Alexandria Real Estate Equities, Inc. Announces Public Offering of 6,100,000 Shares of Common Stock

PASADENA, Calif., March 9, 2017

J.P. Morgan, BofA Merrill Lynch and Citigroup are the joint book-running managers for the offering.

The Company expects to enter into forward sale agreements with JPMorgan Chase Bank, N.A., London Branch, Bank of America, N.A., and Citibank, N.A. (the "forward purchasers") with respect to 4,000,000 shares of its common stock (or an aggregate of 4,915,000 shares if the underwriters exercise their option to purchase additional shares in full). In connection with the forward sale agreements, the forward purchasers or their affiliates are expected to borrow and sell to the underwriters an aggregate of 4,000,000 shares of the common stock that will be delivered in this offering (or an aggregate of 4,915,000 shares if the underwriters exercise their option to purchase additional shares in full). Subject to its right to elect cash or net share settlement subject to certain conditions, the Company intends to deliver, upon physical settlement of such forward sale agreements on one or more dates specified by the Company occurring no later than March 9, 2018, an aggregate of 4,000,000 shares of its common stock (or an aggregate of 4,915,000 shares if the underwriters exercise their option to purchase additional shares in full) to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price, which will be the public offering price, less underwriting discounts and commissions, and will be subject to certain adjustments as provided in the forward sale agreements.  

The Company will receive proceeds from its sale of shares of its common stock in this public offering, but it will not initially receive any proceeds from the sale of shares of its common stock by the forward purchasers. The Company expects to use the net proceeds from the sale of the shares of its common stock in this offering and any net proceeds it receives upon the future settlement of the forward sale agreements to fund pending and recently completed acquisitions, near-term highly leased development projects, the redemption of its outstanding Series E Preferred Stock, with any remaining proceeds being held for general working capital and other corporate purposes, including the reduction of the outstanding balance on the Company's unsecured senior line of credit, if any. Selling common stock through the forward sale agreements enables the Company to set the price of such shares upon pricing the offering (subject to certain adjustments), while delaying the issuance of the shares and the receipt of the net proceeds by the Company until the expected funding requirements described above have occurred.

The offering is being made pursuant to an effective registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission.  This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Company's common stock, nor shall there be any sale of the common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Copies of the prospectus supplement relating to this offering, when available, may be obtained by contacting: J.P. Morgan, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (1-866-803-9204); BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@baml.com; or Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Telephone: 800-831-9146).

Alexandria Real Estate Equities, Inc.