Alexandria Real Estate Equities, Inc. Releases Inaugural Corporate Responsibility Report, Unveils 2025 Sustainability Goals and Issues First Green Bond

Reinforcing Alexandria's longstanding commitment to and leadership in sustainability, health and wellness, and philanthropy, its report highlights the company's key programs, goals and accomplishments across the environmental, social and governance realms

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Alexandria Real Estate Equities, Inc.

Jul 18, 2018, 08:30 ET

PASADENA, Calif., July 18, 2018 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), an urban office REIT uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, today announced the release of its Inaugural Corporate Responsibility Report. The report highlights Alexandria's pursuit of operational excellence in environmental, social and governance (ESG) policies, practices and performance and unveils its 2025 sustainability goals for new ground-up development projects, environmental impact reductions for buildings in operation and healthy building certifications. Alexandria's Inaugural Corporate Responsibility Report release closely follows the issuance of its first green bond, which on June 12, 2018, was priced as a public offering of $450 million of senior notes due 2024.

"We're extremely proud of our industry-leading sustainability initiatives and programs," said Dean A. Shigenaga, co-president and chief financial officer of Alexandria Real Estate Equities, Inc. "Our Inaugural Corporate Responsibility Report showcases our past achievements while reaffirming our commitment to sustainability, social responsibility and transparency on a wide range of ESG topics. With our new environmental impact reduction goals and first green bond, we are continuing our leadership and commitment to high and increasing levels of sustainability performance."

Notable accomplishments detailed in the report include:

Reducing like-for-like energy consumption by 5.8% and greenhouse gas pollution from its buildings by 6.2% from 2016 to 2017;
Receiving the prestigious Green Star designation from the Global Real Estate Sustainability Benchmark (GRESB) and achieving the top score of all U.S. companies in the GRESB Health & Well-being Module in 2017;
Receiving Nareit's 2017 Leader in the Light Sustainability Award in the "Most Innovative" category;
Receiving Nareit's 2018 Investor CARE (Communications & Reporting Excellence) Gold Award in the Large Cap Equity REIT category in recognition of best-in-class transparency, quality and efficiency of disclosures and reporting for the third time; and
Being the first and only REIT to be named a First-in-Class Fitwel Champion and the first company of any kind to receive Fitwel certifications; and
Earning the world's first WELL certification for a newly constructed laboratory space at Alexandria LaunchLabs^® in New York City.

In conjunction with Alexandria's Inaugural Corporate Responsibility Report, the company launched its new 2025 sustainability goals for ground-up development of new buildings; environmental impact reduction of energy, carbon, water and waste; and healthy building certifications. With a baseline year of 2015, the comprehensive and ambitious goals will guide Alexandria's sustainability efforts through 2025. Highlights from the goals include:

25% reduction in energy consumption;
30% reduction in carbon pollution;
10% reduction in water consumption;
45% waste diversion rate;
50 healthy building certifications; and
100% of new ground-up development projects targeting minimum LEED^® Gold certification and Fitwel certification.

"Setting and reporting key environmental impact reduction goals will support our continual efforts to make a positive, meaningful and purposeful impact on the health, safety and well-being of our tenants, stockholders and employees, as well as on the communities in which we live and work," said Ari Frankel, assistant vice president of sustainability and high-performance buildings at Alexandria Real Estate Equities, Inc.

Alexandria has a proven track record of achieving high levels of green building certification. In line with its goal to receive a LEED Gold or Platinum certification for all new ground-up development projects, Alexandria's six completed development projects in 2017 have received or are expected to receive LEED Gold or Platinum certification. 510 Townsend Street and 505 Brannan Street in the Mission Bay/SoMa submarket received LEED Platinum^® certifications, and 100 Binney Street in the Cambridge submarket received LEED Gold^® certification.

As of December 31, 2017, Alexandria's total asset base in North America consisted of 50 projects that have achieved or are targeting LEED certification. LEED-certified projects constitute 30.4% of the company's total rentable square feet (RSF) of operating properties as of December 31, 2017—more than twice the Nareit average. Alexandria leveraged its longstanding commitment to and leadership in green building with the issuance of its successful first green bond. Proceeds from the green bond will be used to fund eligible green development, redevelopment or tenant improvement projects that have achieved or are targeting LEED Gold or Platinum certification.

Corporate responsibility is fundamental to fulfilling Alexandria's mission to advance human health, overcome global hunger and improve the quality of people's lives. To learn more about Alexandria's corporate responsibility program, please visit www.are.com/sustainability.html.

The Inaugural Corporate Responsibility Report is intended to highlight our efforts in environmental sustainability, social responsibility and corporate governance. Socially responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized, or judgment exercised, by Alexandria will reflect the beliefs or values of any one particular investor. Certain information regarding responsible practices is obtained from published sources or third parties, which may not be accurate or complete, and Alexandria is dependent on such information to evaluate and implement responsible practices. The standards of measurement and performance for ESG issues are developing or are based on assumptions, and norms may vary by region. There is no assurance that Alexandria will successfully implement any of the ESG policies, strategies or procedures outlined in the Inaugural Corporate Responsibility Report or that, if implemented, such policies, strategies and procedures will have any particular ESG-related affect. Past performance should not be viewed as a guide to future performance. Alexandria makes no representation or warranty regarding the information set forth in the Inaugural Corporate Responsibility Report.

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding Alexandria's 2025 sustainability goals for ground-up development of new buildings; environmental impact reduction of energy, carbon, water and waste; and LEED and healthy building certifications. These forward-looking statements are based on Alexandria's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by Alexandria's forward-looking statements as a result of a variety of factors. All forward-looking statements are made as of the date of this press release, and Alexandria assumes no obligation to update this information.

About Alexandria Real Estate Equities, Inc.

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500^® company, is an urban office REIT uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $17.9 billion and an asset base in North America of 30.2 million SF as of March 31, 2018. The asset base in North America includes 20.8 million RSF of operating properties and 3.5 million RSF of development and redevelopment of new Class A properties currently undergoing construction and pre-construction activities with target delivery dates ranging from 2018 through 2020. Additionally, the asset base in North America includes 5.9 million SF of intermediate-term and future development projects, including 3.6 million SF of intermediate-term development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle Park. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science and technology campuses that provide its innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity and success. Alexandria also provides strategic capital to transformative life science and technology companies through its venture capital arm. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns and greater long-term asset value. For additional information, please visit www.are.com.