Alexandria Real Estate Equities 8K Other events | ARE 27 Feb 02

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Exhibit 99.1

Contact:

Joel S. Marcus
Chief Executive Officer
Alexandria Real Estate Equities, Inc.
(626) 578-0777

Rhonda Chiger
Rx Communications Group, LLC
(917) 322-2569

Alexandria Real Estate Equities Reports Fourth Quarter And
Year Ended December 31, 2001 Results

—Company Reports Funds from Operations of 94 Cents Per Share (Diluted),
for Fourth Quarter 2001, Up 13% Over Fourth Quarter 2000—

Highlights:

•: Fourth Quarter 2001 Funds from Operations (FFO) of 94 Cents Per Share (Diluted)
•: Fourth Quarter 2001 Total Revenues Up 14%, FFO Up 19% and FFO Per Share (Diluted) Up 13% Over Fourth Quarter 2000
•: 2001 Total Revenues Up 20%, FFO Up 23% and FFO Per Share (Diluted) Up 11% Over 2000
•: Signed 19 Leases for 145,000 Square Feet of Space During the Fourth Quarter 2001
•: Completed Acquisition of Land Parcel Comprising 4.7 acres in Suburban Washington, D.C.
•: Closed $28.3 Million Fixed Rate Loan

PASADENA, CA.—February 7, 2002—Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced financial and operating results for the fourth quarter and year ended December 31, 2001.

For the fourth quarter, Alexandria reported FFO of $15,470,000, or 94 cents per share (diluted), on total revenues of $33,666,000, compared to FFO of $12,998,000, or 83 cents per share (diluted), on total revenues of $29,563,000 for the fourth quarter of 2000. Comparing the fourth quarter of 2001 to the fourth quarter of 2000, total revenues increased 14%, FFO increased 19% and FFO per share (diluted) increased 13%. Net income available to common stockholders for the fourth quarter of 2001 was $7,280,000, or 44 cents per share (diluted), compared to net income available to common stockholders of $6,484,000, or 41 cents per share (diluted), for the fourth quarter of 2000.

For the year ended December 31, 2001, Alexandria reported FFO of $57,189,000, or $3.53 per share (diluted), on total revenues of $127,790,000, compared to FFO of $46,594,000, or $3.17 per share (diluted), on total revenues of $106,910,000 for the year ended December 31, 2000. Net income available to common stockholders for 2001 was $26,611,000, or $1.64 per share (diluted), as compared to $22,343,000, or $1.52 per share (diluted), for 2000.

"Alexandria experienced solid fourth quarter and full year 2001 financial and operating results. We believe that we are successfully weathering the challenging economic cycle," said Joel S. Marcus, Chief Executive Officer.

The Company announced that it had signed a total of 19 leases during the fourth quarter for approximately 145,000 square feet of space at 13 different properties. Of this total, approximately 90,000 square feet was for previously vacant space at nine properties, which included leasing approximately 70,000 square feet at six properties in the Company's redevelopment program. The remaining 55,000 square feet was for new or renewal space with rental rates on average approximately 24% higher than expiring leases. For the year ended December 31, 2001, the Company signed a total of 67 leases for approximately 942,000 square feet of space. Of this total, approximately 287,000 square feet was for previously vacant space at 15 properties, which included leasing approximately 260,000 square feet at 13 properties in the Company's redevelopment program. The remaining 655,000 square feet was for new or renewal space with rental rates on average approximately 15% higher than expiring leases. "Our leasing activity during the fourth quarter and the full year 2001 represents consistent performance," said James H. Richardson, President.

The Company also announced that it acquired a land parcel approximating 4.7 acres in Suburban Washington, D.C. in December 2001, for approximately $3 million in cash.

The Company announced the closing of a $28.3 million fixed rate secured loan in December 2001. This loan, which bears interest at 7.4%, is due in January 2012. "We are pleased to have closed this loan, which represents part of our continuing strategy to convert a portion of our variable rate debt to long-term fixed rate debt," said Peter J. Nelson, Senior Vice President and Chief Financial Officer.

Alexandria Real Estate Equities, Inc. is a publicly traded real estate operating company focused principally on the ownership, operation, management, acquisition, conversion, retrofit, expansion and selective development and redevelopment of properties containing office/laboratory space. Such properties are designed and improved for lease primarily to pharmaceutical, biotechnology, life science product and service entities, not-for-profit scientific research institutions, universities and related government agencies. Alexandria's portfolio currently consists of 82 properties comprising approximately 5.3 million square feet of office/laboratory space.

This press release contains forward-looking statements within the meaning of the federal securities laws. The Company's actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the Company's Form 10-K Annual Report and other periodic reports filed with the Securities and Exchange Commission.

(Tables follow)

ALEXANDRIA REAL ESTATE EQUITIES, INC.
Financial Information
(Dollars in thousands, except per share data)
(Unaudited)

		Three Months Ended December 31, 2001			Three Months Ended December 31, 2000			Year Ended December 31, 2001			Year Ended December 31, 2000
Income statement data:
Total Revenues		$	33,666		$	29,563		$	127,790		$	106,910
Expenses:
	Rental operations		6,560			6,045			26,115			21,873
	General and administrative		3,116			2,398			11,694			8,986
	Interest		7,604			7,206			29,126			25,791
	Depreciation and amortization		8,190			6,514			30,578			24,251

		$	25,470		$	22,163		$	97,513		$	80,901

Net Income		$	8,196		$	7,400		$	30,277		$	26,009

Dividends on preferred stock		$	916		$	916		$	3,666		$	3,666

Net income available to common stockholders		$	7,280		$	6,484		$	26,611		$	22,343

Weighted average shares of common stock
outstanding:
	-Basic		16,185,827			15,446,650			15,953,459			14,460,711

	-Diluted		16,481,269			15,728,876			16,208,178			14,699,478

Net income per common share:
	-Basic	$	0.45		$	0.42		$	1.67		$	1.55

	-Diluted	$	0.44		$	0.41		$	1.64		$	1.52

Funds from operations:
Net income		$	8,196		$	7,400		$	30,277		$	26,009
Add:
	Depreciation and amortization		8,190			6,514			30,578			24,251
Subtract:
	Dividends on preferred stock		(916	)		(916	)		(3,666	)		(3,666	)

Funds from operations (FFO)		$	15,470		$	12,998		$	57,189		$	46,594

FFO per common share:
	-Basic	$	0.96		$	0.84		$	3.58		$	3.22

	-Diluted	$	0.94		$	0.83		$	3.53		$	3.17

		As of December 31, 2001		As of December 31, 2000
Balance sheet data:
	Rental properties, net	$	796,626	$	679,653
	Total assets	$	962,146	$	780,984
	Total liabilities	$	629,508	$	461,832
	Stockholders' equity	$	332,638	$	319,152

Page 3

ALEXANDRIA REAL ESTATE EQUITIES, INC.
Supplemental Financial Information
(Dollars in thousands, except per share data)
(Unaudited)

		For the Three Months Ended
		12/31/2001			9/30/2001			6/30/2001			3/31/2001			12/31/2000
Operational data:
Breakdown of Revenues:
	Rental Income	$	26,505		$	25,505		$	23,589		$	23,572		$	22,606
	Tenant Recoveries		6,537			6,607			5,872			6,335			5,784
	Interest and Other Income		624			618			938			1,088			1,173

	Total	$	33,666		$	32,730		$	30,399		$	30,995		$	29,563

Funds From Operations Per Share-Diluted (1)		$	0.94		$	0.90		$	0.85		$	0.84		$	0.83
Dividends Per Share on Common Stock		$	0.46		$	0.46		$	0.46		$	0.46		$	0.43
Dividend Payout Ratio (Common Stock)			48.6	%		50.8	%		53.9	%		54.9	%		51.4	%

		As of
		12/31/2000	9/30/2001	6/30/2001	3/31/2001	12/31/2001
Other data:
Number of Properties:
	Acquired/completed during period	—	4	1	2	1
	Sold during period	—	—	—	—	—
	Owned at end of period	82	82	78	77	75
Square Feet:
	Acquired/completed during period	—	238,102	96,150	118,838	21,940
	Sold during period	—	—	—	—	—
	Owned at end of period	5,319,945	5,319,945	5,081,843	4,985,693	4,866,855

(1): The White Paper on Funds From Operations ("FFO") issued by the Board of Governors of the National Association of Real Estate Investment Trusts in October 1999 defines FFO as net income, computed in accordance with generally accepted accounting principles, excluding gains or losses from sales of property, plus depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.

Page 4

ALEXANDRIA REAL ESTATE EQUITIES, INC.
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)

				December 31, 2001		December 31, 2000
Assets:
	Rental properties, net			$	796,626	$	679,653
	Property under development				65,250		26,092
	Cash and cash equivalents				2,376		2,776
	Tenant security deposits and other restricted cash				11,528		6,995
	Secured note receivable				6,000		6,000
	Tenant receivables				3,123		2,835
	Deferred rent				20,593		14,945
	Other assets				56,650		41,688

		Total assets		$	962,146	$	780,984

Liabilities and Stockholders' Equity:
	Secured notes payable			$	245,161	$	200,256
	Unsecured line of credit and unsecured term loan				328,000		231,000
	Accounts payable, accrued expenses and tenant security deposits				48,057		23,123
	Dividends payable				8,290		7,453

		Total liabilities			629,508		461,832
		Total stockholders' equity			332,638		319,152

			Total liabilities and stockholders' equity	$	962,146	$	780,984

Page 5

ALEXANDRIA REAL ESTATE EQUITIES, INC.
Debt
As of December 31, 2001
(Dollars in thousands)
(Unaudited)

Principal Amortization/Maturities (1)

Year	Amount
2002	$	5,638
2003		25,062	(2)
2004		5,901
2005		5,713
2006		24,764
Thereafter		175,970

Subtotal		243,048
Unamortized Premium		2,113

Total	$	245,161

Secured and Unsecured Debt Analysis

	Balance		Weighted Average Effective Interest Rate		Weighted Average Maturity
Secured Debt	$	245,161	7.68	%	7.6 Years
Unsecured Debt		328,000	3.93	%(3)	1.2 Years

Total Debt	$	573,161	5.53	%	3.9 Years

Floating and Fixed Rate Debt Analysis

	Balance		Weighted Average Effective Interest Rate		Weighted Average Maturity
Fixed Rate Debt	$	226,221	7.95	%	8.2 Years
Floating Rate Debt		346,940	3.96	%(3)	1.2 Years

Total Debt	$	573,161	5.53	%	3.9 Years

(1): Excludes line of credit.
(2): Of this amount, $18,940,000 represents the outstanding balance on a construction loan related to a property developed in the San Francisco Bay market, which is due in June 2003.
(3): Does not reflect the impact of swap agreements which hedge floating rate debt.

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ALEXANDRIA REAL ESTATE EQUITIES, INC.
Same Property Comparison
(Dollars in thousands)
(Unaudited)

	GAAP Basis						Cash Basis (1)
	Quarter Ended						Quarter Ended
	12/31/01		12/31/00		% Change		12/31/01		12/31/00		% Change
Revenue	$	28,048	$	26,915	4.2	%	$	27,246	$	25,724	5.9	%
Rental operations		5,686		5,777	-1.6	%		5,686		5,777	-1.6	%

Net operating income	$	22,362	$	21,138	5.8	%	$	21,560	$	19,947	8.1	%

	Year Ended						Year Ended
	12/31/01		12/31/00		% Change		12/31/01		12/31/00		% Change
Revenue	$	79,400	$	75,600	5.0	%	$	78,155	$	73,945	5.7	%
Rental operations		17,693		16,710	5.9	%		17,693		16,710	5.9	%

Net operating income	$	61,707	$	58,890	4.8	%	$	60,462	$	57,235	5.6	%

(1): Excludes straight line rent adjustments.

Note: This summary represents operating data for the properties that were owned and fully operating for the entire periods presented.

Page 7

ALEXANDRIA REAL ESTATE EQUITIES, INC.
Operating Portfolio Summary
As of December 31, 2001
(Dollars in thousands)

	Number of Properties	Rentable Square Feet	Annualized Base Rent		Occupancy Percentage
Market:
Suburban Washington DC	19	1,613,529	$	25,247,538	97.8	%(1)
California—San Diego	21	949,328		26,942,140	100.0	%
California—San Francisco Bay	7	412,172		12,385,311	100.0	%
Southeast	3	183,473		3,307,274	97.5	%(1)
New Jersey/Suburban Philadelphia	6	344,390		5,976,880	100.0	%
Eastern Massachusetts	6	445,474		14,059,254	100.0	%
Washington—Seattle	2	118,393		4,109,523	100.0	%

Total(2)	64	4,066,759	$	92,027,920	99.0	%

(1): All, or substantially all, of the vacant space is office or warehouse space.
(2): Excludes properties under full or partial redevelopment.

Page 8

ALEXANDRIA REAL ESTATE EQUITIES, INC.
Lease Expiration
December 31, 2001

Year of Lease Expiration	Number of Leases Expiring	Square Footage of Expiring Leases	Percentage of Aggregate Portfolio Leased Square Feet	Annualized Base Rent of Expiring Leases (per square foot)
2002	52	476,422	10.1%	$	21.45
2003	27	483,343	10.3%	$	19.03
2004	25	423,550	9.0%	$	21.01
2005	16	319,426	6.8%	$	25.90
2006	29	665,796	14.1%	$	22.51

Page 9

ALEXANDRIA REAL ESTATE EQUITIES, INC.
Lease Activity Analysis
For the Quarter Ended December 31, 2001

			Number of Leases	Square Footage	Expiring Rate	New Rate	Rental Rate Increase	TI's/Lease Commissions per foot	Average Lease Term
*Lease Activity—Expired Leases*
	Lease Expirations
		Cash Basis	25	182,747	$19.36	—	—	—	—
		GAAP Basis	25	182,747	$19.15	—	—	—	—
	Renewed / Released Space
		Cash Basis	7	54,621	$15.03	$17.42	15.9%	$9.15	4.9 years
		GAAP Basis	7	54,621	$14.74	$18.31	24.2%	$9.15	4.9 years
	Month-to-Month Leases
		Cash Basis	14	72,599	$15.44	$16.79	8.7%	—
		GAAP Basis	14	72,599	$15.13	$16.79	11.0%	—
	Total Leasing—Expired Leases
		Cash Basis	21	127,220	$15.26	$17.06	11.8%	—
		GAAP Basis	21	127,220	$14.96	$17.44	16.6%	—
*Vacant Space Leased*
		Cash Basis	12	90,186	—	$15.89	—	$16.75	5.0 years
		GAAP Basis	12	90,186	—	$16.84	—	$16.75	5.0 years
*All Lease Activity*
		Cash Basis	33	217,406	—	$16.57	—	—
		GAAP Basis	33	217,406	—	$17.19	—	—	—

Page 10

ALEXANDRIA REAL ESTATE EQUITIES, INC.
Lease Activity Analysis
For the Year Ended December 31, 2001

			Number of Leases	Square Footage	Expiring Rate	New Rate	Rental Rate Increase	TI's/Lease Commissions per foot	Average Lease Term
*Lease Activity—Expired Leases*
	Lease Expirations
		Cash Basis	61	964,329	$19.21	—	—	—	—
		GAAP Basis	61	964,329	$19.07	—	—	—	—
	Renewed / Released Space
		Cash Basis	40	654,495	$21.05	$22.85	8.6%	$4.52	4.1 years
		GAAP Basis	40	654,495	$20.86	$24.05	15.3%	$4.52	4.1 years
	Month-to-Month Leases
		Cash Basis	14	72,599	$12.16	$16.79	38.1%	—
		GAAP Basis	14	72,599	$11.88	$16.79	41.3%	—
	Total Leasing—Expired Leases
		Cash Basis	54	727,094	$20.16	$22.24	10.3%	—
		GAAP Basis	54	727,094	$19.96	$23.32	16.8%	—
*Vacant Space Leased*
		Cash Basis	27	287,235	—	$27.45	—	$21.02	6.4 years
		GAAP Basis	27	287,235	—	$30.96	—	$21.02	6.4 years
*All Lease Activity*
		Cash Basis	81	1,014,329	—	$23.72	—	—
		GAAP Basis	81	1,014,329	—	$25.49	—	—	—

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ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Properties Under Development
As of December 31, 2001

Market	Target Completion Date	Rentable Square Footage
Eastern Massachusetts	3Q02	100,000
San Diego	3Q02	47,000
Suburban Washington D.C.	3Q02	95,000

Page 12

ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Properties Under Redevelopment
As of December 31, 2001

Market	Target In-Service Date	Total Rentable Square Footage of Property (1)	Square Footage Being Redeveloped
San Diego	2Q02	21,940	10,632
Pasadena	3Q02	31,343	23,424
San Francisco Bay	3Q02	32,074	6,855
San Francisco Bay (2)	3Q02	153,837	24,968
San Francisco Bay	4Q02	25,000	25,000
Washington—Seattle	2Q02	209,361	25,136
Southeast	2Q02	37,908	23,931
Southeast	2Q02	119,916	25,388
Southeast	3Q02	37,080	14,806
Suburban Washington D.C.	2Q02	53,416	5,571
Suburban Washington D.C.	3Q02	53,595	26,799
Suburban Washington D.C.	3Q02	131,511	86,623
Suburban Washington D.C.	4Q02	58,632	58,632
Eastern Massachusetts	2Q02	92,423	12,005
Eastern Massachusetts	4Q02	59,000	59,000
Eastern Massachusetts	4Q02	40,000	40,000
Eastern Massachusetts	1Q03	96,150	96,150

Total		1,253,186	564,920

(1): Averageoccupancy for properties under full or partial redevelopment as of December 31, 2001 was 54.9%.
(2): Includes two adjacent properties.

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