## To Fellow Alexandria Real Estate Equities, Inc. Owners: 

2 0 0 4 WA S A S T E L L A R Y E A R for Alexandria – marking one of the strongest performances in the Company’s almost eight-year track record as a New York Stock Exchange listed company. Alexandria’s unique operating platform continued to provide solid investment rewards for all investor styles. As the pre-eminent real estate invest- ment trust principally focused on the office/laboratory niche which we pioneered, Alexandria has generated a compounded annual growth rate (from our initial public offering on May 28, 1997 (“IPO”) through December 31, 2004) of: (i) approximately 24.8% in Funds From Operations (“FFO”) per share (diluted), (ii) approximately 32.2% in total assets, and (iii) approximately 34.6% in total market capitaliza- tion, each demonstrating one of the real estate industry’s top growth rates. Other key financial metrics included our total return perform- ance (assuming reinvestment of all dividends) from our IPO through December 31, 2004, of approximately 539%, significantly outperform- ing the NAREIT All Equity Index which increased approximately 254%, the Russell 2000 Index which increased approximately 191%, and the S&P 500 Index which increased approximately 161%. These are truly remarkable accomplishments achieved through challenging and varying economic cycles. 

