Condensed consolidating financial information (Tables)

6 Months Ended

Jun. 30, 2016

Condensed Consolidated Financial Information [Abstract]

Condensed consolidating balance sheet

Condensed Consolidating Balance Sheet

as of June 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	$	—	$	—	$	7,774,608	$	—		$	7,774,608
Investments in unconsolidated real estate JVs	—		—		132,433		—			132,433
Cash and cash equivalents	140,569		—		115,431		—			256,000
Restricted cash	94		—		13,037		—			13,131
Tenant receivables	—		—		9,196		—			9,196
Deferred rent	—		—		303,379		—			303,379
Deferred leasing costs	—		—		191,619		—			191,619
Investments	—		4,766		355,284		—			360,050
Investments in and advances to affiliates	7,423,205		6,716,778		136,729		(14,276,712		)	—
Other assets	35,855		—		68,559		—			104,414
Total assets	$	7,599,723	$	6,721,544	$	9,100,275	$	(14,276,712	)	$	9,144,830
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable	$	—	$	—	$	722,794	$	—		$	722,794
Unsecured senior notes payable	2,376,713		—		—		—			2,376,713
Unsecured senior line of credit	72,000		—		—		—			72,000
Unsecured senior bank term loans	945,030		—		—		—			945,030
Accounts payable, accrued expenses, and tenant security deposits	117,369		—		476,259		—			593,628
Dividends payable	66,902		—		286		—			67,188
Total liabilities	3,578,014		—		1,199,339		—			4,777,353
Redeemable noncontrolling interests	—		—		9,218		—			9,218
Alexandria Real Estate Equities, Inc.’s stockholders’ equity	4,021,709		6,721,544		7,555,168		(14,276,712		)	4,021,709
Noncontrolling interests	—		—		336,550		—			336,550
Total equity	4,021,709		6,721,544		7,891,718		(14,276,712		)	4,358,259
Total liabilities, noncontrolling interests, and equity	$	7,599,723	$	6,721,544	$	9,100,275	$	(14,276,712	)	$	9,144,830

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 statements of income

Condensed Consolidating Statement of Income

for the Three Months Ended June 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	$	—		$	—		$	161,638		$	—		$	161,638
Tenant recoveries	—			—			54,107			—			54,107
Other income	2,934			28			10,498			(3,129		)	10,331
Total revenues	2,934			28			226,243			(3,129		)	226,076
Expenses:
Rental operations	—			—			67,325			—			67,325
General and administrative	15,338			—			3,175			(3,129		)	15,384
Interest	20,189			—			4,836			—			25,025
Depreciation and amortization	1,661			—			68,508			—			70,169
Impairment of real estate	—			—			156,143			—			156,143
Total expenses	37,188			—			299,987			(3,129		)	334,046
Equity in loss of unconsolidated real estate JVs	—			—			(146		)	—			(146		)
Equity in loss of affiliates	(77,362		)	(92,493		)	(1,837		)	171,692			—
Net loss	(111,616		)	(92,465		)	(75,727		)	171,692			(108,116		)
Net income attributable to noncontrolling interests	—			—			(3,500		)	—			(3,500		)
Net loss attributable to Alexandria Real Estate Equities, Inc.’s stockholders	(111,616		)	(92,465		)	(79,227		)	171,692			(111,616		)
Dividends on preferred stock	(5,474		)	—			—			—			(5,474		)
Preferred stock redemption charge	(9,473		)	—			—			—			(9,473		)
Net income attributable to unvested restricted stock awards	(1,085		)	—			—			—			(1,085		)
Net loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	(127,648	)	$	(92,465	)	$	(79,227	)	$	171,692		$	(127,648	)

Condensed Consolidating Statement of Income

for the Three Months Ended June 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	$	—		$	—	$	151,805		$	—		$	151,805
Tenant recoveries	—			—		49,594			—			49,594
Other income	3,509			—		3,425			(4,177		)	2,757
Total revenues	3,509			—		204,824			(4,177		)	204,156
Expenses:
Rental operations	—			—		62,250			—			62,250
General and administrative	13,223			—		5,943			(4,177		)	14,989
Interest	19,867			—		6,801			—			26,668
Depreciation and amortization	1,469			—		60,702			—			62,171
Impairment of real estate	—			—		—			—			—
Loss on early extinguishment of debt	189			—		—			—			189
Total expenses	34,748			—		135,696			(4,177		)	166,267
Equity in earnings of unconsolidated real estate JVs	—			—		541			—			541
Equity in earnings of affiliates	69,406			65,246		1,270			(135,922		)	—
Net income	38,167			65,246		70,939			(135,922		)	38,430
Net income attributable to noncontrolling interests	—			—		(263		)	—			(263		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders	38,167			65,246		70,676			(135,922		)	38,167
Dividends on preferred stock	(6,246		)	—		—			—			(6,246		)
Net income attributable to unvested restricted stock awards	(630		)	—		—			—			(630		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	31,291		$	65,246	$	70,676		$	(135,922	)	$	31,291

Condensed Consolidating Statement of Income

for the Six Months Ended June 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	$	—		$	—		$	319,914		$	—		$	319,914
Tenant recoveries	—			—			106,704			—			106,704
Other income	6,009			24			16,239			(6,725		)	15,547
Total revenues	6,009			24			442,857			(6,725		)	442,165
Expenses:
Rental operations	—			—			133,162			—			133,162
General and administrative	29,656			—			7,641			(6,725		)	30,572
Interest	39,411			—			10,469			—			49,880
Depreciation and amortization	3,275			—			137,760			—			141,035
Impairment of real estate	—			—			185,123			—			185,123
Total expenses	72,342			—			474,155			(6,725		)	539,772
Equity in loss of unconsolidated real estate JVs	—			—			(543		)	—			(543		)
Equity in loss of affiliates	(39,347		)	(61,814		)	(1,198		)	102,359			—
Net loss	(105,680		)	(61,790		)	(33,039		)	102,359			(98,150		)
Net income attributable to noncontrolling interests	—			—			(7,530		)	—			(7,530		)
Net loss attributable to Alexandria Real Estate Equities, Inc.’s stockholders	(105,680		)	(61,790		)	(40,569		)	102,359			(105,680		)
Dividends on preferred stock	(11,381		)	—			—			—			(11,381		)
Preferred stock redemption charge	(12,519		)	—			—			—			(12,519		)
Net income attributable to unvested restricted stock awards	(1,886		)	—			—			—			(1,886		)
Net loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	(131,466	)	$	(61,790	)	$	(40,569	)	$	102,359		$	(131,466	)

Condensed Consolidating Statement of Income

for the Six Months Ended June 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	$	—		$	—		$	295,413		$	—		$	295,413
Tenant recoveries	—			—			97,988			—			97,988
Other income	6,535			(41		)	8,989			(7,975		)	7,508
Total revenues	6,535			(41		)	402,390			(7,975		)	400,909
Expenses:
Rental operations	—			—			123,473			—			123,473
General and administrative	25,449			—			11,902			(7,975		)	29,376
Interest	37,024			—			12,880			—			49,904
Depreciation and amortization	2,716			—			118,375			—			121,091
Impairment of real estate	—			—			14,510			—			14,510
Loss on early extinguishment of debt	189			—			—			—			189
Total expenses	65,378			—			281,140			(7,975		)	338,543
Equity in earnings of unconsolidated real estate JVs	—			—			1,115			—			1,115
Equity in earnings of affiliates	121,526			110,836			2,187			(234,549		)	—
Income from continuing operations	62,683			110,795			124,552			(234,549		)	63,481
Loss from discontinued operations	—			—			(43		)	—			(43		)
Net income	62,683			110,795			124,509			(234,549		)	63,438
Net income attributable to noncontrolling interests	—			—			(755		)	—			(755		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders	62,683			110,795			123,754			(234,549		)	62,683
Dividends on preferred stock	(12,493		)	—			—			—			(12,493		)
Net income attributable to unvested restricted stock awards	(1,113		)	—			—			—			(1,113		)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	49,077		$	110,795		$	123,754		$	(234,549	)	$	49,077

Condensed consolidating statement comprehensive income

Condensed Consolidating Statement of Comprehensive Income

for the Three Months Ended June 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	$	(111,616	)	$	(92,465	)	$	(75,727	)	$	171,692	$	(108,116	)
Other comprehensive (loss) income:
Unrealized gains on available-for-sale equity securities:
Unrealized holding gains arising during the period	—			101			15,888			—		15,989
Reclassification adjustment for gains included in net income	—			—			(3,061		)	—		(3,061		)
Unrealized gains on available-for-sale equity securities, net	—			101			12,827			—		12,928
Unrealized losses on interest rate hedge agreements:
Unrealized interest rate hedge losses arising during the period	(3,676		)	—			—			—		(3,676		)
Reclassification adjustment for amortization of interest expense included in net income	1,865			—			—			—		1,865
Unrealized losses on interest rate hedge agreements, net	(1,811		)	—			—			—		(1,811		)
Unrealized gains on foreign currency translation:
Unrealized foreign currency translation losses during the period	—			—			(1,364		)	—		(1,364		)
Reclassification adjustment for losses included in net income	—			—			7,028			—		7,028
Unrealized gains on foreign currency translation, net	—			—			5,664			—		5,664
Total other comprehensive (loss) income	(1,811		)	101			18,491			—		16,781
Comprehensive loss	(113,427		)	(92,364		)	(57,236		)	171,692		(91,335		)
Less: comprehensive income attributable to noncontrolling interests	—			—			(3,476		)	—		(3,476		)
Comprehensive loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	(113,427	)	$	(92,364	)	$	(60,712	)	$	171,692	$	(94,811	)

Condensed Consolidating Statement of Comprehensive Income

for the Three Months Ended June 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	$	38,167		$	65,246	$	70,939		$	(135,922	)	$	38,430
Other comprehensive (loss) income:
Unrealized gains on available-for-sale equity securities:
Unrealized holding gains arising during the period	—			76		55,325			—			55,401
Reclassification adjustment for losses included in net income	—			—		1,362			—			1,362
Unrealized gains on available-for-sale equity securities, net	—			76		56,687			—			56,763
Unrealized losses on interest rate hedge agreements:
Unrealized interest rate hedge losses arising during the period	(1,225		)	—		—			—			(1,225		)
Reclassification adjustment for amortization of interest expense included in net income	710			—		—			—			710
Unrealized losses on interest rate hedge agreements, net	(515		)	—		—			—			(515		)
Unrealized losses on foreign currency translation:
Unrealized foreign currency translation losses during the period	—			—		(1,507		)	—			(1,507		)
Unrealized losses on foreign currency translation, net	—			—		(1,507		)	—			(1,507		)
Total other comprehensive (loss) income	(515		)	76		55,180			—			54,741
Comprehensive income	37,652			65,322		126,119			(135,922		)	93,171
Less: comprehensive income attributable to noncontrolling interests	—			—		(237		)	—			(237		)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	37,652		$	65,322	$	125,882		$	(135,922	)	$	92,934

Condensed Consolidating Statement of Comprehensive Income

for the Six Months Ended June 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	$	(105,680	)	$	(61,790	)	$	(33,039	)	$	102,359	$	(98,150	)
Other comprehensive (loss) income:
Unrealized gains (losses) on available-for-sale equity securities:
Unrealized holding gains (losses) arising during the period	—			78			(31,512		)	—		(31,434		)
Reclassification adjustment for losses (gains) included in net income	—			11			(10,098		)	—		(10,087		)
Unrealized gains (losses) on available-for-sale equity securities, net	—			89			(41,610		)	—		(41,521		)
Unrealized losses on interest rate hedge agreements:
Unrealized interest rate hedge losses arising during the period	(10,637		)	—			—			—		(10,637		)
Reclassification adjustment for amortization of interest expense included in net income	2,023			—			—			—		2,023
Unrealized losses on interest rate hedge agreements, net	(8,614		)	—			—			—		(8,614		)
Unrealized gains on foreign currency translation:
Unrealized foreign currency translation gains arising during the period	—			—			2,164			—		2,164
Reclassification adjustment for losses included in net income	—			—			7,028			—		7,028
Unrealized gains on foreign currency translation, net	—			—			9,192			—		9,192
Total other comprehensive (loss) income	(8,614		)	89			(32,418		)	—		(40,943		)
Comprehensive loss	(114,294		)	(61,701		)	(65,457		)	102,359		(139,093		)
Less: comprehensive income attributable to noncontrolling interests	—			—			(7,506		)	—		(7,506		)
Comprehensive loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	(114,294	)	$	(61,701	)	$	(72,963	)	$	102,359	$	(146,599	)

Condensed Consolidating Statement of Comprehensive Income

for the Six Months Ended June 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	$	62,683		$	110,795	$	124,509		$	(234,549	)	$	63,438
Other comprehensive (loss) income:
Unrealized gains on available-for-sale equity securities:
Unrealized holding gains arising during the period	—			22		83,814			—			83,836
Reclassification adjustment for losses included in net income	—			41		2,424			—			2,465
Unrealized gains on available-for-sale equity securities, net	—			63		86,238			—			86,301
Unrealized losses on interest rate hedge agreements:
Unrealized interest rate hedge losses arising during the period	(4,238		)	—		—			—			(4,238		)
Reclassification adjustment for amortization of interest expense included in net income	1,215			—		—			—			1,215
Unrealized losses on interest rate hedge agreements, net	(3,023		)	—		—			—			(3,023		)
Unrealized gains on foreign currency translation:
Unrealized foreign currency translation losses during the period	—			—		(7,778		)	—			(7,778		)
Reclassification adjustment for losses included in net income	—			—		9,236			—			9,236
Unrealized gains on foreign currency translation, net	—			—		1,458			—			1,458
Total other comprehensive (loss) income	(3,023		)	63		87,696			—			84,736
Comprehensive income	59,660			110,858		212,205			(234,549		)	148,174
Less: comprehensive income attributable to noncontrolling interests	—			—		(883		)	—			(883		)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	59,660		$	110,858	$	211,322		$	(234,549	)	$	147,291

Condensed consolidating statement cash flows

Condensed Consolidating Statement of Cash Flows

for the Six Months Ended June 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	$	(105,680	)	$	(61,790	)	$	(33,039	)	$	102,359		$	(98,150	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	3,275			—			137,760			—			141,035
Impairment of real estate	—			—			185,123			—			185,123
Equity in losses of unconsolidated real estate JVs	—			—			543			—			543
Distributions of earnings from unconsolidated real estate JVs	—			—			181			—			181
Amortization of loan fees	3,898			—			1,814			—			5,712
Amortization of debt discounts (premiums)	218			—			(330		)	—			(112		)
Amortization of acquired below-market leases	—			—			(1,940		)	—			(1,940		)
Deferred rent	—			—			(14,568		)	—			(14,568		)
Stock compensation expense	11,556			—			—			—			11,556
Equity in losses of affiliates	39,347			61,814			1,198			(102,359		)	—
Investment gains	—			(322		)	(20,284		)	—			(20,606		)
Investment losses	—			11			6,810			—			6,821
Changes in operating assets and liabilities:
Restricted cash	(3		)	—			235			—			232
Tenant receivables	—			—			1,277			—			1,277
Deferred leasing costs	—			—			(13,858		)	—			(13,858		)
Other assets	(4,638		)	—			(1,293		)	—			(5,931		)
Accounts payable, accrued expenses, and tenant security deposits	10,343			(508		)	(35,042		)	—			(25,207		)
Net cash (used in) provided by operating activities	(41,684		)	(795		)	214,587			—			172,108
Investing Activities
Proceeds from sales of real estate	—			—			16,905			—			16,905
Additions to real estate	—			—			(363,061		)	—			(363,061		)
Deposits for investing activities	—			—			(75		)	—			(75		)
Investments in unconsolidated real estate JVs	—			—			(5,946		)	—			(5,946		)
Investments in subsidiaries	(268,460		)	(288,584		)	(5,806		)	562,850			—
Additions to investments	—			—			(52,366		)	—			(52,366		)
Sales of investments	—			845			20,698			—			21,543
Repayment of notes receivable	—			—			9,036			—			9,036
Net cash used in investing activities	$	(268,460	)	$	(287,739	)	$	(380,615	)	$	562,850		$	(373,964	)

Condensed Consolidating Statement of Cash Flows (continued)

for the Six Months Ended June 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	$	—		$	—	$	148,722		$	—		$	148,722
Repayments of borrowings from secured notes payable	—			—		(233,168		)	—			(233,168		)
Proceeds from issuance of unsecured senior notes payable	348,604			—		—			—			348,604
Borrowings from unsecured senior line of credit	1,486,000			—		—			—			1,486,000
Repayments of borrowings from unsecured senior line of credit	(1,565,000		)	—		—			—			(1,565,000		)
Transfer to/from parent company	(27,824		)	288,534		302,140			(562,850		)	—
Payment of loan fees	(3,866		)	—		(4,061		)	—			(7,927		)
Change in restricted cash related to financing activities	—			—		10,582			—			10,582
Repurchase of Series D cumulative convertible preferred stock	(59,310		)	—		—			—			(59,310		)
Proceeds from the issuance of common stock	367,802			—		—			—			367,802
Dividends on common stock	(115,589		)	—		—			—			(115,589		)
Dividends on preferred stock	(12,086		)	—		—			—			(12,086		)
Financing costs paid for sales of noncontrolling interests	—			—		(8,093		)	—			(8,093		)
Contributions from and sale of noncontrolling interests	—			—		31,020			—			31,020
Distributions to and purchase of noncontrolling interests	—			—		(57,998		)	—			(57,998		)
Net cash provided by financing activities	418,731			288,534		189,144			(562,850		)	333,559
Effect of foreign exchange rate changes on cash and cash equivalents	—			—		(801		)	—			(801		)
Net increase in cash and cash equivalents	108,587			—		22,315			—			130,902
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	$	140,569		$	—	$	115,431		$	—		$	256,000
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest, net of interest capitalized	$	28,404		$	—	$	9,252		$	—		$	37,656
Non-Cash Investing Activities:
Change in accrued construction	$	—		$	—	$	59,871		$	—		$	59,871
Non-Cash Financing Activities:
Redemption of redeemable noncontrolling interests	$	—		$	—	$	(5,000	)	$	—		$	(5,000	)

Condensed Consolidating Statement of Cash Flows

for the Six Months Ended June 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	$	62,683		$	110,795		$	124,509		$	(234,549	)	$	63,438
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	2,716			—			118,375			—			121,091
Loss on early extinguishment of debt	189			—			—			—			189
Impairment of real estate	—			—			14,510			—			14,510
Equity in earnings of unconsolidated real estate JVs	—			—			(1,115		)	—			(1,115		)
Distributions of earnings from unconsolidated real estate JVs	—			—			648			—			648
Amortization of loan fees	3,852			—			1,871			—			5,723
Amortization of debt discounts (premiums)	161			—			(343		)	—			(182		)
Amortization of acquired below-market leases	—			—			(1,939		)	—			(1,939		)
Deferred rent	—			—			(23,193		)	—			(23,193		)
Stock compensation expense	7,744			—			—			—			7,744
Equity in earnings of affiliates	(121,526		)	(110,836		)	(2,187		)	234,549			—
Investment gains	—			—			(13,710		)	—			(13,710		)
Investment losses	—			41			7,836			—			7,877
Changes in operating assets and liabilities:
Restricted cash	(7		)	—			117			—			110
Tenant receivables	—			—			1,243			—			1,243
Deferred leasing costs	—			—			(24,503		)	—			(24,503		)
Other assets	(6,208		)	—			1,287			—			(4,921		)
Accounts payable, accrued expenses, and tenant security deposits	10,367			—			(11,977		)	—			(1,610		)
Net cash (used in) provided by operating activities	(40,029		)	—			191,429			—			151,400
Investing Activities
Proceeds from sales of real estate	—			—			92,455			—			92,455
Additions to real estate	—			—			(226,302		)	—			(226,302		)
Purchase of real estate	—			—			(137,493		)	—			(137,493		)
Deposit for investing activities	—			—			(15,501		)	—			(15,501		)
Investments in unconsolidated real estate JVs	—			—			(3,182		)	—			(3,182		)
Investments in subsidiaries	(199,541		)	(82,309		)	(1,711		)	283,561			—
Additions to investments	—			—			(52,738		)	—			(52,738		)
Sales of investments	—			6			22,468			—			22,474
Proceeds from repayment of notes receivable	—			—			4,247			—			4,247
Net cash used in investing activities	$	(199,541	)	$	(82,303	)	$	(317,757	)	$	283,561		$	(316,040	)

Condensed Consolidating Statement of Cash Flows (continued)

for the Six Months Ended June 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	$	—		$	—		$	42,867		$	—		$	42,867
Repayments of borrowings from secured notes payable	—			—			(10,075		)	—			(10,075		)
Principal borrowings from unsecured senior line of credit	915,000			—			—			—			915,000
Repayments of borrowings from unsecured senior line of credit	(595,000		)	—			—			—			(595,000		)
Repayment of unsecured senior bank term loan	(25,000		)							—			(25,000		)
Transfer to/from parent company	43,457			82,240			157,864			(283,561		)	—
Change in restricted cash related to financing activities	—			—			(1,520		)	—			(1,520		)
Proceeds from the issuance of common stock	5,052									—			5,052
Payment of loan fees	(2,104		)	—			(1,455		)	—			(3,559		)
Dividends on common stock	(106,603		)	—			—			—			(106,603		)
Dividends on preferred stock	(12,493		)	—			—			—			(12,493		)
Contributions by noncontrolling interests	—			—			340			—			340
Distributions to noncontrolling interests	—			—			(61,890		)	—			(61,890		)
Net cash provided by financing activities	222,309			82,240			126,131			(283,561		)	147,119
Effect of foreign exchange rate changes on cash and cash equivalents	—			—			127			—			127
Net decrease in cash and cash equivalents	(17,261		)	(63		)	(70		)	—			(17,394		)
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	$	35,230		$	—		$	33,387		$	—		$	68,617
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest, net of interest capitalized	$	33,695		$	—		$	10,637		$	—		$	44,332
Non-Cash Investing Activities:
Change in accrued construction	$	—		$	—		$	(27,469	)	$	—		$	(27,469	)
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	$	(52,672	)	$	—		$	—		$	—		$	(52,672	)