Quantitative Equity Research Report | Release: 24 Feb 2025, 17:20 UTC | Reporting Currency: USD | Trading Currency: USD

| Exchange: NEW YORK STOCK EXCHANGE, INC. Page 1 of 6

Alexandria Real Estate Equities Inc ARE QQQQQ Q 22 Feb 2025 06:34, UTC

Economic Moat Q Uncertainty Q Price/Fair Value Q ESG Risk Rating Assessment 1 Trailing Dividend Yield % Market Cap Investment Style Sector Industry
None Medium 0.79 ;;;;; 5.43 16.76 Bil Mid Growth Real Estate REIT - Office
5 Feb 2025 06:00, UTC

400
Fair ValueQ oant

120.23
300

Last Close

200
95.57

100 Overvalued

Fairly Valued

55 Undervalued
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD Performance
1.08 1.07 1.08 0.95 1.11 1.03 1.15 0.72 0.78 0.85 0.79 Price/Fair Value
5.26 26.56 20.62 -8.90 43.68 12.92 27.62 -32.55 -9.57 -18.96 -2.03 Total Return %
0.69 12.44 21.47 -5.05 31.22 20.90 25.78 -19.43 26.44 24.09 2.31 Index
As of 21 Feb 2025 | Index: Morningstar US Market TR USD. Fair Value data as of 18 Feb 2025 06:33, UTC.
1
The ESG Risk Rating Assessment is a representation of Sustainalytics' ESG Risk Rating. Jeffrey Ptak, Chief Ratings Officer for Morningstar Research Services LLC oversees the method-
ology that supports Quantitative Fair Value Estimates and Quantitative Star Ratings. Mr Ptak is guided by the Morningstar Research Services' Code of Ethics and the Morningstar, Inc.
Code of Ethics in carrying out his responsibilities. For information regarding Conflicts of Interests, visit http://global.morningstar.com/equitydisclosures.

Business Description leverage, lies in the bottom 10% compared with

Alexandria Real Estate Equities Inc is an urban of- global peers. This suggests the company may
fice real estate investment trust (REIT). It is en- struggle to cope with economic distress and may
gaged in the business of providing space for lease need to reinvest in additional inventory. Despite
to life science, agtech, and technology tenants. The our favorable price/fair value ratio, this character-
company has established a market presence in key istic is a negative attribute.
locations, including Greater Boston, the San Fran-
cisco Bay Area, New York City, San Diego, Seattle, In addition to the aforementioned drivers, our mod-
Maryland, and Research Triangle, Texas, and el considers momentum as part of its comprehens-
Canada. The Company is a life science real estate ive analysis. This share class has been a laggard re-
investment trust focused on developing, redevelop- lative to the broader universe over the past year.
ing, and operating properties that provide space for This underperformance makes the stock appear
lease to tenants in the life science industry. cheap, which portends a buying opportunity in
light of other contributors to our model.
Valuation as of 22 Feb 2025
Alexandria Real Estate Equities Inc receives a 5- Economic Moat as of 22 Feb 2025
star quantitative star rating, reflecting our opinion This company lacks a competitive advantage, re-
that this share class offers a compelling opportun- ceiving a quantitative economic moat rating of
ity for investors. The stock currently trades at a none. Additionally, the firm's moderate financial
21% discount to our quantitative fair value estim- health score suggests it is acceptably positioned
ate of 120.23 USD per share; however, some cau- against adverse economic circumstances.
tion is warranted due to this estimate's medium
uncertainty rating. Contact
26 North Euclid Avenue, Pasadena, CA 91101
The firm's valuation metrics strengthen our fair T +1 626 578-0777
value estimate. A company's valuation metrics [email protected]
provide insights into the market's expectations for https://www.are.com
its future growth and profitability. Reflecting the
firm's valuation is its book value yield of 109.5%,
which lies in the top 30% compared with peers
globally. The market price is low relative to the
book (accounting) value of the company's equity,
which contributes to our view that shares are
cheap.

Alternatively, the firm's balance sheet is potentially

concerning. Excessive leverage heightens financial
risk, potentially undermining a firm's value. The
firm's current ratio of 0.4, a core component of
©2025 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore is not an offer to buy or sell a security; are not warranted to be correct, complete or accurate; and are
subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or
ß
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Quantitative Equity Research Report | Release: 24 Feb 2025, 17:20 UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 2 of 6

Alexandria Real Estate Equities Inc ARE QQQQQ Q 22 Feb 2025 06:34, UTC

Economic Moat Q Uncertainty Q Price/Fair Value Q ESG Risk Rating Assessment 1 Trailing Dividend Yield % Market Cap Investment Style Sector Industry
None Medium 0.79 ;;;;; 5.43 16.76 Bil Mid Growth Real Estate REIT - Office
5 Feb 2025 06:00, UTC

Economic Moat History as of 15 Feb 2025 Dividends as of 21 Feb 2025 Valuation as of 18 Feb 2025
No Moat Narrow Moat Wide Moat Stock Price Payout Ratio
0.00-0.70 0.71-0.99 0.99-1.00
240 920.00% Undervalued (20%
1.0 Discount)
Fair ValueQ oant

Economic Moat
180 690.00 120.23
Uncertainty Qoant
: None
Medium 1-Star Price
134.84
120 460.00 5-Star Price
0.5
Last Close
95.57 107.20

60 230.00

0.0 0 0.00

2020 2021 2022 2023 2024 2025 16 17 18 19 20 21 22 23 24 25

Financials (Fiscal Year End 31 Dec 2025)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 12/2024 Fiscal
819.55 897.89 1,124.51 1,327.46 1,531.30 1,885.64 2,114.15 2,588.96 2,842.46 3,116.39 3,049.71 Revenue (Mil)
237.41 242.21 307.11 378.27 432.37 523.97 518.07 626.39 690.45 836.39 769.70 Operating Income (Mil)
28.97 26.98 27.31 28.50 28.24 27.79 24.51 24.19 24.29 26.84 26.84 Operating Margin (%)
116.87 -151.14 145.40 363.98 351.00 760.79 563.40 513.27 92.44 309.56 309.56 Net Income (Mil)
1.63 -1.99 1.58 3.52 3.12 6.01 3.82 3.18 0.54 1.80 1.80 Diluted Earnings/Share
342.61 392.50 450.33 570.34 683.86 882.51 1,010.20 1,294.32 1,630.55 1,504.52 1,504.52 Operating Cash Flow (Mil)
— — — — — — — — — — — Capital Spending (Mil)
373.24 435.14 506.67 625.93 721.02 952.89 1,105.46 1,417.03 1,628.52 1,704.98 1,704.98 Free Cash Flow (Mil)
0.07 0.09 0.10 0.11 0.12 0.14 0.15 0.16 0.17 0.17 0.17 Avg Shares Outstand(Bil)

Valuation as of 21 Feb 2025

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Current Calendar
1.08 1.07 1.08 0.95 1.11 1.03 1.15 0.72 0.78 0.85 0.79 Price/Fair Value
8.14 9.48 10.76 9.10 12.30 11.91 15.91 9.31 7.77 5.53 5.39 Price/Sales
101.53 — 145.10 27.24 158.41 40.69 32.89 43.88 91.86 59.48 53.09 Price/Earnings
17.52 19.60 23.48 19.79 25.47 23.91 30.63 17.22 13.53 9.99 9.65 Price/Cash Flow
1.91 2.36 2.31 1.79 2.36 2.22 2.32 1.34 1.16 0.92 0.92 Price/Book

Operating Performance (Fiscal Year End 31 Dec 2025)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 12/2024 Fiscal (%)
1.37 -1.57 1.29 2.74 2.14 3.69 2.12 1.56 0.26 0.83 0.83 Return on Assets
3.31 -3.65 2.76 5.53 4.35 7.39 4.04 2.92 0.49 1.70 1.70 Return on Equity
2.41 -0.62 2.27 4.09 3.33 4.98 2.96 2.15 0.51 1.50 1.50 Rtn on Invested Capital

Dividends as of 21 Feb 2025

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Current Calendar (%)
3.05 3.23 3.45 3.73 4.00 4.24 4.48 4.72 4.96 5.19 5.19 Dividend Per Share
3.38 2.91 2.64 3.24 2.48 2.38 2.01 3.24 3.91 5.32 5.43 Trailing Dividend Yield
— — — — — — — — — — 0.14 Buyback Yield

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presented herein do not constitute investment advice; are provided solely for informational purposes and therefore is not an offer to buy or sell a security; are not warranted to be correct, complete or accurate; and are
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Quantitative Equity Research Report | Release: 24 Feb 2025, 17:20 UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 3 of 6

Appendix

Economic Moat History as of 15 Feb 2025 (No Moat: 0.00-0.70, Narrow Moat: 0.70-0.99, Wide Moat: 0.99-1.00)
Year January February March April May June July August September October November December
2025 0.27 0.34 — — — — — — — — — —
2024 0.38 0.49 0.34 0.37 0.25 0.27 0.25 0.28 0.28 0.12 0.17 0.15
2023 0.43 0.41 0.55 0.58 0.54 0.52 0.38 0.42 0.58 0.59 0.66 0.65
2022 0.53 0.38 0.35 0.30 0.61 0.53 0.52 0.69 0.74 0.71 0.56 0.56
2021 0.54 0.58 0.50 0.39 0.26 0.28 0.19 0.41 0.13 0.22 0.20 0.23
2020 0.20 0.04 0.21 0.26 0.41 0.65 0.66 0.31 0.61 0.52 0.43 0.67

©2025 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore is not an offer to buy or sell a security; are not warranted to be correct, complete or accurate; and are
subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or
ß
opinions or their use. The information herein may not be reproduced, in any manner without the prior written consent of Morningstar. Please see important disclosures at the end of this report.
Quantitative Equity Research Report | Release: 24 Feb 2025, 17:20 UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 4 of 6

QQQQ – the stock is somewhat undervalued.

Quantitative Equity Report Overview Log (Quant FVE/Price) between (0.5*Quantitative Uncertainty, 1*Quantitative
Uncertainty)
Micro-Caps: Log (Quant FVE/Price) between (0.75*Quantitative Uncertainty,
The quantitative report on equities consists of data, statistics and quantitative
1.5*Quantitative Uncertainty)
equity ratings on equity securities. Morningstar, Inc.’s quantitative equity
QQQQQ – the stock is undervalued with a reasonable margin of safety.
ratings are forward looking and are generated by a statistical model that is
Log (Quant FVE/Price) > 1*Quantitative Uncertainty
based on Morningstar Inc.’s analyst-driven equity ratings and quantitative
Micro-Caps: Log (Quant FVE/Price) > 1.5*Quantitative Uncertainty
statistics. Given the nature of the quantitative report and the quantitative
ratings, there is no one analyst in which a given report is attributed to; Under Review – Morningstar will assign a rating of "Under Review" in three
however, Jeffrey Ptak, Chief Ratings Officer for Morningstar Research Services scenarios: when there is occurrence of a corporate event, when the closing
LLC is responsible for overseeing the methodology that supports the price is unavailable for at least 7 days, or when the quantitative Fair Value to
quanitiative equity ratings used in this report. As an employee of Morningstar Price Ratio does not fall into the expected range of 0.25-4.
Research Services LLC, a subsidiary of Morningstar, Inc, Mr Ptak is guided by Not Rated – Morningstar will assign a rating of 'Not Rated' when closing
the Morningstar Research Services' Code of Ethics and the Morningstar, Inc. price data is unavailable for at least 30 days.
Code of Ethics and Personal Securities trading Policy in carrying out his
responsibilities. Momentum Flag – After the initial calculation for the star rating, there is a
final filtering step based on the momentum of the company. We rank the
Quantitative Equity Ratings companies based on their 12-1 month momentum, then restrict those below
Morningstar’s quantitative equity ratings consist of: (i) Quantitative Fair Value the 30th percentile to a maximum of 3 stars.
Estimate, (ii) Quantitative Star Rating, (iii) Quantitative Uncertainty, (iv)
Quantitative Economic Moat, and (v) Quantitative Financial Health (collectively iv. Quantitative Uncertainty: Intended to represent Morningstar’s level of
the “Quantitative Ratings). uncertainty about the accuracy of the Quantitative Fair Value Estimate.
Generally, the lower the Quantitative Uncertainty, the narrower the potential
The Quantitative Ratings are calculated daily and derived from the analyst- range of outcomes for that particular company. The rating is expressed as Low,
driven ratings of a company’s peers as determined by statistical algorithms. Medium, High, Very High, and Extreme.
Morningstar, Inc. (“Morningstar”, “we”, “our”) calculates Quantitative Ratings Low – the interquartile range for possible fair values is less than 10%
for companies whether or not it already provides analyst ratings and qualitative Medium – the interquartile range for possible fair values is less than 15%
coverage. In some cases, the Quantitative Ratings may differ from the analyst but greater than 10%
ratings because a company’s analyst-driven ratings can significantly differ from High – the interquartile range for possible fair values is less than 35% but
other companies in its peer group. greater than 15%
Very High – the interquartile range for possible fair values is less than 80%
i. Quantitative Fair Value Estimate: Intended to represent Morningstar’s
but greater than 35%
estimate of the per share dollar amount that a company’s equity is worth
Extreme – the interquartile range for possible fair values is greater than
today. Morningstar calculates the Quantitative Fair Value Estimate using a
80%
statistical model derived from the Fair Value Estimate Morningstar’s equity
analysts assign to companies. Please go to http://global.morningstar.com/ v. Quantitative Financial Health: Intended to reflect the probability that a firm
equitydisclosures for information about Fair Value Estimate Morningstar’s will face financial distress in the near future. The calculation uses a predictive
equity analysts assign to companies. model designed to anticipate when a company may default on its financial
obligations. The rating is expressed as Weak, Moderate, and Strong.
ii. Quantitative Economic Moat: Intended to describe the strength of a firm’s
Weak – assigned when Quantitative Financial Health < 0.2
competitive position. It is calculated using an algorithm designed to predict the
Moderate – assigned when Quantitative Financial Health is between 0.2
Economic Moat rating a Morningstar analyst would assign to the stock. The
and 0.7
rating is expressed as Narrow, Wide, or None.
Strong – assigned when Quantitative Financial Health > 0.7
Narrow – assigned when the probability of a stock receiving a “Wide Moat”
rating by an analyst is greater than 70% but less than 99%. Other Definitions
Wide – assigned when the probability of a stock receiving a “Wide Moat” i. Last Close – Price of the stock as of the close of the market of the last
rating by an analyst is greater than 99%. trading day before date of the report.
None – assigned when the probability of an analyst receiving a “Wide ii. Quantitative Valuation– Using the below terms, intended to denote the
Moat” rating by an analyst is less than 70%. relationship between the security’s Last Price and Morningstar’s quantitative
fair value estimate for that security.
iii. Quantitative Star Rating: Intended to be the summary rating based on the
Undervalued – Last Price is below Morningstar’s quantitative fair value
combination of our Quantitative Fair Value Estimate, current market price,
estimate.
Quantitative Uncertainty Rating, and momentum. The rating is expressed as
Fairly Valued – Last Price is in line with Morningstar’s quantitative fair value
One-Star, Two-Star, Three-Star, Four-Star, and Five-Star.
estimate.
Q – the stock is overvalued with a reasonable margin of safety.
Log (Quant FVE/Price) < -1*Quantitative Uncertainty
Overvalued – Last Price is above Morningstar’s quantitative fair value
Micro-Caps: Log (Quant FVE/Price) < -1.5*Quantitative Uncertainty
estimate.
QQ - the stock is somewhat overvalued. Sustainalytics ESG Risk Rating Assessment: The ESG Risk Rating
Log (Quant FVE/Price) between (-1*Quantitative Uncertainty, -0.5*Quantitative Assessment is provided by Sustainalytics; a Morningstar company.
Uncertainty) Sustainalytics’ ESG Risk Ratings measure the degree to which company’s
Micro-Caps: Log (Quant FVE/Price) between (-1.5*Quantitative Uncertainty, - economic value at risk is driven by environment, social and governance (ESG)
0.75*Quantitative Uncertainty) factors.
QQQ – the stock is approximately fairly valued.
Log (Quant FVE/Price) between (-0.5*Quantitative Uncertainty, 0.5*Quantitative Sustainalytics analyzes over 1,300 data points to assess a company’s exposure
Uncertainty) to and management of ESG risks. In other words, ESG Risk Ratings measures a
Micro-Caps: Log (Quant FVE/Price) between (-0.75*Quantitative Uncertainty, company’s unmanaged ESG Risks represented as a quantitative score.
0.75*Quantitative Uncertainty)

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Unmanaged Risk is measured on an open-ended scale starting at zero (no risk) specific investment objectives, financial situation or particular needs of any
with lower scores representing less unmanaged risk and, for 95% of cases, the specific recipient. This publication is intended to provide information to assist
unmanaged ESG Risk score is below 50. investors in making their own investment decisions, not to provide investment
advice to any specific investor. Therefore, investments discussed herein may
Based on their quantitative scores, companies are grouped into one of five Risk not be suitable for all investors; investors must exercise their own independent
Categories (negligible, low, medium, high, severe). These risk categories are judgment as to the suitability of such investments and recommendations in the
absolute, meaning that a ‘high risk’ assessment reflects a comparable degree light of their own investment objectives, experience, taxation status and
of unmanaged ESG risk across all subindustries covered. financial position. Morningstar encourages Report recipients to read all
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The ESG Risk Rating Assessment is a visual representation of Sustainalytics
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ESG Risk Categories on a 1 to 5 scale. Companies with Negligible Risk = 5
objectives, risks, and costs before making an investment decision and when
Globes, Low Risk = 4, Medium Risk = 3 Globes, High Risk = 2 Globes, Severe
deemed necessary, to seek the advice of a financial, legal, tax, and/or
Risk = 1 Globe. For more information, please visit sustainalytics.com/esg-
accounting professional.
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