9
%



9.3
%



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

In millions

$

164.7


$


21.9


$

374.5


$

184.4


Per share

$


0.96


$


0.13


$


2.18


$


1.08


Funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted:



In millions

$

407.9


$

386.4


$

1,217.3


$

1,142.5


Per share

$


2.37


$


2.26


$


7.08


$


6.69


An industry-leading REIT with a high-quality, diverse tenant base and strong margins

(As of September
30, 2024, unless stated otherwise)





Occupancy of operating properties in North America


94.7
%



Percentage of annual rental revenue in effect from mega campuses


76
%



Percentage of annual rental revenue in effect from investment-grade or publicly
traded large cap tenants


53
%



Operating margin


71
%



Adjusted EBITDA margin


70
%



Percentage of leases containing annual rent escalations


96
%



Weighted-average remaining lease term:





Top 20 tenants


9.5

years


All tenants


7.5

years


Sustained strength in tenant collections:





Tenant receivables as a percentage of 3Q24 rental revenues


0.9
%



October 2024 tenant rents and receivables collected as of October
21, 2024


99.6
%



3Q24 tenant rents and receivables collected as of October
21, 2024


99.9
%



Strong and flexible balance sheet with significant liquidity; top 10% credit rating ranking among all publicly traded U.S. REITs

  • Net debt and preferred stock to Adjusted EBITDA of 5.5x and fixed-charge coverage ratio of 4.4x for 3Q24 annualized (targets for 4Q24 annualized of ≤5.1x and ≥4.5x, respectively).
  • Significant liquidity of $5.4 billion.
  • 31% of our total debt matures in 2049 and beyond.
  • 12.6 years weighted-average remaining term of debt.
  • Since 2020, an average of 97.7% of our debt has been fixed rate.
  • Total debt and preferred stock to gross assets of 29%.
  • $1.0 billion of capital contribution commitments from existing consolidated real estate joint venture partners to fund construction from 4Q24 through 2027.

Strong leasing volume and solid rental rate changes

  • Strong leasing volume aggregating 1.5 million RSF during 3Q24, up 48% compared to our previous four-quarter average of 1.0 million RSF.
  • Rental rate changes on lease renewals and re-leasing of space were 5.1% and 1.5% (cash basis) for 3Q24 and 16.4% and 8.9% (cash basis) for YTD 3Q24.
  • 80% of our leasing activity during the last twelve months was generated from our existing tenant base.





3Q24



YTD 3Q24





Total leasing activity – RSF


1,486,097



3,742,955





Leasing of development and redevelopment space – RSF


39,121



480,342





Lease renewals and re-leasing of space:










RSF (included in total leasing activity above)


1,278,857



2,863,277





Rental rate changes


5.1
%

(1)


16.4
%





Rental rate changes (cash basis)


1.5
%

(1)


8.9
%


















(1)

Includes a five-year lease extension to an investment-grade rated technology tenant aggregating 357,136 RSF of recently acquired tech R&D space in our Texas market that was renewed with rental rate changes of (33.6)% and (4.8)% (cash basis). These spaces were originally targeted for a future change in use at acquisition, but we instead renewed them with a lower capital investment while we continue to evaluate options to convert these spaces in the future, subject to market conditions. Excluding this lease, rental rate changes for renewed/re-leased space for 3Q24 were 13.0% and 2.3% (cash basis).

Attractive dividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment

  • Common stock dividend declared for 3Q24 of $1.30 per common share aggregating $5.14 per common share for the twelve months ended September 30, 2024, up 24 cents, or 5%, over the twelve months ended September 30, 2023.
  • Dividend yield of 4.4% as of September 30, 2024.
  • Dividend payout ratio of 55% for the three months ended September 30, 2024.
  • Average annual dividend per-share growth of 5.4% from 2020 through 3Q24 annualized.
  • Significant net cash flows from operating activities after dividends retained for reinvestment aggregating $2.1 billion for the years ended December 31, 2020 through 2023 and including the midpoint of our 2024 guidance range for net cash provided by operating activities after dividends.

Ongoing successful execution of Alexandria's 2024 capital strategy

We expect to continue pursuing our strategy to fund a significant portion of our capital requirements for the year ending December
31, 2024 with dispositions primarily focused on sales of properties and land parcels not integral to our mega campus strategy. Refer to "Dispositions"
in the Earnings Press Release for additional details.

(in millions)



Completed dispositions of 100% interest in properties


$

319

Pending dispositions subject to non-refundable deposits


577

Pending dispositions subject to executed letters of intent and/or purchase and sale agreements


603

Forward equity sales agreements


28

Total


$
1,527

2024 guidance midpoint for dispositions and common equity


$
1,550

Ongoing successful execution of Alexandria's 2024 capital strategy (continued)

  • In September 2024, we completed the following transactions with our longstanding tenant, Fred Hutchinson Cancer Center ("Fred Hutch"), in the Lake Union submarket:
    • Sale of 1165 Eastlake Avenue East, a fully leased 100,086 RSF single-tenant Class A+ life science facility that was developed in 2021. We sold the property for $150.0 million, or $1,499 per RSF, at strong capitalization rates of 4.7% and 4.9% (cash basis). Upon completion of the sale, we recognized a gain on sale of real estate aggregating $21.5 million.
    • Fred Hutch executed early renewals aggregating 117,479 RSF at our 1201 and 1208 Eastlake Avenue East properties, including a 15-year lease extension at 1201 Eastlake Avenue East.
    • Our prior joint venture partner sold their partial interest ownership in each of 1201 and 1208 Eastlake Avenue East to Fred Hutch. Our ownership interest in both properties remains unchanged at 30.0%. This sale, lease extensions, and new joint venture affirm Fred Hutch's commitment to South Lake Union.

Alexandria's development and redevelopment pipeline delivered incremental annual net operating income of $21
million commencing during 3Q24 and is expected to deliver incremental annual net operating income aggregating $510
million primarily by 1Q28

  • During 3Q24, we placed into service development and redevelopment projects aggregating 316,691 RSF that are 100% leased across multiple submarkets and delivered incremental annual net operating income of $21 million. 3Q24 deliveries included 250,000 RSF at 9820 Darnestown Road on the Alexandria Center® for Life Science – Shady Grove mega campus in our Rockville submarket.
  • Annual net operating income (cash basis) is expected to increase by $57 million upon the burn-off of initial free rent, with a weighted-average burn-off period of approximately six months, from recently delivered projects.
  • 69% of the RSF in our total development and redevelopment pipeline is within our mega campuses.


Development and Redevelopment Projects


Incremental

Annual Net
Operating Income


RSF


Leased/
Negotiating

Percentage



(dollars in millions)











Placed into service:











1H24


$





42


628,427



100
%




3Q24


21


316,691



100




Placed into service in YTD 3Q24


$





63


945,118



100
%















Expected to be placed into service(1):











4Q24 through 4Q25


$




158

(2)

5,467,897



55
%




1Q26 through 1Q28


352




(3)





$




510









(1)

Represents expected incremental annual net operating income to be placed into service from deliveries of
projects undergoing construction and one committed near-term project expected to commence construction in
the next two years.





(2)

Includes (i) 1.0 million RSF that is expected to stabilize through 2025 and is 92% leased/negotiating and
(ii) expected partial deliveries through 4Q25 from projects expected to stabilize in 2026 and beyond. Refer to
the initial and stabilized occupancy years under "New Class A/A+ development and redevelopment properties:
current projects" in the Supplemental Information for additional details.





(3)

70% of the leased RSF of our development and redevelopment projects was generated from our existing
tenant base.

Continued solid net operating income and internal growth

  • Net operating income (cash basis) of $2.0 billion for 3Q24 annualized, up $274.2 million, or 15.5%, compared to 3Q23 annualized.
  • Same property net operating income growth of 1.5% and 6.5% (cash basis) for 3Q24 over 3Q23 and 1.6% and 4.6% (cash basis) for YTD 3Q24 over YTD 3Q23.
  • 96% of our leases contain contractual annual rent escalations approximating 3%.

Strong balance sheet management
Key metrics as of or for the three months ended September
30, 2024

  • $33.1 billion in total market capitalization.
  • $20.5 billion in total equity capitalization, which ranks in the top 10% among all publicly traded U.S. REITs.


3Q24


Target



Quarter
Annualized


Trailing

12 Months


4Q24

Annualized

Net debt and preferred stock to
Adjusted EBITDA


5.5x


5.6x


Less than or equal to 5.1x

Fixed-charge coverage ratio


4.4x


4.5x


Greater than or equal to 4.5x

Key capital events

  • In September 2024, we amended and restated our unsecured senior line of credit to, among other changes, extend the maturity date from January 22, 2028 to January 22, 2030, including extension options that we control.
  • During 3Q24, we had no activity under our ATM program. As of October 21, 2024, the remaining aggregate amount available for future sales of common stock was $1.47 billion.

Investments

  • As of September 30, 2024:
    • Our non-real estate investments aggregated $1.5 billion.
    • Unrealized gains presented in our consolidated balance sheet were $166.2 million, comprising gross unrealized gains and losses aggregating $284.4 million and $118.2 million, respectively.
  • Investment income of $15.2 million for 3Q24 presented in our consolidated statement of operations consisted of $23.0 million of realized gains and $2.6 million of unrealized gains, partially offset by $10.3 million of impairment charges.

Other key highlights

Key items included in net income attributable to Alexandria's common stockholders:











YTD



3Q24


3Q23


3Q24


3Q23


3Q24


3Q23


3Q24


3Q23


(in millions, except per share
amounts)

Amount


Per Share –
Diluted


Amount


Per Share –
Diluted


Unrealized gains (losses) on
non-real estate investments

$
2.6


$ (77.2)


$
0.02


$
(0.45)


$ (32.5)


$
(221.0)


$
(0.19)


$
(1.29)


Gain on sales of real estate

27.1


-


0.16


-


27.5


214.8


0.16


1.26


Impairment of non-real estate
investments

(10.3)


(28.5)


(0.06)


(0.17)


(37.8)


(51.5)


(0.22)


(0.30)


Impairment of real estate

(5.7)


(20.6)


(0.03)


(0.12)


(36.5)


(189.2)


(0.22)


(1.11)


Acceleration of stock
compensation expense due
to executive officer resignations

-


(1.9)


-


(0.01)


-


(1.9)


-


(0.01)


Total

$
13.7


$
(128.2)


$
0.09


$
(0.75)


$ (79.3)


$
(248.8)


$
(0.47)


$
(1.45)


Refer to "Funds from operations and funds from operations per share" in the Earnings Press Release for additional
details.


Subsequent events

  • In October 2024, we agreed to sell four properties located in our Greater Boston market for a sales price of $369.4 million to the current tenant of the properties with whom we have a long-established relationship. The sales price represents capitalization rates of 8.5% and 6.3% (cash basis) based upon net operating income and net operating income (cash basis), respectively, for 3Q24 annualized. These properties, acquired primarily during 2020–2021, are currently 100% leased with a weighted-average remaining lease term of 18 years. In October 2024, we recognized an impairment charge aggregating $40.9 million to reduce the carrying amounts of these properties by approximately 10% to the expected sales price less costs to sell. Our decision to dispose of these properties is based on their non-strategic location and the significant capital that the expected sales proceeds provide for immediate reinvestment into our development and redevelopment pipeline.
  • In October 2024, we agreed to sell five operating properties aggregating 203,223 RSF and land parcels aggregating 1.5 million SF in our Sorrento Mesa and University Town Center submarkets to buyers that are expected to develop residential properties on these sites for an aggregate sales price of approximately $314.0 million. In October 2024, we recognized impairment charges aggregating $65.9 million to reduce the carrying amounts of these properties to the expected aggregate sales price less costs to sell. Our decision to dispose of these assets, which are not integral to our mega campus strategy, is primarily based on the substantial capital that the sales proceeds will provide for immediate reinvestment into our development and redevelopment pipeline.

Industry and corporate responsibility leadership: catalyzing and leading the way for positive change to benefit human health and society

  • In September 2024, Alexandria was named one of the World's Most Trustworthy Companies by Newsweek. This significant distinction builds on the Company's recognition by the publication as one of America's Most Trustworthy Companies in 2023 and 2024. Alexandria is one of only three S&P 500 REITs recognized in the real estate and housing category.
  • In September 2024, Alexandria and its executive chairman and founder, Joel S. Marcus, were honored with the inaugural Bisnow Life Sciences Icon & Influencer Award. This prestigious award highlights Mr. Marcus and the Company's significant long-term contributions to and lasting impact on the life science real estate sector and broader life science industry. Mr. Marcus accepted the award on his own behalf and that of Alexandria at Bisnow's International Life Sciences & Biotech Conference, where he was also the keynote speaker.
  • Alexandria continued to receive broad recognition for our operational excellence in asset management, design, development, and sustainability, including the following recent awards:
    • In our Greater Boston market, the atrium at 325 Binney Street, located on the Alexandria Center® at One Kendall Square mega campus, is a light-filled collaboration space with a terraced garden and communal staircase that was celebrated for design excellence in the Science & Research – Small (under 50,000 SF) category of the 2024 International Interior Design Association New England (IIDA NE) Design Awards and also received the award program's top honor, Best in Show.
    • In our Maryland market, we were awarded three 2024 NAIOP DC|MD Awards of Excellence for developments and enhancements on the Alexandria Center® for Life Science – Shady Grove mega campus: 9810 and 9820 Darnestown Road for Best Life Science Facility, 9800 Medical Center Drive for Best Amenity Space, and 9950 Medical Center Drive for Best Industrial/Flex.
    • We received a 2024 Nareit Sustainable Design Impact Award for our groundbreaking approach to utilizing alternative energy sources such as geothermal energy and wastewater heat recovery systems to reduce operational greenhouse gas emissions in Labspace® development projects in our Greater Boston and Seattle markets.
    • Alexandria GradLabs® at 9880 Campus Point Drive, located on the Campus Point by Alexandria mega campus in our San Diego market, earned a 2024 International Institute for Sustainable Laboratories (I2SL) Lab Buildings and Projects Award for Excellence in Energy Efficiency. The state-of-the-art building was designed to operate as a highly energy-efficient research facility. In 2023, the LEED Platinum certified facility earned an I2SL Labs2Zero pilot Energy Score of 96 out of 100, indicating its operational energy performance is better than 96% of similar facilities.

About Alexandria Real Estate Equities, Inc.

Alexandria Real Estate Equities, Inc. (NYSE: ARE ), an S&P 500®
company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche with our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative mega campuses in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. As of September 30, 2024,
Alexandria has a total market capitalization of $33.1
billion and an asset base in North America that includes 41.8
million RSF of operating properties, 5.3 million RSF of Class A/A+ properties undergoing construction, and one committed near-term project expected to commence construction in the next two years. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For more information on Alexandria, please visit .

Guidance
September
30, 2024
(Dollars in millions, except per share amounts)


The following guidance for 2024 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2024. There can be no assurance that
actual results will not be materially higher or lower than these expectations. Also, refer to our discussion of "forward-looking statements" of the Earnings Press Release for additional details.







2024 Guidance Midpoint

Summary of Key Changes in Guidance


As of 10/21/24


As of 7/22/24


Summary of Key Changes in Sources and Uses of Capital


As of 10/21/24


As of 7/22/24

EPS, FFO per share, and FFO per share, as adjusted


See updates below


Cash expected to be held at December 31, 2024


$150


$-

Straight-line rent revenue


$147 to $162


$169 to $184







General and administrative expenses


$176 to $186


$181 to $191










Key Credit Metric Targets(1)



Net debt and preferred stock to Adjusted EBITDA – 4Q24 annualized


Less than or equal to 5.1x

Fixed-charge coverage ratio – 4Q24 annualized


Greater than or equal to 4.5x



Projected 2024 Earnings per Share and Funds From Operations per Share Attributable to
Alexandria's Common Stockholders – Diluted




As of 10/21/24


As of 7/22/24


Earnings per share(2)


$2.60 to $2.64


$2.98 to $3.10


Depreciation and amortization of real estate assets



6.05




5.95



Gain on sales of real estate(3)



(0.38)




-



Impairment of real estate – rental properties and land(4)



0.67




0.01



Allocation to unvested restricted stock awards



(0.06)




(0.05)



Funds from operations per share(1)


$8.88 to $8.92


$8.89 to $9.01


Unrealized losses on non-real estate investments



0.19




0.20



Impairment of non-real estate investments



0.22




0.16



Impairment of real estate



0.17




0.17



Allocation to unvested restricted stock awards



(0.01)




(0.01)



Funds from operations per share, as adjusted(1)


$9.45 to $9.49


$9.41 to $9.53


Midpoint


$9.47


$9.47











Certain
Completed
Items

Key Sources and Uses of Capital


Range


Midpoint


Sources of capital:










Incremental debt


$

885


$
1,185


$
1,035


See below

Net cash provided by operating activities after
dividends


400


500


450




Dispositions and common equity(5)


1,050


2,050


1,550


(5)

Total sources of capital


$
2,335


$
3,735


$
3,035




Uses of capital:










Construction


$
1,950


$
2,550


$
2,250




Acquisitions


250


750


500


$

249


Ground lease prepayment(6)


135


135


135




Cash expected to be held at December 31, 2024(7)


-


300


150




Total uses of capital


$
2,335


$
3,735


$
3,035




Incremental debt (included above):










Issuance of unsecured senior notes payable(8)


$
1,000


$
1,000


$
1,000


$
1,000

(8)

Unsecured senior line of credit, commercial paper,
and other


(115)


185


35




Net incremental debt


$

885


$
1,185


$
1,035










Key Assumptions


Low


High


Occupancy percentage in North America as of December
31, 2024


94.6
%


95.6
%


Lease renewals and re-leasing of space:






Rental rate changes


11.0
%


19.0
%


Rental rate changes (cash basis)


5.0
%


13.0
%


Same property performance:






Net operating income changes


0.5
%


2.5
%


Net operating income changes (cash basis)


3.0
%


5.0
%


Straight-line rent revenue(9)


$


147


$


162


General and administrative expenses(10)


$


176


$


186


Capitalization of interest


$


325


$


355


Interest expense


$


154


$


184


Realized gains on non-real estate investments(11)


$
95


$


125




(1)

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.

(2)

Excludes unrealized gains or losses on non-real estate investments after September 30, 2024 that are required to be recognized in earnings and are excluded from funds from operations per share, as adjusted.

(3)

Includes $37.1 million of gain on sales of real estate recognized in October 2024. Refer to "Dispositions" in the Earnings Press Release for additional details.

(4)

Includes $106.8 million of real estate impairments recognized in October 2024. Refer to "Subsequent Events" in the Earnings Press Release for additional details.

(5)

We expect to fund our remaining capital requirements for the year ending December 31, 2024 with real estate dispositions. As of October 21, 2024, we completed real estate dispositions aggregating $319.2 million, have additional pending transactions subject to (i) non-refundable deposits aggregating $577.2 million and (ii) executed letters of intent and/or purchase and sale agreements aggregating $602.5 million and forward equity sales agreements aggregating $28 million, which in aggregate, represents 98% of the $1.55 billion midpoint of our guidance range. We do not expect to issue additional equity in 2024 beyond the existing forward equity sales agreements outstanding.

(6)

In July 2024, we executed an amendment to our existing ground lease agreement at the Alexandria Technology Square® mega campus in our Cambridge submarket, which requires that we prepay our entire rent obligation for the extended lease term aggregating
$270.0
million in two equal installments during the fourth quarter of 2024 and the first quarter of 2025.

(7)

The increase in cash expected to be held at December 31, 2024 is primarily due to changes in the mix and timing of pending dispositions that are subject to non-refundable deposits or subject to executed letters of intent and/or purchase and sale agreements that are expected to close in 4Q24. This cash is expected to reduce our 2025 debt capital needs.

(8)

Represents $1.0 billion of unsecured senior notes payable issued in February 2024. Subject to market conditions, we may seek additional opportunities in 2024 to fund all or a portion of the proceeds necessary for the repayment of our $600.0 million of 3.45% unsecured senior notes payable due on April 30, 2025 through the issuance of additional unsecured senior notes payable that is not assumed in our current 2024 guidance.

(9)

Reduction in the midpoint of our guidance range for straight-line rent revenue by $22 million is primarily attributable to (i) the write-off of a deferred rent receivable of $9 million related to the lease termination and a payment of $10 million from a tenant at 409 Illinois Street in our Mission Bay submarket, a 234,249 RSF property owned by our consolidated real estate joint venture for which we have an ownership interest of 25%, and (ii) a change in the expected stabilization date from 4Q24 to 1Q25 at our fully leased development project at 230 Harriet Tubman Way in our South San Francisco submarket as reported in our 2Q24 Earnings Press Release and Supplemental Information.

(10)

Reduction in the midpoint of our guidance range for general and administrative expense by $5 million is primarily attributable to the realization of savings associated with overall efficiencies, including enhanced cost control measures, incremental use of technology, streamlined processes, and optimization of execution in connection with the sale of non-core assets not integral to our mega campus strategy.

(11)

Represents realized gains and losses included in funds from operations per share – diluted, as adjusted, and excludes significant impairments realized on non-real estate investments, if any. Refer to "Investments" in the Supplemental Information for additional details.

Acquisitions
September
30, 2024
(Dollars in thousands)

Property


Submarket/Market


Date of

Purchase


Number of
Properties


Operating

Occupancy


Square Footage


Purchase Price





Future
Development(1)


Operating With
Future Development/
Redevelopment(1)








Completed in 1H24:


















285, 299, 307, and 345 Dorchester Avenue (60%
interest in consolidated JV)


Seaport Innovation District/Greater
Boston


1/30/24


-


N/A


1,040,000


-


$

155,321


Other
















46,490


















201,811


Completed in October 2024:


















428 Westlake Avenue North


Lake Union/Seattle


10/1/24


1


100
%



-


88,514



47,600

















$

249,411


2024 guidance range for acquisitions













$250,000 – $750,000




















(1)

We expect to provide total estimated costs and related yields for development and significant redevelopment projects in the future, subsequent to the commencement of construction.


Dispositions
September
30, 2024
(Dollars in thousands)

Property


Submarket/Market


Date of
Sale


Interest
Sold


RSF


Capitalization
Rate


Capitalization
Rate

(Cash Basis)


Sales Price


Sales Price
per RSF

Completed in 1H24

















$


17,213























Completed in 3Q24:




















Sale to longstanding tenant




















1165 Eastlake Avenue East


Lake Union/Seattle


9/12/24


100
%



100,086


4.7
%



4.9
%



149,985

(1)

$


1,499

Dispositions of properties not integral to our mega campus
strategy




















219 East 42nd Street


New York City/New York City


7/9/24


100
%



349,947


N/A



N/A



60,000

(2)

N/A

Other

















11,511




















221,496

(3)


Dispositions completed in YTD 3Q24

















238,709



Completed in October 2024:




















Dispositions of properties not integral to our mega campus
strategy




















14225 Newbrook Drive


Northern Virginia/Maryland


10/15/24


100
%



248,186


7.6
%



7.4
%



80,500

(4)

$


324


















319,209



Pending 4Q24 dispositions subsequent to October
21, 2024:




















Subject to non-refundable deposits




















Sale to longstanding tenant


Greater Boston


4Q24


100
%





8.5
%



6.3
%



369,439

(5)


Other

















207,713




















577,152



Subject to executed letters of intent and/or purchase and sale
agreements

















602,500

(5)



















1,179,652

(6)



















$
1,498,861



2024 guidance range for dispositions and common equity















$1,050,000 – $2,050,000





(1)

Upon completion of the sale, we recognized a gain on sale of real estate aggregating $21.5 million.

(2)

The property was leased to a single tenant with a July 2024 lease expiration and had annual net operating income of $18.6 million based on 2Q24 annualized. This property was previously considered to be a potential development project upon expiration of the in-place non-laboratory space lease.

(3)

Dispositions completed during the three months ended September 30, 2024 had annual net operating income of $26.5 million (based on 2Q24 annualized) with a weighted-average disposition date of July 28, 2024 (weighted by net operating income for 2Q24 annualized).

(4)

Demonstrating the long-term enduring value of our laboratory facilities, Alexandria successfully operated our only asset in the Northern Virginia submarket from its acquisition in 1997 (prior to our IPO) through its sale in October 2024. Upon completion of the sale, we recognized a gain on sale of real estate aggregating $37.1 million.

(5)

Refer to "Subsequent events" in the Earnings Press Release for additional details.

(6)

Pending dispositions subsequent to October 21, 2024 have estimated annual net operating income of approximately $95.8 million (based on 3Q24 annualized) with a weighted-average non-core estimated stand-alone disposition date of December 5, 2024 (weighted by net operating income for 3Q24 annualized). Approximately half of our pending dispositions are non-core stabilized stand-alone properties with weighted-average capitalization rates of 8.5% and 7.0% (cash basis), and the remaining half are land and non-stabilized properties that have vacancy or significant near-term lease expirations that will require capital to re-tenant, including one building with approximately 72% of non-laboratory space.

Earnings Call Information and About the Company
September
30, 2024

We will host a conference call on Tuesday, October
22, 2024, at 3:00 p.m. Eastern Time ("ET")/noon Pacific Time ("PT"), which is open to the general public, to discuss our financial and operating results for the third quarter ended September
30, 2024. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 3:00 p.m. ET/noon PT and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at in the "For Investors" section. A replay of the call will be available for a limited time from 5:00 p.m. ET/2:00 p.m. PT on Tuesday, October
22, 2024. The replay number is (877) 344-7529 or (412) 317-0088, and the access code is 1168152.

Additionally, a copy of this Earnings Press Release and Supplemental Information for the third quarter ended September
30, 2024 is available in the "For Investors" section of our website at or by following this link: .

For any questions, please contact [email protected] ; Joel S. Marcus, executive chairman and founder; Peter M. Moglia, chief executive officer and chief investment officer; Marc E. Binda, chief financial officer and treasurer; Paula Schwartz, managing director of Rx Communications Group, at (917) 633-7790; or Sara M. Kabakoff, senior vice president – chief content officer.

About the Company

Alexandria Real Estate Equities, Inc. (NYSE: ARE ), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche with our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative mega campuses in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City.
As of September
30, 2024, Alexandria has a total market capitalization of $33.1
billion and an asset base in North America that
includes 41.8 million RSF of operating properties, 5.3 million RSF of Class A/A+ properties undergoing construction, and one committed near-term project expected to commence construction in the next two years. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For more information on Alexandria, please visit .

Forward-Looking Statements

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 2024 earnings per share, 2024 funds from operations per share, 2024 funds from operations per share, as adjusted, net operating income, and our projected sources and uses of capital. You can identify the forward-looking statements by their use of forward-looking words, such as "forecast," "guidance," "goals," "projects," "estimates," "anticipates," "believes," "expects," "intends," "may," "plans," "seeks," "should," "targets," or "will," 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. There can be no assurance that actual results will not be materially higher or lower than these expectations. 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, lower than expected yields, increased interest rates and operating costs, adverse economic or real estate developments in our markets, our failure to successfully place into service and lease any properties undergoing development or redevelopment and our existing space held for future development or redevelopment (including new properties acquired for that purpose), our failure to successfully operate or lease acquired properties, decreased rental rates, increased vacancy rates or failure to renew or replace expiring leases, defaults on or non-renewal of leases by tenants, adverse general and local economic conditions, an unfavorable capital market environment, decreased leasing activity or lease renewals, failure to obtain LEED and other healthy building certifications and efficiencies, 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 the date of this Earnings Press Release and Supplemental Information, and unless otherwise stated, 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.

This document is not an offer to sell or a solicitation to buy securities of Alexandria Real Estate Equities, Inc. Any offers to sell or solicitations to buy our securities shall be made only by means of a prospectus approved for that purpose. Unless otherwise indicated, the "Company," "Alexandria," "ARE," "we," "us," and "our" refer to Alexandria Real Estate Equities, Inc. and our consolidated subsidiaries. Alexandria®, Lighthouse Design® logo, Building the Future of Life-Changing Innovation®, That's What's in Our DNA®, Labspace®, At the Vanguard and Heart of the Life Science EcosystemTM, Alexandria Center®, Alexandria Technology Square®, Alexandria Technology Center®, and Alexandria Innovation Center® are copyrights and trademarks of Alexandria Real Estate Equities, Inc. All other company names, trademarks, and logos referenced herein are the property of their respective owners.

Consolidated Statements of Operations
September 30, 2024
(Dollars in thousands, except per share amounts)



Three Months Ended


Nine Months Ended



9/30/24


6/30/24


3/31/24


12/31/23


9/30/23


9/30/24


9/30/23

Revenues:















Income from rentals


$

775,744


$

755,162


$

755,551


$

742,637


$

707,531


$
2,286,457


$
2,099,819

Other income


15,863


11,572


13,557


14,579


6,257


40,992


28,664

Total revenues


791,607


766,734


769,108


757,216


713,788


2,327,449


2,128,483
















Expenses:















Rental operations


233,265


217,254


218,314


222,726


217,687


668,833


636,454

General and administrative


43,945


44,629


47,055


59,289


45,987


135,629


140,065

Interest


43,550


45,789


40,840


31,967


11,411


130,179


42,237

Depreciation and amortization


293,998


290,720


287,554


285,246


269,370


872,272


808,227

Impairment of real estate


5,741


30,763


-


271,890


20,649


36,504


189,224

Total expenses


620,499


629,155


593,763


871,118


565,104


1,843,417


1,816,207
















Equity in earnings of unconsolidated real estate joint ventures


139


130


155


363


242


424


617

Investment income (loss)


15,242


(43,660)


43,284


8,654


(80,672)


14,866


(204,051)

Gain on sales of real estate


27,114


-


392


62,227


-


27,506


214,810

Net income (loss)


213,603


94,049


219,176


(42,658)


68,254


526,828


323,652

Net income attributable to noncontrolling interests


(45,656)


(47,347)


(48,631)


(45,771)


(43,985)


(141,634)


(131,584)

Net income (loss) attributable to Alexandria Real Estate Equities, Inc.'s
stockholders


167,947


46,702


170,545


(88,429)


24,269


385,194


192,068

Net income attributable to unvested restricted stock awards


(3,273)


(3,785)


(3,659)


(3,498)


(2,414)


(10,717)


(7,697)

Net income (loss) attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders


$

164,674


$

42,917


$

166,886


$

(91,927)


$

21,855


$

374,477


$

184,371
















Net income (loss) per share attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders:















Basic


$


0.96


$


0.25


$


0.97


$


(0.54)


$


0.13


$


2.18


$


1.08

Diluted


$


0.96


$


0.25


$


0.97


$


(0.54)


$


0.13


$


2.18


$


1.08
















Weighted-average shares of common stock outstanding:















Basic


172,058


172,013


171,949


171,096


170,890


172,007


170,846

Diluted


172,058


172,013


171,949


171,096


170,890


172,007


170,846
















Dividends declared per share of common stock


$


1.30


$


1.30


$


1.27


$


1.27


$


1.24


$


3.87


$


3.69

Consolidated Balance Sheets
September 30, 2024
(In thousands)



9/30/24


6/30/24


3/31/24


12/31/23


9/30/23

Assets











Investments in real estate


$
32,951,777


$
32,673,839


$
32,323,138


$
31,633,511


$ 31,712,731

Investments in unconsolidated real estate joint ventures


40,170


40,535


40,636


37,780


37,695

Cash and cash equivalents


562,606


561,021


722,176


618,190


532,390

Restricted cash


17,031


4,832


9,519


42,581


35,321

Tenant receivables


6,980


6,822


7,469


8,211


6,897

Deferred rent


1,216,176


1,190,336


1,138,936


1,050,319


1,012,666

Deferred leasing costs


516,872


519,629


520,616


509,398


512,216

Investments


1,519,327


1,494,348


1,511,588


1,449,518


1,431,766

Other assets


1,657,189


1,356,503


1,424,968


1,421,894


1,501,611

Total assets


$
38,488,128


$
37,847,865


$
37,699,046


$
36,771,402


$ 36,783,293












Liabilities, Noncontrolling Interests, and Equity











Secured notes payable


$

145,000


$

134,942


$

130,050


$

119,662


$

109,110

Unsecured senior notes payable


12,092,012


12,089,561


12,087,113


11,096,028


11,093,725

Unsecured senior line of credit and commercial paper


454,589


199,552


-


99,952


-

Accounts payable, accrued expenses, and other liabilities


2,865,886


2,529,535


2,503,831


2,610,943


2,653,126

Dividends payable


227,191


227,408


222,134


221,824


214,450

Total liabilities


15,784,678


15,180,998


14,943,128


14,148,409


14,070,411












Commitments and contingencies






















Redeemable noncontrolling interests


16,510


16,440


16,620


16,480


51,658












Alexandria Real Estate Equities, Inc.'s stockholders' equity:











Common stock


1,722


1,720


1,720


1,719


1,710

Additional paid-in capital


18,238,438


18,284,611


18,434,690


18,485,352


18,651,185

Accumulated other comprehensive loss


(22,529)


(27,710)


(23,815)


(15,896)


(24,984)

Alexandria Real Estate Equities, Inc.'s stockholders' equity


18,217,631


18,258,621


18,412,595


18,471,175


18,627,911

Noncontrolling interests


4,469,309


4,391,806


4,326,703


4,135,338


4,033,313

Total equity


22,686,940


22,650,427


22,739,298


22,606,513


22,661,224

Total liabilities, noncontrolling interests, and equity


$
38,488,128


$
37,847,865


$
37,699,046


$
36,771,402


$ 36,783,293

Funds From Operations and Funds From Operations per Share
September 30, 2024
(In thousands)


The following table presents a reconciliation of net income (loss) attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in
accordance with U.S. generally accepted accounting principles ("GAAP"), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations
attributable to Alexandria's common stockholders – diluted, and funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below:




Three Months Ended


Nine Months Ended



9/30/24


6/30/24


3/31/24


12/31/23


9/30/23


9/30/24


9/30/23

Net income (loss) attributable to Alexandria's common stockholders – basic
and diluted


$
164,674


$
42,917


$
166,886


$
(91,927)


$
21,855


$
374,477


$
184,371

Depreciation and amortization of real estate assets


291,258


288,118


284,950


281,939


266,440


864,326


798,590

Noncontrolling share of depreciation and amortization from consolidated real
estate JVs


(32,457)


(31,364)


(30,904)


(30,137)


(28,814)


(94,725)


(85,212)

Our share of depreciation and amortization from unconsolidated real estate JVs


1,075


1,068


1,034


965


910


3,177


2,624

Gain on sales of real estate


(27,114)


-


(392)


(62,227)


-


(27,506)


(214,810)

Impairment of real estate – rental properties and land


5,741

(1)

2,182


-


263,982


19,844


7,923


186,446

Allocation to unvested restricted stock awards


(2,908)


(1,305)


(3,469)


(2,268)


(838)


(7,657)


(3,050)

Funds from operations attributable to Alexandria's common stockholders –
diluted(2)


400,269


301,616


418,105


360,327


279,397


1,120,015


868,959

Unrealized (gains) losses on non-real estate investments


(2,610)


64,238


(29,158)


(19,479)


77,202


32,470


220,954

Impairment of non-real estate investments


10,338

(3)

12,788


14,698


23,094


28,503


37,824


51,456

Impairment of real estate


-


28,581


-


7,908


805


28,581


2,778

Acceleration of stock compensation expense due to executive officer resignations


-


-


-


18,436


1,859


-


1,859

Allocation to unvested restricted stock awards


(125)


(1,738)


247


(472)


(1,330)


(1,640)


(3,503)

Funds from operations attributable to Alexandria's common stockholders –
diluted, as adjusted


$
407,872


$
405,485


$
403,892


$
389,814


$
386,436


$
1,217,250


$
1,142,503

Refer to "Definitions and reconciliations"
in the Supplemental Information for additional details.



(1)

Primarily to reduce the carrying amount of one property in Canada that continued to meet the held-for-sale classification to the sales price under negotiation with a potential buyer less costs to sell.

(2)

Calculated in accordance with standards established by the Nareit Board of Governors.

(3)

Primarily related to two non-real estate investments in privately held entities that do not report NAV.

Funds From Operations and Funds From Operations per Share (continued)
September 30, 2024
(In thousands, except per share amounts)


The following table presents a reconciliation of net income (loss) per share attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in
accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations per share attributable to Alexandria's common
stockholders – diluted, and funds from operations per share attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below. Per share amounts may not add due
to rounding.




Three Months Ended


Nine Months Ended



9/30/24


6/30/24


3/31/24


12/31/23


9/30/23


9/30/24


9/30/23

Net income (loss) per share attributable to Alexandria's common stockholders –
diluted


$

0.96


$

0.25


$

0.97


$

(0.54)


$

0.13


$

2.18


$

1.08

Depreciation and amortization of real estate assets


1.51


1.50


1.48


1.48


1.40


4.49


4.19

Gain on sales of real estate


(0.16)


-


-


(0.36)


-


(0.16)


(1.26)

Impairment of real estate – rental properties and land


0.03


0.01


-


1.54


0.12


0.05


1.09

Allocation to unvested restricted stock awards


(0.01)


(0.01)


(0.02)


(0.01)


(0.01)


(0.05)


(0.01)

Funds from operations per share attributable to Alexandria's common
stockholders – diluted


2.33


1.75


2.43


2.11


1.64


6.51


5.09

Unrealized (gains) losses on non-real estate investments


(0.02)


0.37


(0.17)


(0.11)


0.45


0.19


1.29

Impairment of non-real estate investments


0.06


0.08


0.09


0.13


0.17


0.22


0.30

Impairment of real estate


-


0.17


-


0.05


-


0.17


0.02

Acceleration of stock compensation expense due to executive officer resignations


-


-


-


0.11


0.01


-


0.01

Allocation to unvested restricted stock awards


-


(0.01)


-


(0.01)


(0.01)


(0.01)


(0.02)

Funds from operations per share attributable to Alexandria's common
stockholders – diluted, as adjusted


$

2.37


$

2.36


$

2.35


$

2.28


$

2.26


$

7.08


$

6.69
















Weighted-average shares of common stock outstanding – diluted


172,058


172,013


171,949


171,096


170,890


172,007


170,846
















Refer to "Definitions and reconciliations"
in the Supplemental Information for additional details.















SOURCE Alexandria Real Estate Equities, Inc.

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