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Alexandria Real Estate Equities, Inc. Reports Third Quarter 2007 Results
Date:11/5/2007

Highlights ----------

Third Quarter 2007: - Third Quarter 2007 Funds from Operations (FFO) Per Share (Diluted) of $1.45, up 10%, Compared to Third Quarter 2006 FFO Per Share (Diluted) of

$1.32

- Third Quarter 2007 Total Revenues up 23%, FFO Available to Common

Stockholders up 21%

- Third Quarter 2007 Earnings Per Share (Diluted) of $0.68, up 21%,

Compared to Third Quarter 2006 Earnings Per Share (Diluted) of $0.56

- Executed 41 Leases for 445,000 Rentable Square Feet - Third Quarter 2007 GAAP Rental Rate Increase of 7.4% on Renewed/Released

Space - Third Quarter 2007 GAAP Same Property Revenues Less Operating Expenses up

4.1%

- Closed $200 Million Secured Loan

- Sold Five Real Estate Assets for Approximately $41 Million - Acquired Twelve Properties Aggregating 836,684 Rentable Square Feet

- Executed MaRS Centre Ground Lease in Toronto, Canada for Planned

Development of One Property Aggregating 770,000 Rentable Square Feet

- Completed Ground-Up Development of One Property in Mission Bay

Aggregating 157,340 Rentable Square Feet

- Commenced Ground-Up Development of One Property in Mission Bay

Aggregating 158,000 Rentable Square Feet

- Commenced First Ground-Up Development of Two Properties in China

Aggregating 280,000 Rentable Square Feet

- Completed Redevelopment of Multiple Spaces at Three Properties

Aggregating 47,722 Rentable Square Feet - Closed Follow-on Common Stock Offering with Net Proceeds of Approximately

$217 Million

PASADENA, Calif., Nov. 5 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE:

reflected as discontinued operations (for the periods prior to when

such assets were designated as "held for sale").

(3) Gain on sales of property relates to the disposition of four land

parcels and one property during the third quarter of 2007, one

property during the second quarter of 2007, one property during the

first quarter of 2007, and three properties during the second quarter

of 2006. Gain on sales of property is included in the income statement

in income from discontinued operations, net.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Supplemental Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Quarterly Supplemental Financial Information

For the Three Months Ended

Operational

data 9/30/2007 6/30/2007 3/31/2007 12/31/2006 9/30/2006

---------- ---------- ---------- ---------- ----------

Breakdown of

revenues from

continuing

operations(a)

Rental

income $78,636 $73,250 $73,161 $70,316 $63,877

Tenant

recoveries 21,762 19,094 20,572 19,024 17,446

Other income 3,734 3,410 3,750 3,943 3,431

Total ---------- ---------- ---------- ---------- ----------

revenues $104,132 $95,754 $97,483 $93,283 $84,754

========== ========== ========== ========== ==========

Funds from

operations

per share-

diluted(b) $1.45 $1.42 $1.28(c) $1.34 $1.32

Dividends per

share on common

stock $0.76 $0.76 $0.74 $0.74 $0.72

Dividend payout

ratio (common

stock) (d) 56.3% 53.8% 58.1% 55.6% 59.6%

Straight-line

rent $4,508 $2,720(e) $5,082 $5,671 $4,515

Capitalized

interest $15,035 $13,548 $10,844 $9,010 $9,726

As of

Other data 9/30/2007 6/30/2007 3/31/2007 12/31/2006 9/30/2006

---------- ---------- ---------- ---------- ----------

Number of shares

of common stock

outstanding at

end of period 31,243,448 29,180,700 29,129,238 29,012,135 28,957,698

Number of

properties(f)

Acquired/added

/completed

during period 13 2 - 8 10

Sold/transferred

to development(g) (1) (4)(h) (1) - -

Owned at end of

period 167 155 157 158 150

Rentable square

feet(f)

Acquired/added/

completed during

period 994,024 104,312 - 573,027 1,343,365

Sold/transferred

to develop-

ment(g) (37,000) (375,112) (75,500) - -

Owned at end of

period 11,813,534 10,856,510 11,127,310 11,202,810 10,629,783

Debt to total

market capital-

ization (i)

Total debt $2,502,832 $2,274,269 $2,176,594 $2,024,866 $1,721,348

Preferred stock

market

capitalization 130,156 132,593 140,579 193,360 194,142

Common stock

market capital-

ization 3,007,494 2,825,275 2,923,702 2,912,818 2,716,232

Total market ---------- ---------- ---------- ---------- ----------

capital-

ization $5,640,482 $5,232,137 $5,240,875 $5,131,044 $4,631,722

Debt to total ---------- ---------- ---------- ---------- ----------

market

capitalization 44.4% 43.5% 41.5% 39.5% 37.2%

(a) The historical results above exclude the results of assets "held for

sale" which have been reflected as discontinued operations.

(b) See page 5 for a reconciliation of earnings per share (diluted) to FFO

per share (diluted).

(c) During the first quarter of 2007, we redeemed our 9.10% Series B

cumulative redeemable preferred stock. Accordingly, in compliance with

EITF Topic D-42, we recorded a charge of $2,799,000, or $0.10 per

share (diluted), in the first quarter of 2007 for costs related to the

redemption of our Series B Preferred Stock.

(d) Dividend payout ratio (common stock) is the ratio of the absolute

dollar amount of dividends on our common stock (common stock shares

outstanding on the respective record date multiplied by the related

dividend per share) to funds from operations for the respective

quarter.

(e) Includes a rental payment of approximately $1.4 million from one

tenant, the U.S. Government, in the second quarter of 2007. Pursuant

to Statement of Financial Accounting Standards No. 13, "Accounting for

Leases" rental payments due under this lease are recognized on a

straight-line basis over the lease term.

(f) Includes assets "held for sale" during the applicable periods such

assets were "held for sale".

(g) During the third quarter of 2007, we also sold four land parcels to

the Massachusetts Institute of Technology.

(h) Represents one asset sold in the second quarter of 2007 and the

transfer of three properties from operating assets to imbedded future

development opportunities undergoing pre-construction activities.

(i) Debt to total market capitalization is the ratio of total debt

(secured notes payable, unsecured line of credit and unsecured term

loan and unsecured convertible notes) to total market capitalization.

Total market capitalization is equal to outstanding shares of

preferred stock and common stock multiplied by the related closing

price at the end of each period presented, plus total debt.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Condensed Consolidated Balance Sheets

(In thousands)

September 30, December 31,

2007 2006

-------------- --------------

(Unaudited)

Assets

Rental properties, net $3,255,989 $2,924,881

Properties undergoing development and

land held for development 696,282 397,701

Cash and cash equivalents 10,780 2,948

Tenant security deposits and other

restricted cash 56,399 34,360

Tenant receivables 7,001 6,330

Deferred rent 77,228 68,412

Investments 79,290 74,824

Other assets 124,034 108,021

-------------- --------------

Total assets $4,307,003 $3,617,477

============== ==============

Liabilities and Stockholders' Equity

Secured notes payable $1,162,832 $1,174,866

Unsecured line of credit and unsecured

term loan 880,000 850,000

Unsecured convertible notes 460,000 -

Accounts payable, accrued expenses and

tenant security deposits 227,140 158,119

Dividends payable 26,604 25,363

-------------- --------------

Total liabilities 2,756,576 2,208,348

Minority interest 59,719 57,477

Stockholders' equity:

Series B preferred stock - 57,500

Series C preferred stock 129,638 129,638

Common stock 312 290

Additional paid-in capital 1,334,417 1,139,629

Accumulated other comprehensive income 26,341 24,595

-------------- --------------

Total stockholders' equity 1,490,708 1,351,652

-------------- --------------

Total liabilities and stockholders'

equity $4,307,003 $3,617,477

============== ==============

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Debt

September 30, 2007

(Dollars in thousands)

(Unaudited)

Principal Maturities / Rates

Secured Debt Unsecured Debt

---------------------------- -------------------

Weighted

Average

Year Amount Interest Rate Amount

---------- ----------- --------------- -------------------

2007 $23,057 6.13%(1) $ -

2008 125,100 6.12 (2) -

2009 245,986 6.26 (2) -

2010 93,259 6.22 (2) 130,000 (3)

2011 108,191 6.08 (2) 750,000 (3)

Thereafter 567,239 6.00 (2) 460,000 (4)

----------- --------------- -------------------

Total $1,162,832 $ 1,340,000

=========== ===================

Secured and Unsecured Debt Analysis

Percentage Weighted Weighted

of Average Average

Balance Balance Interest Rate Maturity

---------- ------- ------------- ---------

Secured Debt $1,162,832 46.5% 6.13% 4.8 Years

Unsecured Debt 1,340,000 53.5 5.27 (5) 4.1 Years

---------- ------- ------------- ---------

Total Debt $2,502,832 100.0% 5.67% 4.4 Years

========== ======= ============= =========

Fixed and Floating Rate Debt Analysis

Percentage Weighted Weighted

of Average Average

Balance Balance Interest Rate Maturity

----------- ------- ------------- ---------

Fixed Rate Debt $1,350,893 54.0% 5.26% 5.1 Years

Floating Rate Debt

- Hedged 628,500 25.1 5.88 (5) 4.0 Years

Floating Rate Debt

- Unhedged 523,439 20.9 6.46 2.9 Years

----------- ------- ------------- ---------

Total Debt $2,502,832 100.0% 5.67% 4.4 Years

=========== ======= ============= =========

(1) The weighted average interest rate is calculated based on outstanding

debt as of September 30, 2007.

(2) The weighted average interest rate is calculated based on outstanding

debt as of December 31st of the year immediately preceding the year

presented.

(3) The unsecured line of credit matures in October 2010 and may be

extended at our sole option for an additional one year period. The

unsecured term loan matures in October 2011 and may be extended at our

sole option for an additional one year period.

(4) On or after January 15, 2012, we have the right to redeem our 3.70%

unsecured convertible notes, in whole or in part, at any time from

time to time, for cash equal to 100% of the principal amounts of the

notes to be redeemed plus any accrued and unpaid interest to, but

excluding, the redemption date. Holders of the notes may require us to

repurchase their notes, in whole or in part, on January 15, 2012, 2017

and 2022 for cash equal to 100% of the principal amount of the notes

to be purchased plus any accrued and unpaid interest to, but

excluding, the repurchase date. Additional information regarding our

unsecured convertible notes is contained in our Form 10-K filed with

the Securities and Exchange Commission.

(5) The weighted average interest rates include the impact of our interest

rate swap agreements. See page 9 for further details of our interest

rate swap agreements.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Interest Rate Swap Agreements

September 30, 2007

(Dollars in thousands)

(Unaudited)

Effective

Interest at

Transaction Effective Termination Pay Notional Sept. 30,

Dates Dates Dates Rates(1) Amounts 2007

----------- ----------- ---------- ---------- -------- -----------

December December 31, January 2, 3.590% $50,000 $50,000

2004 2004 2008

December January 3, July 1, 3.927 50,000 50,000

2004 2006 2008

June 2006 June 30, September 30, 5.299 125,000 125,000

2006 2009

May 2005 November 30, November 30, 4.330 25,000 25,000

2006 2007

December December 29, October 31, 5.090 50,000 50,000

2003 2006 2008

December December 29, November 30, 4.730 50,000 50,000

2005 2006 2009

December December 29, November 30, 4.740 50,000 50,000

2005 2006 2009

December December 29, March 31, 4.990 50,000 50,000

2006 2006 2014

December January 2, January 3, 5.003 28,500 28,500

2006 2007 2011

April April 30, April 30, 4.850 50,000 50,000

2004 2007 2008

May 2005 June 29, June 30, 4.400 50,000 50,000

2007 2008

December June 29, October 31, 4.920 50,000 50,000

2006 2007 2008

May 2005 November 30, November 28, 4.460 25,000 -

2007 2008

December January 2, December 31, 4.768 50,000 -

2005 2008 2010

May 2005 June 30, June 30, 4.509 50,000 -

2008 2009

June 2006 June 30, June 30, 5.325 50,000 -

2008 2010

June 2006 June 30, June 30, 5.325 50,000 -

2008 2010

June 2006 October 31, December 31, 5.340 50,000 -

2008 2010

June 2006 October 31, December 31, 5.347 50,000 -

2008 2010

May 2005 November 28, November 30, 4.615 25,000 -

2008 2009

December November 30, March 31, 5.015 75,000 -

2006 2009 2014

December November 30, March 31, 5.023 75,000 -

2006 2009 2014

December December 31, October 31, 5.015 100,000 -

2006 2010 2012

--------

Total $628,500

========

(1) The interest pay rates represent the interest rate we will pay for one

month LIBOR under the respective interest rate swap agreement. These

rates do not include any spread in addition to one month LIBOR that is

due monthly as interest expense.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Same Property Comparisons

(Dollars in thousands)

(Unaudited)

GAAP Basis (1) Cash Basis (1)

Quarter Ended Quarter Ended

---------------------------- ----------------------------

9/30/2007 9/30/2006 % Change 9/30/2007 9/30/2006 % Change

--------- --------- -------- -------ttp://studio.financialcontent.com/Engine?Account=prnewswire&PageName=QUOTE&Ticker=ARE" onClick="var s=s_gi(s_account); var hd1 = document.getElementById('headline'); s.tl(this,'o',getLinkName('Company Sanpshot'));" >ARE) today announced operating and financial results for the third quarter ended September 30, 2007.

For the third quarter of 2007, we reported total revenues of $104,132,000 and FFO available to common stockholders of $42,723,000, or $1.45 per share (diluted), compared to total revenues of $84,754,000 and FFO available to common stockholders of $35,230,000, or $1.32 per share (diluted), for the third quarter of 2006. Comparing the third quarter of 2007 to the third quarter of 2006, total revenues increased 23%, FFO available to common stockholders increased 21% and FFO per share (diluted) increased 10%. For the nine months ended September 30, 2007, we reported total revenues of $297,369,000 and FFO available to common stockholders of $121,876,000, or $4.14 per share (diluted), net of a preferred stock redemption charge, compared to total revenues of $222,920,000 and FFO available to common stockholders of $92,611,000, or $3.82 per share (diluted), for the nine months ended September 30, 2006. Comparing the nine months ended September 30, 2007 to the nine months ended September 30, 2006, total revenues increased 33%, FFO available to common stockholders increased 32% and FFO per share (diluted) increased 8%, net of a preferred stock redemption charge recognized in the first quarter of 2007. The preferred stock redemption charge related to the redemption of our Series B Preferred Stock was approximately $2,799,000, or $0.10 per share (diluted). Excluding the preferred stock redemption charge, FFO available to common stockholders for the nine months ended September 30, 2007 increased by 35% and FFO per share (diluted) increased by 11% as compared to the nine months ended September 30, 2006.

FFO is a non-GAAP measure widely used by publicly--- --------- --------

Revenue (2) $65,684 $61,471 6.9% $64,395 $58,369 10.3%

Operating

expenses 16,888 14,616 15.5 16,888 14,616 15.5

Revenue less --------- --------- -------- --------- --------- --------

operating

expenses $48,796 $46,855 4.1% $47,507 $43,753 8.6%

========== ========= ======== ========= ========= ========

GAAP Basis (1) Cash Basis (1)

Nine Months Ended Nine Months Ended

---------------------------- ----------------------------

9/30/2007 9/30/2006 % Change 9/30/2007 9/30/2006 % Change

--------- --------- -------- --------- --------- --------

Revenue (2) $167,386 $158,052 5.9% $163,269 $151,605 7.7%

Operating

expenses 40,076 35,082 14.2 40,076 35,082 14.2

Revenue less --------- --------- -------- --------- --------- --------

operating

expenses $127,310 $122,970 3.5% $123,193 $116,523 5.7%

========== ========= ======== ========= ========= ========

NOTE: This summary represents operating data for all properties that were owned and fully operating for the entire periods presented (the "Third Quarter Same Properties") for the quarter periods and (the "Nine Months Same Properties") for the nine month periods. Same property occupancy for the quarters ended September 30, 2007 and 2006 was 93.9% and 92.9%, respectively. Same property occupancy for the nine months ended September 30, 2007 and 2006 was 94.2% and 94.4%, respectively. Properties undergoing redevelopment are excluded from same property results.

(1) Revenue less operating expenses computed under GAAP is total revenue

associated with the Third Quarter Same Properties and Nine Months Same

Properties, as applicable, (excluding lease termination fees, if any)

less property operating expenses. Under GAAP, rental revenue is

recognized on a straight-line basis over the respective lease terms.

Revenue less operating expenses on a cash basis is total revenue

associated with the Third Quarter Same Properties and Nine Months Same

Properties, as applicable (excluding lease termination fees, if any)

less property operating expenses, adjusted to exclude the effect of

straight-line rent adjustments required by GAAP. Straight-line rent

adjustments for the quarters ended September 30, 2007 and 2006 for the

Third Quarter Same Properties were $1,289,000 and $3,102,000,

respectively. Straight-line rent adjustments for the nine months ended

September 30, 2007 and 2006 for the Nine Months Same Properties were

$4,117,000 and $6,447,000, respectively. We believe that revenue less

operating expenses on a cash basis is helpful to investors as an

additional measure of operating performance because it eliminates

straight-line rent adjustments to rental revenue.

(2) Fees received from tenants in connection with termination of their

leases, if any, are excluded from revenue in the Summary of Same

Property Comparisons. As of September 30, 2007, approximately 89% of

our leases (on a 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, as of September 30, 2007,

approximately 4% of our leases (on a square footage basis) required

the tenants to pay a majority of operating expenses.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Properties

(Dollars in thousands)

September 30, 2007

--------------------------------------------

Number Rentable Square Feet

of --------------------------------

Properties Operating Redevelopment Total

--------------------------------------------

Markets

California - Los Angeles

Metro 2 31,343 29,660 61,003

California - San Diego 34 1,519,515 247,849 1,767,364

California - San Francisco

Bay 24 1,887,310 30,238 1,917,548

Eastern Massachusetts 37 2,717,554 299,653 3,017,207

International - Canada 4 296,362 46,032 342,394

New Jersey/Suburban

Philadelphia 7 406,349 - 406,349

Southeast 12 596,172 62,234 658,406

Suburban Washington D.C. 31 2,419,833 79,536 2,499,369

Washington - Seattle 15 1,094,457 - 1,094,457

------- ---------- ------- ----------

Total Properties

(Continuing Operations) 166 10,968,895 795,202 11,764,097

======= =========== ======== ==========

June 30,

September 30, 2007 2007

--------------------- ----------

Annualized Occupancy Occupancy

Base Rent Percentage Percentage

(1) (1)(2) (3)

---------- ----------- ----------

Markets

California - Los Angeles Metro $696 70.8% 70.8%

California - San Diego 43,662 94.6 89.9

California - San Francisco Bay 64,415 95.1 96.7

Eastern Massachusetts 96,168 96.0 95.7

International - Canada 6,676 100.0 100.0

New Jersey/Suburban Philadelphia 8,524 96.3 96.6

Southeast 10,561 87.3(4) 86.2(4)

Suburban Washington D.C. 49,151 92.3 90.4

Washington - Seattle 30,630 93.4 93.7

-------- ------ ---------

Total Properties (Continuing

Operations) $310,483 94.1% 93.3%

======== ====== =========

(1) Excludes spaces at properties totaling 795,202 square feet undergoing

a permanent change in use to office/laboratory space through

redevelopment and one property totaling 49,437 square feet that is

classified as "held for sale."

(2) Including spaces undergoing a permanent change in use to

office/laboratory space through redevelopment, occupancy as of

September 30, 2007 was 87.4%. See page 16 for additional information

on our redevelopment program.

(3) Excludes spaces at properties totaling 812,785 square feet undergoing

a permanent change in use to office/laboratory space through

redevelopment. Including spaces undergoing a permanent change in use

to office/laboratory space through redevelopment, occupancy as of June

30, 2007 was 86.3%. See page 16 for additional information on our

redevelopment program.

(4) Substantially all of the vacant space is office or warehouse space.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Leasing Activity

For the Quarter Ended September 30, 2007

TI's/Lease

Commis-

sions

Number Rental Per Average

of Square Expiring New Rate Square Lease

Leases Footage Rates Rates Change Foot Terms

----------------------------------------------------

Leasing Activity

Lease Expirations

Cash Basis 45 356,031 $29.70 - - - -

GAAP Basis 45 356,031 $28.62 - - - -

Renewed/Released

Space Leased

Cash Basis 19 265,335 $32.56 $33.80 3.8% $4.39 4.2

years

GAAP Basis 19 265,335 $31.19 $33.51 7.4% $4.39 4.2

years

Redeveloped/Developed/

Vacant Space Leased

Cash Basis 22 179,442 - $37.05 - $19.60 6.4

years

GAAP Basis 22 179,442 - $38.99 - $19.60 6.4

years

Month-to-Month Leases

In Effect

Cash Basis 21 42,590 $23.72 $23.72 - - -

GAAP Basis 21 42,590 $23.72 $23.72 - - -

Leasing Activity

Summary

Excluding Month-to

-Month Leases

Cash Basis 41 444,777 - $35.11 - $10.53 4.8

years

GAAP Basis 41 444,777 - $35.72 - $10.53 4.8

years

Including Month-to

-Month Leases

Cash Basis 62 487,367 - $34.12 - - -

GAAP Basis 62 487,367 - $34.67 - - -

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Leasing Activity

For the Nine Months Ended September 30, 2007

TI's/Lease

Commis-

sions

Number Rental Per Average

of Square Expiring New Rate Square Lease

Leases Footage Rates Rates Change Foot Terms

-------------------------------------------------------

Leasing Activity

Lease Expirations

Cash Basis 100 1,357,292 $25.46 - - - -

GAAP Basis 100 1,357,292 $27.30 - - - -

Renewed/Released

Space Leased

Cash Basis 51 783,732 $29.10 $30.63 5.3% $4.66 4.0

years

GAAP Basis 51 783,732 $28.38 $30.65 8.0% $4.66 4.0

years

Redeveloped/

Developed/

Vacant Space

Leased

Cash Basis 59 479,821 - $35.22 - $11.26 5.3

years

GAAP Basis 59 479,821 - $36.98 - $11.26 5.3

years

Month-to-Month

Leases In Effect

Cash Basis 21 42,590 $23.72 $23.72 - - -

GAAP Basis 21 42,590 $23.72 $23.72 - - -

Leasing Activity

Summary

Excluding Month-

to-Month Leases

Cash Basis 110 1,263,553 - $32.38 - $7.17 4.5

years

GAAP Basis 110 1,263,553 - $33.05 - $7.17 4.5

years

Including Month-

to-Month Leases

Cash Basis 131 1,306,143 - $32.09 - - -

GAAP Basis 131 1,306,143 - $32.75 - - -

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Lease Expirations

September 30, 2007

Annualized

Year Number Square Percentage of Base Rent

of of Footage of Aggregate of Expiring

Lease Leases Expiring Leased Square Leases(per

Expiration Expiring Leases Feet square foot)

---------- -------- ---------- ---------------- ------------

2007 42(1) 343,610 3.3% $27.32

2008 48 740,247 7.2 26.12

2009 62 858,203 8.3 24.40

2010 48 1,014,972 9.8 27.80

2011 54 1,658,246 16.1 26.84

Square Footage of Expiring Leases

Markets 2007 2008

-------------------------------- -------- --------

California - Los Angeles Metro - 4,006

California - San Diego 88,439 93,024

California - San Francisco Bay 76,788 271,862

Eastern Massachusetts 78,491 196,086

International - Canada - -

New Jersey/Suburban Philadelphia - 40,000

Southeast 17,374 21,699

Suburban Washington D.C. 64,001 69,408

Washington - Seattle 18,517 44,162

-------- --------

Total 343,610 (1) 740,247

======== ========

(1) Includes 21 month-to-month leases for approximately 43,000 square

feet.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Additions and Dispositions of Properties

For the Quarter Ended September 30, 2007

(Dollars in thousands)

Acquisition Month of Rentable

Markets Amount Acquisition Square Feet

---------------------------- ------------ ----------- -----------

Additions to Operating

Properties:

Washington - Seattle $29,048 (1) July 175,734

California - San Diego/

San Francisco 337,800 (2) July/August 660,950

Total additions to Operating ------------ -----------

Properties: $366,848 836,684

============ ===========

Disposition Month of Rentable

Markets Amount Disposition Square Feet

---------------------------- ------------ ----------- -----------

Dispositions:

Eastern Massachusetts $34,384 (3) September N/A

New Jersey/Suburban

Philadelphia 6,500 September 37,000

------------ -----------

Total Dispositions: $40,884 37,000

============ ===========

(1) Represents the purchase of three properties for a total contract price

of approximately $29 million.

(2) Represents the purchase of nine properties for a total contract price

of approximately $337.8 million.

(3) Amount relates to sale of four land parcels to the Massachusetts

Institute of Technology.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Square Footage Undergoing Redevelopment

September 30, 2007

Placed Estimated Estimated Square Footage

in In- Investment Undergoing

Markets/ Redevel- Service Per Square Redevelopment/

Submarkets opment Dates Foot Total Property Status

------------- --------- ---------- -------- ----------------- ------------

California -

Los Angeles

Metro 2006 2008 $80-100 29,660/29,660 Construction

California -

San Diego/

Torrey Pines 2004 2009 $100-120 87,140/87,140 Redesign/

Construction

(1)

California -

San Diego/

Torrey Pines 2006 2009 $80-100 43,600/43,600 Construction

California -

San Diego/

Sorrento 2006 2008 $70-80 30,147/30,147 Construction

California -

San Diego/

Torrey Pines 2007 2009 $80-100 86,962/86,962 Redesign

California -

San Francisco

Bay/Peninsula 2007 2008 $80-100 30,238/82,712 Construction

Eastern Massa-

chusetts/

Suburban 2007 2009 $100-120 23,000/38,000 Construction

Eastern Massa-

chusetts/

Suburban 2007 2009 $70-80 113,045/113,045 Redesign

Eastern Massa-

chusetts/

Cambridge 2006 2008 $120-175 149,934/155,090 Construction

Eastern Massa-

chusetts/

Suburban 2006 2008 $100-120 13,674/82,330 Construction

International

- Canada 2007 2008 $140-160 46,032/46,032 Construction

Southeast/

Florida 2006 2008 $80-100 45,841/45,841 Construction

Southeast/

Research

Triangle Park 2007 2008 $100-120 16,393/77,395 Design

Suburban

Washington DC/

Shady Grove 2007 2008 $70-80 10,170/60,495 Construction

Suburban

Washington DC/

Shady Grove 2007 2009 $70-80 69,366/125,004 Redesign/

Construction

-----------------

795,202/1,103,453

=================

Our redevelopmtraded real estate investment trusts. A reconciliation of GAAP net income available to common stockholders to FFO available to common stockholders, on both an aggregate and per share diluted basis, is included in the financial information accompanying this press release. The primary reconciling item between GAAP net income available to common stockholders and FFO available to common stockholders is depreciation and amortization expense. Depreciation and amortization expense for the three months ended September 30, 2007 and 2006 was $24,194,000 and $19,973,000, respectively. Depreciation and amortization expense for the nine months ended September 30, 2007 and 2006 was $70,366,000 and $51,585,000, respectively. Net income available to common stockholders for the third quarter of 2007 was $20,186,000, or $0.68 per share (diluted), compared to net income available to common stockholders of $14,942,000, or $0.56 per share (diluted), for the third quarter of 2006. Net income available to common stockholders for the nine months ended September 30, 2007 was $56,628,000, or $1.93 per share (diluted), compared to net income available to common stockholders of $40,814,000, or $1.68 per share (diluted), for the nine months ended September 30, 2006. In the first quarter of 2007, we recognized a preferred stock redemption charge of approximately $2,799,000, or $0.10 per share (diluted), related to the redemption of our Series B Preferred Stock. Excluding the preferred stock redemption charge, net income available to common stockholders for the nine months ended September 30, 2007 increased by 46% and net income per share (diluted) increased by 20% as compared to the nine months ended September 30, 2006.

For the third quarter of 2007, we executed a total of 41 leases for approximately 445,000 square feet of space at 29 different properties (excluding month-to-month leases). Of this total, approximately 265,000 square feet related to new or renewal leases of previously leaseent program involves ongoing activities necessary for the permanent change of use of applicable redevelopment space to office/laboratory space. Spaces currently built out with laboratory improvements are generally not placed into our value-add redevelopment program. As required under GAAP, interest and other costs directly related and essential to the project are capitalized on redevelopment properties on the basis allocable only to that portion of space undergoing redevelopment. In addition to properties undergoing redevelopment, as of September 30, 2007, our asset base contained imbedded opportunities for future permanent change of use to office/laboratory space through redevelopment aggregating approximately 1,568,000 rentable square feet. See Summary of Imbedded Future Development and Redevelopment Square Footage on page 18.

(1) This project also includes site work and a multi-story below and above

ground parking structure to support both the existing building

undergoing redevelopment and an additional building targeted for

development in the future. The entitlement process for this project

was completed in early 2007.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Summary of Properties Undergoing Ground-Up Development

September 30, 2007

Estimated

Const- Investment

ruction Estimated Per Rentable

Markets/ Building Start In-Service Square Square

Submarkets Descriptions Dates Dates Foot (1) Feet Status

-------------------------------------------------------------------------

California -

San

Francisco

Bay/ One Multi-

Mission tenant

Bay Bldg. 2007 2010 $300-350 158,000 Construction

California -

San Two Bldgs,

Francisco Single or

Bay/So. San Multi-

Francisco tenant 2006 2009 $300-350 162,000 Construction

California -

San One Single

Francisco or Multi-

Bay/So. San tenant

Francisco Bldg. 2006 2009 $300-350 135,000 Construction

Two Bldgs,

Single

International or Multi-

- China tenant 2007 2009 $45 280,000 Construction

Two

New York - Multi- 2009/

New York tenant 2010/

City Bldgs. 2007 2011 $500 735,000(2) Site Work

--------

Total Properties

Undergoing

Ground-Up Development (1) 1,470,000

==========

In accordance with Statement of Financial Accounting Standards No. 34, "Capitalization of Interest Cost" ("SFAS 34") and Statement of Financial Accounting Standards No. 67, "Accounting for Costs and Initial Rental Operations of Real Estate Projects" ("SFAS 67"), we are required to capitalize direct construction, including pre-construction costs, interest, property taxes, insurance and other costs directly related and essential to the construction of a project while activities are ongoing to prepare an asset for its intended use. Pre-construction costs include costs related to the development of plans and the process of obtaining entitlements and permits from government authorities. Costs incurred after a project is substantially complete and ready for its intended use are expensed as incurred. Should development, redevelopment or construction activity cease, construction costs, including interest, would no longer be eligible for capitalization, under SFAS 34 and SFAS 67, and would be expensed as incurred.

(1) Our aggregate construction costs to date approximate $76 per

developable square foot. Amount excludes our investment per square

foot in land.

(2) In addition, we have the right to develop an additional parcel with

approximately 442,000 rentable square feet. This square footage is not

included in the imbedded developable square footage shown on page 18.

ALEXANDRIA REAL ESTATE EQUITIES, INC. Summary of Imbedded Future Development and Redevelopment Square Footage

September 30, 2007

Imbedded Future Development

---------------------------

Development/ Total Imbedded Imbedded Future

Pre-construction Development Redevelopment

Markets Square Footage(1) Square Footage Square Footage Total

---------------- -------------- --------------- ------

California -

San Diego 435,000 443,000 228,000 671,000

California -

San Francisco

Bay/Mission

Bay 1,886,000 2,386,000 - 2,386,000

California -

San Francisco

Bay/So. San

Francisco 849,000 970,000 100,000 1,070,000

Eastern

Massachusetts 674,000 899,000 345,000 1,244,000

International -

Canada 770,000 834,000 - 834,000

Suburban

Washington

D.C. 494,000 856,000 502,000 1,358,000

Washington -

Seattle 280,000 707,000 146,000 853,000

Other - 336,000 247,000 583,000

-------------- ------------ ------------ ------------

Total 5,388,000 7,431,000(2) 1,568,000 8,999,000

============== ============ ============ ============

The imbedded future development and redevelopment square footage shown above represents future ground-up development projects and future redevelopment (permanent change in use of applicable space to office/laboratory space) projects. A significant portion of our imbedded future development square footage is in the development/pre-construction phase (entitlement, permitting, design, etc.). See discussion on SFAS 34 and SFAS 67 on page 17. The exact date of physical construction will depend on successful completion of development/pre-construction activities and management's assessment of overall market conditions. As required under GAAP, direct construction, interest, property taxes, insurance and other costs directly related and essential to the development/pre-construction, or construction of a project, is mandated to be capitalized during pre-construction when activities are ongoing to bring these assets to their intended use.

(1) Development/pre-construction square footage is included in Imbedded

Future Development-Total Imbedded Development Square Footage shown

above.

(2) In addition, we have the right to develop an additional parcel with

approximately 442,000 rentable square feet. This square footage is not

included in the imbedded developable square footage shown above.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

capital expenditures include all major capital and

recurring capital expenditures except capital expenditures that are

recoverable from tenants, revenue-enhancing capital expenditures, or

costs related to the redevelopment of a property. Major capital

expenditures consist of roof replacements and HVAC systems which are

typically identified and considered at the time the property is

acquired. Capital expenditures fluctuate in any given period due to

the nature, extent or timing of improvements required and the extent

to which they are recoverable from tenants. Approximately 90% of our

leases (based on rentable square feet) provide for the recapture of

certain capital expenditures (such as HVAC systems maintenance and/or

replacement, roof replacement and parking lot resurfacing). In

addition, we implement an active preventative maintenance program at

each of our properties to minimize capital expenditures.

(2) Leasing costs consist of tenant improvements and leasing commissions

related to leasing of acquired vacant space and second generation

space.

(3) Amount includes leasing costs related to development and redevelopment

projects.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Conference Call Information

For the Third Quarter Ended September 30, 2007

Alexandria Real Estate Equities, Inc. will be hosting a conference call to discuss its operating and financial results for the third quarter and nine months ended September 30, 2007:

Date: November 6, 2007

Time: 2:00 P.M. Eastern Standard Time/11:00 A.M. Pacific

Standard Time

Phone Number: (719) 325-4769

Confirmation Code: 4041239

d space and approximately 180,000 square feet related to redeveloped, developed or previously vacant space. Of the 180,000 square feet, approximately 24,000 square feet were delivered from our redevelopment or development programs, with the remaining approximately 156,000 square feet related to previously vacant space. Rental rates for these new or renewal leases were on average approximately 7.4% higher (on a GAAP basis) than rental rates for expiring leases.

For the nine months ended September 30, 2007, we executed a total of 110 leases for approximately 1,264,000 square feet of space at 53 different properties (excluding month-to-month leases). Of this total, approximately 784,000 square feet were for new or renewal leases related to previously leased space and approximately 480,000 square feet were for redeveloped, developed or previously vacant space. Of the 480,000 square feet, approximately 212,000 square feet were delivered from our redevelopment or development programs, with the remaining approximately 268,000 square feet for previously vacant space. Rental rates for new or renewal leases were on average approximately 8.0% higher (on a GAAP basis) than rental rates for expiring leases.

During the third quarter of 2007, we acquired twelve properties with approximately 837,000 rentable square feet. We paid approximately $366.8 million cash for the properties. One of these properties, an office building totaling approximately 49,000 rentable square feet, was classified as "held for sale" as of September 30, 2007.

As of September 30, 2007, approximately 89% of our leases (on a 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, as of September 30, 2007, approximately 4% of our leases (on a square footage basis) required the tenants to pay a majority of operating expenses. Additionally, as of September 30, 2007, approximately 90% of our leases (on a square footage basis) provided for the recapture of certain capital expenditures and approximately 94% of our leases (on a 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, we have updated our prior guidance for FFO per share (diluted) and earnings per share (diluted) as follows:

2007

-----

FFO per share (diluted) (1) $5.61

Earnings per share (diluted) (2) $2.50

(1) Includes preferred stock redemption charge of $0.10 per share

diluted recognized in first quarter 2007 and excludes gains on

sales of real estate.

(2) Includes preferred stock redemption charge of $0.10 per share

diluted recognized in first quarter 2007 and gains on sales of

real estate.

Alexandria Real Estate Equities, Inc., Landlord and Developer of Choice to the Life Science Industry(R), is a publicly-traded real estate investment trust focused principally on the ownership, operation, management, selective development, redevelopment and acquisition of life science properties. Our properties are designed and improved for lease primarily to institutional (universities and independent not-for-profit institutions), pharmaceutical, biotechnology, medical device, life science product, service, biodefense and translational medicine entities, as well as governmental agencies. We are the largest and leading provider of real estate to the broad and diverse life science industry with an asset base, as of September 30, 2007, that will enable us to grow to approximately 20.7 million square feet consisting of 167 properties approximating 11.8 million square feet, properties undergoing ground-up development approximating 1.5 million square feet, plus an imbedded pipeline for ground-up development approximating 7.4 million square feet.

This press release contains forward-looking statements, including earnings guidance, within the meaning of the federal securities laws. Actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in our Annual Report on Form 10-K and our other periodic reports filed with the Securities and Exchange Commission.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

---------------------- ----------------------

2007 2006 2007 2006

Income statement data ---------- ---------- ---------- ----------

Total revenues $104,132 $84,754 $297,369 $222,920

Expenses

Rental operations 25,522 19,797 72,428 49,305

General and administrative 8,343 6,652 24,342 19,371

Interest 23,947 19,041 64,374 50,223

Depreciation and

amortization 24,080 19,808 70,025 50,976

---------- ---------- ---------- ----------

81,892 65,298 231,169 169,875

Minority interest 909 709 2,718 1,449

Income from continuing ---------- ---------- ---------- ----------

operations 21,331 18,747 63,482 51,596

Income from discontinued

operations, net 1,569 217 5,250 1,285

---------- ---------- ---------- ----------

Net income 22,900 18,964 68,732 52,881

Dividends on preferred stock 2,714 4,022 9,305 12,067

Preferred stock redemption

charge - - 2,799 -

Net income available to ---------- ---------- ---------- ----------

common stockholders $20,186 $14,942 $56,628 $40,814

========== ========== ========== ==========

Weighted average shares of

common stock outstanding

Basic 29,258,184 26,323,345 29,068,793 23,848,661

========== ========== ========== ==========

Diluted 29,507,316 26,714,050 29,406,687 24,268,236

========== ========== ========== ==========

Earnings per share - basic

Continuing operations

(net of preferred stock

dividends and preferred

stock redemption charge) $0.64 $0.56 $1.77 $1.66

Discontinued operations,

net 0.05 0.01 0.18 0.05

Earnings per share - ---------- ---------- ---------- ----------

basic $0.69 $0.57 $1.95 $1.71

========== ========== ========== ==========

Earnings per share - diluted

Continuing operations

(net of preferred stock

dividends and preferred

stock redemption charge) $0.63 $0.55 $1.75 $1.63

Discontinued operations,

net 0.05 0.01 0.18 0.05

Earnings per share - ---------- ---------- ---------- ----------

diluted $0.68 $0.56 $1.93 $1.68

========== ========== ========== ==========

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Financial Information

(Unaudited)

Funds from Operations

Generally accepted accounting principles ("GAAP") basis accounting for real estate assets utilizes historical cost accounting and assumes real estate values diminish over time. In an effort to overcome the difference between real estate values and historical cost accounting for real estate assets, the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") established the measurement tool of Funds From Operations ("FFO"). Since its introduction, FFO has become a widely used non-GAAP financial measure by REITs. We believe that FFO is helpful to investors as an additional measure of the performance of an equity REIT. We compute FFO in accordance with standards established by the Board of Governors of NAREIT in its April 2002 White Paper (the "White Paper") and related implementation guidance, which may differ from the methodology for calculating FFO utilized by other equity REITs, and, accordingly, may not be comparable to such other REITs. The White Paper defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. While FFO is a relevant and widely used measure of operating performance for REITs, it should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of financial performance, or to cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions.

The following table presents a reconciliation of net income available to common stockholders, the most directly comparable GAAP financial measure to FFO, to funds from operations available to common stockholders for the three and nine months ended September 30, 2007 and 2006 (in thousands, except per share data):

Three Three Nine Nine

Months Months Months Months

Ended Ended Ended Ended

Sept. 30, Sept. 30, Sept. 30, Sept. 30,

2007 2006 2007 2006

-------- -------- -------- --------

Reconciliation of net income

available to common

stockholders to funds from

operations available to common

stockholders

Net income available to

common stockholders (1) $20,186 $14,942 $56,628 $40,814

Add: Depreciation and

amortization (2) 24,194 19,973 70,366 51,585

Add: Minority interest 909 709 2,718 1,449

Subtract: Gain on sales of

property (3) (1,614) - (5,075) (59)

Subtract: FFO allocable to

minority interest (952) (394) (2,761) (1,178)

Funds from operations -------- -------- -------- --------

available to common

stockholders (1) $42,723 $35,230 $121,876 $92,611

======== ======== ======== ======
'/>"/>

SOURCE Alexandria Real Estate Equities, Inc.
Copyright©2007 PR Newswire.
All rights reserved

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