PASADENA, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Highlights Third
Quarter 2009: -- Third Quarter 2009 Funds from Operations Per Share
(Diluted) Attributable to Alexandria Real Estate Equities, Inc.'s
Common Stockholders of $1.13 -- Third Quarter 2009 Earnings Per
Share (Diluted) Attributable to Alexandria Real Estate Equities,
Inc.'s Common Stockholders of $0.47 -- Third Quarter 2009 GAAP Same
Property Revenues Less Operating Expenses Up 1%; Nine Months Ended
September 30, 2009 GAAP Same Property Revenues Less Operating
Expenses Up 4% -- Executed 29 Leases for 450,000 Rentable Square
Feet; Nine Months Ended September 30, 2009 Executed 108 Leases for
1,349,000 Rentable Square Feet -- Third Quarter 2009 GAAP Rental
Rate Increase of 5.6% on Renewed/Released Space -- Third Quarter
Occupancy Remains Relatively Steady at 94.4% -- Operating Margins
at 73% -- Reduced $104 Million of Secured Debt Obligations --
Entered into 15-Year Lease with Eli Lilly and Company as Anchor
Tenant at Alexandria Center for Life Science at East River Science
Park - NYC(TM) -- Closed Follow-on Common Stock Offering with Net
Proceeds of $233 Million -- Completed Ground-Up Development of One
Property at Mission Bay, San Francisco Aggregating 102,000 Rentable
Square Feet Pursuant to a 15-Year Lease with Pfizer Inc. -- As of
September 30, 2009, Four Properties Aggregating 269,196 Rentable
Square Feet Were Under Contract, LOI or Under Negotiation and Were
Classified as "Held for Sale" October 2009: -- Closed 10-Year
Secured Loan for $120 Million -- Sold One Property Previously
Classified as "Held For Sale" to a Life Science User Alexandria
Real Estate Equities, Inc. (NYSE:ARE) today announced operating and
financial results for the third quarter ended September 30, 2009.
For the third quarter of 2009, we reported funds from operations
("FFO") attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders of $50,609,000, or $1.13 per share (diluted),
compared to FFO attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders of $46,273,000, or $1.45 per share
(diluted), for the third quarter of 2008. Comparing the third
quarter of 2009 to the third quarter of 2008, FFO attributable to
Alexandria Real Estate Equities, Inc.'s common stockholders
increased 9% and FFO per share (diluted) attributable to Alexandria
Real Estate Equities, Inc.'s common stockholders decreased 22%. The
weighted average number of basic and diluted common stock
outstanding for calculating FFO per share (diluted) attributable to
Alexandria Real Estate Equities, Inc.'s common stockholders totaled
39,094,018 and 44,903,051, respectively, for the third quarter of
2009 and 31,694,711 and 31,807,455, respectively, for the third
quarter of 2008. For the nine months ended September 30, 2009, we
reported FFO attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders of $180,427,000, or $4.49 per share
(diluted), compared to FFO attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders of $130,317,000, or $4.11 per
share (diluted), for nine months ended September 30, 2008.
Comparing the nine months ended September 30, 2009 to the nine
months ended September 30, 2008, FFO attributable to Alexandria
Real Estate Equities, Inc.'s common stockholders and FFO per share
(diluted) attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders increased 38% and 9%, respectively. 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 September 30, 2009 and 2008 was $28,336,000 and
$27,447,000, respectively. Depreciation and amortization expense
for the nine months ended September 30, 2009 and 2008 was
$89,504,000 and $80,260,000, respectively. Net income attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders for
the third quarter of 2009 was $18,203,000, or $0.47 per share
(diluted), compared to net income attributable to Alexandria Real
Estate Equities, Inc.'s common stockholders of $19,319,000, or
$0.61 per share (diluted), for the third quarter of 2008. The
weighted average number of basic and diluted common stock
outstanding for calculating earnings per share attributable to
Alexandria Real Estate Equities, Inc.'s common stockholders totaled
39,094,018 and 39,105,950, respectively, for the third quarter of
2009 and 31,694,711 and 31,807,455, respectively, for the third
quarter of 2008. Net income attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders for the nine months ended
September 30, 2009 was $83,314,000, or $2.26 per share (diluted),
compared to net income attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders of $71,521,000, or $2.25 per
share (diluted), for the nine months ended September 30, 2008. For
the third quarter of 2009, we executed a total of 29 leases for
approximately 450,000 rentable square feet of space at 21 different
properties (excluding month-to-month leases). Of this total,
approximately 207,000 rentable square feet related to new or
renewal leases of previously leased space and approximately 243,000
rentable square feet related to developed, redeveloped or
previously vacant space. Of the 243,000 rentable square feet,
approximately 144,000 rentable square feet were delivered from our
development or redevelopment programs, with the remaining
approximately 99,000 rentable square feet related to previously
vacant space. Rental rates for these new or renewal leases were on
average approximately 5.6% higher (on a GAAP basis) than rental
rates for expiring leases. For the nine months ended September 30,
2009, we executed a total of 108 leases for approximately 1,349,000
rentable square feet of space at 49 different properties (excluding
month-to-month leases). Of this total, approximately 788,000
rentable square feet related to new or renewal leases of previously
leased space and approximately 561,000 rentable square feet related
to developed, redeveloped or previously vacant space. Of the
561,000 rentable square feet, approximately 252,000 rentable square
feet were delivered from our development or redevelopment programs,
with the remaining approximately 309,000 rentable square feet
related to previously vacant space. Rental rates for these new or
renewal leases were on average approximately 4.9% higher (on a GAAP
basis) than rental rates for expiring leases. During the nine
months ended September 30, 2009, we sold three properties
aggregating 64,218 rentable square feet to a life science user.
These properties were located in the San Diego market and were sold
for approximately $14.5 million at a gain of approximately $2.2
million. As of September 30, 2009, four properties with
approximately 269,196 rentable square feet were classified as "held
for sale." In October 2009, we sold one property located in the
Suburban Washington, D.C. market aggregating 47,558 rentable square
feet to a life science user for approximately $6.4 million. In July
2009, we announced that we entered into a 15-year lease with Eli
Lilly and Company ("Lilly") as the anchor tenant at the Alexandria
Center for Life Science at East River Science Park - NYC(TM) ("the
Alexandria Center"), a highly advanced state-of-the-art urban
science park in New York City. Lilly has leased approximately
91,000 rentable square feet, as well as an additional approximately
9,000 rentable square feet of core services space, at the
Alexandria Center, which will become the new research headquarters
for ImClone Systems, a wholly-owned subsidiary of Lilly, and New
York City's life science collaboration and translational research
epicenter. Also in July 2009, we completed the ground-up
development of one property located in the San Francisco Mission
Bay submarket aggregating 102,000 rentable square feet pursuant to
a 15-year lease with Pfizer Inc. In October 2009, we closed on a
10-year secured loan with an insurance company approximating $120
million. The loan is secured by several of our operating
properties. As of September 30, 2009, approximately 88% 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 7% 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 93% 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. 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 is as follows: 2009 ---- FFO
per share (diluted) (1) $5.52 (1) Earnings per share (diluted) (1)
$2.69 (1) (1) Our guidance for 2009 includes a $7.2 million gain
for a cash payment related to real estate acquired in November 2007
and a $11.3 million gain on early extinguishment of debt recognized
during the nine months ended September 30, 2009. Our guidance for
FFO per share (diluted) for the twelve months ended December 31,
2009 assumes conversion of our 8% unsecured convertible notes as
the impact of the conversion is expected to be dilutive under the
"if-converted" method. Our guidance for earnings per share
(diluted) for the twelve months ended December 31, 2009, however,
does not assume conversion of our 8% unsecured convertible notes as
the impact of the conversion is expected to be anti-dilutive under
the "if-converted" method. Alexandria Real Estate Equities, Inc.
("Alexandria") has a very broad and diversified quality client
tenant base. As of September 30, 2009, on a rental revenue basis by
sector, Alexandria's multinational pharmaceutical client tenants
led by its top client tenants Novartis AG, Roche Holding Ltd,
GlaxoSmithKline plc, Pfizer Inc., Johnson & Johnson and Merck
& Co., Inc., represented approximately 28% of its client tenant
base; revenue producing life science product and service companies
led by Quest Diagnostics Incorporated, Qiagen N.V., Laboratory
Corporation of America Holdings and Monsanto Company represented
approximately 19% of its client tenant base; public
biopharmaceutical companies represented approximately 17% of its
client tenant base and included the three largest in the sector,
Amgen Inc., Gilead Sciences, Inc., Celgene Corporation; government
agencies and renowned medical and research institutions represented
approximately 15% of its client tenant base and included The
Scripps Research Institute, Massachusetts Institute of Technology,
Fred Hutchinson Cancer Research Center, University of Washington,
the Burnham Institute for Medical Research and the United States
Government; private biopharmaceutical companies represented
approximately 14% of its client tenant base and included
high-quality, leading-edge companies with blue chip venture and
institutional investors, including Achaogen, Inc., Ambrx, Inc.,
Intellikine, Inc., MacroGenics, Inc. and ToleRx, Inc.; the
remaining approximately 7% of its client tenant base consisted of
traditional office tenants. The two fastest growing client tenant
sectors by revenue currently include leading institutional and
multinational pharmaceutical. Alexandria's innovative business
model, very strong and unique life sciences and underwriting skills
with substantial experience and expertise, long-term life science
industry relationships and sophisticated management with both real
estate and life science operating experience and expertise, set
Alexandria apart from all other publicly-traded REITs. We will host
a conference call on Thursday, November 5, 2009 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 operating and financial
results for the third quarter ended September 30, 2009. To
participate in this conference call, dial (719) 325-2255 and
confirmation code 8251486, shortly before 3:00 p.m. ET/12:00 p.m.
noon PT. The audio web cast can be accessed at:
http://www.labspace.com/, in the Corporate Information section. A
replay of the call will be available from 6:00 p.m. ET/3:00 p.m. PT
on Thursday, November 5, 2009 through a limited time thereafter.
The replay number is (719) 457-0820 and the confirmation code is
8251486. Additionally, a copy of Alexandria Real Estate Equities,
Inc.'s Supplemental Financial & Property Information for the
quarter ended September 30, 2009 and this press release are
available in the Corporate Information section of our website at
http://www.labspace.com/. Alexandria Real Estate Equities, Inc.,
Landlord of Choice to the Life Science Industry®, is the largest
owner and pre-eminent first-in-class REIT focused principally on
science-driven cluster formation. 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, biopharmaceutical, 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 approximates 12.8 million rentable
square feet consisting of 157 properties approximating 11.8 million
rentable square feet (including spaces undergoing active
redevelopment) and properties undergoing ground-up development
approximating an additional 980,000 rentable square feet. 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 2009 earnings per share (diluted)
attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders, 2009 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
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. ALEXANDRIA REAL ESTATE
EQUITIES, INC. Condensed Consolidated Income Statements (Dollars in
thousands, except per share data) (Unaudited) Three Months Ended
Nine Months Ended September 30, September 30, -------------
------------- 2009 2008 (1) 2009 2008 (1) ----- ------- ----
------- Income statement data Total revenues $114,605 $112,531
$365,771 $327,133 Expenses Rental operations 30,783 29,057 91,430
83,567 General and administrative 9,610 8,587 27,827 25,816
Interest 20,909 21,289 61,865 63,174 Depreciation and amortization
28,031 26,924 87,878 78,520 Non-cash impairment on investments - -
- 1,985 -------- -------- -------- -------- Total expenses 89,333
85,857 269,000 253,062 Gain on early extinguishment of debt - -
11,254 - -------- -------- -------- -------- Income from continuing
operations 25,272 26,674 108,025 74,071 Income from discontinued
operations, net 1,106 928 3,718 18,458 -------- -------- --------
-------- Net income 26,378 27,602 111,743 92,529 Net income
attributable to noncontrolling interests 886 929 6,123 2,828
Dividends on preferred stock 7,090 7,090 21,268 17,136 Net income
attributable to unvested restricted stock awards 199 265 1,038
1,048 -------- -------- -------- -------- Net income attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders
$18,203 $19,318 $83,314 $71,517 ======== ======== ======== ========
Earnings per share attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders - basic Continuing operations $0.44
$0.58 $2.16 $1.68 Discontinued operations, net 0.03 0.03 0.10 0.58
-------- -------- -------- -------- Earnings per share - basic
$0.47 $0.61 $2.26 $2.26 ======== ======== ======== ========
Earnings per share attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders - diluted Continuing operations $0.44
$0.58 $2.16 $1.68 Discontinued operations, net 0.03 0.03 0.10 0.57
-------- -------- -------- -------- Earnings per share - diluted
$0.47 $0.61 $2.26 $2.25 ======== ======== ======== ======== (1)
Includes the retrospective impact of new accounting provisions
adopted on January 1, 2009 impacting accounting for and disclosure
of convertible debt, noncontrolling interests and participating
securities. ALEXANDRIA REAL ESTATE EQUITIES, INC. Condensed
Consolidated Balance Sheets (In thousands) (Unaudited) September
30, December 31, 2009 2008 (1) ---- ------- Assets Rental
properties, net $3,366,960 $3,215,723 Land held for future
development 254,549 109,478 Construction in progress $1,349,656
1,398,895 Cash and cash equivalents 68,280 71,161 Tenant security
deposits and other restricted cash 60,002 67,782 Tenant receivables
3,789 6,453 Deferred rent 92,022 85,733 Investments 71,080 61,861
Other assets 126,999 114,991 ---------- ---------- Total assets
$5,393,337 $5,132,077 ========== ========== Liabilities and Equity
Secured notes payable $837,177 $1,081,963 Unsecured line of credit
and unsecured term loan 1,248,000 1,425,000 Unsecured convertible
notes 580,919 431,145 Accounts payable, accrued expenses and tenant
security deposits 325,720 386,801 Dividends payable 21,665 32,105
---------- ---------- Total liabilities 3,013,481 3,357,014
Redeemable noncontrolling interests 41,232 33,963 Alexandria Real
Estate Equities, Inc. stockholders' equity: Series C preferred
stock 129,638 129,638 Series D cumulative convertible preferred
stock 250,000 250,000 Common stock 437 319 Additional paid-in
capital 1,961,421 1,407,294 Accumulated other comprehensive loss
(44,162) (87,241) ---------- ---------- Total Alexandria Real
Estate Equities, Inc. stockholders' equity 2,297,334 1,700,010
Noncontrolling interests 41,290 41,090 ---------- ---------- Total
equity 2,338,624 1,741,100 ---------- ---------- Total $5,393,337
$5,132,077 ========== ========== (1) Includes the retrospective
impact of new accounting provisions adopted on January 1, 2009
impacting accounting for and disclosure of convertible debt,
noncontrolling interests and participating securities. 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 nine months ended September
30, 2009 and 2008 (in thousands, except share and per share data):
Three Months Ended Nine Months Ended September 30, September 30,
2009 2008(1) 2009 2008(1) ---- ------ ---- ------ Net income
attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders - numerator for basic earnings per share $18,203
$19,318 $83,314 $71,517 Assumed conversion of 8% unsecured
convertible notes - - - - Effect of dilutive securities and assumed
conversion attributable to unvested restricted stock awards - 1 - 4
---------- ---------- ---------- ---------- Net income attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders
assuming effect of dilutive securities and assumed conversion -
numerator for diluted earnings per share $18,203 $19,319 $83,314
$71,521 ========== ========== ========== ========== Weighted
average shares of common stock outstanding for calculating earnings
per share attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders - denominator for basic earnings per share
39,094,018 31,694,711 36,858,606 31,619,163 Effect of dilutive
securities and assumed conversion: Dilutive effect of stock options
11,932 112,744 8,207 126,671 Assumed conversion of 8% unsecured
convertible notes - - - - ---------- ---------- ----------
---------- Weighted average shares of common stock outstanding for
calculating earnings per share attributable to Alexandria Real
Estate Equities, Inc.'s common stockholders assuming effect of
dilutive securities and assumed conversion - denominator for
diluted earnings per share 39,105,950 31,807,455 36,866,813
31,745,834 ========== ========== ========== ========== Earnings per
share attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders Basic $0.47 $0.61 $2.26 $2.26 ==========
========== ========== ========== Diluted $0.47 $0.61 $2.26 $2.25
========== ========== ========== ========== (1) Includes the
retrospective impact of new accounting provisions adopted on
January 1, 2009 impacting accounting for and disclosure of
convertible debt, noncontrolling interests and participating
securities. ALEXANDRIA REAL ESTATE EQUITIES, INC. Funds from
Operations (Unaudited) Funds from Operations ("FFO") (1) The
following table presents a reconciliation of net 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 nine months ended
September 30, 2009 and 2008 (in thousands, except share and per
share data): Three Months Ended Nine Months Ended September 30,
September 30, 2009 2008(2) 2009 2008(2) ---- ------ ---- ------ Net
income attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders $18,203 $19,318 $83,314 $71,517 Add:
Depreciation and amortization (3) 28,336 27,447 89,504 80,260 Add:
Net income attributable to noncontrolling interests 886 929 6,123
2,828 Add: Net income attributable to unvested restricted stock
awards 199 265 1,038 1,048 Subtract: Gain on sales of property - -
(2,234) (20,395) Subtract: FFO attributable to noncontrolling
interests (918) (1,054) (2,837) (3,039) Subtract: FFO attributable
to unvested restricted stock awards (505) (634) (2,153) (1,909)
---------- ---------- ---------- ---------- FFO attributable to
Alexandria Real Estate, Inc.'s common stockholders - numerator for
basic FFO per share 46,201 46,271 172,755 130,310 Add: Assumed
conversion of 8% unsecured convertible notes 4,384 - 7,581 - Add:
Effect of dilutive securities and assumed conversion attributable
to unvested restricted stock awards 24 2 91 7 ---------- ----------
---------- ---------- FFO attributable to Alexandria Real Estate,
Inc.'s common stockholders assuming effect of dilutive securities
and assumed conversion - numerator for diluted FFO per share
$50,609 $46,273 $180,427 $130,317 ========== ========== ==========
========== Weighted average shares of common stock outstanding for
calculating FFO per share attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders - denominator for basic FFO
per share 39,094,018 31,694,711 36,858,606 31,619,163 Effect of
dilutive securities and assumed conversion: Dilutive effect of
stock options 11,932 112,744 8,207 126,671 Assumed conversion of 8%
unsecured convertible notes 5,797,101 - 3,333,864 - ----------
---------- ---------- ---------- Weighted average shares of common
stock outstanding for calculating FFO per share attributable to
Alexandria Real Estate Equities, Inc.'s common stockholders
assuming effect of dilutive securities and assumed conversion -
denominator for diluted FFO per share 44,903,051 31,807,455
40,200,677 31,745,834 ========== ========== ========== ==========
FFO per share attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders Basic $1.18 $1.46 $4.69 $4.12 ==========
========== ========== ========== Diluted $1.13 $1.45 $4.49 $4.11
========== ========== ========== ========== (1) See note regarding
FFO on page 9. (2) Includes the retrospective impact of new
accounting provisions adopted on January 1, 2009 impacting
accounting for and disclosure of convertible debt, noncontrolling
interests and participating securities. (3) Includes depreciation
and amortization for assets "held for sale" reflected as
discontinued operations (for the periods prior to when such assets
were designated as "held for sale"). 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. DATASOURCE: Alexandria Real Estate Equities,
Inc. CONTACT: CONTACT: Joel S. Marcus, Chairman/Chief Executive
Officer of Alexandria Real Estate Equities, Inc., +1-626-578-9693
Web Site: http://www.labspace.com/
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