Condensed consolidating financial information (Notes)

9 Months Ended

Sep. 30, 2013

Condensed Consolidated Financial Information [Abstract]

Condensed Consolidating Financial Information Disclosure

Condensed consolidating financial information

Alexandria Real Estate Equities, Inc. (the “Issuer”) has sold certain debt securities registered under the Securities Act, as amended, that are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P. (the “LP”), 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, 2013, and December 31, 2012, the condensed consolidating statements of income and comprehensive income for the three and nine months ended September 30, 2013 and 2012, and the condensed consolidating statements of cash flow for the nine months ended September 30, 2013 and 2012, for the Issuer, the Guarantor Subsidiary (the LP), the Combined Non-Guarantor Subsidiaries, the eliminations necessary to arrive at the information for Alexandria 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, 2013

(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, net	$	—	$	—	$	6,613,761	$	—		$	6,613,761
Cash and cash equivalents	14,667		—		39,172		—			53,839
Restricted cash	61		—		30,593		—			30,654
Tenant receivables	—		—		8,671		—			8,671
Deferred rent	—		—		182,909		—			182,909
Deferred leasing and financing costs, net	38,462		—		141,343		—			179,805
Investments	—		11,828		117,335		—			129,163
Investments in and advances to affiliates	6,119,819		5,655,063		116,004		(11,890,886		)	—
Other assets	17,801		—		141,766		—			159,567
Total assets	$	6,190,810	$	5,666,891	$	7,391,554	$	(11,890,886	)	$	7,358,369
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable	$	—	$	—	$	708,653	$	—		$	708,653
Unsecured senior notes payable	1,048,190		—		—		—			1,048,190
Unsecured senior line of credit	14,000		—		—		—			14,000
Unsecured senior bank term loans	1,100,000		—		—		—			1,100,000
Accounts payable, accrued expenses, and tenant security deposits	55,467		—		396,672		—			452,139
Dividends payable	54,125		—		288		—			54,413
Total liabilities	2,271,782		—		1,105,613		—			3,377,395
Redeemable noncontrolling interests	—		—		14,475		—			14,475
Alexandria’s stockholders’ equity	3,919,028		5,666,891		6,223,995		(11,890,886		)	3,919,028
Noncontrolling interests	—		—		47,471		—			47,471
Total equity	3,919,028		5,666,891		6,271,466		(11,890,886		)	3,966,499
Total liabilities, noncontrolling interests, and equity	$	6,190,810	$	5,666,891	$	7,391,554	$	(11,890,886	)	$	7,358,369

Condensed Consolidating Balance Sheet

as of December 31, 2012

(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, net	$	38,616	$	—	$	6,385,962	$	—		$	6,424,578
Cash and cash equivalents	98,567		1,913		40,491		—			140,971
Restricted cash	52		—		39,895		—			39,947
Tenant receivables	1		—		8,448		—			8,449
Deferred rent	1,876		—		168,520		—			170,396
Deferred leasing and financing costs, net	31,373		—		128,675		—			160,048
Investments	—		12,591		102,457		—			115,048
Investments in and advances to affiliates	5,833,368		5,358,883		110,100		(11,302,351		)	—
Intercompany note receivable	3,021		—		—		(3,021		)	—
Other assets	17,613		—		73,066		—			90,679
Total assets	$	6,024,487	$	5,373,387	$	7,057,614	$	(11,305,372	)	$	7,150,116
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable	$	—	$	—	$	716,144	$	—		$	716,144
Unsecured senior notes payable	549,805		—		—		—			549,805
Unsecured senior line of credit	566,000		—		—		—			566,000
Unsecured senior bank term loans	1,350,000		—		—		—			1,350,000
Accounts payable, accrued expenses, and tenant security deposits	75,728		—		347,980		—			423,708
Dividends payable	41,103		—		298		—			41,401
Intercompany notes payable	—		—		3,021		(3,021		)	—
Total liabilities	2,582,636		—		1,067,443		(3,021		)	3,647,058
Redeemable noncontrolling interests	—		—		14,564		—			14,564
Alexandria’s stockholders’ equity	3,441,851		5,373,387		5,928,964		(11,302,351		)	3,441,851
Noncontrolling interests	—		—		46,643		—			46,643
Total equity	3,441,851		5,373,387		5,975,607		(11,302,351		)	3,488,494
Total liabilities, noncontrolling interests, and equity	$	6,024,487	$	5,373,387	$	7,057,614	$	(11,305,372	)	$	7,150,116

Condensed Consolidating Statement of Income

for the Three Months Ended September 30, 2013

(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	$	—		$	—		$	116,302		$	—		$	116,302
Tenant recoveries	—			—			38,757			—			38,757
Other income	2,802			(1		)	3,965			(3,195		)	3,571
Total revenues	2,802			(1		)	159,024			(3,195		)	158,630
Expenses:
Rental operations	—			—			47,742			—			47,742
General and administrative	10,141			—			4,720			(3,195		)	11,666
Interest	10,238			—			5,933			—			16,171
Depreciation and amortization	1,472			—			47,630			—			49,102
Loss on early extinguishment of debt	1,432			—			—			—			1,432
Total expenses	23,283			—			106,025			(3,195		)	126,113
Income (loss) from continuing operations before equity in earnings of affiliates	(20,481		)	(1		)	52,999			—			32,517
Equity in earnings of affiliates	51,975			48,477			959			(101,411		)	—
Income from continuing operations	31,494			48,476			53,958			(101,411		)	32,517
(Loss) income from discontinued operations, net	(1		)	—			(63		)	—			(64		)
Net income	31,493			48,476			53,895			(101,411		)	32,453
Net income attributable to noncontrolling interests	—			—			960			—			960
Dividends on preferred stock	6,472			—			—			—			6,472
Net income attributable to unvested restricted stock awards	442			—			—			—			442
Net income attributable to Alexandria’s common stockholders	$	24,579		$	48,476		$	52,935		$	(101,411	)	$	24,579

Condensed Consolidating Statement of Income

for the Three Months Ended September 30, 2012

(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	$	—		$	—	$	106,216		$	—		$	106,216
Tenant recoveries	—			—		34,006			—			34,006
Other income	2,785			51		3,209			(3,417		)	2,628
Total revenues	2,785			51		143,431			(3,417		)	142,850
Expenses:
Rental operations	—			—		44,203			—			44,203
General and administrative	9,587			—		6,300			(3,417		)	12,470
Interest	11,785			—		5,307			—			17,092
Depreciation and amortization	1,725			—		44,859			—			46,584
Total expenses	23,097			—		100,669			(3,417		)	120,349
Income (loss) from continuing operations before equity in earnings of affiliates	(20,312		)	51		42,762			—			22,501
Equity in earnings of affiliates	41,380			42,064		804			(84,248		)	—
Income from continuing operations	21,068			42,115		43,566			(84,248		)	22,501
(Loss) income from discontinued operations, net	(3,591		)	—		(605		)	—			(4,196		)
Net income	17,477			42,115		42,961			(84,248		)	18,305
Net income attributable to noncontrolling interests	—			—		828			—			828
Dividends on preferred stock	6,471			—		—			—			6,471
Net income attributable to unvested restricted stock awards	360			—		—			—			360
Net income attributable to Alexandria’s common stockholders	$	10,646		$	42,115	$	42,133		$	(84,248	)	$	10,646

Condensed Consolidating Statement of Income

for the Nine Months Ended September 30, 2013

(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	$	—		$	—		$	342,821	$	—		$	342,821
Tenant recoveries	—			—			110,291		—			110,291
Other income	8,071			(142		)	11,636		(9,432		)	10,133
Total revenues	8,071			(142		)	464,748		(9,432		)	463,245
Expenses:
Rental operations	—			—			139,289		—			139,289
General and administrative	32,574			—			12,644		(9,432		)	35,786
Interest	32,048			—			18,121		—			50,169
Depreciation and amortization	4,393			—			137,354		—			141,747
Loss on early extinguishment of debt	1,992			—			—		—			1,992
Total expenses	71,007			—			307,408		(9,432		)	368,983
Income (loss) from continuing operations before equity in earnings of affiliates	(62,936		)	(142		)	157,340		—			94,262
Equity in earnings of affiliates	155,694			144,660			2,858		(303,212		)	—
Income from continuing operations	92,758			144,518			160,198		(303,212		)	94,262
Income from discontinued operations, net	347			—			646		—			993
Gain on sale of land parcel	—			—			772		—			772
Net income	93,105			144,518			161,616		(303,212		)	96,027
Net income attributable to noncontrolling interests	—			—			2,922		—			2,922
Dividends on preferred stock	19,414			—			—		—			19,414
Net income attributable to unvested restricted stock awards	1,187			—			—		—			1,187
Net income attributable to Alexandria’s common stockholders	$	72,504		$	144,518		$	158,694	$	(303,212	)	$	72,504

Condensed Consolidating Statement of Income

for the Nine Months Ended September 30, 2012

(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	$	—		$	—	$	311,746	$	—		$	311,746
Tenant recoveries	—			—		97,769		—			97,769
Other income	7,593			891		16,095		(9,940		)	14,639
Total revenues	7,593			891		425,610		(9,940		)	424,154
Expenses:
Rental operations	—			—		126,758		—			126,758
General and administrative	32,030			1		13,034		(9,940		)	35,125
Interest	34,460			—		16,780		—			51,240
Depreciation and amortization	3,781			—		135,330		—			139,111
Loss on early extinguishment of debt	2,225			—		—		—			2,225
Total expenses	72,496			1		291,902		(9,940		)	354,459
Income (loss) from continuing operations before equity in earnings of affiliates	(64,903		)	890		133,708		—			69,695
Equity in earnings of affiliates	140,267			134,346		2,662		(277,275		)	—
Income from continuing operations	75,364			135,236		136,370		(277,275		)	69,695
Income (loss) from discontinued operations, net	(1,033		)	—		6,195		—			5,162
Gain on sale of land parcel	—			—		1,864		—			1,864
Net income	74,331			135,236		144,429		(277,275		)	76,721
Net income attributable to noncontrolling interests	—			—		2,390		—			2,390
Dividends on preferred stock	20,857			—		—		—			20,857
Preferred stock redemption charge	5,978			—		—		—			5,978
Net income attributable to unvested restricted stock awards	866			—		—		—			866
Net income attributable to Alexandria’s common stockholders	$	46,630		$	135,236	$	142,039	$	(277,275	)	$	46,630

Condensed Consolidating Statement of Comprehensive Income

for the Three Months Ended September 30, 2013

(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	$	31,493		$	48,476		$	53,895		$	(101,411	)	$	32,453
Other comprehensive income:
Unrealized gains (losses) on marketable securities:
Unrealized holding gains (losses) arising during the period	—			(796		)	759			—			(37		)
Reclassification adjustment for (gains) losses included in net income	—			519			(769		)	—			(250		)
Unrealized gains (losses) on marketable securities, net	—			(277		)	(10		)	—			(287		)
Unrealized gains on interest rate swaps:
Unrealized interest rate swap gains arising during the period	(676		)	—			—			—			(676		)
Reclassification adjustment for amortization of interest expense included in net income	3,904			—			—			—			3,904
Unrealized gains on interest rate swaps, net	3,228			—			—			—			3,228
Foreign currency translation losses	—			—			(3,404		)	—			(3,404		)
Total other comprehensive income (loss)	3,228			(277		)	(3,414		)	—			(463		)
Comprehensive income	34,721			48,199			50,481			(101,411		)	31,990
Less: comprehensive income attributable to noncontrolling interests	—			—			(933		)	—			(933		)
Comprehensive income attributable to Alexandria’s common stockholders	$	34,721		$	48,199		$	49,548		$	(101,411	)	$	31,057

Condensed Consolidating Statement of Comprehensive Income

for the Three Months Ended September 30, 2012

(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	$	17,477		$	42,115		$	42,961		$	(84,248	)	$	18,305
Other comprehensive income:
Unrealized gains (losses) on marketable securities:
Unrealized holding gains (losses) arising during the period	—			23			773			—			796
Reclassification adjustment for losses included in net income	—			(11		)	(1,410		)	—			(1,421		)
Unrealized gains (losses) on marketable securities, net	—			12			(637		)	—			(625		)
Unrealized gains (losses) on interest rate swaps:
Unrealized interest rate swap gains (losses) arising during the period	(2,818		)	—			—			—			(2,818		)
Reclassification adjustment for amortization of interest expense included in net income	5,956			—			—			—			5,956
Unrealized gains (losses) on interest rate swaps, net	3,138			—			—			—			3,138
Foreign currency translation losses	—			—			15,104			—			15,104
Total other comprehensive income	3,138			12			14,467			—			17,617
Comprehensive income	20,615			42,127			57,428			(84,248		)	35,922
Less: comprehensive income attributable to noncontrolling interests	—			—			(805		)	—			(805		)
Comprehensive income attributable to Alexandria’s common stockholders	$	20,615		$	42,127		$	56,623		$	(84,248	)	$	35,117

Condensed Consolidating Statement of Comprehensive Income

for the Nine Months Ended September 30, 2013

(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	$	93,105		$	144,518		$	161,616		$	(303,212	)	$	96,027
Other comprehensive income:
Unrealized gains on marketable securities:
Unrealized holding gains (losses) arising during the period	—			(391		)	714			—			323
Reclassification adjustment for (gains) losses included in net income	—			144			(624		)	—			(480		)
Unrealized gains on marketable securities, net	—			(247		)	90			—			(157		)
Unrealized gains on interest rate swaps:
Unrealized interest rate swap losses arising during the period	(704		)	—			—			—			(704		)
Reclassification adjustment for amortization of interest expense included in net income	12,046			—			—			—			12,046
Unrealized gains on interest rate swaps, net	11,342			—			—			—			11,342
Foreign currency translation losses	—			—			(26,461		)	—			(26,461		)
Total other comprehensive income	11,342			(247		)	(26,371		)	—			(15,276		)
Comprehensive income	104,447			144,271			135,245			(303,212		)	80,751
Less: comprehensive income attributable to noncontrolling interests	—			—			(2,839		)	—			(2,839		)
Comprehensive income attributable to Alexandria's common stockholders	$	104,447		$	144,271		$	132,406		$	(303,212	)	$	77,912

Condensed Consolidating Statement of Comprehensive Income

for the Nine Months Ended September 30, 2012

(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	$	74,331		$	135,236	$	144,429		$	(277,275	)	$	76,721
Other comprehensive income:
Unrealized gains (losses) on marketable securities:
Unrealized holding gains arising during the period	—			10		1,353			—			1,363
Reclassification adjustment for (gains) losses included in net income	—			172		(2,279		)	—			(2,107		)
Unrealized gains (losses) on marketable securities, net	—			182		(926		)	—			(744		)
Unrealized gains on interest rate swaps:
Unrealized interest rate swap losses arising during the period	(9,982		)	—		—			—			(9,982		)
Reclassification adjustment for amortization of interest expense included in net income	17,626			—		—			—			17,626
Unrealized gains on interest rate swaps, net	7,644			—		—			—			7,644
Foreign currency translation losses	—			—		7,871			—			7,871
Total other comprehensive income	7,644			182		6,945			—			14,771
Comprehensive income	81,975			135,418		151,374			(277,275		)	91,492
Less: comprehensive income attributable to noncontrolling interests	—			—		(2,379		)	—			(2,379		)
Comprehensive income attributable to Alexandria’s common stockholders	$	81,975		$	135,418	$	148,995		$	(277,275	)	$	89,113

Condensed Consolidating Statement of Cash Flows

for the Nine Months Ended September 30, 2013

(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	$	93,105		$	144,518		$	161,616		$	(303,212	)	$	96,027
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,393			—			138,284			—			142,677
Loss on early extinguishment of debt	1,992			—			—			—			1,992
Gain on sale of land parcel	—			—			(772		)	—			(772		)
Loss on sale of real estate	—			—			121			—			121
Amortization of loan fees and costs	5,148			—			2,152			—			7,300
Amortization of debt premiums/discounts	75			—			308			—			383
Amortization of acquired above and below market leases	—			—			(2,490		)	—			(2,490		)
Deferred rent	—			—			(20,007		)	—			(20,007		)
Stock compensation expense	11,541			—			—			—			11,541
Equity in (income) loss related to subsidiaries	(155,694		)	(144,660		)	(2,858		)	303,212			—
Gain on sales of investments	—			(152		)	(4,564		)	—			(4,716		)
Loss on sales of investments	—			298			231			—			529
Changes in operating assets and liabilities:
Restricted cash	(8		)	—			1,251			—			1,243
Tenant receivables	1			—			(272		)	—			(271		)
Deferred leasing costs	2,421			—			(39,611		)	—			(37,190		)
Other assets	(5,570		)	—			(5,858		)	—			(11,428		)
Intercompany receivables and payables	3,021			—			(3,021		)	—			—
Accounts payable, accrued expenses, and tenant security deposits	(9,599		)	—			61,036			—			51,437
Net cash provided by (used in) operating activities	(49,174		)	4			285,546			—			236,376
Investing Activities
Proceeds from sale of properties	10,796			—			91,019			—			101,815
Additions to properties	3,539			—			(453,679		)	—			(450,140		)
Purchase of properties	—			—			(24,537		)	—			(24,537		)
Change in restricted cash related to construction projects	—			—			5,711			—			5,711
Contributions to unconsolidated real estate entity	—			—			(13,881		)	—			(13,881		)
Investments in subsidiaries	(126,967		)	(170,033		)	(3,045		)	300,045			—
Additions to investments	—			—			(22,835		)	—			(22,835		)
Proceeds from investments	—			1,594			11,156			—			12,750
Net cash provided by (used in) investing activities	$	(112,632	)	$	(168,439	)	$	(410,091	)	$	300,045		$	(391,117	)

Condensed Consolidating Statement of Cash Flows (continued)

for the Nine Months Ended September 30, 2013

(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	$	—		$	—		$	26,319		$	—		$	26,319
Repayments of borrowings from secured notes payable	—			—			(34,120		)	—			(34,120		)
Proceeds from issuance of senior notes payable	498,561			—			—			—			498,561
Principal borrowings from unsecured senior line of credit	319,000			—			—			—			319,000
Repayments of borrowings from unsecured senior line of credit	(871,000		)	—			—			—			(871,000		)
Repayments of unsecured senior bank term loans	(250,000		)	—			—			—			(250,000		)
Repurchase of unsecured senior convertible notes	(384		)	—			—			—			(384		)
Transfer to/from parent company	—			166,522			133,523			(300,045		)	—
Change in restricted cash related to financings	(1		)	—			924			—			923
Deferred financing costs paid	(14,175		)	—			(2,072		)	—			(16,247		)
Proceeds from common stock offerings	535,686			—			—			—			535,686
Dividends paid on common stock	(120,367		)	—			—			—			(120,367		)
Dividends paid on preferred stock	(19,414		)	—			—			—			(19,414		)
Distributions to noncontrolling interests	—			—			(2,100		)	—			(2,100		)
Net cash provided by (used in) financing activities	77,906			166,522			122,474			(300,045		)	66,857
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			752			—			752
Net increase (decrease) in cash and cash equivalents	(83,900		)	(1,913		)	(1,319		)	—			(87,132		)
Cash and cash equivalents at beginning of period	98,567			1,913			40,491			—			140,971
Cash and cash equivalents at end of period	$	14,667		$	—		$	39,172		$	—		$	53,839
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest, net of interest capitalized	$	16,569		$	—		$	17,712		$	—		$	34,281
Non-Cash Investing Activities
Note receivable from sale of real estate	$	29,820		$	—		$	9,000		$	—		$	38,820

Condensed Consolidating Statement of Cash Flows

for the Nine Months Ended September 30, 2012

(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	$	74,331		$	135,236		$	144,429		$	(277,275	)	$	76,721
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,781			—			140,152			—			143,933
Loss on early extinguishment of debt	2,225			—			—			—			2,225
Gain on sale of land parcel	—			—			(1,864		)	—			(1,864		)
Gain on sale of real estate	—			—			(1,564		)	—			(1,564		)
Non-cash impairment of real estate	4,799						5,000						9,799
Amortization of loan fees and costs	5,307			—			2,020			—			7,327
Amortization of debt premiums/discounts	104			—			297			—			401
Amortization of acquired above and below market leases	—			—			(2,356		)	—			(2,356		)
Deferred rent	164			—			(19,380		)	—			(19,216		)
Stock compensation expense	10,412			—			—			—			10,412
Equity in loss related to investments	—			26			—			—			26
Equity in (income) loss related to subsidiaries	(140,267		)	(134,346		)	(2,662		)	277,275			—
Gain on sales of investments	—			(1,109		)	(11,207		)	—			(12,316		)
Loss on sales of investments	—			195			1,412			—			1,607
Changes in operating assets and liabilities:
Restricted cash	(8		)	—			449			—			441
Tenant receivables	11			—			(2,648		)	—			(2,637		)
Deferred leasing costs	4,232			—			(27,829		)	—			(23,597		)
Other assets	2,603			—			(5,833		)	—			(3,230		)
Intercompany receivables and payables	(49		)	—			49			—			—
Accounts payable, accrued expenses, and tenant security deposits	3,592			—			37,786			—			41,378
Net cash provided by (used in) operating activities	(28,763		)	2			256,251			—			227,490
Investing Activities
Proceeds from sale of properties	—			—			36,179			—			36,179
Additions to properties	(1,192		)	—			(404,874		)	—			(406,066		)
Purchase of properties	—			—			(42,171		)	—			(42,171		)
Change in restricted cash related to construction projects	—			—			(11,453		)	—			(11,453		)
Distribution from unconsolidated real estate entity	—			—			22,250			—			22,250
Contributions to unconsolidated real estate entity	—			—			(5,042		)	—			(5,042		)
Investments in subsidiaries	(147,782		)	(112,504		)	(389		)	260,675			—
Additions to investments	—			(160		)	(21,837		)	—			(21,997		)
Proceeds from investments	—			1,944			17,961			—			19,905
Net cash provided by (used in) investing activities	$	(148,974	)	$	(110,720	)	$	(409,376	)	$	260,675		$	(408,395	)

Condensed Consolidating Statement of Cash Flows (continued)

for the Nine Months Ended September 30, 2012

(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	$	—		$	—	$	2,874		$	—		$	2,874
Repayments of borrowings from secured notes payable	—			—		(8,125		)	—			(8,125		)
Proceeds from issuance of unsecured senior notes payable	549,533			—		—			—			549,533
Principal borrowings from unsecured senior line of credit and unsecured senior bank term loan	623,147			—		—			—			623,147
Repayments of borrowings from unsecured senior line of credit	(580,147		)	—		—			—			(580,147		)
Repayment of unsecured senior bank term loan	(250,000		)	—		—			—			(250,000		)
Repurchase of unsecured senior convertible notes	(84,801		)	—		—			—			(84,801		)
Redemption of Series C Cumulative Redeemable Preferred Stock	(129,638		)	—		—			—			(129,638		)
Proceeds from issuance of Series E Cumulative Redeemable Preferred Stock	124,868			—		—			—			124,868
Transfer to/from parent company	—			110,718		149,957			(260,675		)	—
Change in restricted cash related to financings	—			—		(10,476		)	—			(10,476		)
Deferred financing costs paid	(19,949		)	—		(5,352		)	—			(25,301		)
Proceeds from common stock offering	98,443			—		—			—			98,443
Proceeds from exercise of stock options	155			—		—			—			155
Dividends paid on common stock	(92,743		)	—		—			—			(92,743		)
Dividends paid on preferred stock	(21,348		)	—		—			—			(21,348		)
Distributions to redeemable noncontrolling interests	—			—		(943		)	—			(943		)
Redemption of redeemable noncontrolling interests	4			—		(154		)	—			(150		)
Contributions by noncontrolling interests	—			—		1,626			—			1,626
Distributions to noncontrolling interests	—			—		(770		)	—			(770		)
Net cash provided by (used in) financing activities	217,524			110,718		128,637			(260,675		)	196,204
Effect of foreign exchange rate changes on cash and cash equivalents	—			—		1,066			—			1,066
Net increase (decrease) in cash and cash equivalents	39,787			—		(23,422		)	—			16,365
Cash and cash equivalents at beginning of period	10,608			—		67,931			—			78,539
Cash and cash equivalents at end of period	$	50,395		$	—	$	44,509		$	—		$	94,904
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest, net of interest capitalized	$	23,226		$	—	$	7,259		$	—		$	30,485
Non-Cash Investing Activities
Note receivable from sale of real estate	$	—		$	—	$	6,125		$	—		$	6,125