Alexandria Real Estate Equities, Inc. Announces Closing of Its Amended Line of Credit for Additional Commitments of $1 Billion

Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative life science, agtech and advanced technology campuses in AAA innovation cluster locations, today announced the increase in commitments available under its unsecured senior line of credit ("the amended agreement") from $4.0 billion to $5.0 billion — an impressive accomplishment fueled by the enduring strength of its balance sheet and the continuing secular growth of the over $5 trillion life science industry. Alexandria leveraged longstanding existing banking relationships and attracted one new banking partner to increase commitments available by $1.0 billion, or 25%. This substantial increase in its unsecured senior line of credit capacity further adds to the company's significant liquidity of $5.3 billion as of March 31, 2023.

The margin at closing applicable to loans based on the floating rate and daily risk-free rate is 0.735%, including the sustainability margin adjustment reduction of four basis points. The amended agreement is expandable to up to $6.0 billion under an accordion feature, and the maturity date of January 22, 2028, assuming the company exercises its right to extend, subject to certain conditions, was unchanged. Citibank, N.A. continues to serve as administrative agent and sustainability structuring agent under the amended agreement; Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA, RBC Capital Markets, the Bank of Nova Scotia, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, U.S. Bank National Association, TD Bank, N.A. and Barclays Bank PLC serve as joint lead arrangers under the amended agreement; and Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA and RBC Capital Markets serve as joint bookrunners under the amended agreement.

"We are immensely proud of our successful and timely upsizing of our unsecured senior line of credit capacity to $5.0 billion. This significant increase highlights outstanding execution by our best-in-class team to further strengthen our fortress balance sheet," said Marc E. Binda, executive vice president of finance and treasurer of Alexandria Real Estate Equities, Inc. "We are grateful for the deep relationships and tremendous support from our leading lending partners. The additional liquidity achieved provides us important flexibility to execute our differentiated business platform uniquely focused on providing the mission-critical laboratory infrastructure needed to support the life science industry's pursuit of desperately needed treatments and cures."

Alexandria's growth is supported by a strong and flexible balance sheet with significant liquidity, investment-grade credit ratings that rank in the top 10% among all publicly traded U.S. REITs, no debt maturities until 2025 and 96.1% of debt at fixed rates as of March 31, 2023. Its weighted-average remaining debt term of 13.4 years as of March 31, 2023 represents one of the longest weighted-average debt terms among all U.S. REITs. The company also has a net debt and preferred stock to adjusted EBITDA ratio of 5.3x for the three months ended March 31, 2023 annualized. Additionally, Alexandria reiterated guidance of 6.4% annual growth in funds from operations (FFO) per share – diluted, as adjusted, for 2023 at the midpoint of guidance as of April 24, 2023, with a strong adjusted EBITDA margin of 69% for 1Q23.

Alexandria continues to make incremental enhancements to its prudently managed balance sheet, which enables the company to execute on its pioneering, mission-driven business model and drive long-term total stockholder return (TSR). Since its IPO in May 1997, Alexandria has maintained the highest standards of excellence to generate long-term value for its stockholders. The company's outstanding TSR of 1,444% (assuming reinvestment of dividends) from its IPO through March 31, 2023 significantly outperformed major indices over the same period, including the Nasdaq Composite's TSR of 998%, the MSCI U.S. REIT's TSR of 706% and the S&P 500's TSR of 683%. Alexandria's cash dividend of $4.84 per common share for the 12 months ending June 30, 2023 represents an increase of 24 cents, or 5%, over the 12 months ended June 30, 2022. The dividend allows the company to share its continued high-quality, strong and increasing net cash provided by operating activities with its common stockholders while retaining a significant portion for reinvestment into its highly leased pipeline of new Class A development and redevelopment projects. Its FFO payout ratio (quarterly common stock dividends divided by quarterly funds from operations) remains favorably low at 55% for the three months ended March 31, 2023.

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