Condensed consolidating financial information

9 Months Ended

Sep. 30, 2016

Condensed Consolidated Financial Information [Abstract]

Condensed consolidating financial information

Condensed consolidating financial information

Alexandria Real Estate Equities, Inc. (the “Issuer”) has sold certain debt securities registered under the Securities Act of 1933, as amended, that are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P. (the “LP” or the “Guarantor Subsidiary”), an indirectly 100% owned subsidiary of the Issuer. The Company’s other subsidiaries, including, but not limited to, the subsidiaries that own substantially all of its real estate (collectively, the “Combined Non-Guarantor Subsidiaries”), will not provide a guarantee of such securities, including the subsidiaries that are partially or 100% owned by the LP. The following condensed consolidating financial information presents the condensed consolidating balance sheets as of September 30, 2016 and December 31, 2015, the condensed consolidating statements of income and comprehensive income for the three and nine months ended September 30, 2016 and 2015, and the condensed consolidating statements of cash flows for the nine months ended September 30, 2016 and 2015, for the Issuer, the Guarantor Subsidiary, and the Combined Non-Guarantor Subsidiaries, as well as the eliminations necessary to arrive at the information for Alexandria Real Estate Equities, Inc., on a consolidated basis, and consolidated amounts. In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to (i) the Issuer’s interests in the Guarantor Subsidiary and the Combined Non-Guarantor Subsidiaries, (ii) the Guarantor Subsidiary’s interests in the Combined Non-Guarantor Subsidiaries, and (iii) the Combined Non-Guarantor Subsidiaries’ interests in the Guarantor Subsidiary, where applicable, even though all such subsidiaries meet the requirements to be consolidated under GAAP. All intercompany balances and transactions between the Issuer, the Guarantor Subsidiary, and the Combined Non-Guarantor Subsidiaries have been eliminated, as shown in the column “Eliminations.” All assets and liabilities have been allocated to the Issuer, the Guarantor Subsidiary, and the Combined Non-Guarantor Subsidiaries generally based on legal entity ownership.

Condensed Consolidating Balance Sheet

as of September 30, 2016

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)		Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)		Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Investments in real estate	$	—	$	—	$	7,939,179	$	—		$	7,939,179
Investments in unconsolidated real estate JVs	—		—		133,580		—			133,580
Cash and cash equivalents	18,530		—		139,398		—			157,928
Restricted cash	107		—		16,299		—			16,406
Tenant receivables	—		—		9,635		—			9,635
Deferred rent	—		—		318,286		—			318,286
Deferred leasing costs	—		—		191,765		—			191,765
Investments	—		4,487		316,502		—			320,989
Investments in and advances to affiliates	7,521,833		6,848,858		139,428		(14,510,119		)	—
Other assets	42,811		—		163,322		—			206,133
Total assets	$	7,583,281	$	6,853,345	$	9,367,394	$	(14,510,119	)	$	9,293,901
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable	$	—	$	—	$	789,450	$	—		$	789,450
Unsecured senior notes payable	2,377,482		—		—		—			2,377,482
Unsecured senior line of credit	416,000		—		—		—			416,000
Unsecured senior bank term loans	746,162		—		—		—			746,162
Accounts payable, accrued expenses, and tenant security deposits	67,049		—		538,132		—			605,181
Dividends payable	66,510		—		195		—			66,705
Total liabilities	3,673,203		—		1,327,777		—			5,000,980
Redeemable noncontrolling interests	—		—		9,012		—			9,012
Alexandria Real Estate Equities, Inc.’s stockholders’ equity	3,910,078		6,853,345		7,656,774		(14,510,119		)	3,910,078
Noncontrolling interests	—		—		373,831		—			373,831
Total equity	3,910,078		6,853,345		8,030,605		(14,510,119		)	4,283,909
Total liabilities, noncontrolling interests, and equity	$	7,583,281	$	6,853,345	$	9,367,394	$	(14,510,119	)	$	9,293,901

Condensed Consolidating Balance Sheet

as of December 31, 2015

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)		Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)		Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Investments in real estate	$	—	$	—	$	7,629,922	$	—		$	7,629,922
Investments in unconsolidated real estate JVs	—		—		127,212		—			127,212
Cash and cash equivalents	31,982		—		93,116		—			125,098
Restricted cash	91		—		28,781		—			28,872
Tenant receivables	—		—		10,485		—			10,485
Deferred rent	—		—		280,570		—			280,570
Deferred leasing costs	—		—		192,081		—			192,081
Investments	—		4,702		348,763		—			353,465
Investments in and advances to affiliates	7,194,092		6,490,009		132,121		(13,816,222		)	—
Other assets	36,808		—		96,504		—			133,312
Total assets	$	7,262,973	$	6,494,711	$	8,939,555	$	(13,816,222	)	$	8,881,017
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable	$	—	$	—	$	809,818	$	—		$	809,818
Unsecured senior notes payable	2,030,631		—		—		—			2,030,631
Unsecured senior line of credit	151,000		—		—		—			151,000
Unsecured senior bank term loans	944,243		—		—		—			944,243
Accounts payable, accrued expenses, and tenant security deposits	100,294		—		489,062		—			589,356
Dividends payable	61,718		—		287		—			62,005
Total liabilities	3,287,886		—		1,299,167		—			4,587,053
Redeemable noncontrolling interests	—		—		14,218		—			14,218
Alexandria Real Estate Equities, Inc.’s stockholders’ equity	3,975,087		6,494,711		7,321,511		(13,816,222		)	3,975,087
Noncontrolling interests	—		—		304,659		—			304,659
Total equity	3,975,087		6,494,711		7,626,170		(13,816,222		)	4,279,746
Total liabilities, noncontrolling interests, and equity	$	7,262,973	$	6,494,711	$	8,939,555	$	(13,816,222	)	$	8,881,017

Condensed Consolidating Statement of Income

for the Three Months Ended September 30, 2016

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)		Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental	$	—		$	—	$	166,591		$	—		$	166,591
Tenant recoveries	—			—		58,681			—			58,681
Other income	1,077			91		7,852			(3,913		)	5,107
Total revenues	1,077			91		233,124			(3,913		)	230,379
Expenses:
Rental operations	—			—		72,002			—			72,002
General and administrative	15,568			—		4,199			(3,913		)	15,854
Interest	21,318			—		4,532			—			25,850
Depreciation and amortization	1,722			—		75,411			—			77,133
Impairment of real estate	—			—		8,114			—			8,114
Loss on early extinguishment of debt	3,230			—		—			—			3,230
Total expenses	41,838			—		164,258			(3,913		)	202,183
Equity in earnings of unconsolidated real estate JVs	—			—		273			—			273
Equity in earnings of affiliates	65,236			55,532		1,100			(121,868		)	—
Income from continuing operations	24,475			55,623		70,239			(121,868		)	28,469
Gain on sales of real estate – land parcels	—			—		90			—			90
Net income	24,475			55,623		70,329			(121,868		)	28,559
Net income attributable to noncontrolling interests	—			—		(4,084		)	—			(4,084		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders	24,475			55,623		66,245			(121,868		)	24,475
Dividends on preferred stock	(5,007		)	—		—			—			(5,007		)
Preferred stock redemption charge	(13,095		)	—		—			—			(13,095		)
Net income attributable to unvested restricted stock awards	(921		)	—		—			—			(921		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	5,452		$	55,623	$	66,245		$	(121,868	)	$	5,452

Condensed Consolidating Statement of Income

for the Three Months Ended September 30, 2015

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental	$	—		$	—		$	155,311		$	—		$	155,311
Tenant recoveries	—			—			56,119			—			56,119
Other income	3,355			(87		)	8,025			(4,113		)	7,180
Total revenues	3,355			(87		)	219,455			(4,113		)	218,610
Expenses:
Rental operations	—			—			68,846			—			68,846
General and administrative	13,511			—			5,745			(4,113		)	15,143
Interest	20,470			—			7,209			—			27,679
Depreciation and amortization	1,799			—			66,154			—			67,953
Total expenses	35,780			—			147,954			(4,113		)	179,621
Equity in earnings of unconsolidated real estate JVs	—			—			710			—			710
Equity in earnings of affiliates	71,954			63,964			1,259			(137,177		)	—
Net income	39,529			63,877			73,470			(137,177		)	39,699
Net income attributable to noncontrolling interests	—			—			(170		)	—			(170		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders	39,529			63,877			73,300			(137,177		)	39,529
Dividends on preferred stock	(6,247		)	—			—			—			(6,247		)
Net income attributable to unvested restricted stock awards	(623		)	—			—			—			(623		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	32,659		$	63,877		$	73,300		$	(137,177	)	$	32,659

Condensed Consolidating Statement of Income

for the Nine Months Ended September 30, 2016

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental	$	—		$	—		$	486,505		$	—		$	486,505
Tenant recoveries	—			—			165,385			—			165,385
Other income	7,086			115			24,091			(10,638		)	20,654
Total revenues	7,086			115			675,981			(10,638		)	672,544
Expenses:
Rental operations	—			—			205,164			—			205,164
General and administrative	45,224			—			11,840			(10,638		)	46,426
Interest	60,729			—			15,001			—			75,730
Depreciation and amortization	4,997			—			213,171			—			218,168
Impairment of real estate	—			—			193,237			—			193,237
Loss on early extinguishment of debt	3,230			—			—			—			3,230
Total expenses	114,180			—			638,413			(10,638		)	741,955
Equity in losses of unconsolidated real estate JVs	—			—			(270		)	—			(270		)
Equity in earnings (losses) of affiliates	25,889			(6,282		)	(98		)	(19,509		)	—
(Loss) income from continuing operations	(81,205		)	(6,167		)	37,200			(19,509		)	(69,681		)
Gain on sales of real estate – land parcels	—			—			90			—			90
Net (loss) income	(81,205		)	(6,167		)	37,290			(19,509		)	(69,591		)
Net income attributable to noncontrolling interests	—			—			(11,614		)	—			(11,614		)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s stockholders	(81,205		)	(6,167		)	25,676			(19,509		)	(81,205		)
Dividends on preferred stock	(16,388		)	—			—			—			(16,388		)
Preferred stock redemption charge	(25,614		)	—			—			—			(25,614		)
Net income attributable to unvested restricted stock awards	(2,807		)	—			—			—			(2,807		)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	(126,014	)	$	(6,167	)	$	25,676		$	(19,509	)	$	(126,014	)

Condensed Consolidating Statement of Income

for the Nine Months Ended September 30, 2015

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental	$	—		$	—		$	450,724		$	—		$	450,724
Tenant recoveries	—			—			154,107			—			154,107
Other income	9,890			(128		)	17,014			(12,088		)	14,688
Total revenues	9,890			(128		)	621,845			(12,088		)	619,519
Expenses:
Rental operations	—			—			192,319			—			192,319
General and administrative	38,960			—			17,647			(12,088		)	44,519
Interest	57,494			—			20,089			—			77,583
Depreciation and amortization	4,515			—			184,529			—			189,044
Impairment of real estate	—			—			14,510			—			14,510
Loss on early extinguishment of debt	189			—			—			—			189
Total expenses	101,158			—			429,094			(12,088		)	518,164
Equity in earnings of unconsolidated real estate JVs	—			—			1,825			—			1,825
Equity in earnings of affiliates	193,480			174,800			3,446			(371,726		)	—
Income from continuing operations	102,212			174,672			198,022			(371,726		)	103,180
Loss from discontinued operations	—			—			(43		)	—			(43		)
Net income	102,212			174,672			197,979			(371,726		)	103,137
Net income attributable to noncontrolling interests	—			—			(925		)	—			(925		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders	102,212			174,672			197,054			(371,726		)	102,212
Dividends on preferred stock	(18,740		)	—			—			—			(18,740		)
Net income attributable to unvested restricted stock awards	(1,736		)	—			—			—			(1,736		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	81,736		$	174,672		$	197,054		$	(371,726	)	$	81,736

Condensed Consolidating Statement of Comprehensive Income

for the Three Months Ended September 30, 2016

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)		Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	24,475	$	55,623		$	70,329		$	(121,868	)	$	28,559
Other comprehensive income (loss):
Unrealized losses on available-for-sale equity securities:
Unrealized holding gains (losses) arising during the period	—		58			(38,679		)	—			(38,621		)
Reclassification adjustment for gains included in net income	—		(159		)	(8,381		)	—			(8,540		)
Unrealized losses on available-for-sale equity securities, net	—		(101		)	(47,060		)	—			(47,161		)
Unrealized gains (losses) on interest rate hedge agreements:
Unrealized interest rate hedge gains arising during the period	2,979		—			3			—			2,982
Reclassification adjustment for amortization of interest expense (income) included in net income	1,714		—			(12		)	—			1,702
Unrealized gains (losses) on interest rate hedge agreements, net	4,693		—			(9		)	—			4,684
Unrealized gains on foreign currency translation:
Unrealized foreign currency translation losses during the period	—		—			(1,322		)	—			(1,322		)
Reclassification adjustment for losses included in net income	—		—			3,779			—			3,779
Unrealized gains on foreign currency translation, net	—		—			2,457			—			2,457
Total other comprehensive income (loss)	4,693		(101		)	(44,612		)	—			(40,020		)
Comprehensive income (loss)	29,168		55,522			25,717			(121,868		)	(11,461		)
Less: comprehensive income attributable to noncontrolling interests	—		—			(4,081		)	—			(4,081		)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	29,168	$	55,522		$	21,636		$	(121,868	)	$	(15,542	)

Condensed Consolidating Statement of Comprehensive Income

for the Three Months Ended September 30, 2015

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	39,529		$	63,877		$	73,470		$	(137,177	)	$	39,699
Other comprehensive loss:
Unrealized losses on available-for-sale equity securities:
Unrealized holding losses arising during the period	—			(41		)	(29,791		)	—			(29,832		)
Reclassification adjustment for gains included in net income	—			(117		)	(4,851		)	—			(4,968		)
Unrealized losses on available-for-sale equity securities, net	—			(158		)	(34,642		)	—			(34,800		)
Unrealized losses on interest rate hedge agreements:
Unrealized interest rate hedge losses arising during the period	(5,474		)	—			—			—			(5,474		)
Reclassification adjustment for amortization of interest expense included in net income	727			—			—			—			727
Unrealized losses on interest rate hedge agreements, net	(4,747		)	—			—			—			(4,747		)
Unrealized losses on foreign currency translation:
Unrealized foreign currency translation losses during the period	—			—			(9,294		)	—			(9,294		)
Unrealized losses on foreign currency translation, net	—			—			(9,294		)	—			(9,294		)
Total other comprehensive loss	(4,747		)	(158		)	(43,936		)	—			(48,841		)
Comprehensive income	34,782			63,719			29,534			(137,177		)	(9,142		)
Less: comprehensive income attributable to noncontrolling interests	—			—			(71		)	—			(71		)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	34,782		$	63,719		$	29,463		$	(137,177	)	$	(9,213	)

Condensed Consolidating Statement of Comprehensive Income

for the Nine Months Ended September 30, 2016

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) income	$	(81,205	)	$	(6,167	)	$	37,290		$	(19,509	)	$	(69,591	)
Other comprehensive loss:
Unrealized losses on available-for-sale equity securities:
Unrealized holding gains (losses) arising during the period	—			136			(70,191		)	—			(70,055		)
Reclassification adjustment for gains included in net income	—			(148		)	(18,479		)	—			(18,627		)
Unrealized losses on available-for-sale equity securities, net	—			(12		)	(88,670		)	—			(88,682		)
Unrealized losses on interest rate hedge agreements:
Unrealized interest rate hedge (losses) gains arising during the period	(7,658		)	—			3			—			(7,655		)
Reclassification adjustment for amortization of interest expense (income) included in net income	3,737			—			(12		)	—			3,725
Unrealized losses on interest rate hedge agreements, net	(3,921		)	—			(9		)	—			(3,930		)
Unrealized gains on foreign currency translation:
Unrealized foreign currency translation gains arising during the period	—			—			842			—			842
Reclassification adjustment for losses included in net income	—			—			10,807			—			10,807
Unrealized gains on foreign currency translation, net	—			—			11,649			—			11,649
Total other comprehensive loss	(3,921		)	(12		)	(77,030		)	—			(80,963		)
Comprehensive loss	(85,126		)	(6,179		)	(39,740		)	(19,509		)	(150,554		)
Less: comprehensive income attributable to noncontrolling interests	—			—			(11,587		)	—			(11,587		)
Comprehensive loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	(85,126	)	$	(6,179	)	$	(51,327	)	$	(19,509	)	$	(162,141	)

Condensed Consolidating Statement of Comprehensive Income

for the Nine Months Ended September 30, 2015

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	102,212		$	174,672		$	197,979		$	(371,726	)	$	103,137
Other comprehensive (loss) income:
Unrealized (losses) gains on available-for-sale equity securities:
Unrealized holding (losses) gains arising during the period	—			(19		)	54,023			—			54,004
Reclassification adjustment for gains included in net income	—			(76		)	(2,427		)	—			(2,503		)
Unrealized (losses) gains on available-for-sale equity securities, net	—			(95		)	51,596			—			51,501
Unrealized losses on interest rate hedge agreements:
Unrealized interest rate hedge losses arising during the period	(9,712		)	—			—			—			(9,712		)
Reclassification adjustment for amortization of interest expense included in net income	1,942			—			—			—			1,942
Unrealized losses on interest rate hedge agreements, net	(7,770		)	—			—			—			(7,770		)
Unrealized losses on foreign currency translation:
Unrealized foreign currency translation losses during the period	—			—			(17,072		)	—			(17,072		)
Reclassification adjustment for losses included in net income	—			—			9,236			—			9,236
Unrealized losses on foreign currency translation, net	—			—			(7,836		)	—			(7,836		)
Total other comprehensive (loss) income	(7,770		)	(95		)	43,760			—			35,895
Comprehensive income	94,442			174,577			241,739			(371,726		)	139,032
Less: comprehensive income attributable to noncontrolling interests	—			—			(954		)	—			(954		)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	94,442		$	174,577		$	240,785		$	(371,726	)	$	138,078

Condensed Consolidating Statement of Cash Flows

for the Nine Months Ended September 30, 2016

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities
Net (loss) income	$	(81,205	)	$	(6,167	)	$	37,290		$	(19,509	)	$	(69,591	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	4,997			—			213,171			—			218,168
Loss on early extinguishment of debt	3,230			—			—			—			3,230
Gain on sales of real estate – land parcels	—			—			(90		)	—			(90		)
Impairment of real estate	—			—			193,237			—			193,237
Equity in losses of unconsolidated real estate JVs	—			—			270			—			270
Distributions of earnings from unconsolidated real estate JVs	—			—			286			—			286
Amortization of loan fees	5,826			—			2,966			—			8,792
Amortization of debt discounts (premiums)	353			—			(470		)	—			(117		)
Amortization of acquired below-market leases	—			—			(2,905		)	—			(2,905		)
Deferred rent	—			—			(30,679		)	—			(30,679		)
Stock compensation expense	19,007			—			—			—			19,007
Equity in (earnings) losses of affiliates	(25,889		)	6,282			98			19,509			—
Investment gains	—			(566		)	(28,155		)	—			(28,721		)
Investment losses	—			188			10,482			—			10,670
Changes in operating assets and liabilities:
Restricted cash	(16		)	—			(262		)	—			(278		)
Tenant receivables	—			—			843			—			843
Deferred leasing costs	—			—			(21,621		)	—			(21,621		)
Other assets	(8,332		)	—			(6,481		)	—			(14,813		)
Accounts payable, accrued expenses, and tenant security deposits	(35,351		)	(592		)	42,106			—			6,163
Net cash (used in) provided by operating activities	(117,380		)	(855		)	410,086			—			291,851
Investing Activities
Proceeds from sales of real estate	—			—			27,332			—			27,332
Additions to real estate	—			—			(638,568		)	—			(638,568		)
Purchase of real estate	—			—			(18,108		)	—			(18,108		)
Deposits for investing activities	—			—			(54,998		)	—			(54,998		)
Investments in unconsolidated real estate JVs	—			—			(6,924		)	—			(6,924		)
Investments in subsidiaries	(301,852		)	(365,132		)	(7,405		)	674,389			—
Additions to investments	—			—			(68,384		)	—			(68,384		)
Sales of investments	—			1,174			34,121			—			35,295
Repayment of notes receivable	—			—			9,054			—			9,054
Net cash used in investing activities	$	(301,852	)	$	(363,958	)	$	(723,880	)	$	674,389		$	(715,301	)

Condensed Consolidating Statement of Cash Flows (continued)

for the Nine Months Ended September 30, 2016

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Financing Activities
Borrowings from secured notes payable	$	—		$	—	$	215,330		$	—		$	215,330
Repayments of borrowings from secured notes payable	—			—		(234,096		)	—			(234,096		)
Proceeds from issuance of unsecured senior notes payable	348,604			—		—			—			348,604
Borrowings from unsecured senior line of credit	2,349,000			—		—			—			2,349,000
Repayments of borrowings from unsecured senior line of credit	(2,084,000		)	—		—			—			(2,084,000		)
Repayments of borrowings from unsecured bank term loans	(200,000		)	—		—			—			(200,000		)
Transfer to/from parent company	(69,139		)	364,813		378,715			(674,389		)	—
Payment of loan fees	(12,401		)	—		(4,098		)	—			(16,499		)
Change in restricted cash related to financing activities	—			—		7,742			—			7,742
Repurchase of 7.00% Series D cumulative convertible preferred stock	(98,633		)	—		—			—			(98,633		)
Proceeds from the issuance of common stock	367,802			—		—			—			367,802
Dividends on common stock	(177,966		)	—		—			—			(177,966		)
Dividends on preferred stock	(17,487		)	—		—			—			(17,487		)
Financing costs paid for sale of noncontrolling interests	—			—		(8,093		)	—			(8,093		)
Contributions from and sale of noncontrolling interests	—			—		68,621			—			68,621
Distributions to and purchase of noncontrolling interests	—			—		(62,605		)	—			(62,605		)
Net cash provided by financing activities	405,780			364,813		361,516			(674,389		)	457,720
Effect of foreign exchange rate changes on cash and cash equivalents	—			—		(1,440		)	—			(1,440		)
Net (decrease) increase in cash and cash equivalents	(13,452		)	—		46,282			—			32,830
Cash and cash equivalents as of the beginning of period	31,982			—		93,116			—			125,098
Cash and cash equivalents as of the end of period	$	18,530		$	—	$	139,398		$	—		$	157,928
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest, net of interest capitalized	$	58,062		$	—	$	758		$	—		$	58,820
Non-Cash Investing Activities:
Change in accrued construction	$	—		$	—	$	23,023		$	—		$	23,023
Non-Cash Financing Activities:
Redemption of redeemable noncontrolling interests	$	—		$	—	$	(5,000	)	$	—		$	(5,000	)

Condensed Consolidating Statement of Cash Flows

for the Nine Months Ended September 30, 2015

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities
Net income	$	102,212		$	174,672		$	197,979		$	(371,726	)	$	103,137
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	4,515			—			184,529			—			189,044
Loss on early extinguishment of debt	189			—			—			—			189
Impairment of real estate	—			—			14,510			—			14,510
Equity in earnings of unconsolidated real estate JVs	—			—			(1,825		)	—			(1,825		)
Distributions of earnings from unconsolidated real estate JVs	—			—			740			—			740
Amortization of loan fees	5,717			—			2,631			—			8,348
Amortization of debt discounts (premiums)	243			—			(525		)	—			(282		)
Amortization of acquired below-market leases	—			—			(5,121		)	—			(5,121		)
Deferred rent	—			—			(34,421		)	—			(34,421		)
Stock compensation expense	12,922			—			—			—			12,922
Equity in earnings of affiliates	(193,480		)	(174,800		)	(3,446		)	371,726			—
Investment gains	—			—			(22,368		)	—			(22,368		)
Investment losses	—			269			10,888			—			11,157
Changes in operating assets and liabilities:
Restricted cash	(28		)	—			52			—			24
Tenant receivables	—			—			380			—			380
Deferred leasing costs	—			—			(47,725		)	—			(47,725		)
Other assets	(9,228		)	—			(4,493		)	—			(13,721		)
Accounts payable, accrued expenses, and tenant security deposits	31,895			—			(472		)	—			31,423
Net cash (used in) provided by operating activities	(45,043		)	141			291,313			—			246,411
Investing Activities
Proceeds from sales of real estate	—			—			92,455			—			92,455
Additions to real estate	—			—			(362,215		)	—			(362,215		)
Purchase of real estate	—			—			(248,933		)	—			(248,933		)
Deposit for investing activities	—			—			(6,707		)	—			(6,707		)
Investments in unconsolidated real estate JVs	—			—			(7,979		)	—			(7,979		)
Investments in subsidiaries	(302,455		)	(215,128		)	(4,493		)	522,076			—
Additions to investments	—			—			(67,965		)	—			(67,965		)
Sales of investments	—			6			39,584			—			39,590
Proceeds from repayment of notes receivable	—			—			4,264			—			4,264
Net cash used in investing activities	$	(302,455	)	$	(215,122	)	$	(561,989	)	$	522,076		$	(557,490	)

Condensed Consolidating Statement of Cash Flows (continued)

for the Nine Months Ended September 30, 2015

(In thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc. (Issuer)			Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary)			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Financing Activities
Borrowings from secured notes payable	$	—		$	—		$	47,375		$	—		$	47,375
Repayments of borrowings from secured notes payable	—			—			(12,217		)	—			(12,217		)
Principal borrowings from unsecured senior line of credit	1,432,000			—			—			—			1,432,000
Repayments of borrowings from unsecured senior line of credit	(893,000		)	—			—			—			(893,000		)
Repayment of borrowings from unsecured senior bank term loan	(25,000		)	—			—			—			(25,000		)
Transfer to/from parent company	1,853			214,926			305,297			(522,076		)	—
Change in restricted cash related to financing activities	—			—			(4,737		)	—			(4,737		)
Proceeds from the issuance of common stock	5,052			—			—			—			5,052
Payment of loan fees	(2,140		)	—			(2,042		)	—			(4,182		)
Dividends on common stock	(162,280		)	—			—			—			(162,280		)
Dividends on preferred stock	(18,740		)	—			—			—			(18,740		)
Contributions by noncontrolling interests	—			—			340			—			340
Distributions to and purchase of noncontrolling interests	—			—			(62,973		)	—			(62,973		)
Net cash provided by financing activities	337,745			214,926			271,043			(522,076		)	301,638
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			(187		)	—			(187		)
Net (decrease) increase in cash and cash equivalents	(9,753		)	(55		)	180			—			(9,628		)
Cash and cash equivalents as of the beginning of period	52,491			63			33,457			—			86,011
Cash and cash equivalents as of the end of period	$	42,738		$	8		$	33,637		$	—		$	76,383
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest, net of interest capitalized	$	47,193		$	—		$	17,004		$	—		$	64,197
Non-Cash Investing Activities:
Change in accrued construction	$	—		$	—		$	(7,305	)	$	—		$	(7,305	)
Assumption of secured notes payable in connection with purchase of properties	$	—		$	—		$	(82,000	)	$	—		$	(82,000	)
Non-Cash Financing Activities:
Payable for purchase of noncontrolling interest	$	(51,887	)	$	—		$	—		$	—		$	(51,887	)