8-K - ARE - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENTREPORT

Pursuantto Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2010

ALEXANDRIA REAL ESTATE EQUITIES, INC.

(Exact name of registrant as specified in its charter)

Maryland	1-12993	95-4502084
(State or other jurisdiction of<br><br> incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
385 East Colorado Boulevard, Suite 299	****
---	---
Pasadena, California	91101
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (626) 578-0777

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c))

Item2.02. Results of Operations andFinancial Condition.

On July 29, 2010, we issued a press release entitled “Alexandria Real Estate Equities, Inc. Reports Second Quarter 2010 Financial and Operating Results” which sets forth our results of operations and financial condition for the second quarter ended June 30, 2010. That press release referred to certain supplemental information that is available on our website at www.labspace.com. Copies of the press release and supplemental information are attached hereto as Exhibits 99.1 and 99.2, respectively.

The information contained in this Current Report on Form 8-K, including the exhibits referenced herein, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press<br> Release dated July 29, 2010.
99.2	Alexandria<br> Real Estate Equities, Inc.’s Supplemental Financial,<br> Operating, & Property Information for the quarter ended<br> June 30, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ALEXANDRIA<br> REAL ESTATE EQUITIES, INC.
July 29,<br> 2010	By:	/s/<br> Joel S. Marcus
		Joel<br> S. Marcus
		Chairman/Chief<br> Executive Officer
		(Principal<br> Executive Officer)
	By:	/s/<br> Dean A. Shigenaga
		Dean<br> A. Shigenaga
		Chief<br> Financial Officer
		(Principal<br> Financial and Chief Accounting Officer)

EXHIBIT INDEX

Exhibit Number	Exhibit Title
99.1	Press<br> Release dated July 29, 2010.
99.2	Alexandria<br> Real Estate Equities, Inc.’s Supplemental Financial,<br> Operating, & Property Information for the quarter ended<br> June 30, 2010.

Exhibit 99.1

Contact:	Joel S. Marcus
****	Chairman/Chief Executive Officer
****	Alexandria Real Estate Equities, Inc.
****	(626) 578-9693

ALEXANDRIA REAL ESTATE EQUITIES, INC.

REPORTS SECOND QUARTER 2010

FINANCIAL AND OPERATING RESULTS

Highlights

SecondQuarter 2010:

· Second Quarter 2010 Funds from Operations Per Share (Diluted) Attributable to Alexandria Real Estate Equities, Inc.’s Common Stockholders of $1.10 Excluding Loss on Early Extinguishment of Debt

· Earnings Guidance for FFO per Share (Diluted) for the Year Ended December 31, 2010 of $4.43 Excluding Losses on Early Extinguishment of Debt and FFO per Share (Diluted) of $3.57 Including Losses on Early Extinguishment of Debt

· Second Quarter 2010 GAAP Same Property Revenues Less Operating Expenses up Approximately 1%

· Executed 35 Leases for 551,000 Rentable Square Feet, Including 135,000 Rentable Square Feet of Redevelopment and Development Space

· Reduced 2011 Expiring Leases by 295,000 Rentable Square Feet

· Second Quarter 2010 GAAP Rental Rate Increase of 5.1% on Renewed/Released Space

· Second Quarter 2010 Occupancy Remains Steady at Approximately 94%

· Operating Margins Solid at 74%

· Repaid Two Secured Loans Aggregating $22 Million

· Completed Exchange Offer of $233 Million of 8% Unsecured Convertible Notes; Representing 97% of Total Outstanding Notes

· Executed a 10-Year Lease with Bayer AG for 49,000 Rentable Square Feet at The Alexandria Center for Science and Technology at Mission Bay

· Obtained Final Zoning Approval for Binney Street Project Located in East Cambridge, Massachusetts, an 11.3-Acre Life Science Development Consisting of 1.7 Million Square Feet of Life Science Laboratory and Other Spaces

FirstHalf 2010:

· GAAP Same Property Revenues Less Operating Expenses up Approximately 1%

· Executed 75 Leases for 1,031,000 Rentable Square Feet, Including 189,000 Rentable Square Feet of Redevelopment and Development Space

· GAAP Rental Rate Increase of 4.2% on Renewed/Released Space

· Completed Ground-Up Development of One Property in Seattle, Washington Aggregating 115,000 Rentable Square Feet Pursuant to a 10-Year Lease with Gilead Sciences Inc.

· Sold One Property Aggregating 71,000 Rentable Square Feet Previously Classified as “Held For Sale”

· Repaid Four Secured Loans Aggregating $33 Million

· Received LEED® Silver Certifications for Two Buildings in San Francisco Bay Market

PASADENA, CA. – July 29, 2010 – Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced financial and operating results for the second quarter ended June 30, 2010.

Financial Results

For the second quarter of 2010, we reported funds from operations (“FFO”) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders of $9,840,000, or $0.22 per share (diluted), compared to FFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders of $68,401,000, or $1.59 per share (diluted), for the second quarter of 2009. For the six months ended June 30, 2010, we reported FFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders of $59,703,000, or $1.35 per share (diluted), compared to FFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders of $129,764,000, or $3.43 per share (diluted), for the six months ended June 30, 2009. In the second quarter of 2010, we recognized a loss on early extinguishment of debt of approximately $41.5 million upon completion of our exchange of approximately $232.7 million principal amount of our 8% unsecured convertible notes for common stock and cash (“Exchange Offer”). FFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders for the three and six months ended June 30, 2010 excluding the loss on early extinguishment of debt was $54,563,000, or $1.10 per share (diluted), and $108,547,000, or $2.18 per share (diluted), respectively. In the second quarter of 2009, we recognized a gain on early extinguishment of debt of approximately $11.3 million related to the repurchase, in privately negotiated transactions, of approximately $75 million (par value) of our 3.70% unsecured convertible notes. Additionally, during the second quarter of 2009, we recognized income of approximately $7.2 million for a cash payment related to real estate acquired in November 2007. In the first quarter of 2009, we recognized additional rental income of approximately $18.5 million related to a modification of a lease for a property in South San Francisco, California. The weighted average number of common stock outstanding for calculating FFO per share (diluted) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders totaled 44,904,999 and 43,071,925 for the second quarter of 2010 and 2009, respectively, and 44,384,570 and 37,810,869 for the six months ended June 30, 2010 and 2009, respectively.

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Financial Results(continued)

The following table summarizes the significant items noted above that impacted FFO (diluted) (in thousands):

****	Six Months Ended					****	Three Months Ended														****
****	6/30/2010		****	6/30/2009		****	6/30/2010		****	3/31/2010		12/31/2009		9/30/2009		6/30/2009		****	3/31/2009		****
FFO<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders – numerator for FFO per share<br> (diluted), as reported	$	59,703		$	129,764		$	9,840		$	53,980	$	54,247	$	50,609	$	68,401		$	61,329
Loss<br> (gain) on early extinguishment of debt	41,496			(11,254		)	41,496			–		–		–		(11,254		)	–
Cash<br> receipt related to real estate acquired in November 2007	–			(7,242		)	–			–		–		–		(7,242		)	–
Additional<br> rental income related to modification of lease	–			(18,509		)	–			–		–		–		–			(18,509		)
Assumed<br> conversion of 8% unsecured convertible notes (1)	7,754			–			3,560			–		–		–		–			–
Impact<br> of items above attributable to unvested restricted stock awards	(406		)	431			(333		)	–		–		–		174			287
FFO<br> (diluted), as adjusted	$	108,547		$	93,190		$	54,563		$	53,980	$	54,247	$	50,609	$	50,079		$	43,107

(1) Due to the $41.5 million loss on early extinguishment of debt, our FFO results for the three and six months ended June 30, 2010 do not assume conversion of our 8% unsecured convertible notes for FFO per share (diluted) purposes as the impact to FFO per share was antidilutive to each period pursuant to the if-converted method of accounting. Excluding the loss on early extinguishment of debt, the impact of the assumed conversion of our 8% unsecured convertible notes would have been dilutive and the interest related to the notes is added to FFO (diluted). For all periods since issuance of the notes in April 2010, except the three and six months ended June 30, 2010, there is no add back for the assumed conversion of our 8% unsecured convertible notes since FFO attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders – numerator for FFO per share (diluted), as reported, already included amounts related to the assumed conversion of our 8% unsecured convertible notes pursuant to the if-converted method of accounting.

The following table summarizes the significant items noted above that impacted total revenues (in thousands):

****	Six Months Ended				****	Three Months Ended													****
****	6/30/2010		6/30/2009		****	6/30/2010		3/31/2010		12/31/2009		9/30/2009		6/30/2009		****	3/31/2009		****
Total<br> revenues, as reported	$	233,497	$	252,598		$	117,010	$	116,487	$	115,125	$	115,826	$	121,039		$	131,559
Cash<br> receipt related to real estate acquired in November 2007	–		(7,242		)	–		–		–		–		(7,242		)	–
Additional<br> rental income related to modification of lease	–		(18,509		)	–		–		–		–		–			(18,509		)
Total<br> revenues, as adjusted	$	233,497	$	226,847		$	117,010	$	116,487	$	115,125	$	115,826	$	113,797		$	113,050

FFO is a non-GAAP measure widely used by publicly traded real estate investment trusts. We compute FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) in its April 2002 White Paper and related implementation guidance. A reconciliation of net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders in accordance with United States generally accepted accounting principles (“GAAP”) to FFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders is included in the financial information accompanying this press release. The primary reconciling item between GAAP net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders and FFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders is depreciation and amortization expense. Depreciation and amortization expense for the three months ended June 30, 2010 and 2009 was $30,342,000 and $29,722,000, respectively. Depreciation and amortization expense for the six months ended June 30, 2010 and 2009 was $60,080,000 and $61,168,000, respectively. Net loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders for the second quarter of 2010 was $20,393,000, or $0.45 per share (diluted), compared to net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders of $35,498,000, or $0.82 per share (diluted), for the second quarter of 2009. Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders for the six months ended June 30, 2010 was $206,000, compared to net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders of $68,287,000, or $1.81 per share (diluted), for the six months ended June 30, 2009.

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LeasingActivity

For the second quarter of 2010, we executed a total of 35 leases for approximately 551,000 rentable square feet at 26 different properties (excluding month-to-month leases). Of this total, approximately 416,000 rentable square feet related to new or renewal leases of previously leased space (renewed/released space) and approximately 135,000 rentable square feet related to developed, redeveloped or previously vacant space. Of the 135,000 rentable square feet, approximately 53,000 rentable square feet were related to our development or redevelopment programs, with the remaining approximately 82,000 rentable square feet related to previously vacant space. Rental rates for these new or renewal leases (renewed/released space) were on average approximately 5.1% higher on a GAAP basis than rental rates for expiring leases.

For the six months ended June 30, 2010, we executed a total of 75 leases for approximately 1,031,000 rentable square feet at 48 different properties (excluding month-to-month leases). Of this total, approximately 681,000 rentable square feet related to new or renewal leases of previously leased space and approximately 350,000 rentable square feet related to developed, redeveloped or previously vacant space. Of the 350,000 rentable square feet, approximately 189,000 rentable square feet were related to our development or redevelopment programs, with the remaining approximately 161,000 rentable square feet related to previously vacant space. Rental rates for these new or renewal leases were on average approximately 4.2% higher on a GAAP basis than rental rates for expiring leases.

As of June 30, 2010, approximately 89% of our leases (on a rentable square footage basis) were triple net leases, requiring tenants to pay substantially all real estate taxes, insurance, common area and other operating expenses, including increases thereto. In addition, approximately 8% of our leases (on a rentable square footage basis) required the tenants to pay a majority of operating expenses. Additionally, approximately 92% of our leases (on a rentable square footage basis) provided for the recapture of certain capital expenditures, and approximately 94% of our leases (on a rentable square footage basis) contained effective annual rent escalations that were either fixed or indexed based on the consumer price index or another index.

Exchangeof 8% Unsecured Convertible Notes

Our 8% unsecured convertible notes are convertible under certain circumstances at a conversion rate of approximately 24.1546 shares of common stock per $1,000 in bonds, representing a conversion price of approximately $41.40 per share of our common stock, or approximately 5.8 million shares of our common stock in total for the entire $240 million principal amount of notes originally issued. We apply the if-converted method for purposes of determining the impact of our 8% unsecured convertible notes on earnings per share (diluted) and FFO per share (diluted). In applying the if-converted method, we assume that our 8% unsecured convertible notes are converted for purposes of calculating earnings per share (diluted) or FFO per share (diluted) if the effect of such conversion is dilutive to earnings per share or FFO per share, as the case may be. If the effect of the assumed conversion is dilutive, earnings per share (diluted) or FFO per share (diluted) is calculated by adding back interest charges applicable to our 8% unsecured convertible notes to the numerator and our 8% unsecured convertible notes are assumed to have been converted at the beginning of the period presented (or at the date of issuance, if occurring on a date later than the beginning of the period presented) and the resulting incremental shares associated with the assumed conversion are included in the denominator. Furthermore, we assume that our 8% unsecured convertible notes are converted for the period prior to any retirement or actual conversion if the effect of such assumed conversion would be dilutive, and any shares of common stock issued upon retirement or conversion are included in the denominator for the period after the date of retirement or conversion. Since issuance, and for periods through the first quarter of 2010, we had assumed conversion of our 8% unsecured convertible notes for purposes of calculating FFO per share (diluted) as the impact to FFO per share was dilutive for each period pursuant to the if-converted method of accounting. As a result, for all periods presented through March 31, 2010, the underlying shares of our common stock of approximately 5.8 million shares were included in our weighted average shares of common stock outstanding for FFO per share (diluted).

In June 2010, we completed the Exchange Offer. The terms of the Exchange Offer included 24.1546 shares of our common stock, plus a cash premium of $180 per $1,000 in bonds. As the Exchange Offer terms provided for an equivalent number of shares of our common stock, per bond, as compared to the existing bondholder conversion option, we anticipated that the Exchange Offer would not by itself impact our total weighted average shares of common stock outstanding for purposes of calculating FFO per share (diluted), assuming that our 8% unsecured convertible notes are dilutive to FFO per share (dilutive) for such periods.

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Exchangeof 8% Unsecured Convertible Notes (continued)

Upon completion of the Exchange Offer, we retired $232.7 million principal amount of our 8% unsecured convertible notes (representing approximately 97% of the $240 million aggregate principal of our 8% unsecured convertible notes outstanding prior to the Exchange Offer) in exchange for approximately 5.6 million shares of our common stock (representing approximately 97% of the underlying 5.8 million shares of our common stock) and cash payments of approximately $41.9 million. In connection with the Exchange Offer, we recognized a loss on early extinguishment of debt of approximately $41.5 million in the second quarter of 2010. Due to the $41.5 million loss on early extinguishment of debt, our FFO results for the three and six months ended June 30, 2010 do not assume conversion of our 8% unsecured convertible notes for FFO per share (diluted) purposes as the impact to FFO per share was antidilutive to each period pursuant to the if-converted method of accounting. Excluding the loss on early extinguishment of debt, our weighted average shares of common stock outstanding for calculating FFO per share (diluted) for the three and six months ended June 30, 2010 would have included approximately 4.8 million and 5.3 million additional shares. We anticipate the assumed conversion of our 8% unsecured convertible notes to be dilutive pursuant to the if-converted method of accounting for the year ended December 31, 2010, such that the total weighted average shares of common stock outstanding for purposes of calculating FFO per share (diluted) includes the weighted average shares of common stock actually issued upon completion of the Exchange Offer and the weighted average shares of common stock outstanding assuming conversion of such outstanding 8% unsecured convertible notes for each period before and after the Exchange Offer.

In July 2010, we repurchased, in a privately negotiated transaction, an additional $7.1 million principal amount of our 8% unsecured convertible notes for an aggregate cash price of approximately $12.8 million. We expect to record a loss on early extinguishment of debt related to the repurchase in the third quarter of 2010 of approximately $1.3 million.

The following table presents a reconciliation for the three and six months ended June 30, 2010 from FFO (diluted), as reported, to FFO (diluted) excluding the loss on early extinguishment of debt (dollars in thousands, except per share data):

****	Three Months Ended June 30, 2010		****	Six Months ** Ended June 30, 2010**		****
FFO<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders – numerator for FFO per share<br> (diluted), as reported	$	9,840		$	59,703
Add:<br> Loss on early extinguishment of debt	41,496			41,496
Add:<br> Assumed conversion of 8% unsecured convertible notes	3,560			7,754
Subtract:<br> Impact to unvested restricted stock awards	(333		)	(406		)
FFO<br> (diluted) excluding the loss on early extinguishment of debt	$	54,563		$	108,547
Weighted<br> average shares of common stock outstanding for calculating FFO per share<br> attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders – denominator for FFO per share (diluted), as reported	44,904,999			44,384,570
Add:<br> Assumed conversion of 8% unsecured convertible notes (see reconciliation below)	4,808,925			5,300,285
Weighted<br> average shares of common stock outstanding for calculating FFO per share<br> (diluted) excluding the loss on early extinguishment of debt	49,713,924			49,684,855
FFO<br> per share (diluted) excluding the loss on early extinguishment of debt	$	1.10		$	2.18

The following table presents a reconciliation of the number of shares of our common stock of which the aggregate consideration for the entire $240 million of our 8% unsecured convertible notes (5,797,101 shares) to the shares related to the assumed conversion of our 8% unsecured convertible notes shown in the table above:

****	Three Months Ended June 30, 2010	Six Months ** Ended June 30, 2010**
Number<br> of shares of which the aggregate consideration to be delivered upon<br> conversion of the entire $240 million of our 8% unsecured convertible notes<br> is determined	5,797,101	5,797,101
Less:<br> Weighted average shares of common stock included in the denominator for FFO<br> per share (diluted), as reported, related to shares of common stock issued upon<br> completion of the Exchange Offer	988,176	496,816
Weighted<br> average shares of common stock outstanding assuming conversion of such 8%<br> unsecured convertible notes outstanding for each period before and after the<br> Exchange Offer	4,808,925	5,300,285

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Other Recent Events

BinneyStreet Project Received Final Zoning Approval for 1.7 Million Square Feet ofLife Science Laboratory and Other Spaces

In June 2010, we announced that the Cambridge Planning Board granted final zoning approval for our life science development, known as the Binney Street Project (the “Project”). The Project is an 11.3-acre development that will consist of approximately 1.7 million square feet of life science laboratory and other spaces located in East Cambridge. It will include a mixed mode transportation center and more than two acres of public open space for the East Cambridge community. Once completed, the Project will have five highly sustainable state-of-the-art life science facilities in addition to the preservation of existing historic buildings. All buildings will be LEED certifiable, employing state-of-the-art design and technology featuring sustainable operations including high-efficiency mechanical systems, rooftop storm water management and water-efficient landscaping. This innovative development, in the heart of the renowned Kendall Square innovation district, will provide convenient access to leading research and academic institutions including Massachusetts Institute of Technology (“MIT”), Whitehead Institute for Biomedical Research, the Broad Institute and Harvard University. With its crucial adjacency location near the Kendall Square T Station and MIT campus, in the heart of East Cambridge, Massachusetts, the Project is positioned to be the epicenter of Cambridge’s life science industry.

Other

In April 2010, we executed a 10-year lease with a Bayer AG for approximately 49,000 rentable square feet at The Alexandria Center for Science and Technology at Mission Bay.

EarningsOutlook

Based on our current view of existing market conditions and certain current assumptions, our updated guidance for FFO per share (diluted) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders and earnings per share (diluted) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders are as follows:

****	2010		****
FFO<br> per share (diluted)	$	3.57
Earnings<br> per share (diluted)	$	1.03
Loss<br> on early extinguishment of debt on an FFO (diluted) basis	$	0.86	(1)

The following table provides a summary of our guidance issued this year for 2010 FFO per share (diluted):

Event	2010 FFO per Share (Diluted) (2)		****
Guidance<br> as reported on April 29, 2010 in connection with our first quarter 2010<br> earnings call	$	4.43
Loss<br> on early extinguishment of debt in June 2010	(0.83		)
Guidance<br> as reported on June 15, 2010 upon completion of Exchange Offer	3.60
Estimated<br> loss on early extinguishment of debt in July 2010	(0.03		)
Guidance<br> as reported on July 29, 2010 in connection with our second quarter 2010<br> earnings call	$	3.57

(1) Comprised of $0.83 per share related to the loss on early extinguishment of debt in June 2010 upon completion of our Exchange Offer and the $0.03 per share estimated loss on early extinguishment of debt in July 2010 related to the repurchase of an additional $7.1 million principal amount of our 8% unsecured convertible notes for cash in a privately negotiated transaction.

(2) Our guidance for the year ended December 31, 2010 includes the weighted average shares of common stock outstanding assuming conversion of such outstanding 8% unsecured convertible notes pursuant to the if-converted method of accounting for each period before and after the Exchange Offer and the weighted average shares of common stock associated with the 5.6 million shares of common stock issued upon completion of the Exchange Offer. The Exchange Offer did not impact weighted average shares of common stock outstanding in our guidance for purposes of calculating FFO per share (diluted) for the year ended December 31, 2010 since the shares issued in the Exchange Offer were already included in diluted weighted average shares of common stock outstanding pursuant to the if-converted method of accounting.

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ClientTenant Base

The quality, diversity, breadth, and depth of our significant relationships with our life science client tenants provide Alexandria Real Estate Equities, Inc. (“Alexandria”) with consistent and solid cash flows. As of June 30, 2010, Alexandria’s multinational pharmaceutical client tenants represented approximately 27% of our annualized base rent, led by Novartis AG, Roche Holding Ltd, GlaxoSmithKline plc, Pfizer Inc., and Merck & Co., Inc.; revenue-producing life science product and service companies represented approximately 19%, led by Quest Diagnostics Incorporated, Qiagen N.V., Laboratory Corporation of America Holdings, and Monsanto Company; public biotechnology companies represented approximately 18% and included the three largest in the sector, Amgen Inc., Gilead Sciences, Inc., and Celgene Corporation; government agencies and renowned medical and research institutions represented approximately 15% and included The Scripps Research Institute, Massachusetts Institute of Technology, Fred Hutchinson Cancer Research Center, University of Washington, Sanford-Burnham Medical Research Institute, and the United States Government; private biotechnology companies represented approximately 14% and included high-quality, leading-edge companies with blue-chip venture and institutional investors, including Ambrx, Inc., Intellikine, Inc., MacroGenics, Inc., and Tolerx, Inc.; and the remaining approximately 7% consisted of traditional office tenants. Two of the fastest-growing client tenant sectors by revenue currently include leading institutional and multinational pharmaceutical entities. Alexandria’s strong life science underwriting skills, long-term life science industry relationships, and sophisticated management with both real estate and life science operating expertise set the Company apart from all other publicly traded REITs and real estate companies.

EarningsCall Information

We will host a conference call on Thursday, July 29, 2010 at 3:00 p.m. Eastern Time (“ET”)/12:00 p.m. noon Pacific Time (“PT”) that is open to the general public to discuss our financial and operating results for the second quarter ended June 30, 2010. To participate in this conference call, dial (719) 457-2634 and confirmation code 7525354, shortly before 3:00 p.m ET/12:00 p.m. noon PT. The audio web cast can be accessed at: www.labspace.com, in the Corporate Information section. A replay of the call will be available for a limited time from 6:00 p.m. ET/3:00 p.m. PT on Thursday, July 29, 2010. The replay number is (719) 457-0820 and the confirmation code is 7525354.

Additionally, a copy of Alexandria Real Estate Equities, Inc.’s Supplemental Financial, Operating, & Property Information for the quarter ended June 30, 2010 and this press release are available in the Corporate Information section of our website at www.labspace.com.

About the Company

Alexandria Real Estate Equities, Inc., Landlord of Choice to the Life Science Industry®, is the largest owner and preeminent REIT focused principally on cluster development through the ownership, operation, management, selective redevelopment, development, and acquisition of properties containing life science laboratory space. Alexandria is the leading provider of high-quality, environmentally sustainable real estate, technical infrastructure, and services to the broad and diverse life science industry. Client tenants include institutional (universities and independent not-for-profit institutions), pharmaceutical, biotechnology, medical device, product, service, and translational entities, as well as government agencies. Alexandria’s operating platform is based on the principle of “clustering,” with assets and operations located in key life science markets. Our asset base contains 161 properties approximating 12.7 million rentable square feet consisting of 156 properties approximating 11.8 million rentable square feet (including spaces undergoing active redevelopment) and five properties undergoing ground-up development approximating an additional 865,000 rentable square feet. In addition, our asset base will enable us to grow to approximately 24.1 million rentable square feet through additional ground-up development of approximately 11.4 million rentable square feet.

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ALEXANDRIA REAL ESTATE EQUITIES, INC.REPORTS SECOND QUARTER 2010 RESULTS

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This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding our 2010 earnings per share (diluted) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders, 2010 FFO per share (diluted) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders, the business plans of certain tenants, and the expected impact of the retirement or conversion of our unsecured convertible notes. Our actual results may differ materially from those projected in such forward-looking statements. Factors that might cause such a difference include, without limitation, our failure to obtain capital (debt, construction financing, and/or equity) or refinance debt maturities, increased interest rates and operating costs, adverse economic or real estate developments in our markets, our failure to successfully complete and lease our existing space held for redevelopment and new properties acquired for that purpose and any properties undergoing development, our failure to successfully operate or lease acquired properties, decreased rental rates or increased vacancy rates or failure to renew or replace expiring leases, defaults on or non-renewal of leases by tenants, general and local economic conditions, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission (“SEC”). All forward-looking statements are made as of the date of this press release, and we assume no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

(Tables follow)

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Condensed Consolidated Income Statements

(Dollars in thousands, except per share data)

(Unaudited)

****	Three Months Ended June 30,					Six Months Ended June 30,
****	2010 (1)		****	2009 (2)(3)		2010		****	2009 (2)(4)
Revenues	****		****	****		****		****	****
Rental	$	89,512		$	87,461	$	178,370		$	191,472
Tenant<br> recoveries	26,576			24,668		53,134			51,464
Other<br> income	922			8,910		1,993			9,662
Total<br> revenues	117,010			121,039		233,497			252,598
Expenses	****		****	****		****		****	****
Rental<br> operations	30,352			29,224		62,003			61,658
General<br> and administrative	8,266			8,804		17,747			18,222
Interest	18,778			21,373		36,340			41,572
Depreciation<br> and amortization	30,342			29,500		60,077			60,742
Total<br> expenses	87,738			88,901		176,167			182,194
(Loss)<br> gain on early extinguishment of debt	(41,496		)	11,254		(41,496		)	11,254
(Loss)<br> income from continuing operations	(12,224		)	43,392		15,834			81,658
Income<br> from discontinued operations, net	–			724		727			3,707
Net<br> (loss) income	(12,224		)	44,116		16,561			85,365
Net<br> income attributable to noncontrolling interests	930			4,362		1,865			5,237
Dividends<br> on preferred stock	7,090			7,089		14,179			14,178
Net<br> income attributable to unvested restricted stock awards	149			367		311			868
Net<br> (loss) income attributable to Alexandria Real Estate Equities, Inc.’s<br> common stockholders	$	(20,393	)	$	32,298	$	206		$	65,082
(Loss)<br> earnings per share attributable to Alexandria Real Estate Equities, Inc.’s<br> common stockholders – basic	****		****	****		****		****	****
Continuing<br> operations	$	(0.45	)	$	0.81	$	(0.02	)	$	1.72
Discontinued<br> operations, net	–			0.02		0.02			0.10
(Loss)<br> earnings per share – basic	$	(0.45	)	$	0.83	$	–		$	1.82
(Loss)<br> earnings per share attributable to Alexandria Real Estate Equities, Inc.’s<br> common stockholders – diluted	****		****	****		****		****	****
Continuing<br> operations	$	(0.45	)	$	0.80	$	(0.02	)	$	1.71
Discontinued<br> operations, net	–			0.02		0.02			0.10
(Loss)<br> earnings per share – diluted	$	(0.45	)	$	0.82	$	–		$	1.81

(1) During the second quarter of 2010, we recognized a loss on early extinguishment of debt of approximately $41.5 million upon completion of an exchange of our 8% unsecured convertible notes.

(2) Certain amounts have been reclassified to conform to current period presentation related to discontinued operations.

(3) During the second quarter of 2009, we recognized additional income approximating $7.2 million for a cash receipt related to real estate acquired in November 2007. Additionally during the second quarter of 2009, we recognized a gain on early extinguishment of debt of approximately $11.3 million related to the repurchase, in privately negotiated transactions, of approximately $75 million (par value) of our 3.7% unsecured convertible notes.

(4) See note (3). During the first quarter of 2009, we recognized approximately $18.5 million of additional rental income related to the modification of a lease in South San Francisco.

(Continued on next page)

ALEXANDRIAREAL ESTATE EQUITIES, INC.

CondensedConsolidated Balance Sheets

(Inthousands)

(Unaudited)

****	June 30,		****	December 31,		****
****	2010		****	2009		****
Assets			****	****		****
Investments<br> in real estate:
Rental<br> properties	$	3,979,016		$	3,903,955
Less:<br> accumulated depreciation	(562,755		)	(520,647		)
Rental<br> properties, net	3,416,261			3,383,308
Land<br> held for future development	309,514			255,025
Construction<br> in progress	1,394,778			1,400,795
Investment<br> in unconsolidated real estate entity	35,184			–
Investments<br> in real estate, net	5,155,737			5,039,128
Cash<br> and cash equivalents	73,254			70,628
Restricted<br> cash	37,660			47,291
Tenant<br> receivables	3,059			3,902
Deferred<br> rent	102,422			96,700
Investments	77,088			72,882
Other<br> assets	115,939			126,696
Total<br> assets	$	5,565,159		$	5,457,227
Liabilities and Equity
Secured<br> notes payable	$	859,831		$	937,017
Unsecured<br> line of credit and unsecured term loan	1,446,000			1,226,000
Unsecured<br> convertible notes	378,580			583,929
Accounts<br> payable, accrued expenses, and tenant security deposits	300,035			282,516
Dividends<br> payable	23,683			21,686
Total<br> liabilities	3,008,129			3,051,148
Redeemable **** noncontrolling interests	17,014			41,441
Alexandria<br> Real Estate Equities, Inc. stockholders’ equity:
Series C<br> preferred stock	129,638			129,638
Series D<br> convertible preferred stock	250,000			250,000
Common<br> stock	496			438
Additional<br> paid-in capital	2,158,591			1,977,062
Accumulated<br> other comprehensive loss	(40,377		)	(33,730		)
Total<br> Alexandria Real Estate Equities, Inc. stockholders’ equity	2,498,348			2,323,408
Noncontrolling<br> interests	41,668			41,230
Total<br> equity	2,540,016			2,364,638
Total	$	5,565,159		$	5,457,227

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Earnings per Share

(Unaudited)

Earnings per Share (“EPS”)

The following table presents the computation of basic and diluted EPS for the three and six months ended June 30, 2010 and 2009 (in thousands, except share and per share data):

****	Three Months Ended June 30,					Six Months Ended June 30,
****	2010		****	2009		2010		2009
Net (loss) income<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders – numerator for basic earnings per<br> share	$	(20,393	)	$	32,298	$	206	$	65,082
Assumed conversion of 8%<br> unsecured convertible notes	–			3,197		–		3,197
Effect of dilutive<br> securities and assumed conversion attributable to unvested restricted stock<br> awards	–			3		–		8
Net (loss) income<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders assuming effect of dilutive<br> securities and assumed conversion – numerator for diluted earnings per share	$	(20,393	)	$	35,498	$	206	$	68,287
Weighted average<br> shares of common stock outstanding for calculating earnings per share<br> attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders – denominator for basic earnings per share	44,870,142			38,929,971		44,348,850		35,722,375
Effect of dilutive<br> securities and assumed conversion (1):
Dilutive effect of stock<br> options	–			1,167		–		6,662
Assumed conversion of 8%<br> unsecured convertible notes	–			4,140,787		–		2,081,832
Weighted average<br> shares of common stock outstanding for calculating earnings per share attributable<br> to Alexandria Real Estate Equities, Inc.’s common stockholders assuming<br> effect of dilutive securities and assumed conversion – denominator for<br> diluted earnings per share	44,870,142			43,071,925		44,348,850		37,810,869
(Loss) earnings per<br> share attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders
Basic	$	(0.45	)	$	0.83	$	–	$	1.82
Diluted	$	(0.45	)	$	0.82	$	–	$	1.81

(1) We use income (loss) from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders as the “control number” in determining whether potential common shares are dilutive or antidilutive to earnings (loss) per share. For the three and six months ended June 30, 2010, all potential common shares (including the effect of stock options and the assumed conversion of our 8% unsecured convertible notes) were antidilutive to earnings (loss) per share from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders and have been excluded from diluted earnings (loss) per share.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Funds from Operations

(Unaudited)

Funds from Operations (“FFO”) (1)

The following table presents a reconciliation of net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders, the most directly comparable GAAP financial measure to FFO, to FFO attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders for the three and six months ended June 30, 2010 and 2009 (in thousands, except share and per share data):

****	Three Months Ended June 30,					****	Six Months Ended June 30,					****
****	2010		****	2009		****	2010		****	2009		****
Net (loss) income<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders	$	(20,393	)	$	32,298		$	206		$	65,082
Add: Depreciation and<br> amortization (2)	30,342			29,722			60,080			61,168
Add: Net income<br> attributable to noncontrolling interests	930			4,362			1,865			5,237
Add:<br> Net income attributable to unvested restricted stock awards	149			367			311			868
Subtract:<br> Gain on sales of property	–			–			(24		)	(2,234		)
Subtract:<br> FFO attributable to noncontrolling interests	(1,039		)	(842		)	(2,137		)	(1,919		)
Subtract: FFO<br> attributable to unvested restricted stock awards	(149		)	(740		)	(598		)	(1,687		)
FFO attributable to<br> Alexandria Real Estate, Inc.’s **** common<br> stockholders – numerator for basic FFO per share	9,840			65,167			59,703			126,515
Add: Assumed conversion<br> of 8% unsecured convertible notes (3)	–			3,197			–			3,197
Add: Effect of dilutive<br> securities and assumed conversion attributable to unvested restricted stock<br> awards	–			37			–			52
FFO attributable to<br> Alexandria Real Estate, Inc.’s **** common<br> stockholders assuming effect of dilutive securities and assumed conversion –<br> numerator for FFO per share (diluted)	$	9,840		$	68,401		$	59,703		$	129,764
Weighted average shares<br> of common stock outstanding for calculating FFO per share attributable to<br> Alexandria Real Estate Equities, Inc.’s common stockholders –<br> denominator for basic FFO per share	44,870,142			38,929,971			44,348,850			35,722,375
Effect of dilutive<br> securities and assumed conversion:
Dilutive effect of stock<br> options	34,857			1,167			35,720			6,662
Assumed conversion of 8%<br> unsecured convertible notes (3)	–			4,140,787			–			2,081,832
Weighted average shares<br> of common stock outstanding for calculating FFO per share attributable to<br> Alexandria Real Estate Equities, Inc.’s common stockholders assuming<br> effect of dilutive securities and assumed conversion – denominator for FFO<br> per share (diluted)	44,904,999			43,071,925			44,384,570			37,810,869
FFO per share<br> attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders
Basic	$	0.22		$	1.67		$	1.35		$	3.54
Diluted	$	0.22		$	1.59		$	1.35		$	3.43

(1) See note regarding FFO on page 12.

(2) Includes depreciation and amortization classified in discontinued operations related to assets “held for sale” (for the periods prior to when such assets were designated as “held for sale”).

(3) During the second quarter of 2010, we recognized a loss on early extinguishment of debt of approximately $41.5 million upon completion of an exchange of our 8% unsecured convertible notes. Due to the $41.5 million loss on early extinguishment of debt, our FFO results for the three and six months ended June 30, 2010 do not assume conversion of our 8% unsecured convertible notes for FFO per share (diluted) purposes as the impact to FFO per share was antidilutive to each period pursuant to the if-converted method of accounting. See pages 3-4 for additional information.

Note Regarding Funds from Operations

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 NAREIT established the measurement tool of FFO. Since its introduction, FFO has become a widely used non-GAAP financial measure among 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.

FFO 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.

Exhibit 99.2

      SUPPLEMENTAL FINANCIAL, OPERATING, & PROPERTY INFORMATION QUARTER ENDED JUNE 30, 2010 Conference Call Information: Thursday, July 29, 2010 3:00PM Eastern Time/12:00PM Noon Pacific Time Number: (719) 457-2634 Confirmation Code: 7525354 385 EAST COLORADO BOULEVARD, SUITE 299 PASADENA, CALIFORNIA 91101 (626) 578-9693 www.labspace.com

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Table ofContents

June 30,2010

(Unaudited)

	Page
Company Profile	3
Investor<br> Information	4
Equity Research<br> Coverage	5
Second Quarter<br> Ended June 30, 2010 Financial and Operating Results	6
Condensed Consolidated<br> Income Statements	13
Condensed<br> Consolidated Balance Sheets	14
Earnings (Loss)<br> per Share	15
Funds from<br> Operations	16
Adjusted Funds<br> from Operations	17
Financial and<br> Asset Base Highlights	18
Debt Information	21
Summary of<br> Occupancy Percentage and Properties	25
Summary of Same<br> Property Comparisons	26
Summary of<br> Leasing Activity	27
Summary of Lease<br> Expirations	30
20 Largest<br> Client Tenants	31
Client Tenant<br> Mix	32
Summary of<br> Additions and Dispositions of Properties	33
Real Estate and<br> Value-Added Activities	34
Summary of<br> Capital Expenditures	42
Definitions and<br> Other Information	43

This Supplemental Financial, Operating, & Property Information package 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. You can identify the forward-looking statements by their use of forward-looking words, such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” or “anticipates,” or the negative of those words or similar words. Our actual results may differ materially from those projected in such forward-looking statements. Factors that might cause such a difference include, without limitation, our failure to obtain capital (debt, construction financing, and/or equity) or refinance debt maturities, increased interest rates and operating costs, adverse economic or real estate developments in our markets, our failure to successfully complete and lease our existing space held for redevelopment and new properties acquired for that purpose and any properties undergoing development, our failure to successfully operate or lease acquired properties, decreased rental rates or increased vacancy rates or failure to renew or replace expiring leases, defaults on or non-renewal of leases by tenants, general and local economic conditions, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission (“SEC”). All forward-looking statements are made as of July 29, 2010, the date this Supplemental Financial, Operating, & Property Information package is first made available on our website, and we assume no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

This Supplemental Financial, Operating, & Property Information package is not an offer to sell or solicitation to buy securities of Alexandria Real Estate Equities, Inc. Any offers to sell or solicitations to buy securities of Alexandria Real Estate Equities, Inc. shall be made only by means of a prospectus approved for that purpose. Unless otherwise indicated, the “Company,” “we,” “us,” and “our” refer to Alexandria Real Estate Equities, Inc. and its consolidated subsidiaries.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

CompanyProfile

June 30,2010

TheCompany

Alexandria Real Estate Equities, Inc. (the “Company” or “Alexandria”), a self-administered and self-managed real estate investment trust (“REIT”), is the largest owner and preeminent REIT focused principally on science-driven cluster formation. Our operating platform is based on the principle of “clustering” with assets and operations located in key life science markets. The Company has significant real estate assets adjacent to key life science entities which we believe results in higher occupancy levels, longer lease terms, higher rental income, and higher returns. These locations are in the best submarkets in each of the top life science cluster destinations, including San Francisco and San Diego, California, Eastern Massachusetts, New Jersey and Suburban Philadelphia, New York City, Southeast, Suburban Washington, D.C., Seattle, Washington, and international locations. Client tenants include institutional (universities and independent not-for-profit institutions), pharmaceutical, biotechnology, medical device, product, service, and translational entities, as well as government agencies. The Company was founded in 1994 by Jerry M. Sudarsky and Joel S. Marcus and the Company executed its initial public offering in 1997. Alexandria is the leading life science real estate company and is known for its very well located high-quality environmentally sustainable real estate, technical infrastructure, and unique expertise it provides to its broad and diverse high quality life science industry client tenant base.

Management

Alexandria’s executive and senior management team is highly experienced in the REIT industry (with both real estate and life science experience and expertise) and is the most accomplished team focused on providing high-quality environmentally sustainable real estate, technical infrastructure, and unique expertise to the broad and diverse life science industry. Our deep and talented team has decades of real estate and life science industry experience. We believe that our expertise, experience, reputation, and key life science relationships provide Alexandria significant competitive advantages in attracting new business opportunities. Our management team also includes highly experienced regional market directors each averaging over 20 years of real estate experience and over 10 years with Alexandria. Our regional market directors have tremendous experience and valuable relationships that enable Alexandria to develop long-term relationships with preeminent life science entities.

Strategy

Alexandria’s primary business objective is to maximize shareholder value by providing its shareholders and employees with the greatest possible total return. The key elements to our strategy include our consistent focus on the top life science cluster destinations with our properties located adjacent to life science entities driving growth and technological advances within each cluster. These adjacency locations are characterized by high barriers to entry and exit, limited supply of available space, and represent highly desirable locations for tenancy by life science entities. Alexandria’s strategy also includes leveraging on its deep and broad life science and real estate relationships in order to attract new and leading life science client tenants and value-added real estate opportunities through acquisitions, redevelopment, and development.

Summary (as of June 30, 2010)

Corporate headquarters	Pasadena, California
Markets	San<br> Francisco Bay, San Diego, Eastern Massachusetts, New Jersey/Suburban<br> Philadelphia, New York City, Southeast, Suburban Washington, D.C., Seattle,<br> and International
Fiscal year-end	December 31
Total properties	161
Total rentable square feet	12.7 million
Common shares outstanding	49.6 million
Dividend —<br> quarter/annualized	$0.35/$1.40
Dividend yield	2.2%
Total market<br> capitalization	$6.2 billion

ALEXANDRIAREAL ESTATE EQUITIES, INC.

InvestorInformation

June 30,2010

Executive/Senior Management
Joel S. Marcus	Chairman, Chief Executive Officer, & Founder	Thomas J. Andrews	SVP-Regional Market Director-Massachusetts
Dean A. Shigenaga	SVP, Chief Financial Officer, & Treasurer	John J. Cox	SVP-Regional Market Director-Seattle
James H. Richardson	Director and Senior Management Consultant	John H. Cunningham	SVP-Regional Market Director-NY/Strategic Operations
Jennifer J. Pappas	SVP-General Counsel/Assistant Secretary	Larry J. Diamond	SVP-Regional Market Director-Mid Atlantic
Peter M. Moglia	Chief Investment Officer	Stephen A. Richardson	SVP-Regional Market Director-San Francisco Bay
Vincent R. Ciruzzi	SVP-Construction and Development
Peter J. Nelson	Corporate Secretary/Senior Management Consultant
Company Information
---	---	---	---
Corporate Headquarters	Trading Symbol	Information Requests
385 East Colorado<br> Boulevard, Suite 299	ARE	Phone:	(626) 396-4828
Pasadena, California<br> 91101	New York Stock Exchange	E-mail:	corporateinformation@labspace.com
		Web:	www.labspace.com
Common Stock Data (NYSE: ARE)
---	---	---	---	---	---	---	---	---	---	---
****	2Q 2010		1Q 2010		4Q 2009		3Q 2009		2Q 2009
High<br> trading price	$	75.18	$	69.03	$	68.24	$	62.49	$	43.76
Low<br> trading price	$	60.48	$	55.54	$	51.35	$	30.33	$	30.48
Closing<br> stock price, average for period	$	68.80	$	62.97	$	57.67	$	46.57	$	36.31
Closing<br> stock price, at the end of the quarter	$	63.37	$	67.60	$	64.29	$	54.35	$	35.79
Dividends<br> per share – annualized	$	1.40	$	1.40	$	1.40	$	1.40	$	1.40
Dividend<br> yield – annualized	2.2%		2.1%		2.2%		2.6%		3.9%
Common<br> shares outstanding at the end of the quarter	49,634,396		43,919,968		43,846,050		43,715,900		39,040,518
Market<br> value of outstanding common shares (in thousands)	$	3,145,332	$	2,968,990	$	2,818,863	$	2,375,959	$	1,397,260
Timing
---	---
Quarterly results for the remainder of 2010 are expected to be<br> announced according to the following schedule:
Third quarter	Late October 2010
Fourth quarter	Early<br> February 2011

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Equity Research Coverage

June 30,2010

Argus Research		Green Street Advisors		Morningstar
William L.<br> Eddleman, Jr.	(212) 425-7500	John Stewart	(949) 640-8780	Jason Ren	(312) 244-7008
****		Michael Knott	(949) 640-8780
Banc of America Securities-Merrill Lynch		International Strategy & Investment Group Inc		RW Baird
James Feldman	(212) 449-6339	Steve Sakwa	(212) 446-9462	David AuBuchon	(314) 863-4235
Jana Galan	(212) 449-5151	George Auerbach	(212) 446-9459	Justin Pelham-Webb	(314) 863-6413
Barclays Capital		JMP Securities		Standard & Poor’s
Ross L. Smotrich	(212) 526-2306	William C. Marks	(415) 835-8944	Robert McMillan	(212) 438-9522
Jeffrey S. Langbaum	(212) 526-0971	Rochan Raichura	(415) 835-3909
Citigroup Global Markets		JP Morgan Securities		UBS
Michael Bilerman	(212) 816-1383	Anthony Paolone	(212) 622-6682	Ross Nussbaum	(212) 713-2484
Quentin Velleley	(212) 816-6981	Joseph Dazio	(212) 622-6416	Robert Salisbury	(212) 713-4760
Mark Montandon	(212) 816-6243	****		****
Credit Suisse		Keefe, Bruyette & Woods
Andrew Rosivach	(415) 249-7942	Sheila McGrath	(212) 887-7793
Suzanne Kim	(415) 249-7943	Kristin Brown	(212) 887-3810

Alexandria Real Estate Equities, Inc. is currently covered by the equity research analysts listed above. This list may not be complete and is subject to change as firms initiate or discontinue coverage of our company. Please note that any opinions, estimates or forecasts regarding our historical or predicted performance made by these analysts are theirs alone and do not represent opinions, forecasts, or predictions of Alexandria Real Estate Equities, Inc. or its management. Alexandria Real Estate Equities, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions, or recommendations. Interested persons may obtain copies of analysts’ reports on their own as we do not distribute these reports. Several of these firms may from time-to-time own our stock and/or hold other long or short positions in our stock, and may provide compensated services to us.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Second Quarter Ended June 30,2010 Financial and Operating Results

Highlights

Second Quarter 2010:

· Second Quarter 2010 Funds from Operations Per Share (Diluted) Attributable to Alexandria Real Estate Equities, Inc.’s Common Stockholders of $1.10 Excluding Loss on Early Extinguishment of Debt

· Second Quarter 2010 GAAP Same Property Revenues Less Operating Expenses up Approximately 1%

· Executed 35 Leases for 551,000 Rentable Square Feet, Including 135,000 Rentable Square Feet of Redevelopment and Development Space

· Reduced 2011 Expiring Leases by 295,000 Rentable Square Feet

· Second Quarter 2010 GAAP Rental Rate Increase of 5.1% on Renewed/Released Space

· Second Quarter 2010 Occupancy Remains Steady at Approximately 94%

· Operating Margins Solid at 74%

· Repaid Two Secured Loans Aggregating $22 Million

· Completed Exchange Offer of $233 Million of 8% Unsecured Convertible Notes; Representing 97% of Total Outstanding Notes

· Executed a 10-Year Lease with Bayer AG for 49,000 Rentable Square Feet at The Alexandria Center for Science and Technology at Mission Bay

First Half 2010:

· GAAP Same Property Revenues Less Operating Expenses up Approximately 1%

· Executed 75 Leases for 1,031,000 Rentable Square Feet, Including 189,000 Rentable Square Feet of Redevelopment and Development Space

· GAAP Rental Rate Increase of 4.2% on Renewed/Released Space

· Completed Ground-Up Development of One Property in Seattle, Washington Aggregating 115,000 Rentable Square Feet Pursuant to a 10-Year Lease with Gilead Sciences Inc.

· Sold One Property Aggregating 71,000 Rentable Square Feet Previously Classified as “Held For Sale”

· Repaid Four Secured Loans Aggregating $33 Million

· Received LEED® Silver Certifications for Two Buildings in San Francisco Bay Market

FinancialResults

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Second Quarter Ended June 30, 2010 Financialand Operating Results

Financial Results (continued)

The following table summarizes the significant items noted above that impacted FFO (diluted) (in thousands):

****	Six Months Ended					****	Three Months Ended														****
****	6/30/2010		****	6/30/2009		****	6/30/2010		****	3/31/2010		12/31/2009		9/30/2009		6/30/2009		****	3/31/2009		****
FFO<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders – numerator for FFO per share<br> (diluted), as reported	$	59,703		$	129,764		$	9,840		$	53,980	$	54,247	$	50,609	$	68,401		$	61,329
Loss<br> (gain) on early extinguishment of debt	41,496			(11,254		)	41,496			–		–		–		(11,254		)	–
Cash<br> receipt related to real estate acquired in November 2007	–			(7,242		)	–			–		–		–		(7,242		)	–
Additional<br> rental income related to modification of lease	–			(18,509		)	–			–		–		–		–			(18,509		)
Assumed<br> conversion of 8% unsecured convertible notes (1)	7,754			–			3,560			–		–		–		–			–
Impact<br> of items above attributable to unvested restricted stock awards	(406		)	431			(333		)	–		–		–		174			287
FFO<br> (diluted), as adjusted	$	108,547		$	93,190		$	54,563		$	53,980	$	54,247	$	50,609	$	50,079		$	43,107

(1) Due to the $41.5 million loss on early extinguishment of debt, our FFO results for the three and six months ended June 30, 2010 do not assume conversion of our 8% unsecured convertible notes for FFO per share (diluted) purposes as the impact to FFO per share was antidilutive to each period pursuant to the if-converted method of accounting. Excluding the loss on early extinguishment of debt, the impact of the assumed conversion of our 8% unsecured convertible notes would have been dilutive and the interest related to the notes is added to FFO (diluted). For all periods since issuance of the notes in April 2009, except the three and six months ended June 30, 2010, there is no add back for the assumed conversion of our 8% unsecured convertible notes since FFO attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders – numerator for FFO per share (diluted), as reported, already included amounts related to the assumed conversion of our 8% unsecured convertible notes pursuant to the if-converted method of accounting.

The following table summarizes the significant items noted above that impacted total revenues (in thousands):

****	Six Months Ended				****	Three Months Ended													****
****	6/30/2010		6/30/2009		****	6/30/2010		3/31/2010		12/31/2009		9/30/2009		6/30/2009		****	3/31/2009		****
Total<br> revenues, as reported	$	233,497	$	252,598		$	117,010	$	116,487	$	115,125	$	115,826	$	121,039		$	131,559
Cash<br> receipt related to real estate acquired in November 2007	–		(7,242		)	–		–		–		–		(7,242		)	–
Additional<br> rental income related to modification of lease	–		(18,509		)	–		–		–		–		–			(18,509		)
Total<br> revenues, as adjusted	$	233,497	$	226,847		$	117,010	$	116,487	$	115,125	$	115,826	$	113,797		$	113,050

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Second Quarter Ended June 30, 2010 Financialand Operating Results

Financial Results (continued)

quarter of 2010 was $20,393,000, or $0.45 per share (diluted), compared to net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders of $35,498,000, or $0.82 per share (diluted), for the second quarter of 2009. Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders for the six months ended June 30, 2010 was $206,000, compared to net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders of $68,287,000, or $1.81 per share (diluted), for the six months ended June 30, 2009.

Leasing Activity

Exchange of 8% UnsecuredConvertible Notes

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Second Quarter Ended June 30, 2010 Financialand Operating Results

Exchange of 8% UnsecuredConvertible Notes (continued)

****	Three Months Ended June 30, 2010		****	Six Months Ended June 30, 2010		****
FFO<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders – numerator for FFO per share<br> (diluted), as reported	$	9,840		$	59,703
Add:<br> Loss on early extinguishment of debt	41,496			41,496
Add:<br> Assumed conversion of 8% unsecured convertible notes	3,560			7,754
Subtract:<br> Impact to unvested restricted stock awards	(333		)	(406		)
FFO<br> (diluted) excluding the loss on early extinguishment of debt	$	54,563		$	108,547
Weighted<br> average shares of common stock outstanding for calculating FFO per share<br> attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders – denominator for FFO per share (diluted), as reported	44,904,999			44,384,570
Add:<br> Assumed conversion of 8% unsecured convertible notes (see reconciliation on<br> next page)	4,808,925			5,300,285
Weighted<br> average shares of common stock outstanding for calculating FFO per share<br> (diluted) excluding the loss on early extinguishment of debt	49,713,924			49,684,855
FFO<br> per share (diluted) excluding the loss on early extinguishment of debt	$	1.10		$	2.18

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Second Quarter Ended June 30, 2010 Financialand Operating Results

Exchangeof 8% Unsecured Convertible Notes (continued)

****	Three Months Ended June 30, 2010	Six Months ** Ended June 30, 2010**
Number of shares of which the aggregate<br> consideration to be delivered upon conversion of the entire $240 million of<br> our 8% unsecured convertible notes is determined	5,797,101	5,797,101
Less: Weighted average shares of common stock<br> included in the denominator for FFO per share (diluted), as reported, related<br> to shares of common stock issued upon completion of the Exchange Offer	988,176	496,816
Weighted average shares of common stock<br> outstanding assuming conversion of such 8% unsecured convertible notes<br> outstanding for each period before and after the Exchange Offer	4,808,925	5,300,285

OtherRecent Events

Binney Street Project ReceivedFinal Zoning Approval for 1.7 Million Square Feet of Life Science Laboratoryand Other Spaces

Other

In April 2010, we executed a 10-year lease with a Bayer AG for approximately 49,000 rentable square feet at The Alexandria Center for Science and Technology at Mission Bay.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Second Quarter Ended June 30, 2010 Financialand Operating Results

Earnings Outlook

****	2010		****
FFO<br> per share (diluted)	$	3.57
Earnings<br> per share (diluted)	$	1.03
Loss<br> on early extinguishment of debt on an FFO per share (diluted) basis	$	0.86	(1)

The following table provides a summary of our guidance issued this year for 2010 FFO per share (diluted):

Event	2010 FFO per Share (Diluted) (2)		****
Guidance<br> as reported on April 29, 2010 in connection with our first quarter 2010<br> earnings call	$	4.43
Loss<br> on early extinguishment of debt in June 2010	(0.83		)
Guidance<br> as reported on June 15, 2010 upon completion of Exchange Offer	3.60
Estimated<br> loss on early extinguishment of debt in July 2010	(0.03		)
Guidance<br> as reported on July 29, 2010 in connection with our second quarter 2010<br> earnings call	$	3.57

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Second Quarter Ended June 30, 2010 Financialand Operating Results

Client Tenant Base

Earnings Call Information

About the Company

ALEXANDRIAREAL ESTATE EQUITIES, INC.

CondensedConsolidated Income Statements

(Dollarsin thousands, except per share data)

(Unaudited)

****	Six Months Ended (1)(2)					Three Months Ended (1)(2)
****	6/30/2010		****	6/30/2009		6/30/2010		****	3/31/2010		12/31/2009		9/30/2009		6/30/2009
Revenues															****
Rental	$	178,370		$	191,472	$	89,512		$	88,858	$	88,702	$	88,419	$	87,461
Tenant<br> recoveries	53,134			51,464		26,576			26,558		25,414		26,230		24,668
Other<br> income	1,993			9,662		922			1,071		1,009		1,177		8,910
Total<br> revenues	233,497			252,598		117,010			116,487		115,125		115,826		121,039
Expenses															****
Rental<br> operations	62,003			61,658		30,352			31,651		29,451		31,218		29,224
General<br> and administrative	17,747			18,222		8,266			9,481		8,468		9,611		8,804
Interest	36,340			41,572		18,778			17,562		19,452		21,225		21,373
Depreciation<br> and amortization	60,077			60,742		30,342			29,735		29,007		28,112		29,500
Total<br> expenses	176,167			182,194		87,738			88,429		86,378		90,166		88,901
(Loss)<br> gain on early extinguishment of debt	(41,496		)	11,254		(41,496		)	–		–		–		11,254
Income<br> (loss) from continuing operations	15,834			81,658		(12,224		)	28,058		28,747		25,660		43,392
Income<br> from discontinued operations, net	727			3,707		–			727		1,158		718		724
Net<br> income (loss)	16,561			85,365		(12,224		)	28,785		29,905		26,378		44,116
Net<br> income attributable to noncontrolling interests	1,865			5,237		930			935		924		886		4,362
Dividends<br> on preferred stock	14,179			14,178		7,090			7,089		7,089		7,090		7,089
Net<br> income attributable to unvested restricted stock awards	311			868		149			219		242		199		367
Net<br> income (loss) attributable to Alexandria Real Estate Equities, Inc.’s<br> common stockholders	$	206		$	65,082	$	(20,393	)	$	20,542	$	21,650	$	18,203	$	32,298
Earnings<br> (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s<br> common stockholders – basic															****
Continuing<br> operations	$	(0.02	)	$	1.72	$	(0.45	)	$	0.45	$	0.47	$	0.45	$	0.81
Discontinued<br> operations, net	0.02			0.10		–			0.02		0.03		0.02		0.02
Earnings<br> (loss) per share – basic	$	–		$	1.82	$	(0.45	)	$	0.47	$	0.50	$	0.47	$	0.83
Earnings<br> (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s<br> common stockholders – diluted															****
Continuing<br> operations	$	(0.02	)	$	1.71	$	(0.45	)	$	0.45	$	0.46	$	0.45	$	0.80
Discontinued<br> operations, net	0.02			0.10		–			0.02		0.03		0.02		0.02
Earnings<br> (loss) per share – diluted	$	–		$	1.81	$	(0.45	)	$	0.47	$	0.49	$	0.47	$	0.82

(1) During the second quarter of 2010, we recognized a loss on early extinguishment of debt of approximately $41.5 million upon completion of an exchange of our 8% unsecured convertible notes. During the second quarter of 2009, we recognized additional income approximating $7.2 million for a cash receipt related to real estate acquired in November 2007. Additionally during the second quarter of 2009, we recognized a gain on early extinguishment of debt of approximately $11.3 million related to the repurchase, in privately negotiated transactions, of approximately $75 million (par value) of our 3.7% unsecured convertible notes. During the first quarter of 2009, we recognized approximately $18.5 million of additional rental income related to the modification of a lease in South San Francisco.

(2) Certain amounts have been reclassified to conform to current period presentation related to discontinued operations.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

CondensedConsolidated Balance Sheets

(Inthousands)

(Unaudited)

****	June 30,		****	March 31,		****	December 31,		****	September 30,		****	June 30,		****
****	2010		****	2010		****	2009		****	2009		****	2009		****
Assets	****		****	****		****	****		****	****		****	****		****
Investments<br> in real estate:
Rental<br> properties	$	3,979,016		$	3,937,876		$	3,903,955		$	3,867,725		$	3,720,238
Less:<br> accumulated depreciation	(562,755		)	(538,570		)	(520,647		)	(500,765		)	(476,970		)
Rental<br> properties, net	3,416,261			3,399,306			3,383,308			3,366,960			3,243,268
Land<br> held for future development	309,514			294,631			255,025			254,549			240,411
Construction<br> in progress	1,394,778			1,326,865			1,400,795			1,349,656			1,406,451
Investment<br> in unconsolidated real estate entity	35,184			34,421			–			–			–
Investments<br> in real estate, net	5,155,737			5,055,223			5,039,128			4,971,165			4,890,130
Cash<br> and cash equivalents	73,254			70,980			70,628			68,280			70,313
Restricted<br> cash	37,660			35,832			47,291			60,002			51,683
Tenant<br> receivables	3,059			2,710			3,902			3,789			4,665
Deferred<br> rent	102,422			99,248			96,700			92,022			87,697
Investments	77,088			76,918			72,882			71,080			66,068
Other<br> assets	115,939			127,623			126,696			126,999			116,097
Total<br> assets	$	5,565,159		$	5,468,534		$	5,457,227		$	5,393,337		$	5,286,653
Liabilities and Equity
Secured<br> notes payable	$	859,831		$	884,839		$	937,017		$	837,177		$	941,600
Unsecured<br> line of credit and unsecured term loan	1,446,000			1,291,000			1,226,000			1,248,000			1,307,000
Unsecured<br> convertible notes	378,580			586,975			583,929			580,919			577,984
Accounts<br> payable, accrued expenses, and tenant security deposits	300,035			284,830			282,516			325,720			312,313
Dividends<br> payable	23,683			21,709			21,686			21,665			20,005
Total<br> liabilities	3,008,129			3,069,353			3,051,148			3,013,481			3,158,902
Redeemable **** noncontrolling interests	17,014			17,490			41,441			41,232			41,012
Alexandria<br> Real Estate Equities, Inc. stockholders’ equity:
Series C<br> preferred stock	129,638			129,638			129,638			129,638			129,638
Series D<br> cumulative convertible preferred stock	250,000			250,000			250,000			250,000			250,000
Common<br> stock	496			439			438			437			390
Additional<br> paid-in capital	2,158,591			1,987,512			1,977,062			1,961,421			1,718,737
Accumulated<br> other comprehensive loss	(40,377		)	(26,990		)	(33,730		)	(44,162		)	(53,013		)
Total<br> Alexandria Real Estate Equities, Inc. stockholders’ equity	2,498,348			2,340,599			2,323,408			2,297,334			2,045,752
Noncontrolling<br> interests	41,668			41,092			41,230			41,290			40,987
Total<br> equity	2,540,016			2,381,691			2,364,638			2,338,624			2,086,739
Total	$	5,565,159		$	5,468,534		$	5,457,227		$	5,393,337		$	5,286,653

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Earnings(Loss) per Share

(Dollarsin thousands, except per share data)

(Unaudited)

Earnings(Loss) per Share

****	Six Months Ended (1)				Three Months Ended (1)
****	6/30/2010		6/30/2009		6/30/2010		****	3/31/2010		12/31/2009		9/30/2009		6/30/2009
Net income (loss)<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders — numerator for basic earnings (loss)<br> per share	$	206	$	65,082	$	(20,393	)	$	20,542	$	21,650	$	18,203	$	32,298
Assumed conversion<br> of 8% unsecured convertible notes	–		3,197		–			–		–		–		3,197
Effect of<br> dilutive securities and assumed conversion attributable to unvested<br> restricted stock awards	–		8		–			–		–		–		3
Net income (loss)<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders assuming effect of dilutive<br> securities and assumed conversion — numerator for diluted earnings (loss) per<br> share	$	206	$	68,287	$	(20,393	)	$	20,542	$	21,650	$	18,203	$	35,498
Weighted average<br> shares of common stock outstanding for calculating earnings (loss) per share<br> attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders — denominator for basic earnings (loss) per share	44,348,850		35,722,375		44,870,142			43,821,765		43,715,462		39,094,018		38,929,971
Effect of<br> dilutive securities and assumed conversion (2):
Dilutive effect of stock<br> options	–		6,662		–			35,748		34,839		11,932		1,167
Assumed conversion of 8%<br> unsecured convertible notes	–		2,081,832		–			–		–		–		4,140,787
Weighted average<br> shares of common stock outstanding for calculating earnings (loss) per share<br> attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders assuming effect of dilutive securities and assumed conversion —<br> denominator for diluted earnings (loss) per share	44,348,850		37,810,869		44,870,142			43,857,513		43,750,301		39,105,950		43,071,925
Earnings (loss)<br> per share attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders
Basic	$	–	$	1.82	$	(0.45	)	$	0.47	$	0.50	$	0.47	$	0.83
Diluted	$	–	$	1.81	$	(0.45	)	$	0.47	$	0.49	$	0.47	$	0.82

(1) During the second quarter of 2010, we recognized a loss on early extinguishment of debt of approximately $41.5 million upon completion of an exchange of our 8% unsecured convertible notes. During the second quarter of 2009, we recognized additional income approximating $7.2 million for a cash receipt related to real estate acquired in November 2007. Additionally during the second quarter of 2009, we recognized a gain on early extinguishment of debt of approximately $11.3 million related to the repurchase, in privately negotiated transactions, of approximately $75 million (par value) of our 3.7% unsecured convertible notes. During the first quarter of 2009, we recognized approximately $18.5 million of additional rental income related to the modification of a lease in South San Francisco.

(2) We use income (loss) from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders as the “control number” in determining whether potential common shares are dilutive or antidilutive to earnings (loss) per share. For the three and six months ended June 30, 2010, all potential common shares (including the effect of stock options and the assumed conversion of our 8% unsecured convertible notes) were antidilutive to earnings (loss) per share from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders and have been excluded from diluted earnings (loss) per share.

See “Definitions and Other Information” section of this report starting on page 43.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Fundsfrom Operations

(Dollarsin thousands, except per share data)

(Unaudited)

Fundsfrom Operations (“FFO”)

The following table presents a reconciliation of net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders, the most directly comparable financial measure calculated and presented in accordance with United States generally accepted accounting principles (“GAAP”), to FFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders for the six and three month periods below:

****	Six Months Ended (1)					****	Three Months Ended (1)														****
****	6/30/2010		****	6/30/2009		****	6/30/2010		****	3/31/2010		****	12/31/2009		****	9/30/2009		****	6/30/2009		****
Net income (loss)<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders	$	206		$	65,082		$	(20,393	)	$	20,542		$	21,650		$	18,203		$	32,298
Add: Depreciation and<br> amortization (2)	60,080			61,168			30,342			29,738			29,004			28,336			29,722
Add: Net income<br> attributable to noncontrolling interests	1,865			5,237			930			935			924			886			4,362
Add: Net income<br> attributable to unvested restricted stock awards	311			868			149			219			242			199			367
Subtract: Gain on sales<br> of property	(24		)	(2,234		)	–			(24		)	(393		)	–			–
Subtract: FFO<br> attributable to noncontrolling interests	(2,137		)	(1,919		)	(1,039		)	(1,098		)	(1,006		)	(918		)	(842		)
Subtract: FFO<br> attributable to unvested restricted stock awards	(598		)	(1,687		)	(149		)	(530		)	(558		)	(505		)	(740		)
FFO attributable to<br> Alexandria Real Estate Equities, Inc.’s **** common<br> stockholders – numerator for basic FFO per share	59,703			126,515			9,840			49,782			49,863			46,201			65,167
Add: Assumed conversion<br> of 8% unsecured convertible notes (1)	–			3,197			–			4,194			4,362			4,384			3,197
Add: Effect of dilutive<br> securities and assumed conversion attributable to unvested restricted stock<br> awards	–			52			–			4			22			24			37
FFO attributable to<br> Alexandria Real Estate Equities, Inc.’s **** common<br> stockholders assuming effect of dilutive securities and assumed conversion –<br> numerator for FFO per share (diluted)	$	59,703		$	129,764		$	9,840		$	53,980		$	54,247		$	50,609		$	68,401
Weighted<br> average shares of common stock outstanding for calculating FFO per share<br> attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders – denominator for basic FFO per share	44,348,850			35,722,375			44,870,142			43,821,765			43,715,462			39,094,018			38,929,971
Effect of dilutive<br> securities and assumed conversion:
Dilutive effect of stock<br> options	35,720			6,662			34,857			35,748			34,839			11,932			1,167
Assumed conversion of 8%<br> unsecured convertible notes (1)	–			2,081,832			–			5,797,101			5,797,101			5,797,101			4,140,787
Weighted average shares<br> of common stock outstanding for calculating FFO per share attributable to<br> Alexandria Real Estate Equities, Inc.’s common stockholders assuming<br> effect of dilutive securities and assumed conversion – denominator for FFO<br> per share (diluted)	44,384,570			37,810,869			44,904,999			49,654,614			49,547,402			44,903,051			43,071,925
FFO per share<br> attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders
Basic	$	1.35		$	3.54		$	0.22		$	1.14		$	1.14		$	1.18		$	1.67
Diluted	$	1.35		$	3.43		$	0.22		$	1.09		$	1.09		$	1.13		$	1.59

(1) During the second quarter of 2010, we recognized a loss on early extinguishment of debt of approximately $41.5 million upon completion of an exchange of our 8% unsecured convertible notes. Due to the $41.5 million loss on early extinguishment of debt, our FFO results for the three and six months ended June 30, 2010 do not assume conversion of our 8% unsecured convertible notes for FFO per share (diluted) purposes as the impact to FFO per share was antidilutive to each period pursuant to the if-converted method of accounting. See pages 8-10 for additional information. During the second quarter of 2009, we recognized additional income approximating $7.2 million for a cash receipt related to real estate acquired in November 2007. Additionally during the second quarter of 2009, we recognized a gain on early extinguishment of debt of approximately $11.3 million related to the repurchase, in privately negotiated transactions, of approximately $75 million (par value) of our 3.7% unsecured convertible notes. During the first quarter of 2009, we recognized approximately $18.5 million of additional rental income related to the modification of a lease in South San Francisco.

See “Definitions and Other Information” section of this report starting on page 43.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

AdjustedFunds from Operations

(Dollarsin thousands)

(Unaudited)

AdjustedFunds from Operations

The following table presents a reconciliation of FFO attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders to adjusted funds from operations (“AFFO”) attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders:

****	Six Months Ended (1)					****	Three Months Ended (1)														****
****	6/30/2010		****	6/30/2009		****	6/30/2010		****	3/31/2010		****	12/31/2009		****	9/30/2009		****	6/30/2009		****
FFO<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders	$	59,703		$	126,515		$	9,840		$	49,782		$	49,863		$	46,201		$	65,167
Add/(deduct):
Capital<br> expenditures	(743		)	(762		)	(440		)	(303		)	(607		)	(565		)	(270		)
Second<br> generation tenant improvements and leasing costs	(3,286		)	(1,585		)	(1,801		)	(1,485		)	(2,334		)	(819		)	(894		)
Amortization<br> of loan fees	4,098			3,816			2,026			2,072			2,081			2,061			2,023
Amortization<br> of debt premiums/discounts	5,875			4,867			2,849			3,026			2,998			2,923			2,605
Amortization<br> of acquired above and below market leases	(3,577		)	(6,481		)	(1,330		)	(2,247		)	(1,457		)	(1,510		)	(1,736		)
Deferred<br> rent	(7,440		)	(4,209		)	(3,305		)	(4,135		)	(7,064		)	(3,106		)	(2,700		)
Net<br> stock compensation	5,389			6,716			2,658			2,731			3,194			4,141			3,694
Capitalized<br> income from development projects	2,658			3,293			1,302			1,356			1,660			1,545			1,631
Deferred<br> rent on ground leases	2,549			2,602			1,117			1,432			1,400			1,564			1,478
Loss<br> (gain) on early extinguishment of debt	41,496			(11,254		)	41,496			–			–			–			(11,254		)
Allocation<br> to unvested restricted stock awards	(466		)	40			(363		)	(25		)	1			(67		)	61
AFFO<br> attributable to Alexandria Real Estate Equities, Inc.’s **** common stockholders	$	106,256		$	123,558		$	54,049		$	52,204		$	49,735		$	52,368		$	59,805
Weighted average shares<br> of common stock outstanding for calculating earnings (loss) per share<br> attributable to Alexandria Real Estate Equities, Inc.’s common<br> stockholders – denominator for diluted earnings (loss) per share	44,348,850			37,810,869			44,870,142			43,857,513			43,750,301			39,105,950			43,071,925
Add: Dilutive effect of<br> stock options	35,720			–			34,857			–			–			–			–
Less: Assumed conversion<br> of 8% unsecured convertible notes	–			(2,081,832		)	–			–			–			–			(4,140,787		)
	44,384,570			35,729,037			44,904,999			43,857,513			43,750,301			39,105,950			38,931,138

(1) During the second quarter of 2010, we recognized a loss on early extinguishment of debt of approximately $41.5 million upon completion of an exchange of our 8% unsecured convertible notes. During the second quarter of 2009, we recognized additional income approximating $7.2 million for a cash receipt related to real estate acquired in November 2007. Additionally during the second quarter of 2009, we recognized a gain on early extinguishment of debt of approximately $11.3 million related to the repurchase, in privately negotiated transactions, of approximately $75 million (par value) of our 3.7% unsecured convertible notes. During the first quarter of 2009, we recognized approximately $18.5 million of additional rental income related to the modification of a lease in South San Francisco.

See “Definitions and Other Information” section of this report starting on page 43.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Financialand Asset Base Highlights

(Dollarsin thousands, except per share amounts)

(Unaudited)

****	6/30/2010		****	3/31/2010		****	12/31/2009		****	9/30/2009		****	6/30/2009		****
Balance Sheet Data												****	****		****
Rental<br> properties, net	$	3,416,261		$	3,399,306		$	3,383,308		$	3,366,960		$	3,243,268
Land<br> held for future development	$	309,514		$	294,631		$	255,025		$	254,549		$	240,411
Construction<br> in progress	$	1,394,778		$	1,326,865		$	1,400,795		$	1,349,656		$	1,406,451
Investment<br> in unconsolidated real estate entity	$	35,184		$	34,421		$	–		$	–		$	–
Gross<br> book value of real estate	$	5,718,492		$	5,593,793		$	5,559,775		$	5,471,930		$	5,367,100
Tangible<br> non-real estate assets	$	218,373		$	222,248		$	227,440		$	239,076		$	224,016
Total<br> assets	$	5,565,159		$	5,468,534		$	5,457,227		$	5,393,337		$	5,286,653
Gross<br> assets (excluding cash and restricted cash)	$	6,017,000		$	5,900,292		$	5,859,955		$	5,765,820		$	5,641,627
Secured<br> notes payable	$	859,831		$	884,839		$	937,017		$	837,177		$	941,600
Unsecured<br> line of credit	$	696,000		$	541,000		$	476,000		$	498,000		$	557,000
Unsecured<br> term loan	$	750,000		$	750,000		$	750,000		$	750,000		$	750,000
3.7%<br> unsecured convertible notes	$	371,925		$	369,961		$	368,027		$	366,120		$	364,242
8.0%<br> unsecured convertible notes (1)	$	6,655		$	217,014		$	215,902		$	214,799		$	213,742
Total<br> unsecured debt	$	1,824,580		$	1,877,975		$	1,809,929		$	1,828,919		$	1,884,984
Total<br> debt	$	2,684,411		$	2,762,814		$	2,746,946		$	2,666,096		$	2,826,584
Net<br> debt	$	2,573,497		$	2,656,002		$	2,629,027		$	2,537,814		$	2,704,588
Total<br> liabilities	$	3,008,129		$	3,069,353		$	3,051,148		$	3,013,481		$	3,158,902
Common<br> shares outstanding (1)	49,634,396			43,919,968			43,846,050			43,715,900			39,040,518
Total<br> market capitalization	$	6,212,596		$	6,112,219		$	5,946,639		$	5,417,648		$	4,580,406
	Three Months Ended
	6/30/2010 (1)		****	3/31/2010		****	12/31/2009		****	9/30/2009		****	6/30/2009 (2)
Operating Data
Total<br> revenues	$	117,010		$	116,487		$	115,125		$	115,826		$	121,039
Total<br> revenues, as adjusted	$	117,010		$	116,487		$	115,125		$	115,826		$	113,797
Deferred<br> rent	$	3,305		$	4,135		$	7,064		$	3,106		$	2,700
Amortization<br> of acquired above and below market leases	$	1,330		$	2,247		$	1,457		$	1,510		$	1,736
Non-cash<br> amortization of discount on unsecured convertible notes	$	2,925		$	3,046		$	3,009		$	2,935		$	2,612
Non-cash<br> amortization of discounts (premiums) on secured notes payable	$	(76	)	$	(20	)	$	(11	)	$	(12	)	$	(7	)
Net<br> (loss) income attributable to Alexandria Real Estate Equities, Inc.’s<br> common stockholders	$	(20,393	)	$	20,542		$	21,650		$	18,203		$	32,298
(Loss)<br> earnings per share – diluted	$	(0.45	)	$	0.47		$	0.49		$	0.47		$	0.82
FFO<br> attributable to Alexandria Real Estate, Inc.’s **** common<br> stockholders – diluted	$	9,840		$	53,980		$	54,247		$	50,609		$	68,401
FFO<br> per share – diluted	$	0.22		$	1.09		$	1.09		$	1.13		$	1.59
Weighted<br> average common shares outstanding – EPS – diluted	44,870,142			43,857,513			43,750,301			39,105,950			43,071,925
Weighted<br> average common shares outstanding – FFO – diluted	44,904,999			49,654,614			49,547,402			44,903,051			43,071,925

(2) During the second quarter of 2009, we recognized additional income approximating $7.2 million for a cash receipt related to real estate acquired in November 2007. Additionally during the second quarter of 2009, we recognized a gain on early extinguishment of debt of approximately $11.3 million related to the repurchase, in privately negotiated transactions, of approximately $75 million (par value) of our 3.7% unsecured convertible notes.

See “Definitions and Other Information” section of this report starting on page 43.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Financialand Asset Base Highlights (continued)

(Dollarsin thousands, except per share amounts)

(Unaudited)

****	Three Months Ended (1)
****	6/30/2010		3/31/2010		12/31/2009		9/30/2009		6/30/2009
Financial, Debt, and Other Ratios
Unencumbered<br> net operating income as a percentage of total net operating income	56%		57%		55%		60%		61%
Unencumbered<br> assets gross book value	$	4,404,729	$	4,250,976	$	4,166,066	$	4,092,300	$	3,971,718
Unencumbered<br> assets gross book value as a percentage of gross assets	72%		71%		70%		69%		69%
Percentage<br> outstanding on unsecured line of credit at end of period	61%		47%		41%		43%		48%
Operating<br> margin	74%		73%		74%		73%		74%
Adjusted<br> EBITDA margin	69%		68%		70%		69%		72%
General<br> and administrative expense as a percentage of total revenues	7.1%		8.1%		7.4%		8.3%		7.3%
EBITDA<br> – trailing 12 months	$	267,281	$	325,596	$	342,428	$	341,639	$	342,624
Adjusted<br> EBITDA – trailing 12 months	$	321,084	$	327,685	$	342,598	$	353,831	$	354,198
Capitalized<br> interest	$	18,322	$	19,509	$	18,976	$	17,933	$	18,240
Weighted<br> average interest rate used for capitalization during period	5.06%		5.20%		5.42%		5.16%		5.23%
Net<br> debt to gross assets (excluding cash and restricted cash) at end of period	42.8%		45.0%		44.9%		44.0%		47.9%
Secured<br> debt as a percentage of gross assets at end of period	14%		15%		16%		14%		16%
Net<br> debt to Adjusted EBITDA – trailing 12 months	8.0		8.1		7.7		7.2		7.6
Dividends<br> per share on common stock	$	0.35	$	0.35	$	0.35	$	0.35	$	0.35
Dividend<br> payout ratio (common stock)	32%		29%		29%		31%		20%
****	2Q 2010	1Q 2010	4Q 2009	****	3Q 2009	2Q 2009
---	---	---	---	---	---	---
Asset Base Statistics
Number<br> of properties at end of period	161	161	162		163	163
Rentable<br> square feet at end of period	12,672,031	12,672,031	12,742,678		12,790,236	12,790,236
Occupancy<br> of operating properties at end of period	94.0%	94.0%	94.1%		94.4%	94.5%
Occupancy<br> including redevelopment properties at end of period	89.6%	88.9%	89.4%		89.1%	89.4%
Leasing<br> activity – YTD rentable square feet	1,031,018	563,901	1,864,347		1,349,098	935,580
Leasing<br> activity – Qtr rentable square feet	550,678	563,901	489,079		449,515	472,822
Leasing<br> activity – YTD GAAP rental rate increase	4.2%	1.8%	3.5%		4.9%	4.0%
Leasing<br> activity – Qtr GAAP rental rate increase	5.1%	1.8%	1.5%		5.6%	3.3%
Leasing<br> activity – YTD Cash rental rate increase	0.3%	0.7%	0.1%		2.8%	2.5%
Leasing<br> activity – Qtr Cash rental rate increase	0.0%	0.7%	(8.0%	)	1.6%	2.1%
Same<br> property YTD revenue less operating expenses – GAAP basis	0.6%	0.8%	2.8%		3.7%	4.0%
Same<br> property Qtr revenue less operating expenses – GAAP basis	0.7%	0.8%	1.1%		0.8%	2.2%
Same<br> property YTD revenue less operating expenses – Cash basis	1.3%	0.4%	4.7%		7.1%	7.1%
Same<br> property Qtr revenue less operating expenses – Cash basis	2.5%	0.4%	1.3%		4.3%	5.8%

See “Definitions and Other Information” section of this report starting on page 43.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Financialand Asset Base Highlights (continued)

(Unaudited)

Summaryof Occupancy Percentage at End of Period

****	December 31,												****	****
****	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2Q10	Average
Operating<br> properties	96.2%	95.7%	98.4%	99.0%	96.3%	93.9%	95.2%	93.2%	93.1%	93.8%	94.8%	94.1%	94.0%	95.2%
Operating<br> and redevelopment properties	92.9%	91.5%	90.8%	88.6%	89.2%	88.4%	87.0%	87.7%	88.0%	87.8%	90.0%	89.4%	89.6%	89.3%

QuarterlyPercentage Change in GAAP and Cash Same Property Revenues Less OperatingExpenses

Summaryof GAAP and Cash Rental Rate Increases on Renewed/Released Space

(1) Excluding a lease for 21,310 rentable square feet in the San Francisco Bay market, rental rates for renewed or released space in 2003 were on average 2.5%

higher than expiring rates on a cash basis and 9.7% higher than expiring rates on a GAAP basis.

ALEXANDRIAREAL ESTATE EQUITIES, INC.Summary of DebtJune 30, 2010*(Dollars in thousands)(Unaudited)*

Debt Maturities

****	Secured Notes Payable						****	Unsecured Debt					****
Year	Our Share		Noncontrolling Interests’ Share		Total Consolidated Secured Notes Payable		****	Credit Facility		****	Unsecured Convertible Notes		****
2010	$	5,607	$	136	$	5,743		$	–		$	–
2011	134,603		284		134,887			696,000		(1)	–
2012	40,621		300		40,921			750,000		(1)	371,925
2013	52,174		318		52,492			–			–
2014	195,887		20,846		216,733			–			6,655
Thereafter	409,055		–		409,055			–			–
Total	$	837,947	$	21,884	$	859,831	(2)	$	1,446,000		$	378,580	(2)

Secured NotesPayable and Unsecured Debt Analysis

****	Balance		****	Percentage of Balance		Weighted Average Interest Rate at End of Period (3)		Weighted Average Remaining Term	****
Secured<br> Notes Payable	$	859,831	(2)	32.0	%	5.95	%	6.0 Years
Unsecured<br> Line of Credit	696,000			25.9		1.50		1.3 Years	(4)
Unsecured<br> Term Loan	750,000			27.9		4.92		2.3 Years	(4)
3.7%<br> Unsecured Convertible Notes	371,925		(2)	13.9		5.96		1.5 Years
8%<br> Unsecured Convertible Notes	6,655		(2)	0.3		11.00		3.8 Years
Total<br> Debt	$	2,684,411		100.0	%	4.52	%	3.2 Years
(1)	Assumes we exercise our<br> sole right to extend the maturity date of our unsecured line of credit from<br> October 2010 to October 2011 and our unsecured term loan from<br> October 2011 to October 2012.
---	---
(2)	Includes unamortized<br> discount of approximately $2.2 million, $12.8 million, and $0.7 million on<br> our secured notes payable, 3.7% Unsecured Convertible Notes, and 8% Unsecured<br> Convertible Notes, respectively, as of June 30, 2010.
(3)	Represents the<br> contractual interest rate as of the end of the period plus the impact of debt<br> premiums/discounts and our interest rate hedge agreements on our secured notes<br> payable, unsecured line of credit, unsecured term loan, and unsecured<br> convertible notes. The weighted average interest rate excludes bank fees and<br> amortization of loan fees. See also the “Summary of Interest Rate Hedge Agreements” section of this report.
(4)	Assumes we exercise our<br> sole right to extend the maturity date of our unsecured line of credit and<br> unsecured term loan by twelve months to October 2011 and<br> October 2012, respectively. The interest rate related to outstanding<br> borrowings for our unhedged floating rate debt is based upon one-month LIBOR.<br> The interest rate resets periodically and will vary in future periods.

ALEXANDRIAREAL ESTATE EQUITIES, INC.Summary of Secured Notes Payable Principal Maturities Through 2014 June 30,2010

(Dollars in thousands)

(Unaudited)

Description	Maturity Date	Type	Stated Rate		Effective Rate (1)		Amount		****
Other<br> scheduled principal repayments/amortization							5,743
2010<br> Total							$	5,743
California<br> – San Francisco Bay #1	1/3/2011	Bank	1.65	%	1.65	%	$	29,558	(2)
Eastern<br> Massachusetts #1	2/1/2011	Bank	7.52		5.82		5,050
California<br> – San Diego #1	8/2/2011	Not-for-Profit	7.50		7.50		8,500
Eastern<br> Massachusetts #2	10/1/2011	Bank	8.10		5.69		2,237
Suburban<br> Washington, D.C. #1	11/1/2011	CMBS	7.25		5.82		2,978
Suburban<br> Washington, D.C. #2	12/22/2011	Bank	3.57		3.57		76,000		(3)
Other<br> scheduled principal repayments/amortization							10,564
2011<br> Total							$	134,887
Washington<br> – Seattle #1	1/1/2012	Bank	6.15	% (4)	6.15	%	$	28,500	(2)(5)
Eastern<br> Massachusetts #3	3/1/2012	Insurance Co.	7.14		5.83		1,358
Other<br> scheduled principal repayments/amortization							11,063
2012<br> Total							$	40,921
California<br> – San Diego #2	3/1/2013	Insurance Co.	6.21	%	6.21	%	$	7,940
Suburban<br> Washington, D.C. #3	9/1/2013	CMBS	6.36		6.36		26,093
California<br> – San Francisco Bay #2	11/16/2013	Other	6.14		6.14		7,527
Other<br> scheduled principal repayments/amortization							10,932
2013<br> Total							$	52,492
Eastern<br> Massachusetts #4	4/1/2014	Insurance Co.	5.26	%	5.59	%	$	208,457
Washington<br> – Seattle #2	11/18/2014	Other	6.37		6.37		240
Other<br> scheduled principal repayments/amortization							8,036
2014<br> Total							$	216,733
(1)	Represents the contractual interest rate as of the<br> end of the period plus the impact of debt premiums/discounts and interest<br> rate hedge agreements. The effective rate excludes bank fees and amortization<br> of loan fees.
---	---
(2)	Variable rate loan based<br> on one month LIBOR plus an applicable spread. <br> The interest rate resets periodically and will vary in future periods.
(3)	We have ongoing<br> discussions with our lenders to extend or refinance the debt secured by this<br> property.
(4)	Represents the stated rate<br> of 1.50% as of June 30,<br> 2010 and the impact of an interest<br> rate hedge agreement.
(5)	Assumes we exercise our<br> sole right to extend the maturity date of this secured debt from<br> January 1, 2011 to January 1, 2012.

ALEXANDRIAREAL ESTATE EQUITIES, INC. Fixed/Floating Rate Debt and Leverage*(Dollars in thousands, except per share data)(Unaudited)*

Fixed/FloatingRate Debt Analysis

****	June 30, 2010		Percentage of Balance		Weighted Average Interest Rate at End of Period (1)		Weighted Average Maturity	****
Fixed<br> Rate Debt	$	1,178,959	43.9	%	6.08	%	4.9 Years
Floating<br> Rate Debt – Hedged	628,500		23.4		5.80		2.3 Years	(2)
Floating<br> Rate Debt – Unhedged	876,952		32.7		1.51		1.5 Years	(2)
Total<br> Debt	$	2,684,411	100.0	%	4.52	%	3.2 Years	(2)

Leverage

****	6/30/2010		****	3/31/2010		****	12/31/2009		****	9/30/2009		****	6/30/2009		****
Total<br> debt	$	2,684,411		$	2,762,814		$	2,746,946		$	2,666,096		$	2,826,584
Less:<br> cash, cash equivalents, and restricted cash	(110,914		)	(106,812		)	(117,919		)	(128,282		)	(121,996		)
Net<br> debt	$	2,573,497		$	2,656,002		$	2,629,027		$	2,537,814		$	2,704,588
Adjusted<br> EBITDA – trailing 12 months (3)	$	321,084		$	327,685		$	342,598		$	353,831		$	354,198
Gross<br> Assets (excluding cash and restricted cash)	$	6,017,000		$	5,900,292		$	5,859,955		$	5,765,820		$	5,641,627
Net<br> debt to Adjusted EBITDA – trailing 12 months (3)	8.0			8.1			7.7			7.2			7.6
Net<br> debt to Gross Assets (excluding cash and restricted cash)	42.8%			45.0%			44.9%			44.0%			47.9%
Unencumbered<br> net operating income as a percentage of total net operating income	56%			57%			55%			60%			61%
Unencumbered<br> assets gross book value as a percentage of gross assets	72%			71%			70%			69%			69%

(1)	Represents the<br> contractual interest rate as of the end of the period plus the impact of debt<br> premiums/discounts and our interest rate hedge agreements on our secured<br> notes payable, unsecured line of credit, unsecured term loan, and unsecured<br> convertible notes. The weighted<br> average interest rate excludes bank fees and amortization of loan fees. See<br> also the “Summary of Interest Rate<br> Hedge Agreements” section of this report.
(2)	Assumes we exercise our<br> sole right to extend the maturity date of our unsecured line of credit and<br> unsecured term loan by twelve months to October 2011 and October 2012,<br> respectively. The interest rate<br> related to outstanding borrowings for our unhedged floating rate debt is<br> based upon one-month LIBOR. The<br> interest rate resets periodically and will vary in future periods.
(3)	During the second quarter of 2009, we recognized additional income<br> approximating $7.2 million for a cash receipt related to real estate acquired<br> in November 2007. During the first quarter of 2009, we<br> recognized approximately $18.5 million of additional rental income related to<br> the modification of a lease in South San Francisco. During the fourth quarter<br> of 2008, we recognized approximately $11.3 million of additional rental<br> income related to the modification of a lease in South San Francisco.

(1)

Represents the contractual interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate hedge agreements on our secured notes payable, unsecured line of credit, unsecured term loan, and unsecured convertible notes. The weighted average interest rate excludes bank fees and amortization of loan fees. See also the “Summary of Interest Rate Hedge Agreements” section of this report.

(2)

Assumes we exercise our sole right to extend the maturity date of our unsecured line of credit and unsecured term loan by twelve months to October 2011 and October 2012, respectively. The interest rate related to outstanding borrowings for our unhedged floating rate debt is based upon one-month LIBOR. The interest rate resets periodically and will vary in future periods.

(3)

During the second quarter of 2009, we recognized additional income approximating $7.2 million for a cash receipt related to real estate acquired in November 2007. During the first quarter of 2009, we recognized approximately $18.5 million of additional rental income related to the modification of a lease in South San Francisco. During the fourth quarter of 2008, we recognized approximately $11.3 million of additional rental income related to the modification of a lease in South San Francisco.

See “Definitions and Other Information” section of this report starting on page 43.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Summaryof Interest Rate Hedge Agreements

June 30,2010

(Dollarsin thousands)

(Unaudited)

Transaction Date	Effective Date	Termination Date	Interest Pay Rate		Notional Amount		Effective at June 30 , 2010
December<br> 2006	December 29, 2006	March 31, 2014	4.990	%	$	50,000	$	50,000
December<br> 2006	January 2, 2007	January 3, 2011	5.003		28,500		28,500
October<br> 2007	October 31, 2007	September 30, 2012	4.546		50,000		50,000
October<br> 2007	October 31, 2007	September 30, 2013	4.642		50,000		50,000
December<br> 2005	January 2, 2008	December 31, 2010	4.768		50,000		50,000
October<br> 2007	July 1, 2008	March 31, 2013	4.622		25,000		25,000
October<br> 2007	July 1, 2008	March 31, 2013	4.625		25,000		25,000
June<br> 2006	October 31, 2008	December 31, 2010	5.340		50,000		50,000
June<br> 2006	October 31, 2008	December 31, 2010	5.347		50,000		50,000
October<br> 2008	September 30, 2009	January 31, 2011	3.119		100,000		100,000
December<br> 2006	November 30, 2009	March 31, 2014	5.015		75,000		75,000
December<br> 2006	November 30, 2009	March 31, 2014	5.023		75,000		75,000
December<br> 2006	December 31, 2010	October 31, 2012	5.015		100,000		–
Total							$	628,500

Interest pay rate represents the interest rate we will pay for one month LIBOR under the applicable interest rate swap agreement. This rate does not include any spread in addition to one month LIBOR that is due monthly as interest expense.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Summaryof Occupancy Percentage and Properties

(Dollarsin thousands)

(Unaudited)

Summaryof Occupancy Percentage at End of Period

****	December 31,												****	****
****	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2Q10	Average
Operating<br> properties	96.2%	95.7%	98.4%	99.0%	96.3%	93.9%	95.2%	93.2%	93.1%	93.8%	94.8%	94.1%	94.0%	95.2%
Operating<br> and redevelopment properties	92.9%	91.5%	90.8%	88.6%	89.2%	88.4%	87.0%	87.7%	88.0%	87.8%	90.0%	89.4%	89.6%	89.3%

Summaryof Properties

****	June 30, 2010									March 31, 2010
****	Rentable Square Feet				Number of	Annualized		Occupancy		Occupancy
Markets	Operating	Redevelopment	Development	Total	Properties	Base Rent (1)		Percentage (1) (2)		Percentage (3)
California<br> - San Diego	1,507,621	157,854	–	1,665,475	32	$	40,519	86.9	%	87.4	%
California<br> - San Francisco Bay	1,577,193	–	555,000	2,132,193	22	54,062		96.6		95.8
Eastern<br> Massachusetts	3,220,332	240,660	–	3,460,992	38	115,929		94.4		94.9
New<br> Jersey/Suburban Philadelphia	459,904	–	–	459,904	8	9,302		83.5		83.5
New<br> York City	–	–	310,000	310,000	1	–		–		–
Southeast	718,068	–	–	718,068	12	15,788		94.1		93.5
Suburban<br> Washington, D.C.	2,339,087	153,713	–	2,492,800	31	49,419		95.8		95.4
Washington<br> - Seattle	1,090,205	–	–	1,090,205	13	35,052		97.5		98.1
International	342,394	–	–	342,394	4	8,959		100.0		100.0
Total<br> Properties (Continuing Operations)	11,254,804	552,227	865,000	12,672,031	161	$	329,030	94.0	%	94.0	%
(1)	Represents annualized<br> base rent and occupancy percentages related to our operating properties<br> aggregating 11,254,804 rentable square feet.
---	---
(2)	Including spaces<br> undergoing a permanent change in use to life science laboratory space through<br> redevelopment, including the conversion of single-tenancy space to<br> multi-tenancy space or multi-tenancy space to single-tenancy space, occupancy<br> as of June 30, 2010 was 89.6%. See also the “Value-Added Activities”<br> section of this report for additional information on our redevelopment<br> program.
(3)	Represents occupancy<br> percentages related to our operating properties aggregating 11,162,408<br> rentable square feet. Including spaces undergoing a permanent change in use to<br> life science laboratory space through redevelopment, including the conversion<br> of single-tenancy space to multi-tenancy space or multi-tenancy space to<br> single-tenancy space, occupancy as of March 31, 2010 was 88.9%. See also<br> the “Value-Added Activities” section of this report for additional<br> information on our redevelopment program.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Summaryof Same Property Comparisons

(Dollarsin thousands)

(Unaudited)

****	GAAP Basis						Cash Basis
	Three Months Ended						Three Months Ended
	6/30/2010		6/30/2009		% Change		6/30/2010		6/30/2009		% Change
Revenues	$	96,259	$	95,705	0.6	%	$	94,553	$	92,829	1.9	%
Operating<br> expenses	24,145		24,116		0.1		24,145		24,116		0.1
Revenues<br> less operating expenses	$	72,114	$	71,589	0.7	%	$	70,408	$	68,713	2.5	%
****	GAAP Basis						Cash Basis
---	---	---	---	---	---	---	---	---	---	---	---	---
	Six Months Ended						Six Months Ended
	6/30/2010		6/30/2009		% Change		6/30/2010		6/30/2009		% Change
Revenue	$	189,307	$	189,420	(0.1	)%	$	185,488	$	184,702	0.4	%
Operating<br> expenses	48,943		49,911		(1.9	)	48,943		49,911		(1.9	)
Revenue<br> less operating expenses	$	140,364	$	139,509	0.6	%	$	136,545	$	134,791	1.3	%

Quarterly Percentage Change inGAAP and Cash Same Property Revenues Less Operating Expenses

See “Definitions and Other Information” section of this report starting on page 43.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Summaryof Leasing Activity

SixMonths Ended June 30, 2010

(Unaudited)

****	****	****	****	****	****	TI’s/Lease	****
****	****	Rentable	****	****	Rental	Commissions	Average
****	Number	Square	Expiring	New	Rate	Per	Lease
****	of Leases	Footage	Rates	Rates	Changes	Square Foot	Terms
Leasing Activity
Lease<br> Expirations
Cash<br> Basis	73	971,618	$28.25	–	–	–	–
GAAP<br> Basis	73	971,618	$28.14	–	–	–	–
Renewed/Released<br> Space Leased
Cash<br> Basis	49	680,984	$30.12	$30.22	0.3%	$4.83	4.9 years
GAAP<br> Basis	49	680,984	$28.92	$30.13	4.2%	$4.83	4.9 years
Developed/Redeveloped/<br> Vacant Space Leased
Cash<br> Basis	26	350,034	–	$27.10	–	$10.14	7.4 years
GAAP<br> Basis	26	350,034	–	$29.25	–	$10.14	7.4 years
Month-to-Month<br> Leases in Effect
Cash<br> Basis	5	18,949	$21.59	$21.59	–	–	–
GAAP<br> Basis	5	18,949	$21.39	$21.59	–	–	–
Leasing Activity Summary
Excluding<br> Month-to-Month Leases
Cash<br> Basis	75	1,031,018	–	$29.16	–	$6.63	5.8 years
GAAP<br> Basis	75	1,031,018	–	$29.83	–	$6.63	5.8 years
Including<br> Month-to-Month Leases
Cash<br> Basis	80	1,049,967	–	$29.03	–	–	–
GAAP<br> Basis	80	1,049,967	–	$29.68	–	–	–

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Summaryof Leasing Activity

ThreeMonths Ended June 30, 2010

(Unaudited)

****	****	****	****	****	****	TI’s/Lease	****
****	****	Rentable	****	****	Rental	Commissions	Average
****	Number	Square	Expiring	New	Rate	Per	Lease
****	of Leases	Footage	Rates	Rates	Changes	Square Foot	Terms
Leasing Activity
Lease<br> Expirations
Cash<br> Basis	36	498,495	$28.85	–	–	–	–
GAAP<br> Basis	36	498,495	$27.64	–	–	–	–
Renewed/Released<br> Space Leased
Cash<br> Basis	23	416,157	$30.45	$30.44	0.0%	$4.33	4.6 years
GAAP<br> Basis	23	416,157	$29.04	$30.53	5.1%	$4.33	4.6 years
Developed/Redeveloped/<br> Vacant Space Leased
Cash<br> Basis	12	134,521	–	$27.53	–	$7.37	6.3 years
GAAP<br> Basis	12	134,521	–	$29.64	–	$7.37	6.3 years
Month-to-Month<br> Leases in Effect
Cash<br> Basis	5	18,949	$21.59	$21.59	–	–	–
GAAP<br> Basis	5	18,949	$21.39	$21.59	–	–	–
Leasing Activity Summary
Excluding<br> Month-to-Month Leases
Cash<br> Basis	35	550,678	–	$29.73	–	$5.07	5.0 years
GAAP<br> Basis	35	550,678	–	$30.32	–	$5.07	5.0 years
Including<br> Month-to-Month Leases
Cash<br> Basis	40	569,627	–	$29.45	–	–	–
GAAP<br> Basis	40	569,627	–	$30.03	–	–	–

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Summaryof Leasing Activity

(Unaudited)

****	June 30, 2010
****	****	Quarter		Year-to-Date		December 31, 2009		December 31, 2008		December 31, 2007		December 31, 2006
****	****	GAAP	Cash	GAAP	Cash	GAAP	Cash	GAAP	Cash	GAAP	Cash	GAAP	Cash
Lease<br> Expirations
Rentable<br> Square Footage		498,495	498,495	971,618	971,618	1,842,597	1,842,597	1,664,944	1,664,944	1,626,033	1,626,033	1,224,143	1,224,143
Expiring<br> Rates		$27.64	$28.85	$28.14	28.25	$30.70	$30.61	$25.52	$26.88	$26.97	$25.98	$22.42	$24.62
Renewed/Released<br> Space
Leased<br> Rentable Square Footage		416,157	416,157	680,984	680,984	1,188,184	1,188,184	1,254,285	1,254,285	895,894	895,894	704,826	704,826
New<br> Rates		$30.53	$30.44	$30.13	30.22	$27.72	$28.11	$29.34	$28.60	$31.48	$31.41	$23.67	$23.64
Expiring<br> Rates		$29.04	$30.45	$28.92	30.12	$26.78	$28.07	$25.51	$27.08	$28.66	$29.38	$20.74	$21.94
Rental<br> Rate Changes		5.1%	0.0%	4.2%	0.3%	3.5%	0.1%	15.0%	5.6%	9.8%	6.9%	14.1%	7.7%
Developed/Redeveloped/Vacant<br> Space Leased
Rentable<br> Square Footage		134,521	134,521	350,034	350,034	676,163	676,163	906,859	906,859	686,856	686,856	883,503	883,503
New<br> Rates		$29.64	$27.53	$29.25	27.10	$36.00	$33.57	$37.64	$35.04	$33.68	$31.59	$32.89	$31.02
Totals
Rentable<br> Square Footage		550,678	550,678	1,031,018	1,031,018	1,864,347	1,864,347	2,161,144	2,161,144	1,582,750	1,582,750	1,588,329	1,588,329
New<br> Rates		$30.32	$29.73	$29.83	29.16	$30.73	$30.09	$32.82	$31.30	$32.44	$31.49	$28.80	$27.74
TI’s/Lease<br> Commissions per Square Foot		$5.07	$5.07	$6.63	6.63	$5.49	$5.49	$7.23	$7.23	$6.95	$6.95	$5.13	$5.13
Average<br> Lease Terms		5.0 years	5.0 years	5.8 years	5.8 years	4.5 years	4.5 years	5.5 years	5.5 years	5.1 years	5.1 years	6.3 years	6.3 years

All values are in US Dollars.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Summaryof Lease Expirations

June 30,2010

(Unaudited)

Year of Lease<br><br> Expiration	Number of<br><br> Leases Expiring		Rentable Square<br><br> Footage (“RSF”) of<br><br> Expiring Leases		Percentage of<br><br> Aggregate<br><br> Total RSF		Annualized Base Rent of Expiring Leases (per RSF )
2010	37	(1)	588,126	(1)	5.0	%	$25.72
2011	75		1,458,877		12.4		26.84
2012	75		1,457,474		12.3		32.82
2013	73		1,231,770		10.4		29.10
2014	50		1,157,012		9.8		28.76
2015	39		796,580		6.7		28.20
2016	21		1,115,594		9.4		31.91
2017	14		696,759		5.9		34.50
2018	12		834,738		7.1		40.16
2019	6		239,605		2.0		35.58
	2010 RSF of Expiring Leases						****	Annualized Base Rent
---	---	---	---	---	---	---	---	---
Markets	Leased (2)	Negotiating/<br><br> Anticipating	Targeted for Redevelopment	****	Remaining<br><br> Expiring Leases	Total	****	of Expiring Leases (per RSF)
California<br> – San Diego	2,455	6,049	34,723	(3)	35,252	78,479		$22.19
California<br> – San Francisco Bay	106,459	–	–		76,669	183,128		30.39
Eastern<br> Massachusetts	38,004	8,491	–		64,677	111,172		33.40
New<br> Jersey/Suburban Philadelphia	–	–	–		27,588	27,588		14.98
Southeast	7,057	9,686	–		23,768	40,511		23.77
Suburban<br> Washington, D.C.	18,882	–	–		32,941	51,823		19.26
Washington<br> – Seattle	436	1,989	93,000	(4)	–	95,425		18.15
International	–	–	–		–	–		–
Total	173,293	26,215	127,723		260,895	588,126	(1)	$25.72
Percentage<br> of expiring leases	29%	5%	22%		44%	100%

	2011 RSF of Expiring Leases							Annualized Base Rent
Markets	Leased (2)	Negotiating/<br><br> Anticipating	Targeted for Redevelopment	****	Remaining Expiring Leases	Total	****	of Expiring Leases<br><br> (per RSF)
California<br> – San Diego	56,489	47,776	–		100,161	204,426		$25.43
California<br> – San Francisco Bay	25,508	44,718	32,074	(5)	159,346	261,646		33.99
Eastern<br> Massachusetts	–	175,049	222,662	(6)	96,305	494,016		29.76
New<br> Jersey/Suburban Philadelphia	–	10,000	–		24,021	34,021		15.82
Southeast	–	24,652	–		16,023	40,675		18.87
Suburban<br> Washington, D.C.	–	137,176	–		30,676	167,852		21.95
Washington<br> – Seattle	–	70,070	181,790	(7)	4,381	256,241		20.96
International	–	–	–		–	–		–
Total	81,997	509,441	436,526		430,913	1,458,877	(8)	$26.84
Percentage<br> of expiring leases	6%	35%	30%		29%	100%
(1)	Excludes five month-to-month leases for approximately<br> 19,000 rentable square feet.
---	---
(2)	Represents leases that have<br> been either (a) executed subsequent to June 30, 2010 as a renewal/extension,<br> or (b) leased to another tenant.
(3)	Represents<br> a 34,723 rentable square foot core and shell building with no interior<br> improvements targeted for redevelopment into laboratory space.
(4)	Represents<br> a 93,000 rentable square foot industrial building targeted for redevelopment<br> into single or multi-tenancy laboratory space.
(5)	Represents<br> a 32,074 rentable square foot single-tenancy space targeted for redevelopment<br> into multi-tenancy laboratory space.
(6)	Represents<br> a 177,662 rentable square foot office space targeted for redevelopment into single<br> or multi-tenancy laboratory space and a 45,000 rentable square foot<br> single-tenancy space targeted for redevelopment into multi-tenancy laboratory<br> space.
(7)	Represents<br> a 60,000 rentable square foot industrial building targeted for redevelopment<br> into single or multi-tenancy laboratory space and a 121,790 rentable square<br> foot office building targeted for redevelopment into single or multi-tenancy<br> laboratory space.
(8)	During the three months ended June 30, 2010,<br> we reduced 2011 expiring leases by 295,000 rentable square feet.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

20Largest Client Tenants

June 30,2010

(Unaudited)

****	****		****	****		****		Approximate	Percentage of		****		Percentage		Investment Grade Entities			****
****	****		****	Remaining Lease				Aggregate	Aggregate		Annualized		of Aggregate		****	****	****	****
****	****		Number	Term in Years				Rentable	Total Square		Base Rent (3)		Annualized		Fitch	Moody’s	S&P	Education/
****	Tenant		of Leases	(1)		(2)		Square Feet	Feet		(in thousands)		Base Rent		Rating (4)	Rating (4)	Rating (4)	Research
1	Novartis<br> AG		6	6.3		6.5		442,621	3.7	%	$	26,368	8.0	%	AA	Aa2	AA-	–
2	Roche<br> Holding Ltd		5	7.3		7.5		387,813	3.3		14,834		4.5		AA-	A2	AA-	–
3	GlaxoSmithKline<br> plc		6	4.9		6.0		350,278	3.0		14,474		4.4		A+	A1	A+	–
4	ZymoGenetics, Inc.<br> (5)		2	8.9		8.9		203,369	1.7		8,747		2.7		–	–	–	–
5	United<br> States Government		7	3.2		3.1		310,823	2.6		8,556		2.6		AAA	Aaa	AAA	–
6	Massachusetts Institute of Technology		3	4.3		4.0		178,952	1.5		8,111		2.5		–	Aaa	AAA	ü
7	Theravance, Inc.<br> (6)		2	1.8	(7)	1.8	(7)	170,244	1.4		6,137		1.9		–	–	–	–
8	Amylin<br> Pharmaceuticals, Inc.		3	5.9		6.0		168,308	1.4		5,761		1.8		–	–	–	–
9	Gilead<br> Sciences, Inc.		1	10.0		10.0		105,760	0.9		5,678		1.7		–	–	–	–
10	Pfizer<br> Inc.		2	9.5		9.4		120,140	1.0		5,647		1.7		AA-	A1	AA	–
11	The Scripps Research Institute		2	6.4		6.4		96,500	0.8		5,193		1.6		–	–	–	ü
12	Forrester<br> Research, Inc.		1	1.3	(8)	1.3	(8)	145,551	1.2		4,987		1.5		–	–	–	–
13	Alnylam<br> Pharmaceuticals, Inc. (9)		1	6.3		6.3		95,410	0.8		4,466		1.4		–	–	–	–
14	Dyax<br> Corp.		1	1.7		1.7		67,373	0.6		4,361		1.3		–	–	–	–
15	Quest<br> Diagnostics Incorporated		1	6.5		6.5		248,186	2.1		4,341		1.3		BBB+	Baa2	BBB+	–
16	Infinity<br> Pharmaceuticals, Inc.		2	2.5		2.5		67,167	0.6		4,302		1.3		–	–	–	–
17	UMass Memorial Health Care, Inc.		6	5.6		5.3		189,722	1.6		3,953		1.2		–	–	–	ü
18	Fred Hutchinson Cancer Research Center		2	4.0		4.1		123,322	1.0		3,854		1.2		–	–	–	ü
19	Merck & Co., Inc.		2	2.9		3.6		102,196	0.9		3,847		1.2		A+	Aa3	AA-	–
20	Qiagen N.V.		2	5.7		5.7		158,879	1.3		3,845		1.2		–	–	–	–
	Total/Weighted<br> Average:		57	5.5		5.8		3,732,614	31.6	%	$	147,462	44.8	%
(1)		Represents remaining<br> lease term in years based on percentage of leased square feet.
(2)		Represents remaining<br> lease term in years based on percentage of annualized base rent in effect as<br> of June 30, 2010.
(3)		Annualized base rent<br> means the annualized fixed base rental amount in effect as of June 30,<br> 2010 (using rental revenue computed on a straight-line basis in accordance<br> with GAAP).
(4)		Ratings obtained from<br> each respective rating agency (Fitch Ratings, Moody’s Investors Service, and<br> Standard & Poor’s, respectively).
(5)		As of March 31,<br> 2010, Novo Nordisk A/S owned approximately 27% of ZymoGenetics, Inc.
(6)		As of April 30,<br> 2010, GlaxoSmithKline plc owned approximately 13% of the outstanding stock of<br> Theravance, Inc.
(7)		Lease extension was<br> executed in July 2010. Including<br> the lease extension, remaining lease term in years based on percentage of<br> leased square feet and on percentage of annualized base rent in effect as of<br> June 30, 2010 would have been 9.9 years.
(8)		Space is targeted for<br> redevelopment into single or multi-tenancy laboratory space upon lease<br> expiration.
(9)		As of March 31,<br> 2010, Novartis AG owned approximately 13% of the outstanding stock of Alnylam<br> Pharmaceuticals, Inc.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

ClientTenant Mix

June 30,2010

(Unaudited)

****	Multinational Pharmaceutical	Institutional: Independent Not-for-Profit/ Universities/Translational Research Entities/Government
	·Abbott Laboratories	·Bill & Melinda Gates Foundation
	·Astellas Pharma Inc.	·Duke University
	·AstraZeneca plc	·Environmental Protection Agency
	·Baxter International Inc.	·Fred Hutchinson Cancer Research Center
	·Bayer AG	·Massachusetts Institute of Technology
	·Bristol-Myers Squibb Company	·National Institutes of Health
	·Eisai Co., Ltd.	·Sanford-Burham Medical Research<br> Institute
	·Eli Lilly and Company	·The Scripps Research Institute
	·GlaxoSmithKline plc	·University of California, San Francisco
	·Johnson & Johnson	·University of Massachusetts
	·Merck & Co., Inc.	·UMass Memorial Health Care, Inc.
	·Novartis AG	·University of Washington
	·Pfizer Inc.
	·Roche Holding Ltd
	·Sanofi-Aventis
		Medical Device, Life Science
	Biotechnology: Public & Private	Product, Service, and Biofuels
	·Achaogen Inc.	·Bio-Rad Laboratories, Inc.
	·Alnylam Pharmaceuticals, Inc.	·Becton, Dickinson and Company
	·Ambrx, Inc.	·Canon U.S. Life Sciences, Inc.
	·Amgen Inc.	·Laboratory Corporation Of America<br> Holdings
	·Amylin Pharmaceuticals, Inc.	·Life Technologies Corporation
	·Anaphore, Inc.	·Monsanto Company
	·Avila Therapeutics, Inc.	·Qiagen N.V.
	·Biogen Idec Inc.	·Quest Diagnostics Incorporated
	·BrainCells Inc.	·Sapphire Energy, Inc.
	·Celegene Corporation
	·Fate Therapeutics, Inc.
Client tenant mix by<br> annualized base rent	·Gilead Sciences, Inc.
	·Ikaria, Inc.
	·Intellikine, Inc.
	·Intercell AG
	·MacroGenics, Inc.
	·Presidio Pharmaceuticals, Inc.
	·Proteostasis Therapeutics, Inc.
	·Theravance, Inc.
	·Tolerx, Inc.
	·ZymoGenetics, Inc.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Summaryof Additions and Dispositions of Properties

ThreeMonths Ended June 30, 2010

(Dollarsin thousands)

(Unaudited)

****	Acquisition	Month of	Rentable
Markets	Amount	Acquisition	Square Feet
Additions to Operating Properties:	N/A	N/A	N/A
****	Acquisition	Month of	Developable
---	---	---	---
Markets	Amount	Acquisition	Square Feet
Additions to Land:	N/A	N/A	N/A
****	Disposition	Month of	Rentable
---	---	---	---
Markets	Amount	Disposition	Square Feet
Dispositions:	N/A	N/A	N/A

ALEXANDRIAREAL ESTATE EQUITIES, INC.Real EstateJune 30, 2010

(Dollarsin thousands)

(Unaudited)

	Book Value			Square Footage
Land	$	476,344
Buildings<br> and building improvements	3,324,520
Other<br> improvements	178,152
Rental<br> properties	3,979,016			11,254,804
Less:<br> accumulated depreciation	(562,755		)
Rental<br> properties, net (1)	3,416,261
Land<br> held for future development (2)	309,514			5,578,000
Construction<br> in progress:
Redevelopment	173,953			552,227
Development	395,769			865,000
Preconstruction	500,847			4,351,000
New<br> markets and other projects (3)	324,209			1,091,000
Construction<br> in progress (4)	1,394,778			6,859,227
Investment<br> in unconsolidated real estate entity (5)	35,184			428,000
Real<br> estate, net	5,155,737			24,120,031
Add:<br> accumulated depreciation	562,755
Gross<br> book value of real estate	$	5,718,492		24,120,031
(1)	Includes 1,655,000 rentable square feet for future conversion to life<br> science laboratory space through redevelopment.
---	---
(2)	Our objective is to advance preconstruction efforts to reduce the time<br> to deliver projects to prospective tenants. Since all efforts have been<br> advanced to appropriate stages and no further preconstruction activities are<br> ongoing, interest, property taxes, insurance, and other costs are expensed as<br> incurred. Represents land and land improvements (site work and piles for<br> foundation) related to land parcels that have been advanced through<br> entitlement and certain levels of design. Amounts exclude a parcel supporting<br> ground-up development of approximately 442,000 rentable square feet in New<br> York City that we have an option to ground lease for future development, and<br> land parcels supporting ground-up development of 924,000 rentable square feet<br> in Edinburgh, Scotland that we have a long-term right to purchase.
(3)	Includes site of future building approximating 410,000 rentable square<br> feet related to our project in New York City and four buildings aggregating<br> 547,000 rentable square feet related to two ground-up development projects in<br> China.
(4)	Represents costs<br> related to assets undergoing preconstruction and construction activities<br> including development and redevelopment. Preconstruction activities include<br> entitlements, permitting, design, site work, and other activities prior to<br> commencement of vertical construction of aboveground shell and core. We are<br> required to capitalize interest and other direct project costs during the<br> period an asset is undergoing activities to prepare it for its intended use.<br> Capitalization of interest and other direct project costs cease after a<br> project is substantially complete and ready for its intended use. In<br> addition, should activities necessary to prepare an asset for its intended<br> use cease, interest, taxes, insurance, and certain other costs would be<br> expensed as incurred.
(5)	Book value represents<br> our equity investment in a real estate entity that owns a land parcel supporting ground-up<br> development of approximately 428,000 rentable square feet in the Longwood<br> Medical Area of Boston.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Value-AddedActivities June 30 , 2010

(Unaudited)

The following table summarizes the components of our total value-added square footage as of June 30, 2010:

****	Square Footage
****	Construction in Progress (“CIP”)					Investment in	****	****	****	****	****	****
Markets	Redevelopment	Development	Pre- construction	New Markets and Other Projects (1)	Total CIP	Unconsolidated Real Estate Entity	****	Land	****	Future Redevelopment	****	Total Value- Added Square Footage
California<br> – San Diego	157,854	–	–	–	157,854	–		443,000		178,000		778,854
California<br> – San Francisco Bay/Mission Bay	–	263,000	2,030,000	–	2,293,000	–		290,000		–		2,583,000
California<br> – San Francisco Bay/So. San Francisco	–	292,000	144,000	–	436,000	–		1,051,000		25,000		1,512,000
Eastern<br> Massachusetts	240,660	–	1,669,000	–	1,909,660	428,000		225,000		522,000		3,084,660
Suburban<br> Washington, D.C.	153,713	–	–	–	153,713	–		952,000		390,000		1,495,713
Washington<br> – Seattle	–	–	248,000	–	248,000	–		1,049,000		318,000		1,615,000
International	–	–	–	–	–	–		827,000		–		827,000
Other	–	310,000	260,000	1,091,000	1,661,000	–		741,000		222,000		2,624,000
Total	552,227	865,000	4,351,000	1,091,000	6,859,227	428,000	(2)	5,578,000	(3)	1,655,000	(4)	14,520,227
(1)	A component of<br> our business model includes ground-up development projects in new markets and<br> other unique projects. We have two development parcels in China. One<br> development parcel is located in South China where a two-building project<br> aggregating approximately 275,000 rentable square feet is under construction.<br> The second development parcel is located in North China where a two-building<br> project aggregating approximately 272,000 rentable square feet is under<br> construction. Additionally, other projects include construction related to<br> site work, plaza, park and underground parking at the Alexandria CenterTM for Life<br> Science — New York City, a unique one-of-a-kind highly advanced<br> state-of-the-art urban science park in the city and in the adjoining future<br> building approximating 410,000 rentable square feet.
---	---
(2)	Represents a parcel<br> supporting approximately 428,000<br> rentable square feet in the Longwood Medical Area of Boston held by an<br> unconsolidated entity.
(3)	Our objective is to advance preconstruction efforts to reduce the time<br> to deliver projects to prospective tenants. Since all efforts have been<br> advanced to appropriate stages and no further preconstruction activities are<br> ongoing, interest, property taxes, insurance, and other costs are expensed as<br> incurred. Represents land and land improvements (site work and piles for<br> foundation) related to land parcels that have been advanced through<br> entitlement and certain levels of design. Amounts exclude a parcel supporting<br> ground-up development of approximately 442,000 rentable square feet in New<br> York City that we have an option to ground lease for future development, and<br> land parcels supporting ground-up development of 924,000 rentable square feet<br> in Edinburgh, Scotland that we have a long-term right to purchase.
(4)	Square footage related<br> to future redevelopment is included in our operating asset base (rental<br> properties, net) and represents non-laboratory uses (office, industrial, or<br> warehouse) for future conversion to life science laboratory space.

ALEXANDRIAREAL ESTATE EQUITIES, INC.Value-Added Activities – Construction in ProgressJune 30, 2010

(continued)

(Unaudited)

Construction in progress includes the following value-added activities (dollars in thousands, except cost per square foot):

Construction in Progress	Amount (1)		Square Feet	Cost per Square Foot
Redevelopment<br> projects	$	173,953	552,227	$	315
Development<br> projects	395,769		865,000	458
Preconstruction<br> projects	500,847		4,351,000	115
New<br> markets and other projects	324,209		1,091,000	297
Total<br> construction in progress	$	1,394,778	6,859,227	$	203

A key component of our business model is our value-added redevelopment and development programs. These programs are focused on providing high quality, generic, and reusable life science laboratory space to meet the real estate requirements of a wide range of clients in the life science industry. Upon completion, each value-added project is expected to generate significant revenues and cash flows. Our redevelopment and development projects are generally in locations highly desirable by life science entities which we believe results in higher occupancy levels, longer lease terms, and higher rental income and returns. Redevelopment projects consist of the permanent change in use of office, warehouse, and shell space into generic life science laboratory space, including the conversion of single-tenancy space to multi-tenancy space or multi-tenancy space to single-tenancy space. Our incremental investment in redevelopment projects for the conversion of non-laboratory space to laboratory space generally range from $75 to $150 per square foot depending on the nature of the existing building improvement and laboratory design. Development projects consist of the ground-up development of generic life science laboratory facilities. We also have certain significant value-added projects undergoing important and substantial preconstruction activities to bring these assets to their intended use. These critical activities add significant value for future ground-up development (which are projected to yield substantial revenues) and are required for the ultimate vertical construction of buildings.

(1)

Represents costs related to assets undergoing preconstruction and construction activities including development and redevelopment. Preconstruction activities include entitlements, permitting, design, site work, and other activities prior to commencement of vertical construction of aboveground shell and core. We are required to capitalize interest and other direct project costs during the period an asset is undergoing activities to prepare it for its intended use. Capitalization of interest and other direct project costs cease after a project is substantially complete and ready for its intended use. In addition, should activities necessary to prepare an asset for its intended use cease, interest, taxes, insurance, and certain other costs would be expensed as incurred.

ALEXANDRIAREAL ESTATE EQUITIES, INC.Value-Added Activities – RedevelopmentJune 30, 2010

(continued)

(Unaudited)

The following table summarizes our properties undergoing redevelopment:

****	****	****	****	Redevelopment
****	Total	Placed in	Estimated	****	Percentage (2)			****
Markets/Submarkets	Property RSF (1)	Redevelop- ment	In-Service Dates	RSF	Leased	Negotiating/ Commmited	Mktg	Status
California<br> – San Diego/ Torrey Pines	76,084	2007	2010	20,838	–	62%	38%	Construction
California<br> – San Diego/ Torrey Pines	81,816	2010	2012	81,816	–	–	100%	Design
California<br> – San Diego/ Torrey Pines	55,200	2010	2012	55,200	–	–	100%	Design
Eastern<br> Massachusetts/ Cambridge	366,412	2007	2010	33,001	–	100%	–	Construction
Eastern<br> Massachusetts/ Cambridge	194,776	2009	2012	17,114	–	–	100%	Design
Eastern<br> Massachusetts/ Suburban	92,500	2010	2012	47,500	–	–	100%	Design
Eastern<br> Massachusetts/ Suburban	113,045	2007	2010	113,045	–	–	100%	Construction
Eastern<br> Massachusetts/ Suburban	30,000	2008	2010	30,000	–	–	100%	Design/Construction
Suburban<br> Washington, D.C./ Shady Grove	58,632	2009	2010	58,632	100%	–	–	Design/Construction
Suburban<br> Washington, D.C./ Shady Grove	225,096	2009	2011	77,211	–	100%	–	Design
Suburban<br> Washington, D.C./ Shady Grove	38,203	2010	2012	17,870	–	61%	39%	Design/Construction
****	1,331,764			552,227	11%	24%	65%
(1)	The operating portion<br> of the properties aggregating 779,537 rentable square feet, including vacancy<br> aggregating 38,000 rentable square feet, is included in rental properties,<br> net and occupancy statistics for our operating properties. See Summary of<br> Properties on page 25.
---	---
(2)	The leasing status<br> percentage represents the percentage of redevelopment rentable square feet<br> and excludes both the occupied and vacant rentable square feet related to the<br> operating portion of the building.

As of June 30, 2010, our estimated cost to complete was approximately $70 per rentable square foot for the 552,227 rentable square feet undergoing a permanent change in use to life science laboratory space through redevelopment. Our final costs for these projects will ultimately depend on many factors, including construction and infrastructure requirements for each tenant, final lease negotiations, and the amount of costs funded by each tenant.

ALEXANDRIAREAL ESTATE EQUITIES, INC.Value-Added Activities – DevelopmentJune 30, 2010

(continued)

(Unaudited)

The following table summarizes our properties undergoing ground-up development:

Markets/Submarkets	Building ** Description**	Estimated ** In-Service Dates**	Leased	Negotiating/ ** Committed**	Marketing	Rentable Square Feet	Leasing Status
California<br> – San Francisco Bay/Mission Bay	Multi-tenant Bldg<br><br> with 3% Retail	2010	78%	22%	–	158,000	158,000 Rentable Square<br> Feet Leased or Committed to UCSF and a Large Cap Life Science Company
California<br> – San Francisco Bay/Mission Bay	Multi-tenant Bldg<br><br> with 4% Retail	2011	47%	25%	28%	105,000	49,000 Rentable Square<br> Feet Leased to Bayer AG
California<br> – San Francisco Bay/So. San Francisco	Two Bldgs.,<br><br> Single or Multi-tenant	2010	–	–	100%	162,000	Redesign for<br> Multi-Tenancy at Both Buildings/Marketing
California<br> – San Francisco Bay/So. San Francisco	Single Tenant<br> Bldg.	2010	100%	–	–	130,000	100% Leased to Onyx<br> Pharmaceuticals Inc.
New<br> York – New York City – East Tower	Multi-tenant Bldg<br><br> with 6% Retail	2010/2011	54%	38%	8%	310,000	104,000 Rentable Square<br> Feet Leased to Eli Lilly and Company; Leased 64,000 Rentable Square Feet for Office/Laboratory<br> Space, Restaurant/Food, Conference Center, and Core Services; Current Life<br> Science Laboratory and Office Negotiations for Substantially All Remaining<br> Space
Total Properties Undergoing Ground-Up Development			54%	21%	25%	865,000

As of June 30, 2010, our estimated cost to complete the approximately 865,000 rentable square feet undergoing ground-up development was approximately $93 per rentable square foot. This estimate includes costs related to tenant infrastructure costs, including requirements for executed leases with Eli Lilly and Company, UCSF, Onyx Pharmaceuticals Inc., and Bayer AG. This estimate also includes certain costs related to incremental investment by the Company with incremental returns which are beyond the original estimated investment anticipated at the beginning of each project. Our final costs for these projects will ultimately depend on many factors, including construction and infrastructure requirements for each tenant, final lease negotiations, and the amount of costs funded by each tenant.

ALEXANDRIAREAL ESTATE EQUITIES, INC.Value-Added Activities

Map andRendering of Mission Bay, San Francisco, CaliforniaJune 30, 2010

(continued)

The Alexandria Center<br> for Science and Technology at Mission Bay will consist of 14 high quality<br> facilities totaling approximately 2.8 million rentable square feet. We have three buildings aggregating 523,000<br> leased to Merck & Co., Inc., Pfizer Inc., Bayer AG, and UCSF as well as<br> other top tier life science companies.

ALEXANDRIAREAL ESTATE EQUITIES, INC.Value-Added Activities

Map andRendering of Mission Bay, San Francisco, California (continued)June 30, 2010

(continued)

ALEXANDRIAREAL ESTATE EQUITIES, INC.Value-Added Activities

Renderingof Binney Street Project, East Cambridge MassachusettsJune 30, 2010

(continued)

Buildings in the red outline below represent renderings of five future<br> ground-up life science laboratory developments aggregating 1.7 million<br> rentable square feet.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Summaryof Capital Expenditures

(Unaudited)

****	****		Six Months		****		****		****		****		****
****	****		Ended		Year Ended December 31,
****	Average (1)		June 30, 2010		2009		2008		2007		2006		2005
Capital expenditures (2):
Major<br> capital expenditures	$	699,000	$	168,000	$	529,000	$	405,000	$	1,379,000	$	575,000	$	972,000
Recurring<br> capital expenditures	$	1,013,000	$	575,000	$	1,405,000	$	955,000	$	648,000	$	639,000	$	1,278,000
Square<br> feet in asset base	10,776,314		11,750,887		11,740,993		11,770,769		11,476,217		9,790,326		8,128,690
Per<br> square foot:
Major<br> capital expenditures	$	0.06	$	0.01	$	0.05	$	0.03	$	0.12	$	0.06	$	0.12
Recurring<br> capital expenditures	$	0.09	$	0.05	$	0.12	$	0.08	$	0.06	$	0.07	$	0.16
Tenant improvements and leasing costs:
Re-tenanted space (3)
Tenant<br> improvements and leasing costs	$	1,664,000	$	944,000	$	1,475,000	$	3,481,000	$	1,446,000	$	1,370,000	$	324,000
Re-tenanted<br> square feet	285,727		196,225		211,638		505,773		224,767		248,846		130,887
Per<br> square foot	$	5.82	$	4.81	$	6.97	$	6.88	$	6.43	$	5.51	$	2.48
Renewal space
Tenant<br> improvements and leasing costs	$	2,331,000	$	2,342,000	$	3,263,000	$	2,364,000	$	1,942,000	$	957,000	$	778,000
Renewal<br> square feet	747,957		484,759		976,546		748,512		671,127		455,980		666,058
Per<br> square foot	$	3.12	$	4.83	$	3.34	$	3.16	$	2.89	$	2.10	$	1.17

The table above shows the average per square foot property-related capital expenditures, tenant improvements, and leasing costs (excluding capital expenditures and tenant improvements that are recoverable from tenants, revenue-enhancing, or related to properties that have undergone redevelopment).

(1)

Average includes annualized amounts for the six months ended June 30, 2010.

(2)

Property-related 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 heavy-duty heating, ventilation, and air conditioning systems that are typically identified and considered at the time a property is acquired.

(3)

Excludes space that has undergone redevelopment before re-tenanting.

ALEXANDRIAREAL ESTATE EQUITIES, INC.

Definitionsand Other Information

June 30,2010

(Unaudited)

This section contains additional information for sections throughout this supplemental information package as well as explanations of certain non-GAAP financial measures in sections of this document and the reasons why management believes these measures provide useful information to investors about our financial condition, results of operations, or liquidity. Additional detail can be found in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, as well as other documents filed with or furnished to the SEC from time to time.

Adjusted EBITDA and Adjusted EBITDA Margin

EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP financial measure, and is used as a supplemental measure of operating performance. Adjusted EBITDA is calculated as EBITDA excluding impairments, gains or losses from sales of real estate, gains or losses on early extinguishment of debt, and net stock compensation expenses. We use EBITDA and Adjusted EBITDA as a supplemental measure of our operating performance. We consider Adjusted EBITDA to provide investors relevant and useful information because it permits investors to view income from our operations on an unleveraged basis before the effects of taxes, non-cash depreciation and amortization, impairments, gains or losses from sales of real estate, gains or losses on early extinguishment of debt, and net stock compensation expenses. By excluding interest expense, EBITDA and Adjusted EBITDA allow investors to measure our operating performance independent of our capital structure and indebtedness and, therefore, allow for a more meaningful comparison of our operating performance to that of other companies, both in the real estate industry and in other industries. We believe investors should consider EBITDA and Adjusted EBITDA, in conjunction with net income (the primary measure of our performance) and the other required United States generally accepted accounting principles (“GAAP”) measures of our performance, to improve their understanding of our operating results, and to make more meaningful comparisons of our performance between periods and against other companies. EBITDA and Adjusted EBITDA have limitations as analytical tools and should be used in conjunction with our required GAAP presentations. EBITDA and Adjusted EBITDA do not reflect our historical cash expenditures or future cash requirements for capital expenditures or contractual commitments. While EBITDA and Adjusted EBITDA are relevant and widely used measures of operating performance, it does not represent net income or cash flow from operations as defined by GAAP, and it should not be considered as an alternative to those indicators in evaluating operating performance or liquidity. Further, our computation of EBITDA and Adjusted EBITDA may not be comparable to similar measures reported by other companies.

ALEXANDRIAREAL ESTATE EQUITIES, INC. Definitions and Other Information

June 30,2010

(Unaudited)

Adjusted EBITDA and Adjusted EBITDA Margin (continued)

The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA (dollars in thousands):

****	Six Months Ended					****	Three Months Ended													****
****	6/30/2010		****	6/30/2009		****	6/30/2010		****	3/31/2010		****	12/31/2009		****	9/30/2009		6/30/2009		****
Net<br> income (loss) (1)	$	16,561		$	85,365		$	(12,224	)	$	28,785		$	29,905		$	26,378	$	44,116
Add: Interest expense (2)	36,340			41,595			18,778			17,562			19,452			21,225		21,373
Add: Depreciation and<br> amortization (2)	60,080			61,168			30,342			29,738			29,004			28,336		29,722
EBITDA	112,981			188,128			36,896			76,085			78,361			75,939		95,211
Add:<br> Stock compensation expense	5,389			6,716			2,658			2,731			3,194			4,141		3,694
Subtract: Gain on sales<br> of property	(24		)	(2,234		)	–			(24		)	(393		)	–		–
Add<br> (Subtract): Loss (gain) on early extinguishment of debt	41,496			(11,254		)	41,496			–			–			–		(11,254		)
Adjusted EBITDA	$	159,842		$	181,356		$	81,050		$	78,792		$	81,162		$	80,080	$	87,651
Total<br> revenues	$	233,497		$	252,598		$	117,010		$	116,487		$	115,125		$	115,826	$	121,039
Adjusted<br> EBITDA margin	68%			72%			69%			68%			70%			69%		72%
(1)	During the second<br> quarter of 2010, we recognized a loss on early extinguishment of debt of approximately<br> $41.5 million upon completion of an exchange of our 8% unsecured convertible<br> notes. During the second quarter of 2009, we<br> recognized additional income approximating $7.2 million for a cash receipt<br> related to real estate acquired in November 2007. Additionally during the second quarter of<br> 2009, we recognized a gain on early extinguishment of debt of approximately $11.3<br> million related to the repurchase, in privately negotiated transactions, of<br> approximately $75 million (par value) of our 3.7% unsecured convertible<br> notes. During the first quarter<br> of 2009, we recognized approximately $18.5 million of additional rental<br> income related to the modification of a lease in South San Francisco.
---	---
(2)	Includes interest<br> expense, depreciation, and amortization classified in discontinued operations<br> related to assets “held for sale” (for the periods prior to when such assets<br> were designated as “held for sale”).

Adjusted Funds from Operations

Adjusted Funds from Operations (“AFFO”) is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders by adding to or deducting from FFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders (i) recurring and non-recurring capital expenditures required to maintain and re-tenant our properties, (ii) second generation tenant improvements and leasing costs on re-tenanted and renewal space (excludes redevelopment expenditures), (iii) capitalized income from development projects, (iv) gains or losses on early extinguishment of debt, (v) amortization of loan fees, debt premiums/discounts and acquired above and below market leases, (vi) effects of deferred rent and deferred rent on ground leases, (vii) non-cash compensation expense related to restricted stock awards, and (viii) other non-cash income or charges, including impairment charges. AFFO is not intended to represent cash flow for the period, and is only intended to provide an additional measure of performance by adjusting the effect of certain items noted above included in FFO, as well as recurring capital expenditures and leasing costs. We believe that net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders is the most directly comparable GAAP financial measure to AFFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders. We also believe that AFFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders provides useful performance information to the investment community about our financial position as compared to other REITs since AFFO is a widely reported measure used by other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.

ALEXANDRIAREAL ESTATE EQUITIES, INC. Definitions and Other Information (continued)

June 30,2010

(Unaudited)

Capitalized Interest

A key component of our business model is our value-added redevelopment and development programs. These programs are focused on providing high quality generic life science laboratory space to meet the real estate requirements of and are reusable by various life science industry tenants. Upon completion, each value-added project is expected to generate significant revenues and cash flows. Our redevelopment and development projects are generally in locations highly desirable by life science entities which we believe results in higher occupancy levels, longer lease terms, and higher rental income and returns. Redevelopment projects consist of the permanent change in use of office, warehouse, and shell space into generic life science laboratory space, including the conversion of single-tenancy space to multi-tenancy space or multi-tenancy space to single-tenancy space. Development projects consist of the ground-up development of generic life science laboratory facilities. We also have certain significant value-added projects undergoing important and substantial preconstruction activities to bring these assets to their intended use. These critical activities add significant value for future ground-up development and are required for the ultimate vertical construction of buildings. Ultimately, these land parcels will provide valuable opportunities for new ground-up construction projects. The projects will provide high quality facilities for the life science industry and will generate significant revenue and cash flows for the Company. We are required to capitalize construction, redevelopment, and development costs, including preconstruction costs, interest, property taxes, insurance, and other costs directly related and essential to the project while activities are ongoing to prepare an asset for its intended use. Capitalized interest for the three months ended June 30, 2010 was approximately $18.3 million. The average interest rate for the three months ended June 30, 2010 required for the purpose of calculating capitalization of interest was approximately 5.06%, assuming conversion of our 8% unsecured convertible notes. Capitalized interest assumes conversion of our 8% unsecured convertible notes for all periods.

Dividend Payout Ratio

Dividend payout ratio (common stock) is the ratio of the absolute dollar amount of dividends on our common stock (shares of common stock outstanding on the respective record date multiplied by the related dividend per share) to FFO attributable to Alexandria Real Estate Equities, Inc.’s common stockholders on a diluted basis. The dividend payout ratio for the three months ended June 30, 2010 is based upon FFO attributable to Alexandria Real Estate Equities, Inc’s common stockholders on a diluted basis, excluding the loss on early extinguishment of debt. The dividend payout ratio for the three months ended June 30, 2010 including the loss on early extinguishment of debt was 178%.

Dividend Yield

Dividend yield for the quarter represents the annualized quarter dividend divided by the closing common stock price at the end of the quarter.

Earnings (Loss) per Share

We account for unvested restricted stock awards which contain nonforfeitable rights to dividends as participating securities and include these securities in the computation of earnings (loss) per share using the two-class method. Under the two-class method, we allocate net income after preferred stock dividends and amounts attributable to noncontrolling interests to common stockholders and unvested restricted stock awards based on their respective participation rights to dividends declared (or accumulated) and undistributed earnings. Diluted earnings (loss) per share is computed using the weighted average shares of common stock outstanding determined for the basic earnings (loss) per share computation plus the effect of any dilutive securities, including the dilutive effect of stock options using the treasury stock method. We use income (loss) from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders as the “control number” in determining whether potential common shares are dilutive or antidilutive to earnings (loss) per share. For the three and six months ended June 30, 2010, the effect of stock options using the treasury stock method was antidilutive to earnings (loss) per share and as such, was excluded from the computation of diluted earnings (loss) per share.

ALEXANDRIA REAL ESTATE EQUITIES, INC. Definitionsand Other Information (continued)

June 30, 2010

(Unaudited)

Earnings (Loss) per Share (continued)

We applied the if-converted method of accounting for our 8% unsecured senior convertible notes (“8% Unsecured Convertible Notes”). In applying the if-converted method of accounting, conversion is assumed for purposes of calculating diluted earnings per share if the effect would be dilutive to earnings per share. If the assumed conversion pursuant to the if-converted method is dilutive, diluted earnings per share would be calculated by adding back interest charges applicable to our 8% Unsecured Convertible Notes to the numerator and our 8% Unsecured Convertible Notes would be assumed to have been converted at the beginning of the period presented (or from the date of issuance, if occurring on a date later than the date that the period begins) and the resulting incremental shares associated with the assumed conversion would be included in the denominator. Furthermore, we assume that our 8% Unsecured Convertible Notes are converted for the period prior to any retirement or actual conversion if the effect of such assumed retirement or conversion would be dilutive, and any shares of common stock issued upon actual conversion are included in the denominator for the period after the date of retirement or conversion. For purposes of calculating diluted earnings (loss) per share, our 8% Unsecured Convertible Notes were antidilutive to earnings (loss) per share for the three and six months ended June 30, 2010 and dilutive to earnings per share for the three and six months ended June 30, 2009.

EBITDA

See Adjusted EBITDA.

Funds from Operations

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 NAREIT established the measurement tool of Funds from Operations (“FFO”). Since its introduction, FFO has become a widely used non-GAAP financial measure among real estate investment trusts (“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.

ALEXANDRIA REAL ESTATE EQUITIES, INC. Definitionsand Other Information (continued)

June 30, 2010

(Unaudited)

FFO per Share

FFO per share (diluted) is computed using the weighted average shares of common stock outstanding determined for the basic FFO per share computation plus the effect of any dilutive securities, including the dilutive effect of stock options using the treasury stock method. Additionally, we applied the if-converted method for our 8% Unsecured Convertible Notes for FFO per share separately from the if-converted analysis for earnings (loss) per share. In applying the if-converted method, conversion is assumed for purposes of calculating FFO per share (diluted) if the effect would be dilutive to FFO per share. If the assumed conversion pursuant to the if-converted method is dilutive, FFO per share (diluted) would be calculated by adding back interest charges applicable to our 8% Unsecured Convertible Notes to the numerator and our 8% Unsecured Convertible Notes would be assumed to have been converted at the beginning of the period presented (or from the date of issuance, if occurring on a date later than the date that the period begins) and the resulting incremental shares associated with the assumed conversion would be included in the denominator. Furthermore, we assume that our 8% Unsecured Convertible Notes are converted for the period prior to any retirement or actual conversion if the effect of such assumed retirement or conversion would be dilutive, and any shares of common stock issued upon actual retirement or conversion are included in the denominator for the period after the date of retirement or conversion. For purposes of calculating FFO per share (diluted), the if-converted method was dilutive to FFO per share (diluted) for all periods presented in which the notes were outstanding except for the three and six months ended June 30, 2010.

Gross Assets (Excluding Cash and Restricted Cash)

Gross assets (excluding cash and restricted cash) is equal to total assets plus accumulated depreciation, less cash, cash equivalents, and restricted cash.

Investment in Unconsolidated Real Estate Entity

In June 2009, the Financial Accounting Standards Board (the “FASB”) issued new accounting literature with respect to variable interest entities (“VIEs”). The new guidance impacts the consolidation guidance applicable to VIEs and among other things requires a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE, continuous assessments of whether a company is the primary beneficiary of a VIE, and enhanced disclosures about a company’s involvement with a VIE. We prospectively adopted the new guidance on January 1, 2010.

In 2007, we formed an entity with a development partner for the purpose of owning, developing, leasing, managing, and operating a development parcel supporting a future building aggregating 428,000 rentable square feet. The development parcel serves as collateral for a non-recourse secured loan due in 2012 with an outstanding balance of $38.4 million as of June 30, 2010. In 2009, the entity entered into an interest rate cap agreement related to the secured note with a notional amount approximating $38.4 million effective May 15, 2009 and terminating on January 3, 2012. The agreement sets a ceiling on one month LIBOR at 2.50% related to the secured note. Prior to the adoption of the new VIE guidance, we determined that the entity qualified as a VIE for which we were also the entity’s primary beneficiary since we would absorb the majority of the entity’s expected losses and receive a majority of the entity’s expected residual returns. As a result, we had consolidated the entity since its inception in 2007. The new VIE literature cites two criteria to determine the primary beneficiary of a VIE, both of which must be met to be deemed the primary beneficiary of a VIE. Upon adoption of the new VIE guidance on January 1, 2010, we determined that we did not meet both criteria since we do not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. The decisions that most significantly impact the VIE’s economic performance require both our consent and that of our partner, including all major operating, investing, and financing decisions as well as decisions over major expenditures. Because we share power over the decisions that most significantly impact the VIE’s economic performance, we determined that we are not the primary beneficiary of the VIE. As of January 1, 2010, we prospectively deconsolidated the VIE at its carrying amounts and recorded a corresponding entry to investment in unconsolidated real estate entity pursuant to the equity method. As of June 30, 2010, our investment in the unconsolidated entity was approximately $35.2 million.

ALEXANDRIAREAL ESTATE EQUITIES, INC. Definitionsand Other Information (continued)

June 30, 2010

(Unaudited)

Net Debt

Net debt is equal to the sum of secured notes payable, unsecured line of credit, unsecured term loan, and unsecured convertible notes, less cash, cash equivalents, and restricted cash.

Same Property Comparisons

The summary of same property comparisons represents operating data for all properties that were fully operating for the entire periods presented for the quarter periods (the “Second Quarter Same Properties”) and for the six month periods (the “Six Months Same Properties”). Same property occupancy for the three months ended June 30, 2010 and 2009 was 94.7% and 95.0%, respectively. Same property occupancy for the six months ended June 30, 2010 and 2009 was 94.4% and 94.7%, respectively. Properties undergoing redevelopment are excluded from same property results.

Revenue less operating expenses computed in accordance with GAAP is total revenue associated with the Second Quarter Same Properties and Six 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 Second Quarter Same Properties and Six Months Same Properties (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 three months ended June 30, 2010 and 2009 for the Second Quarter Same Properties were $1,706,000 and $2,876,000, respectively. Straight-line rent adjustments for the six months ended June 30, 2010 and 2009 for the Six Months Same Properties were $3,819,000 and $4,718,000, 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.

Same property results for the six months ended June 30, 2009 excludes approximately $18.5 million of additional rental income in the first quarter of 2009 in connection with a modification of a lease for one property in the South San Francisco market. The lease with the prior tenant was terminated in order to deliver this building to Roche Holding Ltd under a ten-year lease and this $18.5 million consideration was part of our overall returns for this property. Our same property results for the six months ended June 30, 2010 assuming additional rental income from the prior lease was amortized over the lease term with Roche Holding Ltd would have been the same as reported on a GAAP and cash basis.

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 June 30, 2010, approximately 89% of our leases (on a rentable square footage basis) were triple net leases, requiring tenants to pay substantially all real estate taxes and insurance, common area and other operating expenses, including increases thereto. In addition, approximately 8% of our leases (on a rentable square footage basis) required the tenants to pay a majority of operating expenses.

ALEXANDRIAREAL ESTATE EQUITIES, INC. Definitions and Other Information (continued)

June 30, 2010

(Unaudited)

Tangible Non-Real Estate Assets

Tangible non-real estate assets include the following as of each period presented (in thousands):

****	6/30/2010		3/31/2010		12/31/2009		9/30/2009		6/30/2009
Cash<br> and cash equivalents	$	73,254	$	70,980	$	70,628	$	68,280	$	70,313
Restricted cash	37,660		35,832		47,291		60,002		51,683
Tenant receivables	3,059		2,710		3,902		3,789		4,665
Investments	77,088		76,918		72,882		71,080		66,068
Other tangible non-real<br> estate assets	27,312		35,808		32,737		35,925		31,287
Total tangible non-real<br> estate assets	$	218,373	$	222,248	$	227,440	$	239,076	$	224,016

Total Market Capitalization

Total market capitalization is equal to the sum of outstanding shares of series C preferred stock and common stock multiplied by the related closing price at the end of each period presented, the liquidation value of the series D cumulative convertible preferred stock, and total debt (secured notes payable, unsecured line of credit, unsecured term loan, and unsecured convertible notes).

Total Revenues and Total Revenues, as Adjusted

Total revenues are comprised of rental revenues, tenant recoveries, and other income. During the second quarter of 2009, we recognized additional income approximating $7.2 million for a cash receipt related to real estate acquired in November 2007 and was classified in other income for the period. During the first quarter of 2009, we recognized approximately $18.5 million of additional rental income related to the modification of a lease in South San Francisco and was classified in rental revenues for the period. Total revenues excluding these items are shown in the following table (in thousands):

****	Six Months Ended				****	Three Months Ended										****
****	6/30/2010		6/30/2009		****	6/30/2010		3/31/2010		12/31/2009		9/30/2009		6/30/2009		****
Total<br> revenues, as reported	$	233,497	$	252,598		$	117,010	$	116,487	$	115,125	$	115,826	$	121,039
Cash receipt related to<br> real estate acquired in November 2007	–		(7,242		)	–		–		–		–		(7,242		)
Additional rental<br> income related to modification of lease	–		(18,509		)	–		–		–		–		–
Total revenues, as<br> adjusted	$	233,497	$	226,847		$	117,010	$	116,487	$	115,125	$	115,826	$	113,797

ALEXANDRIAREAL ESTATE EQUITIES, INC. Definitions and Other Information (continued)

June 30, 2010

(Unaudited)

Weighted Average Interest Rate for Capitalization

The weighted average interest rate for calculating capitalization of interest required pursuant to GAAP represents a weighted average rate based on the rates applicable to borrowings outstanding during the period and includes the impact of our interest rate hedge agreements, amortization of debt discounts/premiums, and amortization of loan fees. A separate calculation is performed each month to determine our weighted average interest rate for capitalization for the month. The rate will vary each month due to changes in variable interest rates, the outstanding debt balances, the proportion of variable rate debt to fixed rate debt, the amount and terms of effective interest rate hedge agreements, and the amount of loan fee amortization. Unhedged LIBOR-based debt outstanding under our credit facility had a weighted average interest rate of 1.5% and hedged variable rate debt and fixed rate debt had a weighted average interest rate of 6.0% as of June 30, 2010. The weighted average interest rate for capitalization shown on page 19 represents the average rates for each reporting period. This average rate for each reporting period is different than the interest rate in effect as of the balance sheet date for each quarter end (i.e. one point in time as opposed to an average over three months during the quarter) shown on page 23. Additionally, the weighted average interest rate for capitalization shown on page 19 includes amortization of loan fees and assumes the conversion of our 8% unsecured convertible notes for all periods.