Alexandria Real Estate Equities, Inc 10-Q, filed Nov 6, 2009

Alexandria Real Estate Equities, Inc. (ARE)

10-Q 2009-11-06 For: 2009-09-30

Added on April 04, 2026

About this 10-Q

Alexandria Real Estate Equities, Inc filed this 10-Q on November 6, 2009, covering the quarter ended September 30, 2009.

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Maryland		95-4502084
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

	Large accelerated filer x		Accelerated filer o
	Non-accelerated filer o (Do not check if a smaller reporting company)		Smaller reporting company o

		Page
PART I–FINANCIAL INFORMATION

Item 1.	FINANCIAL STATEMENTS (UNAUDITED)	3

	Condensed Consolidated Balance Sheets-As of September 30, 2009 and December 31, 2008	4

	Condensed Consolidated Income Statements-For the Three and Nine Months Ended September 30, 2009 and 2008	5

	Condensed Consolidated Statement of Equity-For the Nine Months Ended September 30, 2009	6

	Condensed Consolidated Statements of Cash Flows-For the Nine Months Ended September 30, 2009 and 2008	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	26

Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	48

Item 4.	CONTROLS AND PROCEDURES	49

PART II–OTHER INFORMATION		49

Item 1A.	RISK FACTORS	49

Item 6.	EXHIBITS	51

Signatures		53

	September 30,			December 31,
	2009			2008
Assets
Rental properties, net	$	3,366,960		$	3,215,723
Land held for future development	254,549			109,478
Construction in progress	1,349,656			1,398,895
Cash and cash equivalents	68,280			71,161
Tenant security deposits and other restricted cash	60,002			67,782
Tenant receivables	3,789			6,453
Deferred rent	92,022			85,733
Investments	71,080			61,861
Other assets	126,999			114,991
Total assets	$	5,393,337		$	5,132,077

Liabilities and Equity
Secured notes payable	$	837,177		$	1,081,963
Unsecured line of credit and unsecured term loan	1,248,000			1,425,000
Unsecured convertible notes	580,919			431,145
Accounts payable, accrued expenses and tenant security deposits	325,720			386,801
Dividends payable	21,665			32,105
Total liabilities	3,013,481			3,357,014

Redeemable noncontrolling interests	41,232			33,963

Alexandria Real Estate Equities, Inc. stockholders’ equity:
Series C preferred stock	129,638			129,638
Series D convertible preferred stock	250,000			250,000
Common stock	437			319
Additional paid-in capital	1,961,421			1,407,294
Accumulated other comprehensive loss	(44,162		)	(87,241		)
Total Alexandria Real Estate Equities, Inc. stockholders’ equity	2,297,334			1,700,010
Noncontrolling interests	41,290			41,090
Total equity	2,338,624			1,741,100
Total	$	5,393,337		$	5,132,077

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2009		2008		2009		2008
Revenues
Rental	$	87,436	$	83,704	$	278,033	$	244,893
Tenant recoveries	26,007		26,187		76,900		73,468
Other income	1,162		2,640		10,838		8,772
Total Revenues	114,605		112,531		365,771		327,133

Expenses
Rental operations	30,783		29,057		91,430		83,567
General and administrative	9,610		8,587		27,827		25,816
Interest	20,909		21,289		61,865		63,174
Depreciation and amortization	28,031		26,924		87,878		78,520
Non-cash impairment on investments	–		–		–		1,985
Total Expenses	89,333		85,857		269,000		253,062

Gain on early extinguishment of debt	–		–		11,254		–
Income from continuing operations	25,272		26,674		108,025		74,071

Income from discontinued operations, net	1,106		928		3,718		18,458

Net income	26,378		27,602		111,743		92,529

Net income attributable to noncontrolling interests	886		929		6,123		2,828
Dividends on preferred stock	7,090		7,090		21,268		17,136
Net income attributable to unvested restricted stock awards	199		265		1,038		1,048
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	18,203	$	19,318	$	83,314	$	71,517

Earnings per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic
Continuing operations	$	0.44	$	0.58	$	2.16	$	1.68
Discontinued operations, net	0.03		0.03		0.10		0.58
Earnings per share – basic	$	0.47	$	0.61	$	2.26	$	2.26

Earnings per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted
Continuing operations	$	0.44	$	0.58	$	2.16	$	1.68
Discontinued operations, net	0.03		0.03		0.10		0.57
Earnings per share – diluted	$	0.47	$	0.61	$	2.26	$	2.25

Alexandria Real Estate Equities, Inc 10-Q, filed Nov 6, 2009

About this 10-Q

Inflation

EXHIBIT 31.1

EXHIBIT 31.2

EXHIBIT 32.0

				Alexandria Real Estate Equities, Inc. Stockholders
	Total Equity			Series C Preferred Stock		Series D Cumulative Convertible Preferred Stock		Number of Common Shares	Common Stock		Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Noncontrolling Interests
Balance at December 31, 2008	$	1,741,100		$	129,638	$	250,000	31,899,037	$	319	$	1,407,294		$	-		$	(87,241	)	$	41,090
Contributions by noncontrolling interests	300			-		-		-	-		-			-			-			300
Distributions to noncontrolling interests	(1,791		)	-		-		-	-		-			-			-			(1,791		)
Net income	107,320			-		-		-	-		-			105,620			-			1,700
Unrealized gain on marketable securities	946			-		-		-	-		-			-			946			-
Unrealized gain on interest rate swap and cap agreements	23,599			-		-		-	-		-			-			23,599			-
Foreign currency translation	18,525			-		-		-	-		-			-			18,534			(9		)
Comprehensive income	150,390			-		-		-	-		-			-			-			-
Issuance of common stock, net of offering costs	488,163			-		-		11,600,000	116		488,047			-			-			-
Issuances pursuant to stock plan	16,557			-		-		216,863	2		16,555			-			-			-
Issuance of 8.00% unsecured convertible notes	26,216			-		-		-	-		26,216			-			-			-
Repurchase of 3.70% unsecured convertible notes	(292		)	-		-		-	-		(292		)	-			-			-
Dividends declared on preferred stock	(21,268		)	-		-		-	-		-			(21,268		)	-			-
Dividends declared on common stock	(60,751		)	-		-		-	-		-			(60,751		)	-			-
Other	-			-		-		-	-		23,601			(23,601		)	-			-
Balance at September 30, 2009	$	2,338,624		$	129,638	$	250,000	43,715,900	$	437	$	1,961,421		$	-		$	(44,162	)	$	41,290

	Nine Months Ended
	September30,
	2009			2008
Operating Activities
Net income	$	111,743		$	92,529
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	89,504			80,260
Gain on early extinguishment of debt	(11,254		)	–
Amortization of loan fees and costs	5,877			5,065
Amortization of debt premiums/discount	7,790			5,867
Amortization of acquired above and below market leases	(7,991		)	(5,443		)
Deferred rent	(7,315		)	(9,726		)
Stock compensation expense	10,857			10,114
Equity in (income) loss related to investments	(39		)	106
Gain on sales of investments	(2,625		)	(7,215		)
Loss on sales of investments	854			–
Gain/loss on properties “held for sale” and sales of property	(2,234		)	(15,745		)
Non-cash impairment on investments	–			1,985
Changes in operating assets and liabilities:
Tenant security deposits and other restricted cash	7,780			(16,129		)
Tenant receivables	2,664			(90		)
Other assets	(22,901		)	(17,454		)
Accounts payable, accrued expenses and tenant security deposits	954			45,374
Net cash provided by operating activities	183,664			169,498

Investing Activities
Additions to properties	(341,410		)	(405,078		)
Purchase of properties	–			(7,915		)
Proceeds from sales of properties	11,929			79,113
Additions to investments	(10,442		)	(8,829		)
Proceeds from sales of investments	3,979			11,194
Net cash used in investing activities	(335,944		)	(331,515		)

Financing Activities
Proceeds from secured notes payable	1,082			6,719
Principal reductions of secured notes payable	(245,849		)	(140,643		)
Principal borrowings from unsecured line of credit and term loan	583,000			656,000
Repayments of borrowings from unsecured line of credit	(760,000		)	(505,000		)
Proceeds from issuance of 8.00% unsecured convertible notes	232,950			–
Repurchase of 3.70% unsecured convertible notes	(59,204		)	–
Proceeds from issuance of common stock	488,163			–
Proceeds from issuance of series D cumulative convertible preferred stock	–			242,186
Proceeds from exercise of stock options	302			2,498
Dividends paid on common stock	(71,191		)	(75,678		)
Dividends paid on preferred stock	(21,268		)	(13,490		)
Contributions by redeemable noncontrolling interests	5,003			457
Distributions to redeemable noncontrolling interests	(1,046		)	(1,112		)
Redemption of redeemable noncontrolling interests	(1,052		)	(1,282		)
Contributions by noncontrolling interests	300			650
Distributions to noncontrolling interests	(1,791		)	(1,927		)
Net cash provided by financing activities	149,399			169,378
Net (decrease) increase in cash and cash equivalents	(2,881		)	7,361
Cash and cash equivalents at beginning of period	71,161			8,030
Cash and cash equivalents at end of period	$	68,280		$	15,391

	Three Months Ended				Three Months Ended
	September 30, 2009				September 30, 2008
	After Adoption		Before Adoption		After Adoption		Before Adoption
Income statement data:
Interest expense	$	20,909	$	20,111	$	21,289	$	19,362
Income from continuing operations	25,272		25,184		26,674		27,672
Net income	26,378		26,290		27,602		28,600
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	18,203		19,200		19,318		21,510
Earnings per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders:
Basic	0.47		0.49		0.61		0.68
Diluted	0.47		0.49		0.61		0.67

	September 30, 2009				December 31, 2008
	After Adoption		Before Adoption		After Adoption		Before Adoption
Balance sheet data:
Construction in progress	$	1,383,088	$	1,379,175	$	1,398,895	$	1,397,423
Other assets	126,999		127,399		114,991		115,636
3.70% unsecured convertible notes	366,120		384,700		431,145		460,000
Minority interest	–		82,558		–		75,021
Redeemable noncontrolling interests	41,232		–		33,963		–
Additional paid-in capital	1,961,421		1,938,565		1,407,294		1,377,448
Noncontrolling interests	41,290		–		41,090		–

	September 30, 2009				December 31, 2008
	Book Value		Fair Value		Book Value		Fair Value
Secured notes payable	$	837,177	$	809,021	$	1,081,963	$	1,050,551
Unsecured line of credit and unsecured term loan	1,248,000		1,196,613		1,425,000		1,333,215
Unsecured convertible notes	580,919		603,840		431,145		312,800

Transaction Dates	Effective Dates	Termination Dates	Interest Pay Rates		Notional Amounts		Effective at September 30, 2009		Fair Values
December 2005	December 29, 2006	November 30, 2009	4.730	%	$	50,000	$	50,000	$	(379	)
December 2005	December 29, 2006	November 30, 2009	4.740		50,000		50,000		(380		)
December 2006	December 29, 2006	March 31, 2014	4.990		50,000		50,000		(5,428		)
December 2006	January 2, 2007	January 3, 2011	5.003		28,500		28,500		(1,652		)
October 2007	October 31, 2007	September 30, 2012	4.546		50,000		50,000		(4,028		)
October 2007	October 31, 2007	September 30, 2013	4.642		50,000		50,000		(4,571		)
December 2005	January 2, 2008	December 31, 2010	4.768		50,000		50,000		(2,545		)
June 2006	June 30, 2008	June 30, 2010	5.325		50,000		50,000		(1,850		)
June 2006	June 30, 2008	June 30, 2010	5.325		50,000		50,000		(1,850		)
October 2007	July 1, 2008	March 31, 2013	4.622		25,000		25,000		(2,192		)
October 2007	July 1, 2008	March 31, 2013	4.625		25,000		25,000		(2,195		)
October 2008	October 10, 2008	December 31, 2009	2.750		75,000		75,000		(475		)
October 2008	October 16, 2008	January 31, 2010	2.755		100,000		100,000		(829		)
June 2006	October 31, 2008	December 31, 2010	5.340		50,000		50,000		(2,903		)
June 2006	October 31, 2008	December 31, 2010	5.347		50,000		50,000		(2,907		)
May 2005	November 28, 2008	November 30, 2009	4.615		25,000		25,000		(185		)
October 2008	September 30, 2009	January 31, 2011	3.119		100,000		100,000		(3,153		)
December 2006	November 30, 2009	March 31, 2014	5.015		75,000		-		(7,624		)
December 2006	November 30, 2009	March 31, 2014	5.023		75,000		-		(7,602		)
December 2006	December 31, 2010	October 31, 2012	5.015		100,000		-		(4,123		)
Total							$	878,500	$	(56,871	)

Balance at December 31, 2008	$	33,963
Net income attributable to redeemable noncontrolling interests	4,423
Unrealized loss on interest rate cap agreement attributable to redeemable noncontrolling interests	(59		)
Contributions	5,003
Distributions	(1,046		)
Redemptions	(1,052		)
Balance at September 30, 2009	$	41,232

	September 30, 2009		December 31, 2008
Properties “held for sale,” net	$	35,829	$	9,189
Other assets	2,991		54
Total assets	$	38,820	$	9,243
Total liabilities	14,836		13,966
Net assets (liabilities) of discontinued operations	$	23,984	$	(4,723	)

		Rentable Square Feet			Annualized
Markets	Number of Properties	Operating	Redevelopment	Total	Base Rent (1)			Occupancy Percentages (1) (2)
California–San Diego	32	1,538,931	123,728	1,662,659	$		42,053	90.2	%
California–San Francisco Bay	18	1,526,963	53,980	1,580,943	53,584			96.2
Eastern Massachusetts	36	3,047,897	257,500	3,305,397	112,225			94.7
New Jersey/Suburban Philadelphia	8	459,904	–	459,904	8,563			88.0
Southeast	13	716,174	40,390	756,564	15,831			92.6
Suburban Washington, D.C.	30	2,281,959	165,644	2,447,603	47,690			94.6
Washington–Seattle	12	975,121	–	975,121	30,044			99.1
International–Canada	4	342,394	–	342,394	7,936			100.0
Total Properties (Continuing Operations)	153	10,889,343	641,242	11,530,585	$	317,926		94.4	%

			Rentable Square		Percentage of		Annualized Base
	Number of		Footage of		Aggregate		Rent of Expiring
	Leases		Expiring		Leased		Leases (per
Year of Lease Expiration	Expiring		Leases		Square Feet		rentable square foot)
2009	16	(1)	246,420	(1)	2.4	%	$27.09
2010	76		974,125		9.5		25.93
2011	76		1,759,082		17.1		28.27
2012	67		1,385,630		13.5		33.34
2013	47		974,635		9.5		30.08
2014	43		998,180		9.7		28.39
2015	25		590,534		5.7		27.36
2016	17		987,095		9.6		30.76
2017	12		606,057		5.9		37.26
2018	11		737,172		7.2		44.60
Thereafter	18		997,837		9.7		32.22

	September 30,			December 31,
	2009			2008
Adjusted cost of “available for sale” securities	$	1,510		$	699
Gross unrealized gains	6,731			5,660
Gross unrealized losses	(125		)	–
Fair value of “available for sale” securities	$	8,116		$	6,359

Value Add Activities	Amount		Square Feet
Redevelopment projects	$	133,437	641,242
Development projects	370,164		980,000
Preconstruction projects	598,538		5,260,000
New markets and other projects	247,517		1,057,000
Total	$	1,349,656	7,938,242

Markets/Submarkets	Estimated In-Service Dates	Rentable Square Footage Undergoing Redevelopment/ Total Property

California – San Diego/Torrey Pines	2010	84,504 / 84,504
California – San Diego/Torrey Pines	2009	39,224 / 76,084
California – San Francisco Bay	2010	53,980 / 53,980
Eastern Massachusetts/Cambridge	2009	24,177 / 177,101
Eastern Massachusetts/Cambridge	2010	90,278 / 369,831
Eastern Massachusetts/Suburban	2010	113,045 / 113,045
Eastern Massachusetts/Suburban	2010	30,000 / 30,000
Southeast/Florida	2009	40,390 / 44,855
Suburban Washington, D.C./Shady Grove	2010	58,632 / 58,632
Suburban Washington, D.C./Shady Grove	2009	50,633 / 123,501
Suburban Washington, D.C./Shady Grove	2011	56,379 / 56,379
		641,242 / 1,187,912

Markets/Submarkets	Building Description	Estimated In-Service Dates	Leased/ Committed	Estimated Investment Per Square Foot	Rentable Square Feet	Leasing Status

California – San Francisco Bay/ Mission Bay	Multi-tenant Bldg. with 3% Retail	2010	97%	$350	158,000	158,000 Rentable Square Feet Leased or Committed to UCSF and a Large Cap Life Science Company

California – San Francisco Bay/ Mission Bay	Single or Multi-tenant Bldg. with 4% Retail	2011	77%	$350	105,000	Negotiating Lease for Significant Amount of Space with a Large Cap Life Science Company

California – San Francisco Bay/ So. San Francisco	Two Bldgs., Single or Multi-tenant	2010	0%	$350	162,000	Marketing/Moving Former 16% Tenant to Another Property

California – San Francisco Bay/ So. San Francisco	Single Tenant Bldg.	2009	55%	$350	130,000	72,000 Rentable Square Feet Leased to Exelixis Inc. with Option for Remaining Space Through 2009

New York – New York City – East Tower	Multi-tenant Bldg. with 6% Retail	2010/2011	51%	$500	310,000	100,000 Rentable Square Feet Leased to Eli Lilly and Company; Leasing 57,000 Rentable Square Feet for Food, Conference and Core Services; Current Office/Laboratory Negotiations in Excess of 300,000 Rentable Square Feet

Washington – Seattle	Single Tenant Bldg. with 5% Retail	2010 (1)	92%	$390	115,000	106,000 Rentable Square Feet Leased to Gilead Sciences, Inc.

			58%		980,000

	Square Footage
	Construction in Progress
Markets	Redevelopment	Development	Preconstruction	New Markets and Other Projects	Land		Future Redevelopment		Total Value Add Square Footage

California – San Diego	123,728	–	298,000	–	145,000		178,000		744,728
California – San Francisco Bay/ Mission Bay	–	263,000	2,320,000	–	–		–		2,583,000
California – San Francisco Bay/ So. San Francisco	53,980	292,000	144,000	–	1,051,000		25,000		1,565,980
Eastern Massachusetts	257,500	–	2,050,000	–	225,000		540,000		3,072,500
Suburban Washington, D.C.	165,644	–	–	–	787,000		457,000		1,409,644
Washington – Seattle	–	115,000	248,000	–	1,049,000		165,000		1,577,000
International – Canada	–	–	–	–	827,000		–		827,000
Other	40,390	310,000	200,000	1,057,000	741,000		222,000		2,570,390

Total	641,242	980,000	5,260,000	1,057,000	4,825,000	(1)	1,587,000	(2)	14,350,242

	Tenant	Number of Leases	Remaining Lease Term in Years (1)		Remaining Lease Term in Years (2)	Approximate Aggregate Rentable Square Feet	Percentage of Aggregate Leased Square Feet		Annualized Base Rent (3) (in thousands)		Percentage of Aggregate Annualized Base Rent
1	Novartis AG	4	6.4	(4)	6.8	400,255	3.9	%	$	24,073	7.6	%
2	Roche Holding Ltd	5	8.0	(5)	8.3	387,813	3.8		14,834		4.7
3	GlaxoSmithKline plc	6	5.7	(6)	6.6	350,278	3.4		14,154		4.5
4	ZymoGenetics, Inc. (7)	2	9.6		9.6	203,369	2.0		8,747		2.7
5	United States Government	6	3.9	(8)	3.9	308,205	3.0		8,359		2.6
6	Massachusetts Institute of Technology	3	2.5	(9)	2.8	178,952	1.7		7,899		2.5
7	Theravance, Inc. (10)	2	2.5		2.5	170,244	1.7		6,136		1.9
8	Pfizer Inc.	2	10.2	(11)	10.2	120,140	1.2		5,648		1.8
9	Amylin Pharmaceuticals, Inc.	3	6.7	(12)	6.9	158,983	1.5		5,467		1.7
10	Dyax Corp.	1	2.4		2.4	91,495	0.9		5,407		1.7
11	The Scripps Research Institute	2	7.2	(13)	7.1	96,500	0.9		5,193		1.6
12	Forrester Research, Inc.	1	2.0		2.0	145,551	1.4		4,987		1.6
13	Alnylam Pharmaceuticals, Inc.	1	7.0		7.0	95,410	0.9		4,466		1.4
14	Quest Diagnostics Incorporated	1	7.3		7.3	248,186	2.4		4,341		1.4
15	Infinity Pharmaceuticals, Inc.	2	3.3		3.3	67,167	0.7		4,302		1.4
16	Johnson & Johnson	2	4.0	(14)	3.4	170,451	1.7		3,917		1.2
17	Fred Hutchinson Cancer Research Center	2	4.8	(15)	4.9	123,322	1.2		3,853		1.2
18	Merck & Co., Inc.	2	3.6	(16)	4.3	102,196	1.0		3,847		1.2
19	Qiagen N.V.	2	6.5	(17)	6.5	158,879	1.5		3,845		1.2
20	Monsanto Company	3	8.4	(18)	10.8	120,050	1.2		3,757		1.2
	Total/Weighted Average:	52	5.8		6.1	3,697,446	36.0	%	$	143,232	45.1	%

(1)	Represents remaining lease term in years based on percentage of leased square feet.
(2)	Represents remaining lease term in years based on percentage of annualized base rent.
(3)	Annualized base rent means the annualized fixed base rental amount in effect as of September 30, 2009 (using rental revenue computed on a straight-line basis in accordance with GAAP).
(4)	Amount shown is a weighted average of multiple leases with this tenant for 255,441 rentable square feet, 16,188 rentable square feet, 47,185 rentable square feet and 81,441 rentable square feet, respectively, with remaining lease terms of 8.5 years, 4.8 years, 4.0 years and 1.8 years, respectively.
(5)	Amount shown is a weighted average of multiple leases with this tenant for 155,685 rentable square feet, 126,971 rentable square feet, 66,262 rentable square feet, 16,406 rentable square feet and 22,489 rentable square feet and with remaining lease terms of 9.5 years, 9.0 years, 5.1 years, 4.2 years and 4.0 years, respectively.
(6)	Amount shown is a weighted average of multiple leases with this tenant for 128,759 rentable square feet (representing two leases at two properties containing 68,000 and 60,759 rentable square feet, respectively); 52,627 rentable square feet, 17,932 rentable square feet and 150,960 rentable square feet with remaining lease terms of 10.5 years, 8.3 years, 2.0 years and 1.1 years, respectively.
(7)	As of September 30, 2009, Novo A/S owned approximately 31.5% of ZymoGenetics, Inc.
(8)	Amount shown is a weighted average of multiple leases with this tenant for 81,580 rentable square feet, 114,568 rentable square feet (representing three leases at three properties containing 50,325 rentable square feet, 9,337 rentable square feet and 54,906 rentable square feet, respectively), 105,000 rentable square feet and 7,057 rentable square feet with remaining lease terms of 5.6 years, 4.0 years, 2.7 years and 0.9 years, respectively.
(9)	Amount shown is a weighted average of multiple leases with this tenant for 86,515 rentable square feet, 8,876 rentable square feet and 83,561 rentable square feet with remaining lease terms of 3.8 years, 2.0 years and 1.3 years, respectively.
(10)	As of July 31, 2009, GlaxoSmithKline plc owned 15% of the outstanding stock of Theravance, Inc.
(11)	Amount shown is a weighted average of multiple leases with this tenant for 102,283 rentable square feet and 17,857 rentable square feet with remaining lease terms of 10.3 years and 9.6 years, respectively.
(12)	Amount shown is a weighted average of multiple leases with this tenant for 71,510 rentable square feet and 87,473 rentable square feet (representing two leases at two properties containing 45,030 rentable square feet and 42,443 rentable square feet, respectively) with remaining lease terms of 8.3 years and 5.3 years, respectively.
(13)	Amount shown is a weighted average of multiple leases with this tenant for 19,606 rentable square feet and 76,894 rentable square feet with remaining lease terms of 8.1 years and 6.9 years, respectively.
(14)	Amount shown is a weighted average of multiple leases with this tenant for 111,451 rentable square feet and 59,000 rentable square feet with remaining lease terms of 4.5 years and 2.9 years, respectively.
(15)	Amount shown is a weighted average of multiple leases with this tenant for 106,425 rentable square feet and 16,897 rentable square feet with remaining lease terms of 5.2 years and 2.4 years, respectively.
(16)	Amount shown is a weighted average of multiple leases with this tenant for 67,473 rentable square feet and 34,723 rentable square feet with remaining lease terms of 5.0 years and 1.0 years, respectively.
(17)	Amount shown is a weighted average of multiple leases with this tenant for 143,585 rentable square feet and 15,294 rentable square feet with remaining lease terms of 7.0 years and 1.4 years, respectively.
(18)	Amount shown is a weighted average of multiple leases with this tenant for 65,719 rentable square feet, 22,555 rentable square feet and 31,776 rentable square feet with remaining lease terms of 14.4 years, 1.2 years and 1.1 years, respectively.

				Payments by Period

	Total			2009		2010-2011		2012-2013			Thereafter

Secured notes payable	$	837,177	(1)	$	2,788	$	169,401	$	130,339	(2)	$	534,649
Unsecured line of credit and term loan (3)	498,000			–		498,000		–			–
Unsecured term loan (3)	750,000			–		–		750,000			–
3.70% Unsecured Convertible Notes	384,700			–		–		384,700			–
8.00% Unsecured Convertible Notes	240,000			–		–		–			240,000
Estimated interest payments	569,797			32,749		216,584		143,262			177,202
Ground lease obligations	593,047			1,492		13,011		14,612			563,932
Other obligations	3,634			351		2,464		819			–
Total	$	3,876,355		$	37,380	$	899,460	$	1,423,732		$	1,515,783

	September 30, 2009		December 31, 2008
Funds held in trust under the terms of certain secured notes payable	$	19,468	$	16,118
Funds held in escrow related to construction projects	33,651		49,499
Other restricted funds	6,883		2,165
Total	$	60,002	$	67,782

3.1*		Articles of Amendment and Restatement of the Company, filed as an exhibit to the Company’s quarterly report on Form 10-Q filed with the SEC on August 14, 1997.
3.2*		Certificate of Correction of the Company, filed as an exhibit to the Company’s quarterly report on Form 10-Q filed with the SEC on August 14, 1997.
3.3*		Bylaws of the Company (as amended February 17, 2009), filed as an exhibit to the Company’s current report on Form 8-K filed with the SEC on February 20, 2009.
3.4*		Articles Supplementary, dated June 9, 1999, relating to the 9.50% Series A Cumulative Redeemable Preferred Stock, filed as an exhibit to the Company’s quarterly report on Form 10-Q filed with the SEC on August 13, 1999.
3.5*		Articles Supplementary, dated February 10, 2000, relating to the election to be subject to Subtitle 8 of Title 3 of the Maryland General Corporation Law, filed as an exhibit to the Company’s current report on Form 8-K filed with the SEC on February 10, 2000.
3.6*		Articles Supplementary, dated February 10, 2000, relating to the Series A Junior Participating Preferred Stock , filed as an exhibit to the Company’s current report on Form 8-K filed with the SEC on February 10, 2000.
3.7*		Articles Supplementary, dated January 18, 2002, relating to the 9.10% Series B Cumulative Redeemable Preferred Stock, filed as an exhibit to the Company’s Form 8-A for registration of certain classes of securities filed with the SEC on January 18, 2002.
3.8*		Articles Supplementary, dated June 22, 2004, relating to the 8.375% Series C Cumulative Redeemable Preferred Stock, filed as an exhibit to the Company’s Form 8-A for registration of certain classes of securities filed with the SEC on June 28, 2004.
3.9*		Articles Supplementary, dated March 25, 2008, relating to the 7.00% Series D Cumulative Convertible Preferred Stock, filed as an exhibit to the Company’s current report on Form 8-K filed with the SEC on March 25, 2008.
4.1*		Rights Agreement, dated as of February 10, 2000, between the Company and American Stock Transfer & Trust Company, as Rights Agent, including the forms of Articles Supplementary setting forth the terms of the Series A Junior Participating Preferred Stock, par value $.01 per share, Rights Certificate and the Summary of Rights to Purchase Preferred Stock attached as exhibits to the Rights Agreement. Pursuant to the Rights Agreement, printed Rights Certificates will not be mailed until after the Distribution Date (as defined in the Rights Agreement), filed as an exhibit to the Company’s current report on Form 8-K filed with the SEC on February 10, 2000.
4.2*		Specimen certificate representing shares of Common Stock, filed as an exhibit to the Company’s Registration Statement on Form S-11 (No. 333-23545) filed with the SEC on May 19, 1997.
4.3*		Specimen certificate representing shares of 9.50% Series A Cumulative Redeemable Preferred Stock, filed as an exhibit to Alexandria’s quarterly report on Form 10-Q filed with the Commission on August 13, 1999.
4.4*		Specimen certificate representing shares of 9.10% Series B Cumulative Redeemable Preferred Stock, filed as an exhibit to the Company’s Form 8-A for registration of certain classes of securities filed with the SEC on January 18, 2002.
4.5*		Specimen certificate representing shares of 8.375% Series C Cumulative Redeemable Preferred Stock, filed as an exhibit to the Company’s Form 8-A for registration of certain classes of securities filed with the SEC on June 28, 2004.
4.6*		Specimen certificate representing shares of 7.00% Series D Cumulative Convertible Preferred Stock, filed as an exhibit to the Company’s current report on Form 8-K filed with the SEC on March 25, 2008.
4.7*		Indenture, dated January 17, 2007, among the Company, Alexandria Real Estate Equities, L.P., as Guarantor, and Wilmington Trust company, as Trustee filed as an exhibit to the Company’s current report on Form 8-K filed with the SEC on January 19, 2007.
4.8*		Registration Rights Agreement, dated as of January 17, 2007, among the Company, Alexandria Real Estate Equities, L.P., UBS Securities LLC., Citigroup Global Markets, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated filed as an exhibit to the Company’s current report on Form 8-K filed with the SEC on January 18, 2007.
4.9*		Indenture, dated as of April 27, 2009, among the Company, as Issuer, Alexandria Real Estate Equities, L.P., as Guarantor, and Wilmington Trust Company, as Trustee filed as an exhibit to the Company’s quarterly report on Form 10-Q filed with the SEC on August 10, 2009.
10.1*		Indenture, dated as of April 27, 2009, among the Company, as Issuer, Alexandria Real Estate Equities, L.P., as Guarantor, and Wilmington Trust Company, as Trustee, filed as Exhibit 4.9 to Company’s quarterly report on Form 10-Q filed with the SEC on August 10, 2009.
10.2		Consulting Agreement between the Company and James H. Richardson, effective August 30, 2009.
11.1		Computation of Per Share Earnings (included in Note 2 to the Condensed Consolidated Financial Statements).
12.1		Computation of Consolidated Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends.

31.1		Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.0		Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	ALEXANDRIA REAL ESTATE EQUITIES, INC.


	/s/ Joel S. Marcus
	Joel S. Marcus Chairman/Chief Executive Officer (Principal Executive Officer)

	/s/ Dean A. Shigenaga
	Dean A. Shigenaga Chief Financial Officer (Principal Financial and Chief Accounting Officer)

ALEXANDRIA REAL ESTATE EQUITIES, INC.			JAMES H. RICHARDSON


By:	/s/ Joel S. Marcus		/s/ James H. Richardson
	Joel S. Marcus, Chief Executive Officer


Date:		September 9, 2009	Date:	8/22/09

	Nine Months
	Ended			Year Ended December 31, (a)
	September 30,
	2009			2008			2007			2006			2005

Income from continuing operations before noncontrolling interests	$	108,025		$	101,060		$	75,966		$	65,633		$	51,779
Add: Interest expense	61,865			84,108			92,270			67,804			45,496
Subtract: Noncontrolling interests in income of subsidiaries which have not incurred fixed charges	(914		)	(1,304		)	(1,407		)	(1,404		)	(571		)
Earnings available for fixed charges	$	168,976		$	183,864		$	166,829		$	132,033		$	96,704

Combined fixed charges and preferred stock dividends:
Interest incurred	$	110,130		$	150,328		$	141,374		$	104,076		$	74,075
Preferred stock dividends	21,268			24,225			12,020			16,090			16,090
Preferred stock redemption charge	–			–			2,799			–			–

Total combined fixed charges and preferred stock dividends	$	131,398		$	174,553		$	156,193		$	120,166		$	90,165

Ratio of earnings to combined fixed charges and preferred stock dividends (b)	1.29			1.05		(c)	1.07		(d)	1.10			1.07

	/s/ Dean A. Shigenaga
	Dean A. Shigenaga
	Chief Financial Officer