Basis of presentation (Tables)

9 Months Ended

Sep. 30, 2011

Basis of presentation

Accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc.

	September 30,			December 31,
	2011			2010
Unrealized gain on marketable securities	$	3,553		$	6,157
Unrealized loss on interest rate hedge agreements	(36,763		)	(44,807		)
Unrealized gain on foreign currency translation	1,008			20,315
Total	$	(32,202	)	$	(18,335	)

Reconciliation of comprehensive income attributable to Alexandria Real Estate Equities, Inc.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Net income	$	32,995		$	30,461		$	99,931		$	47,022
Unrealized (loss) gain on marketable securities	(2,616		)	434			(2,604		)	(1,419		)
Unrealized gain (loss) on interest rate hedge agreements	2,558			(2,115		)	8,044			(4,196		)
Unrealized (loss) gain on foreign currency translation	(25,814		)	8,718			(19,255		)	6,089
Comprehensive income	7,123			37,498			86,116			47,496
Comprehensive income attributable to noncontrolling interests	1,024			928			2,885			2,877
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.	$	6,099		$	36,570		$	83,231		$	44,619

Reconciliation of the numerators and denominators of the basic and diluted per share computations for income (loss) from continuing operations and dividends declared per share of common stock

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
Earnings per share – basic	2011			2010			2011			2010
Income from continuing operations	$	33,855		$	29,982		$	100,343		$	45,026
Gain on sale of land parcel	46			–			46			–
Net income attributable to noncontrolling interests	(966		)	(920		)	(2,833		)	(2,785		)
Dividends on preferred stock	(7,089		)	(7,089		)	(21,267		)	(21,268		)
Net income attributable to unvested restricted stock awards	(278		)	(217		)	(818		)	(502		)
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic	25,568			21,756			75,471			20,471
(Loss) income from discontinued operations	(906		)	479			(458		)	1,996
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	24,662		$	22,235		$	75,013		$	22,467
Weighted average common shares outstanding – basic	61,295,659			49,807,241			58,271,270			46,188,308
Earnings per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic:
Continuing operations	$	0.41		$	0.44		$	1.30		$	0.45
Discontinued operations, net	(0.01		)	0.01			(0.01		)	0.04
Earnings per share – basic	$	0.40		$	0.45		$	1.29		$	0.49
Earnings per share – diluted
Income from continuing operations	$	33,855		$	29,982		$	100,343		$	45,026
Gain on sale of land parcel	46			–			46			–
Net income attributable to noncontrolling interests	(966		)	(920		)	(2,833		)	(2,785		)
Dividends on preferred stock	(7,089		)	(7,089		)	(21,267		)	(21,268		)
Net income attributable to unvested restricted stock awards	(278		)	(217		)	(818		)	(502		)
Effect of assumed conversion and dilutive securities:
Assumed conversion of 8.00% Unsecured Convertible Notes	–			–			–			–
Amounts attributable to unvested restricted stock awards	–			–			–			–
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted	25,568			21,756			75,471			20,471
(Loss) income from discontinued operations	(906		)	479			(458		)	1,996
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	24,662		$	22,235		$	75,013		$	22,467
Weighted average common shares outstanding – basic	61,295,659			49,807,241			58,271,270			46,188,308
Dilutive effect of stock options	8,310			23,098			13,475			31,813
Weighted average shares of common stock outstanding – diluted	61,303,969			49,830,339			58,284,745			46,220,121
Earnings per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted:
Continuing operations	$	0.41		$	0.44		$	1.30		$	0.45
Discontinued operations, net	(0.01		)	0.01			(0.01		)	0.04
Earnings per share – diluted	$	0.40		$	0.45		$	1.29		$	0.49
Dividends declared per common share	$	0.47		$	0.35		$	1.37		$	1.05

Income (loss) from continuing and discontinued operations attributable to Alexandria Real Estate Equities, Inc.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Income from continuing operations	$	33,855		$	29,982		$	100,343		$	45,026
Less: net income attributable to noncontrolling interests	(966		)	(920		)	(2,833		)	(2,785		)
Add: gain on sale of land parcel	46			–			46			–
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc.	$	32,935		29,062			97,556			42,241
(Loss) income from discontinued operations, net	$	(906	)	$	479		$	(458	)	$	1,996
Less: net income attributable to noncontrolling interests	–			–			–			–
(Loss) income from discontinued operations attributable to Alexandria Real Estate Equities, Inc.	$	(906	)	$	479		$	(458	)	$	1,996

Schedule of fair value of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy

			September 30, 2011
Description	Total		Quoted Prices in Active Markets for Identical Assets and Liabilities		“Significant Other Observable Inputs”		“Significant Unobservable Inputs”
Assets:
“Available for sale” securities	$	5,080	$	5,080	$	–	$	–
Liabilities:
Interest rate hedge agreements	$	36,709	$	–	$	36,709	$	–

			December 31, 2010
Description	Total		Quoted Prices in Active Markets for Identical Assets and Liabilities		“Significant Other Observable Inputs”		“Significant Unobservable Inputs”
Assets:
“Available for sale” securities	$	8,033	$	8,033	$	–	$	–
Liabilities:
Interest rate hedge agreements	$	44,645	$	–	$	44,645	$	–

Schedule of fair value of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy

			September 30, 2011
Description	Total		Quoted Prices in Active Markets for Identical Assets and Liabilities		“Significant Other Observable Inputs”		“Significant Unobservable Inputs”
Assets:
Property held for sale (1)	$	2,900	$	–	$	2,900	$	–

(1)Represents the fair value of one asset held for sale.  This asset is reflected on the balance sheet at its fair value less cost to sell. See Note 10, Discontinued Operations.

Schedule of the book and fair values of available for sale securities, interest rate hedge agreements, secured notes payable, unsecured line of credit, unsecured term loans, and unsecured convertible notes

	September 30, 2011				December 31, 2010
	Book Value		Fair Value		Book Value		Fair Value
“Available for sale” securities	$	5,080	$	5,080	$	8,033	$	8,033
Interest rate hedge agreements	36,709		36,709		44,645		44,645
Secured notes payable	760,882		846,292		790,869		865,939
Unsecured line of credit	814,000		834,600		748,000		707,518
Unsecured term loans	1,000,000		1,002,960		750,000		748,085
Unsecured convertible notes	84,484		84,716		295,293		302,486