ALEXANDRIA REAL ESTATE EQUITIES, INC. (Form: 8-K, Received: 12/01/2020 11:33:23)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 1, 2020

ALEXANDRIA REAL ESTATE EQUITIES, INC.

(Exact name of registrant as specified in its charter)

Maryland

1-12993

95-4502084

(State or other jurisdiction of
incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

26 North Euclid Avenue, 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:

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

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

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

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

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value per share	ARE	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01. Regulation FD.

Alexandria Real Estate Equities, Inc. (the “Company”) held an “Investor Day” conference in New York City on December 1, 2020. Copies of certain information disclosed by the Company’s officers at the conference are attached hereto as Exhibits 99.1, 99.2, and 99.3, respectively, and are incorporated herein by reference.

The information contained in this Current Report on Form 8-K, including the information contained in Exhibits 99.1, 99.2, and 99.3 referenced herein, shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 202 1 Guidance issued by Alexandria Real Estate Equities, Inc. on December 1 , 2020.

99.2 2020 real estate dispositions and partial interest sales issued by Alexandria Real Estate Equities, Inc. on December 1, 2020.

99.3 Class A development and redevelopment properties: summary of pipeline issued by Alexandria Real Estate Equities, Inc. on December 1, 2020.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Forward-looking Statements

This current report on Form 8-K contains 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. These statements may be identified by the use of words such as “forecast,” “guidance,” “projects,” “estimates,” “anticipates,” “believes,” “expects,” “intends,” “may,” “plans,” “seeks,” “should,” or “will,” or the negative of these words or similar words. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in each such statement. A number of important factors could cause actual results to differ materially from those included within or contemplated by the forward-looking statements, including, but not limited to, the factors described in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q. The Company does not undertake any responsibility to update any of these factors or to announce publicly any revisions to any of the forward-looking statements contained in this or any other document, whether as a result of new information, future events, or otherwise.

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 REAL ESTATE EQUITIES, INC.

Date: December 1, 2020

By:

/s/ Dean A. Shigenaga

Dean A. Shigenaga

Co-President and Chief Financial Officer

EXHIBIT 99.1

ALEXANDRIA REAL ESTATE EQUITIES, INC.

2021 Guidance

The following provides our 2021 guidance based on our current view of existing market conditions and other assumptions for the year ending December 31, 2021. There can be no assurance that actual amounts will not be materially higher or lower than these expectations.


Projected 2021 earnings per share and funds from operations per share attributable to Alexandria's common stockholders - diluted
Earnings per share						$2.14 to $2.34
Depreciation and amortization of real estate assets						5.50
Allocation to unvested restricted stock awards						(0.04)
Funds from operations per share						$7.60 to $7.80
Midpoint						$7.70


Key credit metrics						2021 Guidance
Net debt and preferred stock to Adjusted EBITDA - 4Q21 annualized						Less than or equal to 5.2x
Fixed-charge coverage ratio - 4Q21 annualized						Greater than or equal to 4.5x


Key assumptions	Low			High
Occupancy percentage in North America as of December 31, 2021	96.2		%	96.8		%
Lease renewals and re-leasing of space:
Rental rate increases	29.0		%	32.0		%
Rental rate increases (cash basis)	16.0		%	19.0		%
Same property performance:
Net operating income increase	1.0		%	3.0		%
Net operating income increase (cash basis)	4.0		%	6.0		%
Straight-line rent revenue	$	114		$	124
General and administrative expense	$	146		$	151
Capitalization interest	$	146		$	156
Interest expense	$	149		$	159


Key sources and uses of capital (in millions)	Range				Midpoint
Sources of capital:
Net cash provided by operating activities after dividends	$	210	$	250	$	230
Incremental debt	365		625		495
2020 debt capital proceeds held in cash	150		250		200
Real estate dispositions, partial interest sales, and common equity	1,675		2,075		1,875
Total sources of capital	$	2,400	$	3,200	$	2,800
Uses of capital:
Construction	$	1,500	$	1,800	$	1,650
Acquisitions	900		1,400		1,150
Total uses of capital	$	2,400	$	3,200	$	2,800
Incremental debt (included above):
Issuance of unsecured senior notes payable	$	600	$	800	$	700
Unsecured senior line of credit, commercial paper program, and other	(235)		(175)		(205)
Incremental debt	$	365	$	625	$	495

ALEXANDRIA REAL ESTATE EQUITIES, INC.

2021 Guidance - Definitions

Adjusted EBITDA

We use Adjusted EBITDA as a supplemental performance measure of our operations, for financial and operational decision-making, and as a supplemental means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation, and amortization (“EBITDA”), excluding stock compensation expense, gains or losses on early extinguishment of debt, gains or losses on sales of real estate, impairments of real estate, and significant termination fees. Adjusted EBITDA also excludes unrealized gains or losses and significant realized gains and impairments that result from our non-real estate investments. These non-real estate investment amounts are classified in our consolidated statements of operations outside of revenues.

In addition, we believe that excluding charges related to stock compensation and unrealized gains or losses facilitates for investors a comparison of our business activities across periods without the volatility resulting from market forces outside of our control. Adjusted EBITDA has limitations as a measure of our performance. Adjusted EBITDA does not reflect our historical expenditures or future requirements for capital expenditures or contractual commitments. While Adjusted EBITDA is a relevant measure of performance, it does not represent net income (loss) or cash flows from operations calculated and presented in accordance with GAAP, and it should not be considered as an alternative to those indicators in evaluating performance or liquidity.

Fixed-charge coverage ratio

Fixed-charge coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to fixed charges. We believe this ratio is useful to investors as a supplemental measure of our ability to satisfy fixed financing obligations and preferred stock dividends. Cash interest is equal to interest expense calculated in accordance with GAAP plus capitalized interest, less amortization of loan fees and debt premiums (discounts).

Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s common stockholders

GAAP-basis accounting for real estate assets utilizes historical cost accounting and assumes that 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 Nareit Board of Governors established funds from operations as an improved measurement tool. Since its introduction, funds from operations has become a widely used non-GAAP financial measure among equity REITs. We believe that funds from operations is helpful to investors as an additional measure of the performance of an equity REIT. Moreover, we believe that funds from operations, as adjusted, allows investors to compare our performance to the performance of other real estate companies on a consistent basis, without having to account for differences recognized because of real estate acquisition and disposition decisions, financing decisions, capital structure, capital market transactions, variances resulting from the volatility of market conditions outside of our control, or other corporate activities that may not be representative of the operating performance of our properties.

On January 1, 2019, we adopted standards established by the Nareit Board of Governors in its November 2018 White Paper (the “Nareit White Paper”) on a prospective basis. The Nareit White Paper defines funds from operations as net income (computed in accordance with GAAP), excluding gains or losses on sales of real estate, and impairments of real estate, plus depreciation and amortization of operating real estate assets, and after adjustments for our share of consolidated and unconsolidated partnerships and real estate joint ventures. Impairments represent the write-down of assets when fair value over the recoverability period is less than the carrying value due to changes in general market conditions and do not necessarily reflect the operating performance of the properties during the corresponding period.

We compute funds from operations, as adjusted, as funds from operations calculated in accordance with the Nareit White Paper, excluding significant gains, losses, and impairments realized on non-real estate investments, unrealized gains or losses on non-real estate investments, gains or losses on early extinguishment of debt, gains or losses on early termination of interest rate hedge agreements, significant termination fees, acceleration of stock compensation expense due to the resignation of an executive officer, preferred stock redemption charges, deal costs, the income tax effect related to such items, and the amount of such items that is allocable to our unvested restricted stock awards. Neither funds from operations nor funds from operations, as adjusted, should be considered as alternatives to net income (determined in accordance with GAAP) as indications of financial performance, or to cash flows from operating activities (determined in accordance with GAAP) as measures of liquidity, nor are they indicative of the availability of funds for our cash needs, including our ability to make distributions.

Net cash provided by operating activities after dividends

Net cash provided by operating activities after dividends includes the deduction for distributions to noncontrolling interests. For purposes of this calculation, changes in operating assets and liabilities are excluded as they represent timing differences.

Net debt to Adjusted EBITDA and net debt and preferred stock to Adjusted EBITDA

Net debt to Adjusted EBITDA and net debt and preferred stock to Adjusted EBITDA are non-GAAP financial measures that we believe are useful to investors as supplemental measures in evaluating our balance sheet leverage. Net debt is equal to the sum of total consolidated debt less cash, cash equivalents, and restricted cash. Net debt and preferred stock is equal to the sum of net debt, as discussed above, plus preferred stock outstanding as of the end of the period. Refer to the definition of Adjusted EBITDA and Adjusted EBITDA margin for further information on the calculation of Adjusted EBITDA.

Net operating income

Net operating income is a non-GAAP financial measure calculated as net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, excluding equity in the earnings of our unconsolidated real estate joint ventures, general and administrative expenses, interest expense, depreciation and amortization, impairments of real estate, gains or losses on early extinguishment of debt, gains or losses on sales of real estate, and investment income or loss. We believe net operating income provides useful information to investors regarding our financial condition and results of operations because it primarily reflects those income and expense items that are incurred at the property level. Therefore, we believe net operating income is a useful measure for investors to evaluate the operating performance of our consolidated real estate assets. Net operating income on a cash basis is net operating income adjusted to exclude the effect of straight-line rent and amortization of acquired above- and below-market lease revenue adjustments required by GAAP. We believe that net operating income on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent revenue and the amortization of acquired above- and below-market leases.

Same property

Same property refers to all consolidated properties that were fully operating for the entirety of the comparative periods presented. Properties that underwent development or redevelopment at any time during the comparative periods, unconsolidated real estate joint ventures, properties classified as held for sale, and corporate entities (legal entities performing general and administrative functions) are excluded from same property results. Additionally, termination fees, if any, are excluded from the results of same properties.

EXHIBIT 99.2

ALEXANDRIA REAL ESTATE EQUITIES, INC.

2020 Real Estate Dispositions and Partial Interest Sales

The following presents real estate dispositions and partial interest sales completed during 2020 (dollars in thousands, except sales price per RSF).


Property	Submarket/Market	Date of Sale	Interest Sold	RSF	Sales Price			Sales Price per RSF		Gain
Completed in YTD 3Q20:
945 Market Street	SoMa/San Francisco	9/4/20	99.5%	255,765	$	198,000		$	774	$	—
9808 and 9868 Scranton Road	Sorrento Mesa/San Diego	4/13/20	50%	219,628	51,104			$	465	(1)
Other	Route 495/Greater Boston	8/7/20	100%	60,759	3,350			$	55	1,603
				536,152	252,454					1,603

Completed in 4Q20:
510 Townsend Street and 505 Brannan Street	SoMa/San Francisco	11/20/20	100%	443,479	560,162		(2)	$	1,263	151,871
1201 and 1208 Eastlake Avenue East and 199 East Blaine Street	Lake Union/Seattle	11/24/20	70%	321,218	314,466		(3)	$	1,399	(4)
Other	Sorrento Mesa/San Diego	11/19/20	100%	N/A	5,000			N/A		632
					$	1,132,082				$	154,106

(1)We completed the sale of a partial interest in properties at 9808 and 9868 Scranton Road in our Sorrento Mesa submarket to the existing SD Tech by Alexandria consolidated real estate joint venture, in which we have a 50% ownership interest. We retained control over this real estate joint venture, and therefore, we continue to consolidate these properties. For consolidated joint ventures, we account for the difference between the consideration received and the book value of the interest sold as an equity transaction, with no gain or loss recognized in earnings.

(2)We completed the dispositions of these two tech office properties at capitalization rates of 5.3% and 5.0% (cash basis) based on annualized net operating income and net operating income (cash basis) for the three months ended September 30, 2020.

(3)This transaction represents capitalization rates of 4.2%, based upon the projected annualized net operating income and net operating income (cash basis) for the three months ended December 31, 2020.

(4)This sale of a partial interest represents consideration in excess of book value aggregating $210.5 million. We retained control over this real estate joint venture, and therefore, we continue to consolidate these properties. For consolidated joint ventures, we account for the consideration in excess of net book value of the interest sold as an equity transaction, with no gain or loss recognized in earnings.

EXHIBIT 99.3

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Class A Development and Redevelopment Properties: Summary of Pipeline

The following presents changes to our summary of pipeline for Class A development and redevelopment properties from September 30, 2020 to December 1, 2020.


	Square Footage
Property/Market/Submarket	Under Construction	Near Term	Intermediate Term	Future	Total
As of September 30, 2020	2,842,204	4,209,933	4,071,592	8,348,480	19,472,209
Acquisitions:
380 and 420 E Street/Greater Boston/Seaport Innovation District	—	—	—	1,000,000	1,000,000
6450 Sequence Drive and Excess Land/San Diego/Sorrento Mesa	—	—	—	911,915	911,915
Seattle	213,976	—	—	—	213,976
700 Quince Orchard Road/Maryland/Gaithersburg	169,420	—	—	—	169,420
Other value-creation projects	—	—	76,951	—	76,951

Additions to pipeline and/or acceleration of project timing:
The Arsenal on the Charles/Greater Boston/Cambridge/Inner Suburbs	—	200,000	—	(200,000)	—
Reservoir Woods/Greater Boston/Route 128	—	202,428	(202,428)	—	—
5505 Morehouse Drive/San Diego/Sorrento Mesa(1)	—	71,021	—	—	71,021
1150 Eastlake Avenue East/Seattle/Lake Union	—	260,000	(260,000)	—	—
Mercer Mega Block/Seattle/Lake Union	—	800,000	—	(800,000)	—
9800 Medical Center Drive, Building E/Maryland/Rockville	—	90,000	—	(64,000)	26,000

Dispositions:
505 Brannan Street/San Francisco/SoMa	—	—	(165,000)	—	(165,000)
Other	—	—	—	(163,000)	(163,000)
					—
As of December 1, 2020	3,225,600	5,833,382	3,521,115	9,033,395	21,613,492

(1) Represents square footage of a building acquired in 1Q20 that is currently in operation.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Class A Development and Redevelopment Properties: Summary of Pipeline

The following presents details of current development and redevelopment projects of our Class A properties.


		Square Footage					Percentage
Property/Market/Submarket	Dev/Redev	In Service		CIP	Total		Leased			Leased/Negotiating			Initial Occupancy(1)
Under construction as of December 1, 2020
The Arsenal on the Charles/Greater Boston/Cambridge/Inner Suburbs	Redev	554,844	(2)	281,444	836,288		82	%		93	%				2021
201 Haskins Way/San Francisco/South San Francisco	Dev	—		315,000	315,000		46			95				2Q21
Alexandria District for Science and Technology/San Francisco/Greater Stanford	Dev	—		526,178	526,178		59			90				1Q21
3160 Porter Drive/San Francisco/Greater Stanford	Redev	—		92,147	92,147		20			20					1H21
Alexandria Center® – Long Island City/New York City/New York City	Redev	36,661		140,098	176,759		21			28				1Q21
9877 Waples Street/San Diego/Sorrento Mesa	Redev	—		63,774	63,774		100			100					1Q21
1165 Eastlake Avenue East/Seattle/Lake Union	Dev	—		100,086	100,086		100			100				2Q21
Seattle	Redev	246,647		213,976	460,623		51			51					2022
9804 Medical Center Drive/Maryland/Rockville	Dev	—		176,832	176,832		100			100					1Q21
9950 Medical Center Drive/Maryland/Rockville	Dev	—		84,264	84,264		100			100					2021
700 Quince Orchard Road/Maryland/Gaithersburg	Redev	—		169,420	169,420		100			100					2021
Alexandria Center® for Life Science – Durham/Research Triangle/ Research Triangle(3)	Redev	—		652,381	652,381		50			75				1H21/2022
Alexandria Center® for AgTech/Research Triangle/Research Triangle(4)	Redev/Dev	180,400		160,000	340,400		55			55					2021
Alexandria Center® for Advanced Technologies/Research Triangle/ Research Triangle	Dev	—		250,000	250,000	(5)	40		(5)	44		(5)		2H21/2022
		1,018,552		3,225,600	4,244,152		62			76

Pre-leased near-term projects
3115 Merryfield Row/San Diego/Torrey Pines	Dev	—		146,456	146,456		80			87
Alexandria Point/San Diego/University Town Center(6)	Dev	—		171,102	171,102	(6)	100			100
SD Tech by Alexandria/San Diego/Sorrento Mesa(7)	Dev	—		176,428	176,428	(7)	59			59
		—		493,986	493,986		79			82
Total		1,018,552		3,719,586	4,738,138		64	%		77	%

(1)Initial occupancy dates are subject to leasing and/or market conditions. Construction disruptions resulting from COVID-19 and observance of social distancing measures may further impact construction and occupancy forecasts and will continue to be monitored closely. Multi-tenant projects may have occupancy by tenants over a period of time. Stabilized occupancy may vary depending on single tenancy versus multi-tenancy.

(2)We expect to redevelop 79,101 RSF of office spaces (acquired leases included in operating RSF) into office/laboratory space upon expiration of the existing leases in the next few quarters.

(3)The recently acquired Alexandria Center® for Life Science – Durham redevelopment project includes three properties at 40 Moore Drive, 2400 Ellis Road, and 14 TW Alexander Drive. 2400 Ellis Road is 100% leased, with initial occupancy anticipated in 1H21 and stabilized occupancy expected for the remaining buildings in 2022.

(4)The new strategic collaborative agtech campus consists of Phase I at 5 Laboratory Drive, including campus amenities, and Phase II at 9 Laboratory Drive.

(5)Represents 150,000 RSF with 7% negotiating at 8 Davis Drive and 100,000 RSF with 100% leased at 10 Davis Drive. Vertical construction at 10 Davis Drive is expected to commence in 2Q21.

(6)Represents our 4150 Campus Point Court property and is expected to commence vertical construction in 2Q21.

(7)Represents our 10055 Barnes Canyon Road property and is expected to commence vertical construction in 2Q21.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

Class A Development and Redevelopment Properties: Summary of Pipeline

The following presents Class A development and redevelopment properties.


Property/Submarket	Our Ownership Interest		Book Value (in thousands)		Square Footage
					Development and Redevelopment
					Under Construction	Near Term		Intermediate Term		Future		Total

Greater Boston
The Arsenal on the Charles/Cambridge/Inner Suburbs	100	%	$	174,275	281,444	200,000	(1)	—		—		481,444
325 Binney Street/Cambridge	100	%	122,218		—	450,000	(1)	—		—		450,000
15 Necco Street/Seaport Innovation District	98.0	%	180,915		—	350,000	(1)	—		—		350,000
57 Coolidge Avenue/Cambridge/Inner Suburbs	75.0	%	45,469		—	275,000	(1)	—		—		275,000
Reservoir Woods/Route 128	100	%	41,341		—	202,428	(1)(2)	—		752,845	(2)	955,273
10 Necco Street/Seaport Innovation District	100	%	90,156		—	—		175,000		—		175,000
215 Presidential Way/Route 128	100	%	6,724		—	—		112,000		—		112,000
Alexandria Technology Square®/Cambridge	100	%	7,881		—	—		—		100,000		100,000
380 and 420 E Street/Seaport Innovation District	100	%	(3)		—	—		—		1,000,000		1,000,000
99 A Street/Seaport Innovation District	95.8	%	44,040		—	—		—		235,000		235,000
One Upland Road and 100 Tech Drive/Route 128	100	%	8,039		—	—		—		750,000		750,000
231 Second Avenue/Route 128	100	%	1,093		—	—		—		32,000		32,000
Other value-creation projects	100	%	9,763		—	—		—		16,955		16,955
			731,914		281,444	1,477,428		287,000		2,886,800		4,932,672
San Francisco
201 Haskins Way/South San Francisco	100	%	236,338		315,000	—		—		—		315,000
Alexandria District for Science and Technology/Greater Stanford	100	%	667,179		526,178	—		700,000	(2)	587,000	(2)	1,813,178
3160 Porter Drive/Greater Stanford	100	%	49,239		92,147	—		—		—		92,147
88 Bluxome Street/SoMa	100	%	269,775		—	1,070,925		—		—		1,070,925
Alexandria Technology Center® – Gateway/South San Francisco	45.0	%	44,537		—	517,010	(1)(2)	—		291,000		808,010
3825 and 3875 Fabian Way/Greater Stanford	100	%	—		—	—		250,000	(2)	228,000	(2)	478,000
East Grand Avenue/South San Francisco	100	%	6,112		—	—		—		90,000		90,000
Other value-creation projects	100	%	54,603		—	—		267,951	(2)	25,000		292,951
			$	1,327,783	933,325	1,587,935		1,217,951		1,221,000		4,960,211

(1)We expect to commence vertical construction or redevelopment of all or a portion of this project during 2021. (2)Represents total square footage upon completion of development or redevelopment of a new Class A property. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities, with the intent to demolish or redevelop the existing property upon expiration of the existing in-place leases and commencement of future construction. (3)We acquired this project during 4Q20.


Property/Submarket	Our Ownership Interest			Book Value (in thousands)		Square Footage
						Development and Redevelopment
						Under Construction	Near Term		Intermediate Term		Future		Total

New York City
Alexandria Center® – Long Island City/New York City	100	%		$	124,088	140,098	—		—		—		140,098
47-50 30th Street/New York City	100	%		28,746		—	135,938		—		—		135,938
Alexandria Center® for Life Science – New York City/New York City	100	%		52,503		—	—		550,000	(1)	—		550,000
219 East 42nd Street/New York City	100	%		—		—	—		—		579,947	(2)	579,947
				205,337		140,098	135,938		550,000		579,947		1,405,983
San Diego
9877 Waples Street/Sorrento Mesa	100	%		21,985		63,774	—		—		—		63,774
3115 Merryfield Row/Torrey Pines	100	%		56,428		—	146,456	(3)	—		—		146,456
Alexandria Point/University Town Center	55.0	%	(4)	101,350		—	351,102	(3)	249,164	(5)	320,281	(5)	920,547
SD Tech by Alexandria/Sorrento Mesa	50.0	%	(6)	88,128		—	366,502	(3)	160,000		333,845		860,347
5505 Morehouse Drive/Sorrento Mesa(7)	100	%		—		—	71,021	(3)(5)	—		—		71,021
Townsgate by Alexandria/Del Mar Heights	100	%		22,057		—	185,000		—		—		185,000
10931 and 10933 Torrey Pines Road/Torrey Pines	100	%		—		—	—		242,000	(5)	—		242,000
University District/University Town Center	100	%		52,820		—	—		600,000	(5)(8)	—		600,000
11255 and 11355 North Torrey Pines Road/Torrey Pines	100	%		105,236		—	—		—		240,000	(5)	240,000
5200 Illumina Way/University Town Center	51.0	%		12,302		—	—		—		451,832		451,832
6450 Sequence Drive and Excess Land/Sorrento Mesa	100	%		(9)		—	—		—		911,915	(5)	911,915
4045 and 4075 Sorrento Valley Boulevard/Sorrento Valley	100	%		7,669		—	—		—		149,000	(5)	149,000
Other value-creation projects	100	%		—		—	—		—		50,000		50,000
				467,975		63,774	1,120,081		1,251,164		2,456,873		4,891,892
Seattle
1165 Eastlake Avenue East/Lake Union	100	%		91,267		100,086	—		—		—		100,086
1150 Eastlake Avenue East/Lake Union	100	%		44,932		—	260,000	(3)	—		—		260,000
701 Dexter Avenue North/Lake Union	100	%		49,737		—	217,000		—		—		217,000
601 Dexter Avenue North/Lake Union	100	%		34,931		—	—		—		188,400	(5)	188,400
1010 4th Avenue South/SoDo	100	%		48,812		—	—		—		544,825		544,825
830 4th Avenue South/SoDo	100	%		—		—	—		—		52,488	(5)	52,488
Other value-creation projects	100	%		5,673		213,976	—		—		35,000		248,976
				$	275,352	314,062	477,000		—		820,713		1,611,775

(1)We are currently negotiating a long-term ground lease with the City of New York for the future site of a new building approximating 550,000 RSF. (2)Includes 349,947 RSF in operation with an opportunity to either convert the existing office space into office/laboratory space through future redevelopment or to expand the building by an additional 230,000 RSF through ground-up development. The building is currently occupied by Pfizer Inc. with a remaining lease term of approximately five years. (3)We expect to commence vertical construction or redevelopment of all or a portion of this project during 2021. (4)Excludes 9880 Campus Point Drive in our University Town Center submarket. (5)Represents total square footage upon completion of development or redevelopment of a new Class A property. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities, with the intent to demolish or redevelop the existing property upon expiration of the existing in-place leases and commencement of future construction. (6)Excludes 5505 Morehouse Drive and 10121 and 10151 Barnes Canyon Road in our Sorrento Mesa submarket. (7)Represents square footage of a building acquired in 1Q20 that is currently in operation. (8)Includes our recently acquired project at 4555 Executive Drive and 9363, 9373, and 9393 Towne Centre Drive in our University Town Center submarket, which are currently under evaluation for development, subject to future market conditions. (9)We acquired this project during 4Q20.


Property/Submarket	Our Ownership Interest		Book Value (in thousands)		Square Footage
					Development and Redevelopment
					Under Construction	Near Term		Intermediate Term	Future	Total

Maryland
9804 and 9800 Medical Center Drive/Rockville	100	%	$	72,306	176,832	90,000	(1)	—	—	266,832
9950 Medical Center Drive/Rockville	100	%	40,105		84,264	—		—	—	84,264
700 Quince Orchard Road/Gaithersburg	100	%	(2)		169,420	—		—	—	169,420
14200 Shady Grove Road/Rockville	100	%	27,969		—	145,000		145,000	145,000	435,000
			140,380		430,516	235,000		145,000	145,000	955,516
Research Triangle
Alexandria Center® for Life Science – Durham/Research Triangle	100	%	117,197		652,381	—		—	—	652,381
Alexandria Center® for AgTech, Phase II/Research Triangle	100	%	45,880		160,000	—		—	—	160,000
Alexandria Center® for Advanced Technologies/Research Triangle	100	%	38,517		250,000	—		70,000	700,000	1,020,000
Other value-creation projects	100	%	4,195		—	—		—	76,262	76,262
			205,789		1,062,381	—		70,000	776,262	1,908,643
Other value-creation projects	100	%	3,842		—	—		—	146,800	146,800
Total			3,358,372		3,225,600	5,033,382		3,521,115	9,033,395	20,813,492	(3)

Key pending acquisition
Mercer Mega Block/Lake Union	100	%	TBD		—	800,000		—	—	800,000
			$	3,358,372	3,225,600	5,833,382		3,521,115	9,033,395	21,613,492

(1)We expect to commence vertical construction or redevelopment of all or a portion of this project during 2021.

(2)Recently acquired project during 4Q20.

(3)Total square footage includes 3,055,594 RSF of buildings currently in operation that will be redeveloped or replaced with new development RSF upon commencement of future construction.