Page 1

Alexandria Real Estate Equities , Inc. , at the Vanguard of Providing High - Quality Office / Laboratory Space to Meet Historic - High Demand from the Life Science Industry , Reports : 2Q21 and 1H21 Net Income per Share - Diluted of $ 2.61 and $ 2.74 , respectively ; 2Q21 and 1H21 FFO per Share - Diluted , As Adjusted , of $ 1.93 and $ 3.84 , respectively PASADENA , Calif . July 26 , 2021 Alexandria Real Estate Equities , Inc. ( NYSE : ARE ) announced financial and operating results for the second quarter ended June 30 , 2021 . Key highlights Operating results Total revenues : In millions 2Q21 ALEXANDRIA . 2Q20 · $ 509.6 $ 437.0 $ 989.5 16.6 % 12.8 % 1H21 Growth Net income attributable to Alexandria's common stockholders - diluted In millions Per share $ 380.6 $ 226.6 $ 388.5 $ $ 2.61 $ 1.82 $ 2.74 $ Funds from operations attributable to Alexandria's common stockholders - diluted , as adjusted In millions Per share $ 282.3 $ 225.0 $ 545.2 $ 446.4 $ 1.93 $ 1.81 $ 3.84 $ 3.63 Total leasing activity - RSF Leasing of development and redevelopment space - RSF Lease renewals and re - leasing of space : RSF ( included in total leasing activity above ) Rental rate increases Rental rate increases ( cash basis ) $ 1H20 Six - time Nareit Investor CARE Gold Award winner 2021 recipient of the Nareit Investor CARE ( Communications and Reporting Excellence ) Gold Award in the Large Cap Equity REIT category as the best - in - class REIT delivering transparency , quality , and efficient communications and reporting to the investment community . This represents our fourth consecutive Nareit Investor CARE Gold Award , and our sixth Gold Award over the last seven years . 876.9 Historic leasing activity and rental rate growth ; continued strong net operating income and internal growth 2Q21 1,933,838 256,328 1,472,713 42.4 % 25.4 % 244.8 1.99 During 2Q21 , historic demand for our high - quality office / laboratory space translated into 1.9 million RSF of leasing activity , representing the highest leasing activity in a single quarter and the second highest rental rate growth in Company history . • Continued strong leasing activity and rental rate growth during 2Q21 and 1H21 over expiring rates on renewed and re - leased space : 1H21 3,611,497 1,045,301 1,994,538 40.7 % 23.3 % Historic leasing activity and rental rate growth ; continued strong net operating income and internal growth ( continued ) ● Net operating income ( cash basis ) of $ 1.3 billion for 2Q21 annualized , up $ 194.4 million , or 17.6 % , compared to 2Q20 annualized . 95 % of our leases contain contractual annual rent escalations approximating 3 % . Same property net operating income growth : 3.7 % and 7.8 % ( cash basis ) for 2Q21 over 2Q20 . 4.4 % and 7.4 % ( cash basis ) for 1H21 over 1H20 . A REIT industry - leading high - quality tenant roster with high - quality revenues and cash flows , strong margins , and operational excellence Percentage of annual rental revenue in effect from investment - grade or publicly traded large cap tenants Occupancy of operating properties in North America Operating margin Adjusted EBITDA margin Weighted - average remaining lease term : All tenants Top 20 tenants 53 % 94.3 % ( 1 ) 72 % 69 % 7.5 years 11.1 years ( 1 ) Includes 1.4 million RSF , or 3.8 % , of vacancy at recently acquired properties in our North America markets , representing lease - up opportunities that are expected to provide incremental annual rental revenues in excess of $ 55 million . Approximately 35 % of the vacant 1.4 million RSF is currently under leased / negotiating , with occupancy expected primarily over the next two quarters . Excluding these acquired vacancies , occupancy of operating properties in North America was 98.1 % as of June 30 , 2021. Refer to " Occupancy " of our Supplemental Information for additional details . Strong and flexible balance sheet with significant liquidity Investment - grade credit ratings ranked in the top 10 % among all publicly traded U.S. REITS as of June 30 , 2021 . Net debt and preferred stock to Adjusted EBITDA of 5.8x for 2Q21 annualized . Fixed - charge coverage ratio of 4.9x for 2Q21 annualized . $ 4.5 billion of liquidity as of June 30 , 2021 . Continued dividend strategy to share growth in cash flows with stockholders Common stock dividend declared for 2Q21 of $ 1.12 per common share , aggregating $ 4.36 per common share for the twelve months ended June 30 , 2021 , up 24 cents , or 6 % , over the twelve months ended June 30 , 2020. Our FFO payout ratio of 60 % for the three months ended June 30 , 2021 , allows us to continue to share growth in cash flows from operating activities with our stockholders while also retaining a significant portion for reinvestment . Alexandria Real Estate Equities , Inc. All Rights Reserved . © 2021 1