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What changed in Alexandria Real Estate Equities's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Alexandria Real Estate Equities's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+757 added−771 removedSource: 10-K (2024-01-29) vs 10-K (2023-01-30)

Top changes in Alexandria Real Estate Equities's 2023 10-K

757 paragraphs added · 771 removed · 488 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeIn addition, we have prioritized our employees’ total well-being with additional benefits that focus on their emotional, mental, physical, financial, and social health: • 100% company-paid therapy and life coaching for our employees and their eligible dependents to help them prioritize their mental health and make these resources accessible and available • Additional company-paid holidays and paid time off to encourage employees to rest and recharge • 24/7 telehealth and medical care, including COVID-19 testing 6 • Expert-led internal webinar series addressing relevant and engaging subjects to educate and inform our employees, including with the most up-to-date and reliable information on COVID-19 by leveraging our world-class life sciences network • Wellness reimbursement benefit for fitness and mindfulness applications, online classes, and home exercise equipment that encourages our employees to stay mentally and physically fit • Enhanced employee social connectedness through Alexandria’s Operation CARE program for corporate giving, fundraising, and volunteerism opportunities, which consists of several programs, including the following: • Paid volunteer time off up to 16 hours per calendar year to use at eligible non-profit organizations of their choice • Matching gifts up to $5,000 per person each calendar year to double the impact of their charitable giving • Volunteer rewards initiated when an employee volunteers more than 25 hours in any quarter at eligible non-profit organizations, for which Alexandria donates a total of $2,500 to the eligible non-profit organizations of their choice, up to $10,000 annually • Alexandria Lifeline ™ – Alexandria’s unparalleled network in the life science community affords us access to deep medical expertise.
Biggest changeIn addition, we have prioritized our employees’ total well-being with additional benefits that focus on their emotional, mental, physical, financial, and social health including: • 100% company-paid therapy and life coaching to help our employees and their eligible dependents prioritize their mental health and provide timely access to professional help; • Additional company-paid holidays and paid time off to encourage employees to rest and recharge; • 24/7 telehealth and medical care ; 6 • Expert-led internal webinar series leveraging our world-class life science network to educate and inform our employees on relevant and engaging subjects; • Wellness reimbursement benefit for fitness, self-defense, mindfulness applications, subscriptions, and classes, and home exercise equipment to encourage our employees to stay mentally and physically fit; • Enhanced social connectedness through Alexandria’s Operation CARE program for giving to, fundraising for, and volunteering at any eligible non-profit organization(s) of an employee’s choosing, including: • Paid volunteer time off of up to16 hours per calendar year, • Matching gifts of up to $5,000 per calendar year, • Volunteer rewards of up to $10,000 per calendar year donated by Alexandria based on time volunteered ($2,500 donated per 25 hours); • Alexandria Lifeline ™ – Alexandria’s unparalleled network in the life science community affords us access to deep medical expertise.
Our company-sponsored suite of benefits covers 100% of the premiums for our employees and their dependents and includes, but is not limited to, a high-coverage, low-deductible PPO (preferred provider organization) medical plan, a 24/7 telehealth and concierge medical care services program, PPO dental and orthodontia coverage, a generous vision plan, comprehensive prescription drug plan, infertility and family planning benefits, short- and long-term disability benefits, and life and accidental death and dismemberment coverage.
Our company-sponsored suite of benefits covers 100% of the premiums for our employees and their dependents and includes, but is not limited to, a high-coverage, low-deductible preferred provider organization (“PPO”) medical plan, a 24/7 telehealth and concierge medical care services program, PPO dental and orthodontia coverage, a generous vision plan, comprehensive prescription drug plan, infertility and family planning benefits, short-term and long-term disability benefits, and life and accidental death and dismemberment coverage.
Alexandria devotes extraordinary efforts to hiring, developing, and retaining our talented employees, and we understand firsthand the health, happiness, and well-being of our best-in-class team are key factors to the success of our employees and of the Company. We have an exceptional track record of identifying highly qualified candidates for promotion from within the Company.
Alexandria devotes extraordinary efforts to hiring, developing, and retaining our talented employees, and we understand firsthand that the health, happiness, and well-being of our best-in-class team are key factors to the success of our employees and that of the Company. We have an exceptional track record of identifying highly qualified candidates for promotion from within the Company.
We have adopted a Business Integrity Policy that applies to all of our employees, and its receipt and review by each employee is documented and verified annually. To promote an exceptional corporate culture, Alexandria continuously monitors employee satisfaction, seeks employee feedback, and proactively enhances our employee offerings.
We have a Business Integrity Policy that applies to all of our employees, and its receipt and review by each employee is documented and verified annually. To promote an exceptional corporate culture, Alexandria continuously monitors employee satisfaction, seeks employee feedback, and proactively enhances our employee offerings.
In particular, we seek to maximize balance sheet liquidity and flexibility, cash flows, and cash available for distribution to our stockholders by: • Maintaining access to diverse sources of capital, which include net cash flows from operating activities after dividends, incremental leverage-neutral debt supported by growth in EBITDA, strategic value harvesting and asset recycling through real estate dispositions and sales of partial interests, non-real estate investment sales, sales of equity, and other capital; • Maintaining significant liquidity through borrowing capacity under our unsecured senior line of credit and commercial paper program, secured construction loans, marketable securities, issuances of forward equity contracts from time to time, and cash, cash equivalents, and restricted cash; • Continuing to improve our credit profile; • Minimizing the amount of debt maturing in a single year; • Maintaining commitment to long-term capital to fund growth; • Maintaining low to modest leverage; • Minimizing variable interest rate risk; • Generating high-quality, strong, and increasing operating cash flows; • Selectively selling real estate assets, including land parcels, non-core and “core-like” operating assets, and sales of partial interests, and reinvesting the proceeds into our highly leased value-creation development and redevelopment projects; • Allocating capital to Class A properties located in collaborative life science, agtech, and technology campuses in AAA innovation clusters; • Maintaining geographic diversity in urban intellectual centers of innovation; • Selectively acquiring high-quality office/laboratory, agtech, and technology space in our target urban innovation cluster submarkets at prices that enable us to realize attractive returns; • Selectively developing properties in our target urban innovation cluster submarkets; • Selectively redeveloping existing office, warehouse, or shell space, or newly acquired properties, into high-quality, generic, and reusable office/laboratory space that can be leased at higher rental rates in our target urban innovation cluster submarkets; • Renewing existing tenant space at higher rental rates to the extent possible; • Minimizing tenant improvement costs; • Improving investment returns through the leasing of vacant space and the replacing of existing tenants with new tenants at higher rental rates; • Executing leases with high-quality tenants and proactively monitoring tenant health; • Maintaining solid occupancy while attaining high rental rates; • Realizing contractual rental rate escalations; and • Implementing effective cost control measures, including negotiating pass-through provisions in tenant leases for operating expenses and certain capital expenditures. 3 Competition In general, other office/laboratory and technology properties are located in close proximity to our properties.
In particular, we seek to maximize balance sheet liquidity and flexibility, cash flows, and cash available for distribution to our stockholders by: • Maintaining access to diverse sources of capital, which include, among others, net cash flows from operating activities after dividends, incremental leverage-neutral debt supported by growth in EBITDA, strategic value harvesting and asset recycling through real estate dispositions and sales of partial interests, non-real estate investment sales, sales of equity, and joint venture capital; • Maintaining significant liquidity through borrowing capacity under our unsecured senior line of credit and commercial paper program, secured construction loans, marketable securities, issuances of forward equity contracts from time to time, and cash, cash equivalents, and restricted cash; • Continuing to improve our credit profile; • Minimizing the amount of debt maturing in a single year; • Maintaining commitment to long-term capital to fund growth; • Maintaining low to modest leverage; • Minimizing variable interest rate risk; • Generating high-quality, strong, and increasing operating cash flows; • Selectively selling real estate assets, including land parcels, non-core and “core-like” operating assets, and sales of partial interests, and reinvesting the proceeds into our highly leased value-creation development and redevelopment projects; • Allocating capital to Class A/A+ properties located in collaborative life science, agtech, and advanced technology mega campuses in AAA innovation clusters; • Maintaining geographic diversity in intellectual centers of innovation; • Selectively acquiring high-quality life science, agtech, and advanced technology space in our target innovation cluster submarkets at prices that enable us to realize attractive returns; • Selectively developing properties in our target innovation cluster submarkets; • Selectively redeveloping acquired office, warehouse, or shell space, or newly acquired properties, into high-quality, generic, and reusable laboratory space that can be leased at higher rental rates in our target innovation cluster submarkets; • Renewing existing tenant space at higher rental rates to the extent possible; • Minimizing tenant improvement costs; • Improving investment returns through the leasing of vacant space and the replacing of existing tenants with new tenants at higher rental rates; • Executing leases with high-quality tenants and proactively monitoring tenant health; • Maintaining solid occupancy while attaining high rental rates; • Realizing contractual rental rate escalations; and • Implementing effective cost control measures, including negotiating pass-through provisions in tenant leases for operating expenses and certain capital expenditures. 3 Competition In general, other laboratory and technology properties are located in close proximity to our properties.
We have an experienced Board of Directors and are led by an executive and senior management team with extensive experience in the real estate, life science, agtech, and technology industries. Acquisitions We seek to identify and acquire high-quality properties in our target cluster markets. Critical evaluation of prospective property acquisitions is an essential component of our acquisition strategy.
We have an experienced Board of Directors (the “Board”) and are led by an executive and senior management team with extensive experience in the real estate, life science, agtech, and technology industries. Acquisitions We seek to identify and acquire high-quality properties in our cluster markets. Critical evaluation of prospective property acquisitions is an essential component of our acquisition strategy.
Balance sheet and financial strategy We seek to maximize balance sheet liquidity and flexibility, cash flows, and cash available for distribution to our stockholders through the ownership, operation, management, and selective acquisition, development, and redevelopment of new Class A properties located in collaborative life science, agtech, and technology campuses in AAA innovation clusters, as well as the prudent management of our balance sheet.
Balance sheet and financial strategy We seek to maximize balance sheet liquidity and flexibility, cash flows, and cash available for distribution to our stockholders through the ownership, operation, management, and selective acquisition, development, and redevelopment of new Class A/A+ properties located in collaborative life science, agtech, and advanced technology mega campuses in AAA innovation clusters, as well as the prudent management of our balance sheet.
A key element of our strategy is our unique focus on Class A properties located in collaborative life science, agtech, and technology campuses in AAA innovation clusters. These key campus locations are generally characterized by high barriers to entry for new landlords, high barriers to exit for tenants, and a limited supply of available space.
A key element of our strategy is our unique focus on Class A/A+ properties located in collaborative life science, agtech, and advanced technology mega campuses in AAA innovation clusters. These key campus locations are generally characterized by high barriers to entry for new landlords, high barriers to exit for tenants, and a limited supply of available space.
Alexandria has a longstanding and proven track record of developing Class A properties clustered in life science, agtech, and technology campuses that provide our 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 has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our 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.
These benefits support the health of our employees and their families, their overall well-being, and their future plans and also reward and recognize their operational excellence.
These benefits support the health of our employees and their families, their overall well-being, and their future plans, and also reward their operational excellence.
Management’s discussion and analysis of financial condition and results of operations” in this annual report on Form 10-K. 1 Business objective and strategies Our primary business objective is to maximize long-term asset value and shareholder returns based on a multifaceted platform of internal and external growth.
Management’s discussion and analysis of financial condition and results of operations” in this annual report on Form 10-K. 1 Business objective and strategies Our primary business objective is to maximize long-term asset value and stockholder returns based on a multifaceted platform of internal and external growth.
Written requests should be sent to Alexandria Real Estate Equities, Inc., 26 North Euclid Avenue, Pasadena, California 91101, Attention: Investor Relations. The public may also download these materials from the SEC’s website at www.sec.gov. 5 Human capital As of December 31, 2022, we had 593 employees. We place a significant focus on building loyalty and trusted relationships with our employees.
Written requests should be sent to Alexandria Real Estate Equities, Inc., 26 North Euclid Avenue, Pasadena, California 91101, Attention: Investor Relations. The public may also download these materials from the SEC’s website at www.sec.gov. 5 Human capital As of December 31, 2023, we had 568 employees. We place a significant focus on building loyalty and trusted relationships with our employees.
To address issues related to pay discrimination, the Company has implemented a ban on any and all inquiries into an applicant’s salary history and we incorporate fair pay reviews into every employment compensation decision. To reinforce our corporate culture of respect, diversity, and inclusion, we provide anti-harassment training annually for all employees.
To address issues related to pay discrimination, the Company has a ban on any and all inquiries into an applicant’s salary history, and we incorporate fair pay reviews into every employment compensation decision. To reinforce our corporate culture of respect, diversity, and inclusion, we provide anti-harassment training annually.
As the pioneer of the life science real estate niche since its founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and technology campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.
As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.
Alexandria’s executive and senior management teams have unique experience and expertise in creating, owning, and operating highly dynamic and collaborative campuses in key urban life science, agtech, and technology cluster locations. These teams also include regional market directors with leading reputations and longstanding relationships within the life science, agtech, and technology communities in their respective urban innovation clusters.
Alexandria’s executive and senior management teams have unique experience and expertise in creating, owning, and operating highly dynamic and collaborative mega campuses in key life science, agtech, and advanced technology cluster locations. These teams include regional market directors with leading reputations and longstanding relationships within the life science, agtech, and technology communities in their respective innovation clusters.
Furthermore, as a federal government contractor, Alexandria maintains affirmative action plans, which sets forth the policies, practices, and procedures to which the Company is committed in order to ensure that its policies of nondiscrimination and affirmative action are followed for qualified females, minorities, individuals with disabilities, and protected veterans.
Furthermore, as a federal government contractor, Alexandria maintains affirmative action plans, which set forth the policies, practices, and procedures to which the Company is committed in order to ensure that our policies of nondiscrimination and affirmative action are followed for qualified females, minorities, individuals with disabilities, and protected veterans.
Alexandria’s executive and senior management teams, represented by our senior vice presidents and above, consist of 60 individuals, averaging 24 years of real estate experience, including 12 years with Alexandria. Moreover, our executive management team alone averages 18 years of experience with the Company.
Alexandria’s executive and senior management teams, represented by our senior vice presidents and above, consist of 60 individuals, averaging 23 years of real estate experience, including 13 years with Alexandria. Moreover, our executive management team alone averages 18 years of experience with the Company.
We strive to create an open and respectful environment in which our employees can actively contribute, have access to opportunities and resources, and realize their full potential.
We strive to create an open and respectful environment where our employees can actively contribute, have access to opportunities and resources, and realize their full potential.
We develop dynamic urban cluster campuses and vibrant ecosystems that enable and inspire the world’s most brilliant minds and innovative companies to create life-changing scientific and technological breakthroughs. We believe in the utmost professionalism, humility, and teamwork.
We develop dynamic mega campuses and vibrant ecosystems that enable and inspire the world’s most brilliant minds and innovative companies to create life-changing scientific and technological innovations. We believe in the utmost professionalism, humility, and teamwork.
Management’s discussion and analysis of financial condition and results of operations” in this annual report on Form 10-K. Additional information regarding risk factors that may affect us is included in “Item 1A. Risk factors” and “Item 7.
Additional information regarding our consolidated and unconsolidated real estate joint ventures is included in “Item 7. Management’s discussion and analysis of financial condition and results of operations” in this annual report on Form 10-K. Additional information regarding risk factors that may affect us is included in “Item 1A. Risk factors” and “Item 7.
Alexandria Lifeline makes this expertise available to our employees and their immediate family members who are suffering from a serious illness or injury and would benefit from specialized medical care. Investing in professional development and training We understand that to attract and retain the best talent, we must provide opportunities for our people to grow and develop.
Alexandria Lifeline makes this expertise available to our employees and their immediate family members who are suffering from a serious illness or injury and would benefit from specialized medical care. Investing in professional development and training Alexandria champions our people as our greatest asset. To attract and retain the best talent, we provide meaningful opportunities for growth and development.
Redevelopment projects consist of the permanent change in use of office, warehouse, and shell space into office/laboratory, agtech, or tech office space.
Redevelopment projects consist of the permanent change in use of acquired office, warehouse, or shell space into laboratory, agtech, or advanced technology space.
The positive employee experience is evidenced by our low voluntary and total turnover rates averaging 3.6% and 7.7%, respectively, over the last five years, from 2018 to 2022, which are substantially lower than the reported average voluntary and total turnover rates of 16.0% and 19.0%, respectively, in the 2022 Nareit Compensation & Benefits Survey (data for 2021).
The positive employee experience is evidenced by our low voluntary and total turnover rates averaging 4.1% and 8.3%, respectively, over the last five years, from 2019 to 2023, which are substantially lower than the average voluntary and total turnover rates of 14.0% and 19.0%, respectively, as reported for the REIT industry in the 2023 Nareit Compensation & Benefits Survey (data for 2022).
We generally do not commence vertical construction of new projects prior to achieving significant pre-leasing. 2 Non-real estate investments We also hold strategic investments in publicly traded companies and privately held entities primarily involved in the life science, agtech, and technology industries.
Our redevelopment strategy generally includes significant pre-leasing of projects prior to the commencement of redevelopment. 2 Non-real estate investments We also hold strategic investments in publicly traded companies and privately held entities primarily involved in the life science, agtech, and technology industries.
Another key component of our business model is our value-creation redevelopment of existing office, warehouse, or shell space, or newly acquired properties, into high-quality, generic, and reusable office/laboratory space that can be leased at higher rental rates. Our redevelopment strategy generally includes significant pre-leasing of projects prior to the commencement of redevelopment.
Another key component of our business model is our value-creation redevelopment of acquired office, warehouse, or shell space into high-quality, generic, and reusable laboratory space that can be leased at higher rental rates.
We believe that our expertise, experience, reputation, and key relationships in the real estate, life science, agtech, and technology industries provide Alexandria with significant competitive advantages in attracting new business opportunities.
We believe that our expertise, experience, reputation, and key relationships in the real estate, life science, agtech, and technology industries provide Alexandria with significant competitive advantages in attracting new business opportunities. Building a diverse board of directors and inclusive workforce Our Corporate Governance Guidelines highlight our Board of Directors’ focus on diversity at the board level.
Building a diverse board of directors and inclusive workforce Our Corporate Governance Guidelines highlight our Board of Directors’ focus on diversity at the board level, which explicitly states the Board’s commitment to considering qualified women and minority director candidates, as well its policy of requesting an initial list of diverse candidates of any search firm it retains.
The guidelines explicitly state the Board of Directors’ commitment to considering qualified women and minority director candidates, as well as its policy of requesting an initial list of diverse candidates from any search firm it retains.
To continuously monitor and improve employee performance and engagement, we use employee engagement surveys, the most recent of which was conducted in 2022 and had an employee response rate of 91.4%. 7 (1) As of December 31, 2022, unless stated otherwise. (2) Minorities are defined to include individuals of Asian, Black/African American, Hispanic/Latino, Native American, Pacific Islander, or multiracial background.
To continuously monitor and improve employee performance and engagement, we use employee engagement surveys, the most recent of which was conducted in 2022 and yielded an employee participation rate of 91.4%. 7 (1) As of December 31, 2023, unless stated otherwise.
We determine race and gender based on our employees' self-identification or other information compiled to meet requirements of the U.S. government. (3) Managers and above include individuals who lead others and/or oversee projects. (4) Represents a five-year average from 2018 to 2022. 8
We determine race and gender based on our employees' self-identification or other information compiled to meet requirements of the U.S. government. (2) Minorities are defined to include individuals of Asian, Black/African American, Hispanic/Latino, Native American, Pacific Islander, or multiracial background. (3) Managers and above include individuals who lead others and/or oversee projects.
Our 10-year average occupancy percentage of our operating properties as of December 31, 2022 was 96%. Investment-grade or publicly traded large cap tenants represented 48% of our total annual rental revenue in effect as of December 31, 2022. Additional information regarding our consolidated and unconsolidated real estate joint ventures is included in “Item 7.
The occupancy percentage of our operating properties in North America was 94.6% as of December 31, 2023. The 10-year average occupancy percentage of our operating properties as of December 31, 2023 was 96%. Investment-grade or publicly traded large cap tenants represented 52% of our total annual rental revenue in effect as of December 31, 2023.
We generally will not commence new development projects for aboveground construction of new Class A office/laboratory, agtech, and tech office space without first securing significant pre-leasing for such space, except when there is solid market demand for high-quality Class A properties. We seek to meet growing demand from our stakeholders and continuously improve the efficiency of our buildings.
We generally will not commence new development projects for aboveground construction of new Class A/A+ laboratory, agtech, and advanced technology space without first securing significant pre-leasing for such space, except when there is solid market demand for high-quality Class A/A+ properties. Pre-construction activities include entitlements, permitting, design, site work, and other activities preceding commencement of construction of aboveground building improvements.
Development, redevelopment, and pre-construction A key component of our business model is our disciplined allocation of capital toward the development and redevelopment of new Class A properties, as well as property enhancements of certain acquired properties.
Development, redevelopment, and pre-construction A key component of our business model is our disciplined allocation of capital to the development and redevelopment of new Class A/A+ properties, and property enhancements identified during the underwriting of certain acquired properties, located in collaborative life science, agtech, and advanced technology mega campuses in AAA innovation clusters.
Pre-construction activities include entitlements, permitting, design, site work, and other activities preceding commencement of construction of aboveground building improvements, which are focused on reducing the time required to deliver projects to prospective tenants. These critical activities add significant value to our future ground-up developments and are required for the vertical construction of buildings.
The advancement of pre-construction efforts is focused on reducing the time required to deliver projects to prospective tenants. These critical activities add significant value for future ground-up development and are required for the vertical construction of buildings. Ultimately, these projects will provide high-quality facilities and are expected to generate significant revenue and cash flows.
As the first, longest-tenured, and pioneering publicly traded life science REIT to focus primarily on the office/laboratory real estate niche, we provide world-class collaborative life science, agtech, and technology campuses in AAA innovation cluster locations and maintain and cultivate many of the most important and strategic relationships in the life science, agtech, and technology industries.
Alexandria pioneered the life science real estate niche with our founding in 1994, and today is the preeminent and longest-tenured owner, operator, and developer of life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations. We continue to maintain and cultivate many of the most important and strategic relationships in the life science, agtech, and technology industries.
Our portfolio includes 64 operating properties and development projects that are held by consolidated real estate joint ventures and four properties that are held by unconsolidated real estate joint ventures. The occupancy percentage of our operating properties in North America was 94.8% as of December 31, 2022.
As of December 31, 2023, we had 411 properties in North America consisting of approximately 47.2 million RSF of operating properties and new Class A/A+ development and redevelopment properties under construction, including 68 operating properties and development projects that are held by consolidated real estate joint ventures and four properties that are held by unconsolidated real estate joint ventures.
To further customize development, we partner with key functional leaders to identify opportunities and design and deploy training programs for specific functional teams. Through a bespoke coaching program, we support new and high-potential leaders in their career progression. We also provide on-demand learning resources, such as LinkedIn Learning, as well as internally developed, ARE-specific on-demand content.
Our mentoring program enables employees to partner with senior leaders throughout the organization for support and career guidance. To further customize development, we partner with key functional leaders to design and implement learning programs for specific functional teams and curated learning cohorts. Lastly, our executive coaching program supports high-potential leaders in their career progression.
The trusted partner to approximately 1,000 tenants, Alexandria has a total market capitalization of $35.0 billion and an asset base in North America of 74.6 million SF as of December 31, 2022, which includes 41.8 million RSF of operating properties and 5.6 million RSF of Class A properties undergoing construction, 9.9 million RSF of near-term and intermediate-term development and redevelopment projects, and 17.3 million SF of future development projects.
This asset base includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects.
These projects are generally located in collaborative life science, agtech, and technology campuses in AAA innovation clusters and are focused on providing high-quality, generic, and reusable spaces that meet the real estate requirements of our diverse group of tenants. Development projects generally consist of the ground-up development of generic and reusable facilities.
These projects are generally focused on providing high-quality, generic, and reusable spaces that meet the real estate requirements of a wide range of tenants. Upon completion, each value-creation project is expected to generate increases in rental income, net operating income, and cash flows.
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Additionally, we have committed to significant building goals to promote wellness and productivity for our buildings’ occupants, including targeting a LEED ® Gold or Platinum certification on all new ground-up construction projects.
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Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023.
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Therefore, we invest in training and development programs to enhance our employees’ engagement, effectiveness, and well-being. Training topics include project management, business writing, change management, interviewing, presentations, productivity, effective one-on-ones, goal setting, delegation, communication, and feedback. Our mentoring program enables employees to partner with senior leaders throughout the organization for support and career guidance.
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Our development and redevelopment projects are generally in locations that are highly desirable to high-quality entities, which we believe results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. Development projects generally consist of the ground-up development of generic and reusable laboratory facilities.
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We offer a variety of learning opportunities, including custom, cohort-based development programs that leverage social learning, instructor-led trainings, on-demand trainings and resources, and a highly utilized mentoring program. Development programs and trainings include topics such as leadership development, project management, business writing, change management, interviewing, presentations, productivity, effective one-on-ones, goal setting, delegation, communication, and feedback.
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(4) Represents a five-year average from 2019 to 2023. 8

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRisks related to market and industry factors • There are limits on ownership of our stock under which a stockholder may lose beneficial ownership of its shares, as well as certain provisions of our charter and bylaws that may delay or prevent transactions that otherwise may be desirable to our stockholders. • Possible future sales of shares of our common stock could adversely affect its market price. • We are dependent on the health of the life science, agtech, and technology industries, and changes within these industries, increased competition, or the inability of our tenants and non-real estate equity investments within these industries to obtain funding for research, development, and other operations may adversely impact their ability to make rental payments to us or adversely impact their value. • Market disruption and volatility, poor economic conditions in the capital markets and global economy, including in connection with a widespread pandemic or outbreak of disease (such as COVID-19), and tight labor markets could adversely affect the value of the companies in which we hold equity investments or the ability of tenants and the companies in which we invest to continue operations, raise additional capital, or access capital from venture capital investors or financial institutions on favorable terms or at all. 9 Risks related to government and global factors • Actions, policy, or key leadership changes in government agencies, or changes to laws or regulations, including those related to tax, accounting, debt, derivatives, government spending, or funding (including those related to the FDA, the National Institutes of Health (the “NIH”), the SEC, and other agencies), and drug and healthcare pricing, costs, and programs could have a significant negative impact on the overall economy, our tenants and companies in which we invest, and our business. • Partial or complete government shutdown resulting in temporary closures of agencies could adversely affect our tenants (some of which are also government agencies) and the companies in which we invest, including delays in the commercialization of such companies’ products, decreased funding of research and development, or delays surrounding approval of budget proposals. • The replacement of LIBOR with SOFR (or another alternative reference rate) and uncertainty related to the volatility of SOFR may adversely affect interest expense related to outstanding variable-rate debt. • The outbreak of COVID-19, or the future outbreak of any other highly infectious or contagious diseases, could adversely impact or cause disruption to our financial condition and results of operations, and/or to the financial condition and results of operations of our tenants and non-real estate investments.
Biggest changeRisks related to market and industry factors • There are limits on ownership of our stock under which a stockholder may lose beneficial ownership of its shares, as well as certain provisions of our charter and bylaws that may delay or prevent transactions that otherwise may be desirable to our stockholders. • Possible future sales of shares of our common stock could adversely affect its market price. • We are dependent on the health of the life science, agtech, and technology industries, and changes within these industries, increased competition, or the inability of our tenants and non-real estate equity investments within these industries to obtain funding for research, development, and other operations may adversely impact their ability to make rental payments to us or adversely impact their value. 9 • Market disruption and volatility, poor economic conditions in the capital markets and global economy, including in connection with a widespread pandemic or outbreak of a highly infectious or contagious disease, and tight labor markets could adversely affect the value of the companies in which we hold equity investments or the ability of tenants and the companies in which we invest to continue operations, raise additional capital, or access capital from venture capital investors or financial institutions on favorable terms or at all.
The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations, our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our common stock, and our ability to satisfy our debt service obligations.
The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations, our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our common stock, and our ability to satisfy our debt service obligations.
A prolonged period in which we cannot effectively access the public debt or equity markets may result in heavier reliance on alternative financing sources to undertake new investments. An inability to obtain debt or equity capital on acceptable terms could delay or prevent us from acquiring, financing, and completing desirable investments and could otherwise adversely affect our business.
A prolonged period in which we cannot effectively access the public debt and/or equity markets may result in heavier reliance on alternative financing sources to undertake new investments. An inability to obtain debt and/or equity capital on acceptable terms could delay or prevent us from acquiring, financing, and completing desirable investments and could otherwise adversely affect our business.
If we experience a loss at any of our properties that is not covered by insurance, that exceeds our insurance policy limits, or that is subject to a policy deductible, we could lose the capital invested in the affected property and, possibly, future revenues from that property.
If we experience a loss at any of our properties that is not covered by insurance, exceeds our insurance policy limits, or is subject to a policy deductible, we could lose the capital invested in the affected property and, possibly, future revenues from that property.
Such funding may become unavailable or difficult to obtain.
Such funding may become unavailable or difficult to obtain.
In addition, the companies in which we invest through our venture investment portfolio are subject to the risks inherent in venture capital investing and may be adversely affected by external factors beyond our control and other risks, including, but not limited to the following: • Risks inherent in venture capital investing, which typically focuses on small early-stage companies with unproven technologies and limited access to capital and is therefore generally considered more speculative than investment in larger, more established companies. • Market disruption and volatility, which may adversely affect the value of the companies in which we hold equity investments and, in turn, our ability to realize gains upon sales of these investments. • Disruptions, uncertainty, or volatility in the capital markets and global economy, which may impact the ability of the companies in which we invest to raise additional capital or access capital from venture capital investors or financial institutions on favorable terms. • Liquidity of the companies in which we invest, which may (i) impede our ability to realize the value at which these investments are carried if we are required to dispose of them, (ii) make it difficult for us to sell these investments on a timely basis, and (iii) impair the value of such investments. • Changes in the political climate, potential reforms and changes to government negotiation and regulation, the effect of healthcare reform legislation, including those that may limit pricing of pharmaceutical products and drugs, market prices and conditions, prospects for favorable or unfavorable clinical trial results, new product initiatives, the manufacturing and distribution of new products, product safety and efficacy issues, and new collaborative agreements, all of which may affect the valuation, funding opportunities, business operations, and financial results of the companies in which we invest. • Changes in U.S. federal government organizations or other agencies, including changes in policy, regulations, budgeting, retention of key leadership and other personnel, administration of drug approvals or restrictions on drug product or service development or commercialization, or a partial or complete future government shutdown resulting in temporary closures of agencies such as the FDA and SEC, could adversely affect the companies in which we invest, including delays in the commercialization of such companies’ products, decreased funding of research and development in the life science, agtech, and technology industries, or delays surrounding approval of budget proposals for any of these industries. • Impacts or changes in business for any reason, including diversion of healthcare resources away from clinical trials, delays, or difficulties enrolling patients or maintaining scheduled appointments in clinical trials, interruptions, and delays in laboratory research due to the reduction in employee resources stemming from social distancing requirements and the desire of employees to avoid contact with people, insufficient inventory of supplies and reagents necessary for laboratory research due to interruptions in supply chain, delays or difficulties obtaining clinical site locations or engaging clinical site staff, interruptions on clinical site monitoring due to travel restrictions, delays in interacting with or receiving approval from regulatory agencies in connection with research activities or clinical trials, and disruptions to manufacturing facilities and supply lines. • Reduction in revenue or revenue growth, deterioration in the global economy, or other reasons, may impair the value of the companies in which we hold equity investments or impede their ability to raise additional capital. • Seasonal weather conditions, changes in availability of transportation or labor, and other related factors may affect the products and services or the availability of the products and services of the companies in which we invest in the agtech sector.
In addition, the companies in which we invest through our venture investment portfolio are subject to the risks inherent in venture capital investing and may be adversely affected by external factors beyond our control and other risks, including, but not limited to the following: • Risks inherent in venture capital investing, which typically focuses on small early-stage companies with unproven technologies and limited access to capital and is therefore generally considered more speculative than investment in larger, more established companies. • Market disruption and volatility, which may adversely affect the value of the companies in which we hold equity investments and, in turn, our ability to realize gains upon sales of these investments. • Disruptions, uncertainty, or volatility in the capital markets and global economy, which may impact the ability of the companies in which we invest to raise additional capital or access capital from venture capital investors or financial institutions on favorable terms. • Liquidity of the companies in which we invest, which may (i) impede our ability to realize the value at which these investments are carried if we are required to dispose of them, (ii) make it difficult for us to sell these investments on a timely basis, and (iii) impair the value of such investments. • Changes in the political climate, potential reforms and changes to government negotiation and regulation, the effect of healthcare reform legislation, including those that may limit pricing of pharmaceutical products and drugs, market prices and conditions, prospects for favorable or unfavorable clinical trial results, new product initiatives, the manufacturing and distribution of new products, product safety and efficacy issues, and new collaborative agreements, all of which may affect the valuation, funding opportunities, business operations, and financial results of the companies in which we invest. • Changes in U.S. federal government organizations or other agencies, including changes in policy, regulations, budgeting, retention of key leadership and other personnel, administration of drug approvals or restrictions on drug product or service development or commercialization, or a partial or complete future government shutdown resulting in temporary closures of agencies such as the FDA and SEC, could adversely affect the companies in which we invest, including delays in the commercialization of such companies’ products, decreased funding of research and development in the life science, agtech, and technology industries, or delays surrounding approval of budget proposals for any of these industries. • Impacts or changes in business for any reason, including diversion of healthcare resources away from clinical trials, delays, or difficulties enrolling patients or maintaining scheduled appointments in clinical trials, interruptions, and delays in laboratory research due to the reduction in employee resources stemming from social distancing requirements and the desire of employees to avoid contact with people, insufficient inventory of supplies and reagents necessary for laboratory research due to interruptions in supply chain, delays or difficulties obtaining clinical site locations or engaging clinical site staff, interruptions on clinical site monitoring due to travel restrictions, delays in interacting with or receiving approval from regulatory agencies in connection with research activities or clinical trials, and disruptions to manufacturing facilities and supply lines. • Reduction in revenue or revenue growth, deterioration in the global economy, or other reasons, may impair the value of the companies in which we hold equity investments or impede their ability to raise additional capital. 33 • Seasonal weather conditions, changes in availability of transportation or labor, and other related factors may affect the products and services or the availability of the products and services of the companies in which we invest in the agtech sector.
There are significant risks associated with development and redevelopment projects, including, but not limited to, the following possibilities: • We may not complete development or redevelopment projects on schedule or within budgeted amounts. • We may be unable to lease development or redevelopment projects on schedule or within projected amounts. • We may encounter project delays or cancellations due to unavailability of necessary labor and construction materials. • We may expend funds on, and devote management’s time to, development and redevelopment projects that we may not complete. • We may abandon development or redevelopment projects after we begin to explore them, and as a result, we may lose deposits or fail to recover costs already incurred. • Market and economic conditions may deteriorate, which can result in lower-than-expected rental rates. 11 • We may face higher operating costs than we anticipated for development or redevelopment projects, including insurance premiums, utilities, security, real estate taxes, and costs of complying with changes in government regulations or increases in tariffs. • We may face higher requirements for capital improvements than we anticipated for development or redevelopment projects, particularly in older structures. • We may be unable to proceed with development or redevelopment projects because we cannot obtain debt and/or equity financing on favorable terms or at all. • We may fail to retain tenants that have pre-leased our development or redevelopment projects if we do not complete the construction of these properties in a timely manner or to the tenants’ specifications. • Tenants that have pre-leased our development or redevelopment projects may file for bankruptcy or become insolvent, or otherwise elect to terminate their lease prior to delivery, which may adversely affect the income produced by, and the value of, our properties or require us to change the scope of the project, which may potentially result in higher construction costs, significant project delays, or lower financial returns. • We may encounter delays, refusals, unforeseen cost increases, and other impairments resulting from third-party litigation, natural disasters, or severe weather conditions. • We may encounter delays or refusals in obtaining all necessary zoning, land use, building, occupancy, and other required government permits and authorizations. • Development or redevelopment projects may have defects we do not discover through our inspection processes, including latent defects that may not reveal themselves until many years after we put a property in service.
There are significant risks associated with development and redevelopment projects, including, but not limited to, the following possibilities: • We may not complete development or redevelopment projects on schedule or within budgeted amounts. • We may be unable to lease development or redevelopment projects on schedule or within projected amounts. • We may encounter project delays or cancellations due to unavailability of necessary labor and construction materials. • We may expend funds on, and devote management’s time to, development and redevelopment projects that we may not complete. • We may abandon development or redevelopment projects after we begin to explore them, and as a result, we may lose deposits or fail to recover costs already incurred. • Market and economic conditions may deteriorate, which can result in lower-than-expected rental rates. 11 • We may face higher operating costs than we anticipated for development or redevelopment projects, including insurance premiums, utilities, security, real estate taxes, and costs of complying with changes in government regulations or increases in tariffs. • We may face higher requirements for capital improvements than we anticipated for development or redevelopment projects, particularly in older structures. • We may be unable to proceed with development or redevelopment projects because we cannot obtain debt and/or equity financing on favorable terms or at all. • We may fail to retain tenants that have pre-leased our development or redevelopment projects if we do not complete the construction of these properties in a timely manner or to the tenants’ specifications. • Tenants that have pre-leased our development or redevelopment projects may file for bankruptcy or become insolvent, or otherwise elect to terminate their lease prior to delivery, which may adversely affect the income produced by, and the value of, our properties or require us to change the scope of the project, which may potentially result in higher construction costs, significant project delays, or lower financial returns. • We may encounter delays, refusals, unforeseen cost increases, and other impairments resulting from third-party litigation, natural disasters, or severe weather conditions. • We may encounter delays or refusals in obtaining all necessary zoning, land use, building, occupancy, and other required government permits and authorizations. • We may be unable to proceed with our development or redevelopment projects as anticipated due to changing zoning, land use, building, occupancy, or other government codes or regulations. • Development or redevelopment projects may have defects we do not discover through our inspection processes, including latent defects that may not reveal themselves until many years after we put a property in service.
Our tenants may also be unable to pay us rent. • The cost of maintaining and improving the quality of our properties may be higher than anticipated, and we may be unable to pass any increased operating costs through to our tenants, which can result in reduced cash flows and profitability. • We could be held liable for environmental damages resulting from our tenants’ use of hazardous materials, or from harmful mold, poor air quality, or other defects from our properties, or we could face increased costs in complying with other environmental laws. • The loss of services of any of our senior officers or key employees and increased competition for skilled personnel could adversely affect us and/or increase our labor costs. • We rely on a limited number of vendors to provide utilities and other services at our properties, and disruption in such services may have an adverse effect on our operations and financial condition. • Our insurance policies may not adequately cover all of our potential losses, or we may incur costs due to the financial condition of our insurance carriers. • We may change business policies without stockholder approval. • Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business. • If we failed to qualify as a REIT, we would be taxed at corporate rates and would not be able to take certain deductions when computing our taxable income. • We may not be able to raise sufficient capital to fund our operations due to adverse changes in our credit ratings, our inability to refinance our existing debt or issue new debt, or our inability to sell existing properties timely. • We may invest or spend the net proceeds from our equity or debt offerings in ways with which our investors may not agree and in ways that may not earn a profit. • Our debt service obligations may restrict our ability to engage in some business activities or cause other adverse effects on our business. • We face risks and liabilities associated with our investments (including those in connection with short-term liquid investments) and the companies in which we invest (including properties owned through partnerships, limited liability companies, and joint ventures, as well as through our non-real estate venture investment portfolio), which expose us to risks similar to those of our tenant base and additional risks inherent in venture capital investing.
Our tenants may also be unable to pay us rent. • The cost of maintaining and improving the quality of our properties may be higher than anticipated, and we may be unable to pass any increased operating costs through to our tenants, which can result in reduced cash flows and profitability. • We could be held liable for environmental damages resulting from our tenants’ use of hazardous materials, or from harmful mold, poor air quality, or other defects from our properties, or we could face increased costs in complying with other environmental laws. • The loss of services of any of our senior officers or key employees and increased competition for skilled personnel could adversely affect us and/or increase our labor costs. • We rely on a limited number of vendors to provide utilities and other services at our properties, and disruption in such services may have an adverse effect on our operations and financial condition. • Our insurance policies may not adequately cover all of our potential losses, or we may incur costs due to the financial condition of our insurance carriers. • We may change business policies without stockholder approval. • Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business. • If we failed to qualify as a REIT, we would be taxed at corporate rates and would not be able to take certain deductions when computing our taxable income. • We may not be able to raise sufficient capital to fund our operations due to adverse changes in our credit ratings, our inability to refinance our existing debt or issue new debt, or our inability to sell existing real estate and non-real estate assets timely or at optimal prices. • We may invest or spend the net proceeds from our equity or debt offerings in ways with which our investors may not agree and in ways that may not earn a profit. • Our debt service obligations may restrict our ability to engage in some business activities or cause other adverse effects on our business. • We face risks and liabilities associated with our investments (including those in connection with short-term liquid investments) and the companies in which we invest (including properties owned through partnerships, limited liability companies, and joint ventures, as well as through our non-real estate venture investment portfolio), which expose us to risks similar to those of our tenant base and additional risks inherent in venture capital investing.
Our business could be adversely impacted by a significant decrease in research and development expenditures by our tenants, our venture investment portfolio companies, or the life science, agtech, and technology industries. 29 Our tenants also include research institutions whose funding is largely dependent on grants from government agencies, such as the NIH, the National Science Foundation, and similar agencies or organizations.
Our business could be adversely impacted by a significant decrease in research and development expenditures by our tenants, our venture investment portfolio companies, or the life science, agtech, and technology industries. Our tenants also include research institutions whose funding is largely dependent on grants from government agencies, such as the NIH, the National Science Foundation, and similar agencies or organizations.
These laws and regulations may cover, among other areas, taxation, worker classification, privacy, data protection, pricing, content, copyrights, distribution, mobile communications, business licensing, and consumer protection. 31 Rapid technological changes • The technology industry is characterized by rapid changes in customer requirements and preferences, frequent new product and service introductions, and the emergence of new industry standards and practices.
These laws and regulations may cover, among other areas, taxation, worker classification, privacy, data protection, pricing, content, copyrights, distribution, mobile communications, business licensing, and consumer protection. Rapid technological changes • The technology industry is characterized by rapid changes in customer requirements and preferences, frequent new product and service introductions, and the emergence of new industry standards and practices.
In March 2022, President Biden signed into law the Cyber Incident Reporting for Critical Infrastructure Act (“CIRCIA”), which will require critical infrastructure entities to report to the Cybersecurity and Infrastructure Security Agency (“CISA”) of the U.S. Department of Homeland Security any substantial cyber incidents within 72 hours and ransomware payments made within 24 hours, among other items.
In March 2022, President Biden signed into law the Cyber Incident Reporting for Critical Infrastructure Act (“CIRCIA”), which will require critical infrastructure entities to report to the Cybersecurity and Infrastructure Security Agency (“CISA”) of the U.S. Department of Homeland Security any substantial cyber incidents within 72 hours and ransomware payments made within 24 hours of occurrence, among other items.
While PG&E emerged from bankruptcy in July 2020, there is no guarantee that PG&E will be able to sustain safe operations and continue to provide consistent utilities services. During periods of high winds and high fire danger in recent fire seasons, PG&E has preemptively shut off power to areas of Central and Northern California.
Bankruptcy Code. While PG&E emerged from bankruptcy in July 2020, there is no guarantee that PG&E will be able to sustain safe operations and continue to provide consistent utilities services. During periods of high winds and high fire danger in recent fire seasons, PG&E has preemptively shut off power to areas of Central and Northern California.
Although we do not intend to participate in prohibited transactions, there is no guarantee that the IRS would agree with our characterization of our properties or that we will meet the safe harbor requirements. Federal income tax rules are constantly under review by the U.S. Congress and the IRS.
Although we do not intend to participate in prohibited transactions, there is no guarantee that the IRS would agree with our characterization of our properties or that we will meet the safe harbor requirements. 24 Federal income tax rules are constantly under review by the U.S. Congress and the IRS.
Damage caused by these events may result in costly repairs for damaged properties or equipment, delays in the development or redevelopment of our construction projects, or interruption of our daily business operations, which may result in increased costs and decreased revenues. We maintain insurance coverage at levels that we believe are appropriate for our business.
Damage caused by these events may result in costly repairs for damaged properties or equipment, delays in the development or redevelopment of our construction projects, or interruption of our daily business operations, which may result in increased costs and decreased revenues. 46 We maintain insurance coverage at levels that we believe are appropriate for our business.
As a result, we may be required to pay additional dividends to stockholders, or if we do not pay additional dividends, our corporate income tax liability could increase and we may be subject to interest and penalties. 53 Terrorist attacks may have an adverse impact on our business and operating results and could decrease the value of our assets.
As a result, we may be required to pay additional dividends to stockholders, or if we do not pay additional dividends, our corporate income tax liability could increase and we may be subject to interest and penalties. Terrorist attacks may have an adverse impact on our business and operating results and could decrease the value of our assets.
A decline in the value of our investments, or a delay or suspension of our right to redeem them, may have a material adverse effect on our results of operations or financial condition and our ability to pay our obligations as they become due. 48 Competition for skilled personnel could increase labor costs.
A decline in the value of our investments, or a delay or suspension of our right to redeem them, may have a material adverse effect on our results of operations or financial condition and our ability to pay our obligations as they become due. Competition for skilled personnel could increase labor costs.
Continued adverse economic conditions could have a material adverse effect on our business, financial condition, and results of operations. 51 Economic and social volatility and geopolitical instability outside of the U.S. due to large-scale conflicts, including warfare among countries, may adversely impact us, the U.S., and global economies.
Continued adverse economic conditions could have a material adverse effect on our business, financial condition, and results of operations. Economic and social volatility and geopolitical instability outside of the U.S. due to large-scale conflicts, including warfare among countries, may adversely impact us, the U.S., and global economies.
Annually, our employee compensation is adjusted to reflect merit increases; however, to maintain our ability to successfully compete for the best talent, especially in a talent shortage environment, rising inflation rates may require us to provide compensation increases beyond historical annual merit increases, which may unexpectedly or significantly increase our compensation costs.
Annually, our employee compensation is adjusted to reflect merit increases; however, to maintain our ability to successfully compete for the best talent, especially in a talent shortage environment, rising inflation rates may require us to provide compensation increases beyond historical annual merit increases, which may unexpectedly and/or significantly increase our compensation costs.
We cannot predict the effect, if any, of future sales of shares of our common stock or the market price of our common stock. Sales of substantial amounts of capital stock, or the perception that such sales may occur, could adversely affect prevailing market prices for our common stock. Refer to “Other sources” under “Item 7.
We cannot predict the effect, if any, of future sales of shares of our common stock or the market price of our common stock. Sales of substantial amounts of capital stock, or the perception that such sales may occur, could adversely affect the prevailing market price for our common stock. Refer to “Other sources” under “Item 7.
Also, laws relating to the tax treatment of investment in other types of business entities could change, making an investment in such other entities more attractive relative to an investment in a REIT. We are dependent on third parties to manage the amenities at our properties.
Also, laws relating to the tax treatment of investment in other types of business entities could change, making an investment in such other entities more attractive relative to an investment in a REIT. We are dependent on third parties to manage certain amenities at our properties.
Negative impacts of new policies could adversely affect our tenants’ and venture investment portfolio companies’ businesses, including life science, agtech, and technology companies, which may reduce the demand for office/laboratory space and negatively impact our operating results and our business.
Negative impacts of new policies could adversely affect our tenants’ and venture investment portfolio companies’ businesses, including life science, agtech, and technology companies, which may reduce the demand for life science/laboratory space and negatively impact our operating results and our business.
CISA has until September 2025 to release a final rule, and it is yet unknown whether we will be subject to these rules under CIRCIA. General risk factors We face risks associated with short-term liquid investments.
CISA has until September 2025 to release a final rule, and it is yet unknown whether we will be subject to these rules under CIRCIA. 45 General risk factors We face risks associated with short-term liquid investments.
These outages and delays, as well as problems caused by cyber attacks and computer malware, viruses, worms, and similar programs, may materially affect the ability of our technology industry tenants and venture investment portfolio companies to conduct business. • Reliance on a limited number of cloud provider vendors may result in detrimental impacts on or halts of operations during instances of network outages or interruptions. • Security breaches or network attacks may delay or interrupt the services provided by our technology industry tenants and venture investment portfolio companies and could harm their reputations or subject them to significant liability.
These outages and delays, as well as problems caused by cyberattacks and computer malware, viruses, worms, and similar programs, may materially affect the ability of our technology industry tenants and venture investment portfolio companies to conduct business. • Reliance on a limited number of cloud provider vendors may result in detrimental impacts on or halts of operations during instances of network outages or interruptions. • Security breaches or network attacks may delay or interrupt the services provided by our technology industry tenants and venture investment portfolio companies and could harm their reputations or subject them to significant liability.
Interruptions to the function of the FDA and other government agencies could adversely affect the demand for office/laboratory space and significantly impact our operating results and our business. Changes in laws and regulations that control drug pricing for government programs may adversely impact our operating results and our business.
Interruptions to the function of the FDA and other government agencies could adversely affect the demand for laboratory space and significantly impact our operating results and our business. Changes in laws and regulations that control drug pricing for government programs may adversely impact our operating results and our business.
If we fail to maintain the adequacy of our internal controls, including any failure to implement required new or improved controls, or if we experience difficulties in their implementation, our business, results of operations, and financial condition could be materially harmed, we could fail to meet our reporting obligations, and there could be a material adverse effect on the market price of our common stock. 24 If we failed to qualify as a REIT, we would be taxed at corporate rates and would not be able to take certain deductions when computing our taxable income.
If we fail to maintain the adequacy of our internal controls, including any failure to implement required new or improved controls, or if we experience difficulties in their implementation, our business, results of operations, and financial condition could be materially harmed, we could fail to meet our reporting obligations, and there could be a material adverse effect on the market price of our common stock. 23 If we failed to qualify as a REIT, we would be taxed at corporate rates and would not be able to take certain deductions when computing our taxable income.
Any international currency gain recognized with respect to changes in exchange rates may not qualify under gross income tests that we must satisfy annually in order to qualify and maintain our status as a REIT.
Moreover, any international currency gain recognized with respect to changes in exchange rates may not qualify under gross income tests that we must satisfy annually in order to qualify and maintain our status as a REIT.
Our operating expenses may increase as a result of tax reassessments that our properties are subject to on a regular basis (annually, triennially, etc.), which normally result in increases in property taxes over time as property values increase.
Our operating expenses may increase as a result of tax reassessments that our properties are subject to on a regular basis (annually, triennially, etc.), which may result in increases in property taxes as property values increase over time.
Our business could be adversely affected if the life science, agtech, and technology industries are impacted by an economic, financial, or banking crisis, or if these industries migrate from the U.S. to other countries.
Our business could be adversely affected if the life science, agtech, or technology industries are impacted by an economic, financial, or banking crisis, or if these industries migrate from the U.S. to other countries.
We have detected asbestos-containing building materials at some of our properties, but we do not expect that they will result in material environmental costs or liabilities for us. 44 Environmental laws and regulations also require the removal or upgrading of certain underground storage tanks and regulate: • The discharge of stormwater, wastewater, and any water pollutants; • The emission of air pollutants; • The generation, management, and disposal of hazardous or toxic chemicals, substances, or wastes; and • Workplace health and safety.
We have detected asbestos-containing building materials at some of our properties, but we do not expect that they will result in material environmental costs or liabilities for us. 40 Environmental laws and regulations also require the removal or upgrading of certain underground storage tanks and regulate: • The discharge of stormwater, wastewater, and any water pollutants; • The emission of air pollutants; • The generation, management, and disposal of hazardous or toxic chemicals, substances, or wastes; and • Workplace health and safety.
Furthermore, from time to time, we may refinance our debt to take advantage of lower market rates or other favorable terms, and we might pursue this strategy in the future in connection with our Green Bonds.
Furthermore, from time to time, we may refinance our debt to take advantage of lower market rates or other favorable terms, and we may pursue this strategy in the future in connection with our Green Bonds.
Although we thoroughly review the physical condition of our properties before they are acquired, and as they are developed or redeveloped, any of our properties may have characteristics or deficiencies unknown to us that could adversely affect the property’s value or revenue potential. 17 Our properties may contain or develop harmful mold or suffer from other air quality issues, which could lead to liability for adverse health effects and costs to remedy the problem.
Although we thoroughly review the physical condition of our properties before they are acquired, and as they are developed or redeveloped, any of our properties may have characteristics or deficiencies unknown to us that could adversely affect the property’s value or revenue potential. 16 Our properties may contain or develop harmful mold or suffer from other air quality issues, which could lead to liability for adverse health effects and costs to remedy the problem.
To the extent our management or personnel are impacted in significant numbers by the outbreak of pandemic or epidemic disease and are not available or allowed to conduct work, our business and operating results may be negatively impacted. • Our (or our tenants’) ability to operate, generally or in affected areas, or delays in the supply of products or services from our vendors that are necessary for us to operate effectively. • Our tenants’ ability to pay rent on their leases in full and timely and, to the extent necessary, our inability to restructure our tenants’ long-term rent obligations on terms favorable to us or to timely recapture the space for re-leasing. • Difficulty in our accessing debt and equity capital on attractive terms, or at all, and a severe disruption and instability in the global financial markets, or deterioration in credit and financing conditions, which may affect our (or our tenants’) ability to access capital necessary to fund business operations or replace or renew maturing liabilities on a timely basis and may adversely affect the valuation of financial assets and liabilities, any of which could affect our (or our tenants’) ability to meet liquidity and capital expenditure requirements or could have a material adverse effect on our business, financial condition, results of operations, and cash flows. • Complete or partial closures of, or other operational issues at, one or more of our offices or properties resulting from government action or directives. • Our (or our tenants’) ability to continue or complete construction as planned for our tenants’ operations, or delays in the supply of materials or labor necessary for construction, which may affect our (or our tenants’) ability to complete construction or to complete it timely, our ability to prevent a lease termination, and our ability to collect rent, which may have a material adverse effect on our business, financial condition, results of operations, and cash flows. • The cost of implementing precautionary measures against COVID-19 (or another pandemic), including, but not limited to, potential additional health insurance and labor-related costs. • Governmental efforts (such as moratoriums on or suspensions of eviction proceedings) that may affect our ability to collect rent or enforce remedies for the failure of our tenants to pay rent. • Uncertainty related to whether the U.S.
To the extent our management or personnel are impacted in significant numbers by the outbreak of pandemic or epidemic disease and are not available or allowed to conduct work, our business and operating results may be negatively impacted. • Our (or our tenants’) ability to operate, generally or in affected areas, or delays in the supply of products or services from our vendors that are necessary for us to operate effectively. • Our tenants’ ability to pay rent on their leases in full and timely and, to the extent necessary, our inability to restructure our tenants’ long-term rent obligations on terms favorable to us or to timely recapture the space for re-leasing. 36 • Difficulty in our accessing debt and/or equity capital on attractive terms, or at all, and a severe disruption and instability in the global financial markets, or deterioration in credit and financing conditions, which may affect our (or our tenants’) ability to access capital necessary to fund business operations or replace or renew maturing liabilities on a timely basis and may adversely affect the valuation of financial assets and liabilities, any of which could affect our (or our tenants’) ability to meet liquidity and capital expenditure requirements or could have a material adverse effect on our business, financial condition, results of operations, and cash flows. • Complete or partial closures of, or other operational issues at, one or more of our properties resulting from government action or directives. • Our (or our tenants’) ability to continue or complete construction as planned for our tenants’ operations, or delays in the supply of materials or labor necessary for construction, which may affect our (or our tenants’) ability to complete construction or to complete it timely, our ability to prevent a lease termination, and our ability to collect rent, which may have a material adverse effect on our business, financial condition, results of operations, and cash flows. • The cost of implementing precautionary measures, including, but not limited to, potential additional health insurance and labor-related costs. • Governmental efforts (such as moratoriums on or suspensions of eviction proceedings) that may affect our ability to collect rent or enforce remedies for the failure of our tenants to pay rent. • Uncertainty related to whether the U.S.
These risks include, but are not limited to: • Adverse effects of changes in exchange rates for foreign currencies; • Challenges and/or taxation with respect to the repatriation of foreign earnings or repatriation of proceeds from the sale of one or more of our foreign investments; • Changes in foreign political, regulatory, and economic conditions, including nationally, regionally, and locally; • Challenges in managing international operations; • Challenges in hiring or retaining key management personnel; • Challenges of complying with a wide variety of foreign laws and regulations, including those relating to real estate, corporate governance, operations, taxes, employment, and legal proceedings; • Differences in lending practices; • Differences in languages, cultures, and time zones; • Changes in applicable laws and regulations in the U.S. that affect foreign operations; • Challenges in managing foreign relations and trade disputes that adversely affect U.S. and foreign operations; • Future partial or complete U.S. federal government shutdowns, trade disagreements with other countries, or uncertainties that could affect business transactions within the U.S. and with foreign entities; • Changes in tax and local regulations with potentially adverse tax consequences and penalties; and • Foreign ownership and transfer restrictions.
These risks include, but are not limited to: • Adverse effects of changes in exchange rates for foreign currencies; • Challenges and/or taxation with respect to the repatriation of foreign earnings or repatriation of proceeds from the sale of one or more of our foreign investments; • Changes in foreign political, regulatory, and economic conditions, including nationally, regionally, and locally; • Challenges in managing international operations; • Challenges in hiring or retaining key management personnel; • Challenges of complying with a wide variety of foreign laws and regulations, including those relating to real estate, corporate governance, operations, taxes, employment, data privacy and security, and legal proceedings; • Differences in lending practices; • Differences in languages, cultures, and time zones; • Changes in applicable laws and regulations in the U.S. that affect foreign operations; • Challenges in managing foreign relations and trade disputes that adversely affect U.S. and foreign operations; • Partial or complete U.S. federal government shutdowns, trade disagreements with other countries, or uncertainties that could affect business transactions within the U.S. and with foreign entities; • Changes in tax and local regulations with potentially adverse tax consequences and penalties; and • Foreign ownership and transfer restrictions.
The negative effects of an outbreak of a contagious disease on our tenants in the life science industry may include, but are not limited to: • Delays or difficulties in enrolling patients or maintaining scheduled study visits in clinical trials; • Delays or difficulties in clinical site initiation, including difficulties in recruiting clinical site investigators and staff; • Diversion of healthcare resources away from clinical trials, including the diversion of hospitals serving as our tenants’ clinical trial sites and hospital staff supporting the conduct of our tenants’ clinical trials; • Interruptions of key clinical trial or other research activities, such as clinical trial site monitoring, due to limitations on travel imposed or recommended by federal or state governments, employers, and others; • Limitations in employee resources that would otherwise be focused on our tenants’ research, business, or clinical trials, including because of sickness of employees or their families, the desire of employees to avoid contact with large groups of people, or as a result of the governmental imposition of shelter-in-place or similar working restrictions; • Interruptions in supply chain, manufacturing, and global shipping, or other delays that may affect the transport of materials necessary for our tenants’ research, clinical trials, or manufacturing activities; • Reduction in revenue projections for our tenants’ products due to the prioritization of the treatment of affected patients over other treatments, such as specialty and elective procedures; • Delays in necessary interactions with ethics committees, regulators, and other important agencies and contractors due to limitations in employee resources or forced furlough of government employees; • Delays in receiving approval from regulatory authorities to initiate planned clinical trials or research activities; • Delays in commercialization of our tenants’ products and approval by government authorities (such as the FDA and the federal and state Emergency Management Agencies) of our tenants’ products caused by disruptions, funding shortages, or health concerns, as well as by the prioritization by the FDA of the review and approvals of diagnostics, therapeutics, and vaccines that are related to an outbreak; • Difficulty in retaining staff or rehiring staff in connection with layoffs caused by deteriorating global market conditions; 40 • Changes in local regulations as part of a response to an outbreak that may require our tenants to change the ways in which their clinical trials are conducted, which may result in unexpected costs or the discontinuation of the clinical trials altogether; • Refusal or reluctance of the FDA to accept data from clinical trials in affected geographies outside the U.S.; • Diminishing public trust in healthcare facilities or other facilities, such as medical office buildings, that are treating (or have treated) patients affected by contagious diseases; and • Inability to access capital on terms favorable to our tenants because of changes in company valuation and/or investor appetite due to a general downturn in economic and financial conditions and the volatility of the market.
The negative effects of any highly infectious or contagious disease on our tenants in the life science industry may include, but are not limited to: • Delays or difficulties in enrolling patients or maintaining scheduled study visits in clinical trials; • Delays or difficulties in clinical site initiation, including difficulties in recruiting clinical site investigators and staff; • Diversion of healthcare resources away from clinical trials, including the diversion of hospitals serving as our tenants’ clinical trial sites and hospital staff supporting the conduct of our tenants’ clinical trials; • Interruptions of key clinical trial or other research activities, such as clinical trial site monitoring, due to limitations on travel imposed or recommended by federal or state governments, employers, and others; • Limitations in employee resources that would otherwise be focused on our tenants’ research, business, or clinical trials, including because of sickness of employees or their families, the desire of employees to avoid contact with large groups of people, or as a result of the governmental imposition of shelter-in-place or similar working restrictions; • Interruptions in supply chain, manufacturing, and global shipping, or other delays that may affect the transport of materials necessary for our tenants’ research, clinical trials, or manufacturing activities; • Reduction in revenue projections for our tenants’ products due to the prioritization of the treatment of affected patients over other treatments, such as specialty and elective procedures; • Delays in necessary interactions with ethics committees, regulators, and other important agencies and contractors due to limitations in employee resources or forced furlough of government employees; • Delays in receiving approval from regulatory authorities to initiate planned clinical trials or research activities; • Delays in commercialization of our tenants’ products and approval by government authorities (such as the FDA and the federal and state Emergency Management Agencies) of our tenants’ products caused by disruptions, funding shortages, or health concerns, as well as by the prioritization by the FDA of the review and approvals of diagnostics, therapeutics, and vaccines that are related to an outbreak; • Difficulty in retaining staff or rehiring staff in connection with layoffs caused by deteriorating global market conditions; • Changes in local regulations as part of a response to an outbreak or spread that may require our tenants to change the ways in which their clinical trials are conducted, which may result in unexpected costs or the discontinuation of the clinical trials altogether; • Refusal or reluctance of the FDA to accept data from clinical trials in affected geographies outside the U.S.; • Diminishing public trust in healthcare facilities or other facilities that are treating (or have treated) patients affected by contagious diseases; and • Inability to access capital on terms favorable to our tenants because of changes in company valuation and/or investor appetite due to a general downturn in economic and financial conditions and the volatility of the market.
In some cases, such a country or region might not have a forum that provides us an effective or efficient means for resolving disputes that may arise under these agreements. 22 We are subject to risks and liabilities in connection with properties owned through partnerships, limited liability companies, and joint ventures.
In some cases, such a country or region might not have a forum that provides us an effective or efficient means for resolving disputes that may arise under these agreements. 21 We are subject to risks and liabilities in connection with properties owned through partnerships, limited liability companies, and joint ventures.
An economic downturn in any of these markets could adversely affect our operations and our ability to make distributions to our stockholders. We cannot assure our stockholders that these markets will continue to grow or remain favorable to the life science, agtech, and technology industries. 28 Improvements to our properties are significantly more costly than improvements to traditional office space.
An economic downturn in any of these markets could adversely affect our operations and our ability to make distributions to our stockholders. We cannot assure our stockholders that these markets will continue to grow or remain favorable to the life science, agtech, and technology industries. 27 Improvements to our properties are significantly more costly than improvements to traditional office space.
Any shortfall in rent payments could adversely affect our cash flows and our ability to make distributions to our stockholders. We could be held liable for damages resulting from our tenants’ use of hazardous materials. Many of our tenants engage in research and development activities that involve controlled use of hazardous materials, chemicals, and biologic and radioactive compounds.
Any shortfall in rental payments could adversely affect our cash flows and our ability to make distributions to our stockholders. We could be held liable for damages resulting from our tenants’ use of hazardous materials. Many of our tenants engage in research and development activities that involve controlled use of hazardous materials, chemicals, and biologic and radioactive compounds.
Investments in real estate are relatively illiquid compared to other investments. Accordingly, we may not be able to sell our properties when we desire or at prices acceptable to us in response to changes in economic or other conditions. In addition, certain of our properties have low tax bases relative to their estimated current market values.
Investments in real estate are relatively illiquid compared to other investments. Accordingly, we may not be able to sell our properties when we desire or at prices acceptable to us in response to changes in macroeconomic or other conditions. In addition, certain of our properties have low tax bases relative to their estimated current market values.
Our ability to borrow additional amounts through the issuance of unsecured bonds may be negatively impacted by periods of illiquidity in the bond market. 18 Aggregate borrowings under our unsecured senior line of credit require compliance with certain financial and non-financial covenants. Borrowings under our unsecured senior line of credit are funded by a group of banks.
Our ability to borrow additional amounts through the issuance of unsecured bonds may be negatively impacted by periods of illiquidity in the bond market. 17 Aggregate borrowings under our unsecured senior line of credit require compliance with certain financial and non-financial covenants. Borrowings under our unsecured senior line of credit are funded by a group of banks.
Any difficulties in the implementation of changes in accounting principles, including the ability to modify our accounting systems and to update our policies, procedures, information systems, and internal controls over financial reporting, could result in materially inaccurate financial statements, which in turn could harm our operating results or cause us to fail to meet our reporting obligations.
Any difficulties in the implementation of changes in accounting principles, including the ability to modify our accounting systems and to update our policies, procedures, information systems, and internal control over financial reporting, could result in materially inaccurate financial statements, which in turn could harm our operating results or cause us to fail to meet our reporting obligations.
Our charter and bylaws also contain other provisions that may delay, defer, or prevent a transaction or change in control that involves a premium price for our common stock or that, for other reasons, may be desired by our stockholders. 27 Market and industry factors We face substantial competition in our target markets.
Our charter and bylaws also contain other provisions that may delay, defer, or prevent a transaction or change in control that involves a premium price for our common stock or that, for other reasons, may be desired by our stockholders. 26 Market and industry factors We face substantial competition in our target markets.
In addition, these arrangements may not be effective in reducing our exposure to changes in interest rates. These risk factors may lead to failure to hedge effectively against changes in interest rates and therefore could adversely affect our results of operations. As of December 31, 2022, we had no interest rate hedge agreements outstanding.
In addition, these arrangements may not be effective in reducing our exposure to changes in interest rates. These risk factors may lead to failure to hedge effectively against changes in interest rates and therefore could adversely affect our results of operations. As of December 31, 2023, we had no interest rate hedge agreements outstanding.
Factors that could adversely affect the revenues we generate from, and the values of, our properties include, but are not limited to: • National, local, and worldwide economic and political conditions; • Competition from other properties; • Changes in the life science, agtech, and technology industries; • Real estate conditions in our target markets; • Our ability to collect rent payments; • The availability of financing; 19 • Changes to the financial and banking industries; • Changes in interest rate levels; • Vacancies at our properties and our ability to re-lease space; • Changes in tax or other regulatory laws; • The costs of compliance with government regulation; • The lack of liquidity of real estate investments; • Increases in operating costs; and • Increases in costs to address environmental impacts related to climate change or natural disasters.
Factors that could adversely affect the revenues we generate from, and the values of, our properties include, but are not limited to: • National, local, and worldwide economic and political conditions; • Competition from other properties; • Changes in the life science, agtech, and technology industries; • Real estate conditions in our target markets; • Our ability to collect rental payments; • The availability of financing; 18 • Changes to the financial and banking industries; • Changes in interest rate levels; • Vacancies at our properties and our ability to re-lease space; • Changes in tax or other regulatory laws; • The costs of compliance with government regulation; • The lack of liquidity of real estate investments; • Increases in operating costs; and • Increases in costs to address environmental impacts related to climate change or natural disasters.
There are no guarantees that foreign governments will continue to honor existing tax treaties we have relied upon for our foreign investments or that the current income tax rates in those countries will not increase significantly, thus impacting our ability to repatriate our foreign investments and related earnings.
There are no guarantees that foreign governments will continue to honor existing tax treaties we have relied upon for our foreign investments or that the current income tax rates in those markets will not increase significantly, thus impacting our ability to repatriate our foreign investments and related earnings.
Congress or state legislatures will pass additional laws providing for additional economic stimulus packages, governmental funding, or other relief programs, whether such measures will be enacted, whether our tenants will be eligible or will apply for any such funds, whether the funds, if available, could be used by our tenants to pay rent, and whether such funds will be sufficient to supplement our tenants’ rent and other obligations to us. • Deterioration of global economic conditions and job losses, which may decrease demand for and occupancy levels of our rental properties and may cause our rental rates and property values to be negatively impacted. • Our dependence on short-term and long-term debt sources, including our unsecured senior line of credit, commercial paper program, and unsecured senior notes, which may affect our ability to continue our investing activities and make distributions to our stockholders. • Declines in the valuation of our properties, which may affect our ability to dispose of assets at attractive prices or to obtain debt financing secured by our properties and may reduce the availability of debt funding. • Declines in the valuation of our venture investment portfolio, which may (i) impede our ability to realize the value at which these investments are carried if we are required to dispose of them, (ii) make it difficult for us to sell these investments on a timely basis, and (iii) impair the value of such investments. 39 • Refusal or failure by one or more of our lenders under our unsecured senior line of credit to fund their financing commitment to us, which we may not be able to replace on favorable terms, or at all. • To the extent we enter into derivative financial instruments, one or more counterparties to our derivative financial instruments could default on their obligations to us or could fail, increasing the risk that we may not realize the benefits of utilizing these instruments. • Any possession taken of our properties, in whole or in part, by governmental authorities for public purposes in eminent domain proceedings. • Our level of insurance coverage and recovery we receive under any insurance we maintain, which may be delayed by, or insufficient to fully offset potential/actual losses caused by, COVID-19 (or another pandemic). • Any increase in insurance premiums and imposition of large deductibles. • Our level of dependence on the Internet, as it relates to employees’ working remotely, and increases in malware campaigns and phishing attacks preying on the uncertainties surrounding COVID-19 (or another pandemic), which may increase our vulnerability to cyber attacks. • Our ability to ensure business continuity in the event our continuity of operations plan is not effective or is improperly implemented or deployed during a disruption. • Our ability to operate, which may cause our business and operating results to decline or may impact our ability to comply with regulatory obligations and may lead to reputational harm and regulatory issues or fines.
Congress or state legislatures will pass additional laws providing for additional economic stimulus packages, governmental funding, or other relief programs, whether such measures will be enacted, whether our tenants will be eligible or will apply for any such funds, whether the funds, if available, could be used by our tenants to pay rent, and whether such funds will be sufficient to supplement our tenants’ rent and other obligations to us. • Deterioration of global economic conditions and job losses, which may decrease demand for and occupancy levels of our rental properties and may cause our rental rates and property values to be negatively impacted. • Our dependence on short-term and long-term debt sources, including our unsecured senior line of credit, commercial paper program, and unsecured senior notes, which may affect our ability to continue our investing activities and make distributions to our stockholders. • Declines in the valuation of our properties, which may affect our ability to dispose of assets at attractive prices or to obtain debt financing secured by our properties and may reduce the availability of debt funding. • Declines in the valuation of our venture investment portfolio, which may (i) impede our ability to realize the value at which these investments are carried if we are required to dispose of them, (ii) make it difficult for us to sell these investments on a timely basis, and (iii) impair the value of such investments. • Refusal, failure, or delay by one or more of our lenders under our unsecured senior line of credit to fund their financing commitment to us, which we may not be able to replace on favorable terms, or at all. • To the extent we enter into derivative financial instruments, one or more counterparties to our derivative financial instruments could default on their obligations to us or could fail, increasing the risk that we may not realize the benefits of utilizing these instruments. • Any possession taken of our properties, in whole or in part, by governmental authorities for public purposes in eminent domain proceedings. • Our level of insurance coverage and recovery we receive under any insurance we maintain, which may be delayed by, or insufficient to fully offset potential/actual losses caused by any highly infectious or contagious disease. • Any increase in insurance premiums and imposition of large deductibles. • Our level of dependence on the Internet, as it relates to employees’ working remotely, and increases in malware campaigns and phishing attacks preying on the uncertainties surrounding any highly infectious or contagious disease, which may increase our vulnerability to cyberattacks. • Our ability to ensure business continuity in the event our continuity of operations plan is not effective or is improperly implemented or deployed during a disruption. • Our ability to operate, which may cause our business and operating results to decline or may impact our ability to comply with regulatory obligations and may lead to reputational harm and regulatory issues or fines.
The negative effects of an outbreak of a contagious disease on our tenants in the technology industry may include, but are not limited to: • Reduction in staff productivity due to business closures, alternative working arrangements, or illness of staff and/or illness in the family; • Reduction in sales of our tenants’ services and products, longer sales cycles, reduction in subscription duration and value, slower adoption of new technologies, and increase in price competition due to economic uncertainties and downturns; • Disruptions to our tenants’ supply chain, manufacturing vendors, or logistics providers of products or services; • Limitations on business and marketing activities due to travel restrictions, virtualization, or cancellation of related events; • Adverse impact on customer relationships and our ability to recognize revenues due to our tenants’ inability to access their clients’ sites for implementation and on-site consulting services; • Inability to recruit and develop highly skilled employees with appropriate qualifications, to conduct background checks on potential employees, and to provide necessary equipment and training to new and existing employees; • Network infrastructure and technology system failures of our tenants, or of third-party services used by our tenants, which may result in system interruptions, reputational harm, loss of intellectual property, delays in product development, lengthy interruptions in services, breaches of data security, and loss of critical data; • Higher employment compensation costs that may not be offset by improved productivity or increased sales; and • Inability to access capital on terms favorable to our tenants because of changes in company valuation and/or investor appetite due to a general downturn in of economic and financial conditions and the volatility of the market.
The negative effects of any highly infectious or contagious disease on our tenants in the technology industry may include: • Reduction in staff productivity due to business closures, alternative working arrangements, or illness of staff and/or illness in the family; • Reduction in sales of our tenants’ services and products, longer sales cycles, reduction in subscription duration and value, slower adoption of new technologies, and increase in price competition due to economic uncertainties and downturns; • Disruptions to our tenants’ supply chain, manufacturing vendors, or logistics providers of products or services; 38 • Limitations on business and marketing activities due to travel restrictions, virtualization, or cancellation of related events; • Adverse impact on customer relationships and our ability to recognize revenues due to our tenants’ inability to access their clients’ sites for implementation and on-site consulting services; • Inability to recruit and develop highly skilled employees with appropriate qualifications, to conduct background checks on potential employees, and to provide necessary equipment and training to new and existing employees; • Network infrastructure and technology system failures of our tenants, or of third-party services used by our tenants, which may result in system interruptions, reputational harm, loss of intellectual property, delays in product development, lengthy interruptions in services, breaches of data security, and loss of critical data; • Higher employment compensation costs that may not be offset by improved productivity or increased sales; and • Inability to access capital on terms favorable to our tenants because of changes in company valuation and/or investor appetite due to a general downturn in of economic and financial conditions and the volatility of the market.
We then allocated the funds to recently completed and future Eligible Green Projects. ‘‘Eligible Green Projects’’ are defined as: • New class A development properties that have received or are expected to receive Gold or Platinum LEED certification; • Existing class A redevelopment properties that have received or are expected to receive Gold or Platinum LEED certification; and • Tenant improvements that have received or are expected to receive Gold or Platinum LEED certification.
We then allocate the funds to recently completed and future Eligible Green Projects. ‘‘Eligible Green Projects’’ are defined as: • New Class A/A+ development properties that have received or are expected to receive LEED Gold or Platinum certification; • Existing Class A/A+ redevelopment properties that have received or are expected to receive LEED Gold or Platinum certification; and • Tenant improvements that have received or are expected to receive LEED Gold or Platinum certification.
Additional risks and uncertainties not currently known to us, or that we presently deem to be immaterial, may also have potential to materially adversely affect our business, financial condition, and results of operations. ITEM 1B. UNRESOLVED STAFF COMMENTS None. 54
Additional risks and uncertainties not currently known to us, or that we presently deem to be immaterial, may also have potential to materially adversely affect our business, financial condition, and results of operations. 50 ITEM 1B. UNRESOLVED STAFF COMMENTS None.
The U.S. federal government has cautioned Americans on the possibility of Russia targeting the U.S. with cyber attacks in retaliation for sanctions that the U.S. has imposed and has urged both the public and private sectors to strengthen their cyber defenses and protect critical services and infrastructure.
The U.S. federal government has cautioned Americans on the possibility of Russia targeting the U.S. with cyberattacks in retaliation for sanctions that the U.S. has imposed and has urged both the public and private sectors to strengthen their cyber defenses and protect critical services and infrastructure.
A reduction in distributions to stockholders may negatively impact our stock price. 21 Distributions on our common stock may be made in the form of cash, stock, or a combination of both. As a REIT, we are required to distribute at least 90% of our taxable income to our stockholders.
A reduction in distributions to stockholders may negatively impact our stock price. 20 Distributions on our common stock may be made in the form of cash, stock, or a combination of both. As a REIT, we are required to distribute at least 90% of our taxable income to our stockholders.
Disruptions at the FDA and other agencies, such as those resulting from a government shutdown, or uncertainty from stopgap spending bills may slow the time necessary for new drugs and devices to be reviewed and/or approved by necessary government agencies and the healthcare and drug industries’ ability to deliver new products to the market in a timely manner, which would adversely affect our tenants’ operating results and business.
Disruptions at the FDA and other agencies, such as those resulting from a government shutdown, or uncertainty from stopgap spending bills may slow the time necessary for new drugs and devices to be reviewed and/or approved by necessary government agencies and may affect the ability of the healthcare and drug industries to deliver new products to the market in a timely manner, which would adversely affect our tenants’ operating results and business.
Tenants that experience deteriorating financial conditions as a result of the outbreak of such a contagious disease may be unwilling or unable to pay rent in full or timely due to bankruptcy, lack of liquidity, lack of funding, operational failures, or other reasons.
Tenants that experience deteriorating financial conditions as a result of the outbreak or spread of such disease may be unwilling or unable to pay rent in full or timely due to bankruptcy, lack of liquidity, lack of funding, operational failures, or other reasons.
The occurrence of any of these adverse events could cause the market price of shares of our common stock to decline regardless of the performance of our primary real estate business. 34 Market and other external factors may adversely impact the valuation of our equity investments.
The occurrence of any of these adverse events could cause the market price of shares of our common stock to decline regardless of the performance of our primary real estate business. Market and other external factors may adversely impact the valuation of our non-real estate equity investments.
While we have not experienced such cyber attacks to date, it is yet unknown whether Russia will be successful in breaching our network defenses or, more broadly, those within the areas listed above, which, if successful, may cause disruptions to critical infrastructure required for our operations and livelihoods, or those of our tenants, communities, and business partners.
While we have not experienced such cyberattacks to date, it is yet unknown whether Russia will be successful in breaching our network defenses or, more broadly, those within the areas listed above, which, if successful, may cause disruptions to critical infrastructure required for our operations and livelihoods, or those of our tenants, communities, and business partners.
Our business and property operations may be adversely affected if key vendors fail to adequately provide key services at our properties as a result of natural disasters (such as fires, floods, earthquakes, etc.), power interruptions, bankruptcies, war, acts of terrorism, public health emergencies, cyber attacks, pandemics, or other unanticipated catastrophic events.
Our business and property operations may be adversely affected if key vendors fail to adequately provide key services at our properties as a result of natural disasters (such as fires, floods, earthquakes, etc.), power interruptions, bankruptcies, war, acts of terrorism, public health emergencies, cyberattacks, pandemics, or other unanticipated catastrophic events.
Additionally, President Biden directed government bodies to mandate cybersecurity and network defense measures within their respective jurisdictions and has initiated action plans to reinforce cybersecurity within the electricity, pipeline, and water sectors. The current administration also launched joint efforts with CISA through its “Shields Up” campaign to defend the U.S. against possible cyber attacks.
Additionally, President Biden directed government bodies to mandate cybersecurity and network defense measures within their respective jurisdictions and has initiated action plans to reinforce cybersecurity within the electricity, pipeline, and water sectors. The current administration also launched joint efforts with CISA through its “Shields Up” campaign to defend the U.S. against possible cyberattacks.
The risks noted above could negatively impact us or require us to: • Contribute additional capital if our partners fail to fund their share of any required capital contributions; • Experience substantial unanticipated delays that could hinder either the initiation or completion of redevelopment activities or new construction; • Incur additional expenses that could prevent the achievement of yields or returns that were initially anticipated; • Become engaged in a dispute with our joint venture partner that could lead to the sale of either party’s ownership interest or the property at a price below estimated fair market value; • Initiate litigation or settle disagreements with our partners through litigation or arbitration; and • Suffer losses or less than optimal returns as a result of actions taken by our partners with respect to our joint venture investments.
The risks noted above could negatively impact us or require us to: • Contribute additional capital if our partners fail to fund their share of any required capital contributions or are unable to access capital as a result of disruptions in the banking sector; • Experience substantial unanticipated delays that could hinder either the initiation or completion of redevelopment activities or new construction; • Incur additional expenses that could prevent the achievement of yields or returns that were initially anticipated; • Become engaged in a dispute with our joint venture partner that could lead to the sale of either party’s ownership interest or the property at a price below estimated fair market value; • Initiate litigation or settle disagreements with our partners through litigation or arbitration; and • Suffer losses or less than optimal returns as a result of actions taken by our partners with respect to our joint venture investments.
We use the extensive personal and business relationships that members of our management have developed over time with owners of office/laboratory and tech office properties and with major tenants and venture investment portfolio companies in the life science, agtech, and technology industries. We cannot assure our stockholders that our senior officers will remain employed with us.
We use the extensive personal and business relationships that members of our management have developed over time with owners of laboratory, agtech, and advanced technology properties and with major tenants and venture investment portfolio companies in the life science, agtech, and technology industries. We cannot assure our stockholders that our senior officers will remain employed with us.
Unfavorable developments with respect to any of these factors may have an adverse impact on the valuation of our equity investments. Market and other external factors may negatively impact the liquidity of our equity investments. We make and hold investments in privately held life science, agtech, and technology companies through our venture investment portfolio.
Unfavorable developments with respect to any of these factors may have an adverse impact on the valuation of our equity investments. Market and other external factors may negatively impact the liquidity of our non-real estate equity investments. We make and hold investments in privately held life science, agtech, and technology companies through our venture investment portfolio.
In a number of EU member states, the pricing and/or reimbursement of prescription pharmaceuticals are subject to governmental control, and legislators, policymakers, and healthcare insurance funds continue to propose and implement cost-containing measures to keep healthcare costs down, due in part to the attention being paid to healthcare cost containment and other austerity measures in the EU.
In a number of European Union (“EU”) member states, the pricing and/or reimbursement of prescription pharmaceuticals are subject to governmental control, and legislators, policymakers, and healthcare insurance funds continue to propose and implement cost-containing measures to keep healthcare costs down, due in part to the attention being paid to healthcare cost containment and other austerity measures in the EU.
There can be no assurance that our actions, security measures, and controls designed to prevent, detect, or respond to intrusion; to limit access to data; to prevent loss, destruction, alteration, or exfiltration of business information; or to limit the negative impact from such attacks can provide absolute security against a security incident.
There can be no assurance that our actions, security measures, and controls designed to prevent, detect, or respond to intrusion; to limit access to critical data; to prevent loss, destruction, alteration, or theft of business information; or to limit the negative impact from such attacks can provide absolute security against a security incident.
There are significant risks that may prevent us from achieving these goals, including, but not limited to, the following possibilities: • Change in market conditions may affect our ability to deploy capital for projects that reduce energy consumption, GHG pollution, and potable water consumption and that provide waste savings. • Our tenants may be unwilling or unable to accept potential incremental expenses associated with our sustainability programs, including expenses to comply with requirements stipulated under building certification standards such as LEED, WELL, and Fitwel.
There are significant risks that may prevent us from achieving such goals, including, but not limited to, the following possibilities: • Change in market conditions may affect our ability to deploy capital for projects such as those that reduce energy and water consumption, GHG emissions, and that provide waste savings. • Our tenants may be unwilling or unable to accept potential incremental expenses associated with sustainability programs, including expenses to comply with requirements stipulated under building certification standards such as LEED, Fitwel, and WELL.
While we do not rely on any single supplier or vendor for the majority of our materials and skilled labor, we may experience difficulties obtaining necessary materials from suppliers or vendors whose supply chains might become impacted by economic or political changes, outmoded technology, aging infrastructure, shortages of shipping containers and/or means of transportation, or difficulties obtaining adequate skilled labor from third-party contractors in a tight labor market.
While we do not rely on any single supplier or vendor for the majority of our materials and skilled labor, we may experience difficulties obtaining necessary materials from suppliers or vendors whose supply chains might become impacted by economic or political changes, outmoded technology, aging infrastructure, shortages of shipping containers and/or means of transportation, or difficulties obtaining adequate skilled labor from third-party contractors.
During an investigation, we may not necessarily know the extent of the damage incurred or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, which could further increase the costs and consequences of a cyber attack.
During an investigation, we may not necessarily know the extent of the damage incurred or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, which could further increase the costs and consequences of a cyberattack.
We have properties located in areas that may be subject to extreme weather and natural or other disasters, including, but not limited to, earthquakes, winds, floods, hurricanes, fires, power shortages, telecommunication failures, medical epidemics, explosions, or other natural or manmade accidents or incidents.
We have properties located in areas that may be subject to extreme weather and natural or other disasters, including, but not limited to, earthquakes, winds, floods, hurricanes, fires, power shortages, telecommunication failures, medical epidemics, explosions, or other natural or man-made accidents or incidents.
Mergers, acquisitions, or consolidations of life science, agtech, and technology entities in the future could reduce the RSF requirements of our tenants and prospective tenants, which may adversely impact the demand for office/laboratory and tech office space and our future revenue from lease payments and our results of operations.
Mergers, acquisitions, or consolidations of life science, agtech, and technology entities in the future could reduce the RSF requirements of our tenants and prospective tenants, which may adversely impact the demand for laboratory, agtech, and advanced technology space, our future revenue from lease payments, and our results of operations.
As of December 31, 2022, approximately 93% of our existing leases (on an annual rental revenue basis) were triple net leases, which allow us to recover operating expenses, and approximately 93% of our existing leases (on an annual rental revenue basis) also provided for the recapture of capital expenditures.
As of December 31, 2023, approximately 94% of our existing leases (on an annual rental revenue basis) were triple net leases, which allow us to recover operating expenses, and approximately 93% of our existing leases (on an annual rental revenue basis) also provided for the recapture of capital expenditures.
Deterioration of our tenants’ financial condition may result in our inability to collect rental payments from them and therefore may negatively impact our operating results. Our results of operations depend on our tenants’ research and development efforts and their ability to obtain funding for these efforts.
Deterioration of our tenants’ financial condition may result in our inability to collect lease payments from them and therefore may negatively impact our operating results. 28 Our results of operations depend on our tenants’ research and development efforts and their ability to obtain funding for these efforts.
As of December 31, 2022, approximately 93% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate and other rent-related taxes, insurance, utilities, security, common area expenses, and other operating expenses (including increases thereto) in addition to base rent.
As of December 31, 2023, approximately 94% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate and other rent-related taxes, insurance, utilities, security, common area expenses, and other operating expenses (including increases thereto) in addition to base rent.
The extent of a particular cyber attack and the steps that we may need to take to investigate the attack may not be immediately clear. Therefore, in the event of an attack, it may take a significant amount of time before such an investigation can be completed.
Furthermore, the extent of a particular cyberattack and the steps that we may need to take to investigate the attack may not be immediately clear. Therefore, in the event of an attack, it may take a significant amount of time before such an investigation can be completed.
In addition, the U.S. Federal Reserve has adopted a final rule that establishes a methodology to identify whether a U.S. bank holding company is a global systemically important banking organization (“GSIB”). Any firm identified as a GSIB would be subject to a risk-based capital surcharge that is calibrated based on its systemic risk profile.
Federal Reserve adopted a final rule that establishes a methodology to identify whether a U.S. bank holding company is a global systemically important banking organization (“GSIB”). Any firm identified as a GSIB would be subject to a risk-based capital surcharge that is calibrated based on its systemic risk profile.
Changes in U.S. accounting standards may adversely impact us. The regulatory boards and government agencies that determine financial accounting standards and disclosures in the U.S., which include the FASB and the IASB (collectively, the “Boards”) and the SEC, continually change and update the financial accounting standards we must follow.
Changes in U.S. accounting standards may adversely impact us. The regulatory boards and government agencies that determine financial accounting standards and disclosures in the U.S., which include the FASB and the SEC, continually change and update the financial accounting standards we must follow.
Any shift away from funding of research and development or delays surrounding the approval of government budget proposals may adversely impact our tenants’ operations, which in turn may impact their demand for office/laboratory and tech office space and their ability to make lease payments to us and thus adversely impact our results of operations.
Any shift away from funding of research and development or delays surrounding the approval of government budget proposals may adversely impact our tenants’ operations, which in turn may impact their demand for life science/laboratory space and their ability to make lease payments to us and thus adversely impact our results of operations.
Congress signed into law the Inflation Reduction Act of 2022 (“IRA”), which directs nearly $400 billion of federal spending to be used toward reducing carbon emissions and funding clean energy over the next 10 years and is designed to encourage private investment in clean energy, transport, and manufacturing.
Congress signed into law the Inflation Reduction Act of 2022 (“IRA”), which directed nearly $400 billion of federal spending to be used toward reducing carbon emissions and funding clean energy over the next 10 years and was designed to encourage private investment in clean energy, transport, and manufacturing.
In California, property taxes are not reassessed based on changes in the fair value of the underlying real estate asset but are instead limited to a maximum 2% annual increase by law.
As discussed previously, in California, property taxes are not reassessed based on changes in the fair value of the underlying real estate asset but are instead limited to a maximum 2% annual increase by law.
Unfavorable news relating to our more significant technology industry tenants and venture investment portfolio companies may also adversely impact our stock price. 32 Our agtech industry tenants and venture investment portfolio companies are subject to a number of risks unique to their industry, including (i) uncertain regulatory environment, (ii) seasonality in business, (iii) unavailability of transportation mechanisms for carrying products and raw materials, (iv) changes in costs or constraints on supplies or energy used in operations, (v) strikes or labor slowdowns or labor contract negotiations, and (vi) rapid technological changes in agriculture.
Negative news relating to our more significant life science industry tenants and venture investment portfolio companies may also adversely impact our stock price. 30 Our agtech industry tenants and venture investment portfolio companies are subject to a number of risks unique to their industry, including (i) uncertain regulatory environment, (ii) seasonality in business, (iii) unavailability of transportation mechanisms for carrying products and raw materials, (iv) changes in costs or constraints on supplies or energy used in operations, (v) strikes or labor slowdowns or labor contract negotiations, and (vi) rapid technological changes in agriculture.
In addition, new energy-related initiatives entered into in collaboration with partner countries through global climate agreements may impose stricter requirements for building materials, such as lumber, steel, and concrete, which could significantly increase our construction costs if the manufacturers and suppliers of our materials are burdened with expensive cap-and-trade or similar energy-related regulations or requirements, and the costs of which are passed onto customers like us.
In addition, new climate change-related initiatives entered into by the U.S. government in collaboration with partner countries through global climate agreements may impose stricter requirements for building materials, such as lumber, steel, and concrete, which could significantly increase our construction costs if the manufacturers and suppliers of our materials are burdened with expensive cap-and-trade or similar regulations or requirements, and the costs of which are passed onto customers like us.
Significant changes in new ASUs could cause fluctuations in revenue and expense recognition and materially affect our results of operations. We may also experience an increase in general and administrative expenses resulting from additional resources required for the initial implementation of such ASUs. This could adversely affect our reported results of operations, profitability, and financial statements.
Significant changes that may be introduced by ASUs could cause fluctuations in revenue and expense recognition and materially affect our results of operations. We may also experience an increase in general and administrative expenses resulting from additional resources required for the initial implementation of such ASUs. This could adversely affect our reported results of operations, profitability, and financial statements.
The increased burden on our resources due to adverse developments relating to our technology industry tenants may cause us to achieve lower-than-expected yields on the space leased by these tenants.
The increased burden on our resources due to adverse developments relating to our life science industry tenants may cause us to achieve lower-than-expected yields on the space leased by these tenants.
Investments in international markets may also subject us to risks associated with establishing effective controls and procedures to regulate the operations of new offices and to monitor compliance with U.S. laws and regulations, including the Foreign Corrupt Practices Act and similar foreign laws and regulations.
Investments in international markets may also subject us to risks associated with establishing effective controls and procedures to regulate the operations in foreign locations and to monitor compliance with U.S. laws and regulations, including the Foreign Corrupt Practices Act and similar foreign laws and regulations.

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Item 2. Properties

Properties — owned and leased real estate

62 edited+42 added−21 removed10 unchanged
Biggest change(2) This project is focused on demand from our existing tenants in our adjacent properties/campuses and will also address demand from other non-Alexandria properties/campuses. 78 New Class A development and redevelopment properties: current projects (continued) Market Property/Submarket Square Footage Percentage Dev/Redev In Service CIP Total Leased Leased/Negotiating Near-term projects expected to commence construction in the next four quarters San Francisco Bay Area 230 Harriet Tubman Way/South San Francisco Dev — 285,346 285,346 100 % 100 % San Diego 11255 and 11355 North Torrey Pines Road/Torrey Pines Dev — 309,094 309,094 100 100 10931 and 10933 North Torrey Pines Road/Torrey Pines Dev — 299,158 299,158 100 100 Campus Point by Alexandria, Phase II/University Town Center Dev — 426,927 426,927 100 100 Campus Point by Alexandria, Phase I/University Town Center Dev — 171,102 171,102 100 100 Seattle 701 Dexter Avenue North/Lake Union Dev — 226,586 226,586 — — (1) Maryland 9820 Darnestown Road/Rockville Dev — 250,000 250,000 100 100 — 1,968,213 1,968,213 88 88 Total 1,366,926 7,565,750 8,932,676 72 % 72 % (1) This project was initiated due to demand from neighboring tenants. 79 New Class A development and redevelopment properties: current projects (continued) Our Ownership Interest At 100% Unlevered Yields Market Property/Submarket In Service CIP Cost to Complete Total at Completion Initial Stabilized Initial Stabilized (Cash Basis) Under construction Greater Boston 325 Binney Street/Cambridge/Inner Suburbs 100 % $ — $ 477,206 $ 413,794 $ 891,000 8.5 % 7.2 % One Rogers Street/Cambridge/Inner Suburbs 100 % 10,814 1,040,421 154,765 1,206,000 5.2 % 4.2 % 99 Coolidge Avenue/Cambridge/Inner Suburbs 75.0 % — 174,817 TBD 500 North Beacon Street and 4 Kingsbury Avenue/Cambridge/Inner Suburbs 100 % — 156,299 270,701 427,000 6.2 % 5.5 % 201 Brookline Avenue/Fenway 98.8 % 482,455 208,188 43,357 734,000 7.2 % 6.2 % 15 Necco Street/Seaport Innovation District 90.0 % — 339,207 227,793 567,000 6.7 % 5.5 % 40, 50, and 60 Sylvan Road/Route 128 100 % 173,686 151,887 TBD 840 Winter Street/Route 128 100 % 13,642 99,117 95,241 208,000 7.5 % 6.5 % Other 100 % — 128,736 TBD San Francisco Bay Area 1450 Owens Street/Mission Bay 59.7 % — 122,012 TBD 651 Gateway Boulevard/South San Francisco 50.0 % — 182,941 751 Gateway Boulevard/South San Francisco 51.0 % — 171,315 118,685 290,000 6.5 % 6.3 % San Diego 10075 Barnes Canyon Road/Sorrento Mesa 50.0 % — 51,389 TBD Seattle 1150 Eastlake Avenue East/Lake Union 100 % — 213,339 191,661 405,000 6.4 % 6.2 % Alexandria Center ® for Advanced Technologies – Monte Villa Parkway/Bothell 100 % 59,309 99,001 70,690 229,000 6.3 % 6.2 % Maryland 9810 Darnestown Road/Rockville 100 % — 78,508 54,492 133,000 6.9 % 6.2 % 9808 Medical Center Drive/Rockville 100 % — 51,050 TBD 9601 and 9603 Medical Center Drive/Rockville 100 % 18,187 30,907 4,906 54,000 8.4 % 7.1 % 20400 Century Boulevard/Gaithersburg 100 % 21,185 7,584 6,231 35,000 8.5 % 8.6 % Research Triangle 2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive/Research Triangle 100 % 93,858 121,944 121,198 337,000 7.5 % 6.7 % 4 Davis Drive/Research Triangle 100 % — 38,090 TBD 6040 George Watts Hill Drive, Phase II/Research Triangle 100 % — 20,583 43,417 64,000 8.0 % 7.0 % Texas 8800 Technology Forest Place/Greater Houston 100 % — 73,436 TBD Canada Canada 100 % 3,154 17,376 TBD $ 876,290 $ 4,055,353 $ 3,690,000 (1) $ 8,620,000 (1) (1) Amounts rounded to the nearest $10 million and include preliminary estimated amounts for projects listed as TBD. 80 New Class A development and redevelopment properties: current projects (continued) Our Ownership Interest At 100% Market Property/Submarket In Service CIP Cost to Complete Total at Completion Near-term projects expected to commence construction in the next four quarters San Francisco Bay Area TBD 230 Harriet Tubman Way/South San Francisco 45.3 % $ — $ 110,278 San Diego 11255 and 11355 North Torrey Pines Road/Torrey Pines 100 % — 126,748 10931 and 10933 North Torrey Pines Road/Torrey Pines 100 % — 83,241 Campus Point by Alexandria, Phase II/University Town Center 55.0 % — 53,495 Campus Point by Alexandria, Phase I/University Town Center 55.0 % — 46,821 Seattle 701 Dexter Avenue North/Lake Union 100 % — 124,303 Maryland 9820 Darnestown Road/Rockville 100 % — 38,952 — 583,838 1,830,000 (1) 2,420,000 (1) Total $ 876,290 $ 4,639,191 $ 5,520,000 (1) $ 11,040,000 (1) Our share of investment (2) $ 4,660,000 (1) $ 9,730,000 (1) (1) Amounts rounded to the nearest $10 million and include preliminary estimated amounts for projects listed as TBD.
Biggest changeWe are currently marketing the space for lease and have initial interest from publicly traded biotechnology and institutional tenants. 77 New Class A/A+ development and redevelopment properties: current projects (continued) Our Ownership Interest At 100% Unlevered Yields Property/Market/Submarket In Service CIP Cost to Complete Total at Completion Initial Stabilized Initial Stabilized (Cash Basis) Under construction 2024 stabilization 201 Brookline Avenue/Greater Boston/Fenway 99.0 % $ 661,831 $ 80,604 $ 32,565 $ 775,000 7.2 % 6.5 % 840 Winter Street/Greater Boston/Route 128 100 % 13,648 130,274 64,078 208,000 7.5 % 6.5 % 230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco 47.1 % — 237,118 272,882 510,000 7.4 % 6.4 % 4155 Campus Point Court/San Diego/University Town Center 55.0 % — 89,704 83,296 173,000 7.4 % 6.5 % 1150 Eastlake Avenue East/Seattle/Lake Union 100 % 363,824 33,827 45,349 443,000 6.6 % 6.7 % Alexandria Center ® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell 100 % 93,238 104,608 31,154 229,000 6.3 % 6.2 % 9820 Darnestown Road/Maryland/Rockville 100 % — 144,388 32,612 177,000 6.3 % 5.6 % 9810 Darnestown Road/Maryland/Rockville 100 % — 108,644 24,356 133,000 6.9 % 6.2 % 9808 Medical Center Drive/Maryland/Rockville 100 % 34,825 54,312 23,863 113,000 5.5 % 5.5 % 8800 Technology Forest Place/Texas/Greater Houston 100 % 43,529 56,245 12,226 112,000 6.3 % 6.0 % 1,210,895 1,039,724 2025 stabilization (1) 99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs 75.0 % 48,183 245,314 174,503 468,000 7.1 % 7.0 % 500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs 100 % — 337,677 89,323 427,000 6.2 % 5.5 % 651 Gateway Boulevard/San Francisco Bay Area/South San Francisco 50.0 % — 306,273 TBD 10075 Barnes Canyon Road/San Diego/Sorrento Mesa 50.0 % — 124,450 Canada 100 % 29,400 47,974 26,626 104,000 7.0 % 7.0 % 77,583 1,061,688 2026 and beyond stabilization (1) 401 Park Drive/Greater Boston/Fenway 100 % — 140,156 TBD 421 Park Drive/Greater Boston/Fenway 99.6 % — 301,730 40, 50, and 60 Sylvan Road/Greater Boston/Route 128 100 % — 397,582 Other/Greater Boston 100 % — 136,992 1450 Owens Street/San Francisco Bay Area/Mission Bay 40.6 % — 268,290 10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines 100 % — 177,828 325,172 503,000 6.2 % 5.8 % 4135 Campus Point Court/San Diego/University Town Center 55.0 % — 137,689 TBD — 1,560,267 1,288,478 3,661,679 Near-term project expected to commence construction in the next two years 4165 Campus Point Court/San Diego/University Town Center 55.0 % — 46,257 TBD Total $ 1,288,478 $ 3,707,936 $ 3,970,000 (2) $ 8,960,000 (2) Our share of investment (3) $ 2,990,000 (2) $ 3,090,000 (2) $ 7,350,000 (2) (1) We expect to provide total estimated costs and related yields for each project with estimated stabilization in 2025 and beyond over the next several quarters.
Refer to the “New Class A development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information. (2) We own a partial interest in this property through a real estate joint venture.
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information. (2) We own a partial interest in this property through a real estate joint venture.
(1) We own a partial interest in this property through a real estate joint venture.
(1) We own a partial interest in this property through a real estate joint venture.
(1) Represents total square footage upon completion of development or redevelopment of one or more new Class A properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities.
(1) Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities.
As of December 31, 2022: • Investment-grade or publicly traded large cap tenants represented 48% of our total annual rental revenue; • Approximately 96% of our leases (on an annual rental revenue basis) contained effective annual rent escalations approximating 3% that were either fixed or indexed based on a consumer price index or other index; • Approximately 93% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in addition to base rent; and • Approximately 93% of our leases (on an annual rental revenue basis) provided for the recapture of capital expenditures (such as HVAC maintenance and/or replacement, roof replacement, and parking lot resurfacing) that we believe would typically be borne by the landlord in traditional office leases.
Additionally, as of December 31, 2023: • Investment-grade or publicly traded large cap tenants represented 52% of our total annual rental revenue; • Approximately 96% of our leases (on an annual rental revenue basis) contained effective annual rent escalations approximating 3% that were either fixed or indexed based on a consumer price index or other index; • Approximately 94% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in addition to base rent; and • Approximately 93% of our leases (on an annual rental revenue basis) provided for the recapture of capital expenditures (such as HVAC maintenance and/or replacement, roof replacement, and parking lot resurfacing) that we believe would typically be borne by the landlord in traditional office leases.
(4) Includes (i) ground leases for land at 1455 and 1515 Third Street (two buildings aggregating 422,980 RSF) and (ii) leases at 1655 and 1725 Third Street (two buildings aggregating 586,208 RSF) owned by our unconsolidated real estate joint venture in which we have an ownership interest of 10%.
(4) Includes (i) ground leases for land at 1455 and 1515 Third Street (two buildings aggregating 422,980 RSF) and (ii) leases at 1655 and 1725 Third Street (two buildings aggregating 586,208 RSF) in our Mission Bay submarket owned by our unconsolidated real estate joint venture in which we have an ownership interest of 10%.
The occupancy percentage of our operating properties in North America was 94.8% as of December 31, 2022. The exteriors of our properties typically resemble traditional office properties, but the interior infrastructures are designed to accommodate the needs of life science, agtech, and technology tenants. These improvements typically are generic rather than specific to a particular tenant.
The occupancy percentage of our operating properties in North America was 94.6% as of December 31, 2023. The exteriors of our properties typically resemble traditional office properties, but the interior infrastructures are designed to accommodate the needs of life science, agtech, and technology tenants. These improvements typically are generic rather than specific to a particular tenant.
As of December 31, 2022, approximately 93% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in addition to base rent.
As of December 31, 2023, approximately 94% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in addition to base rent.
(1) Represents the average delivery date for deliveries that occurred during the three months ended December 31, 2022, weighted by annual rental revenue.
(1) Represents the average delivery date for deliveries that occurred during the three months ended December 31, 2023, weighted by annual rental revenue.
These projects are focused on providing high-quality, generic, and reusable spaces that meet the real estate requirements of, and are reusable by, a wide range of tenants. Upon completion, each value-creation project is expected to generate a significant increase in rental income, net operating income, and cash flows.
These projects are focused on providing high-quality, generic, and reusable spaces that meet the real estate requirements of a wide range of tenants. Upon completion, each value-creation project is expected to generate increases in rental income, net operating income, and cash flows.
During the year ended December 31, 2022, our ground lease rental expense aggregated 1.7% as a percentage of net operating income. Refer to further discussion in our consolidated financial statements and notes thereto in “Item 15. Exhibits and financial statement schedules” in this annual report on Form 10-K.
During the year ended December 31, 2023, as a percentage of net operating income our ground lease rental expense aggregated 1.5%. Refer to our consolidated financial statements and notes thereto in “Item 15. Exhibits and financial statement schedules” in this annual report on Form 10-K for further discussion.
As of December 31, 2022, we held a fee simple interest in each of our properties, with the exception of 40 properties in North America subject to ground leasehold interests, which accounted for approximately 9% of our total number of properties.
As of December 31, 2023, we held a fee simple interest in each of our properties, with the exception of 36 properties in North America subject to ground leasehold interests, which accounted for approximately 9% of our total number of properties.
Of these 40 properties, we held 14 properties in the Greater Boston market, 20 properties in the San Francisco Bay Area market, two properties in the New York City market, one property in the Seattle market, one property in the Maryland market, and two properties in the Research Triangle market.
Of these 36 properties, we held 10 properties in the Greater Boston market, 20 properties in the San Francisco Bay Area market, two properties in the New York City market, one property in the Seattle market, one property in the Maryland market, and two properties in the Research Triangle market.
ITEM 2. PROPERTIES General As of December 31, 2022, we had 432 properties in North America containing approximately 47.4 million RSF of operating properties and development and redevelopment of new Class A properties under construction, including 64 properties that are held by consolidated real estate joint ventures and four properties that are held by unconsolidated real estate joint ventures.
ITEM 2. PROPERTIES General As of December 31, 2023, we had 411 properties in North America consisting of approximately 47.2 million RSF of operating properties and new Class A/A+ development and redevelopment properties under construction, including 68 properties that are held by consolidated real estate joint ventures and four properties that are held by unconsolidated real estate joint ventures.
(1) We own a partial interest in this property through a real estate joint venture. Refer to the “Joint venture financial information” section under Item 7 in this annual report in Form 10-K for additional information.
(1) We own a partial interest in this property through a real estate joint venture. Refer to the “Consolidated and unconsolidated real estate joint ventures” section under Item 7 in this annual report in Form 10-K for additional information.
(1) We own a partial interest in this property through a real estate joint venture. Refer to the “Joint venture financial information” section under Item 7 in this annual report in Form 10-K for additional information.
(1) We own a partial interest in this property through a real estate joint venture. Refer to the “Consolidated and unconsolidated real estate joint ventures” section under Item 7 in this annual report in Form 10-K for additional information.
Management’s discussion and analysis of financial condition and results of operations” in this annual report on Form 10-K for a description of the basis used to compute the aforementioned measures. 55 Locations of properties The locations of our properties are diversified among a number of life science, agtech, and technology cluster markets.
Management’s discussion and analysis of financial condition and results of operations” in this annual report on Form 10-K for a description of the basis used to compute the aforementioned measures. 53 Locations of properties The locations of our properties are diversified among a number of Class A/A+ assets strategically clustered in life science, agtech, and advanced technology mega campuses in AAA innovation cluster markets.
As of December 31, 2022, we had over 1,000 leases with a total of approximately 1,000 tenants, and 199, or 46%, of our 432 properties were single-tenant properties. Leases in our multi-tenant buildings typically have initial terms of 4–11 years, while leases in our single-tenant buildings typically have initial terms of 11–21 years.
As of December 31, 2023, we had over 1,000 leases with a total of approximately 800 tenants, and 198, or 48%, of our 411 properties were single-tenant properties. Leases in our multi-tenant buildings typically have initial terms of 4 to 11 years, while leases in our single-tenant buildings typically have initial terms of 11 to 21 years.
(1) Represents annual rental revenue currently generated from space that is targeted for a future change in use, including 1.1% of total annual rental revenue that is generated from covered land play projects. The weighted-average remaining term of these leases is 5.2 years.
(1) Represents annual rental revenue in effect as of December 31, 2023. (2) Represents annual rental revenue currently generated from space that is targeted for a future change in use, including 1.1% of total annual rental revenue that is generated from covered land play projects for future development opportunities. The weighted-average remaining term of these leases is 4.0 years.
Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information. (4) Represents the acquisition of a condominium interest in two floors of a seven-story building.
Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
(1) Represents total square footage upon completion of development or redevelopment of one or more new Class A properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities.
(2) Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes RSF of buildings currently in operation with future development or redevelopment opportunities.
Additionally, approximately 96% of our leases (on an annual rental revenue basis) contained contractual annual rent escalations approximating 3% that were either fixed or based on a consumer price index or another index, and approximately 93% of our leases (on an annual rental revenue basis) provided for the recapture of certain capital expenditures. 66 Leasing activity (continued) The following table summarizes our leasing activity at our properties for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Including Straight-Line Rent Cash Basis Including Straight-Line Rent Cash Basis (Dollars per RSF) Leasing activity: Renewed/re-leased space (1) Rental rate changes 31.0% 22.1% (2) 37.9% 22.6% New rates $50.37 $48.48 $59.00 $55.60 Expiring rates $38.44 $39.69 $42.80 $45.36 RSF 4,540,325 4,614,040 Tenant improvements/leasing commissions $27.83 $41.05 Weighted-average lease term 5.0 years 6.3 years Developed/redeveloped/previously vacant space leased (3) New rates $73.46 $64.04 $78.52 $69.42 RSF 3,865,262 4,902,261 Weighted-average lease term 11.8 years 11.2 years Leasing activity summary (totals): New rates $60.98 $55.64 $69.05 $62.72 RSF 8,405,587 (2)(4) 9,516,301 Weighted-average lease term 8.1 years 8.8 years Lease expirations (1) Expiring rates $37.41 $38.06 $41.53 $43.70 RSF 6,572,286 5,747,192 Leasing activity includes 100% of results for properties in which we have an investment in North America.
Additionally, approximately 96% of our leases (on an annual rental revenue basis) contained contractual annual rent escalations approximating 3% that were either fixed or based on a consumer price index or another index, and approximately 93% of our leases (on an annual rental revenue basis) provided for the recapture of certain capital expenditures. 64 Leasing activity (continued) The following table summarizes our leasing activity at our properties for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Including Straight-Line Rent Cash Basis Including Straight-Line Rent Cash Basis (Dollars per RSF) Leasing activity: Renewed/re-leased space (1) Rental rate changes 29.4% (2) 15.8% (2) 31.0% 22.1% New rates $52.35 $50.82 $50.37 $48.48 Expiring rates $40.46 $43.87 $38.44 $39.69 RSF 3,046,386 4,540,325 Tenant improvements/leasing commissions $26.09 $27.83 Weighted-average lease term 8.7 years 5.0 years Developed/redeveloped/previously vacant space leased (3) New rates $65.66 $59.74 $73.46 $64.04 RSF 1,259,686 3,865,262 Weighted-average lease term 13.8 years 11.8 years Leasing activity summary (totals): New rates $56.09 $53.33 $60.98 $55.64 RSF 4,306,072 8,405,587 Weighted-average lease term 11.3 years 8.1 years Lease expirations (1) Expiring rates $43.84 $45.20 $37.41 $38.06 RSF 5,027,773 6,572,286 Leasing activity includes 100% of results for properties in North America in which we have an investment.
(1) Represents total square footage upon completion of development or redevelopment of one or more new Class A properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities.
(1) Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property.
(1) Represents total square footage upon completion of development or redevelopment of one or more new Class A properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities.
(1) Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property.
The limited supply of Class A space in AAA locations and strong demand from innovative tenants drove rental rate increases for the year ended December 31, 2022 of 31.0% and 22.1% (cash basis) on 4.5 million renewed/re-leased RSF, while a favorable triple net lease structure with contractual annual rent escalations resulted in both a consistent Same Properties operating margin of 70.0% and Same Properties current-period average occupancy of 95.7% for the year ended December 31, 2022, an increase of 100 bps for the same-period prior-year average, across our 253 Same Properties aggregating 26.1 million RSF.
The limited supply of Class A/A+ space in AAA locations and strong demand from innovative tenants drove rental rate increases for the year ended December 31, 2023 of 29.4% and 15.8% (cash basis) on 3.0 million renewed/re-leased RSF, while a favorable triple net lease structure with contractual annual rent escalations resulted in both a consistent Same Properties operating margin of 69% and Same Properties current-period average occupancy of 94.6% for the year ended December 31, 2023, a decrease of 80 bps for the same-period prior-year average, across our 288 Same Properties aggregating 28.7 million RSF.
Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property and commence future construction. Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional details on value-creation square feet currently included in rental properties. (2) Excludes month-to-month leases aggregating 266,292 RSF as of December 31, 2022.
(2) Refer to “Investments in real estate” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional details on value-creation square feet currently included in rental properties.
(4) Represents average occupancy of operating properties in North America as of each December 31 for the last 10 years. 59 Property listing Mega Campuses Encompass 68% of Our Operating Property RSF (1) The following table provides certain information about our properties as of December 31, 2022 (dollars in thousands): Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Greater Boston Cambridge/Inner Suburbs Mega Campus: Alexandria Center ® at Kendall Square 2,449,354 — 403,892 2,853,246 11 $ 198,373 99.1 % 85.1 % 50 (2) , 60 (2) , 75/125 (2) , 100 (2) , and 225 (2) Binney Street, 215 First Street, 150 Second Street, 300 Third Street (2) , 11 Hurley Street, One Rogers Street, and 100 Edwin H.
Excluding acquired vacancy, occupancy of operating properties in North America was 96.3% as of December 31, 2023. 57 Property listing Mega Campuses Encompass 75% of Our Annual Rental Revenue (1) The following table provides certain information about our properties as of December 31, 2023 (dollars in thousands): Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Greater Boston Cambridge/Inner Suburbs Mega Campus: Alexandria Center ® at Kendall Square 2,856,043 — — 2,856,043 11 $ 266,549 99.6 % 99.6 % 50 (2) , 60 (2) , 75/125 (2) , 100 (2) , and 225 (2) Binney Street, 140 and 215 First Street, 150 Second Street, 300 Third Street (2) , 11 Hurley Street, and 100 Edwin H.
Refer to the “Joint venture financial information” section under Item 7 in this annual report in Form 10-K for additional information. 63 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Maryland Rockville Mega Campus: Alexandria Center ® for Life Science – Shady Grove 1,090,102 282,000 61,322 1,433,424 19 $ 49,353 99.0 % 93.7 % 9601, 9603, 9605, 9704, 9708, 9712, 9714, 9800, 9804, 9808, 9900, and 9950 Medical Center Drive, 14920 and 15010 Broschart Road, 9920 Belward Campus Drive, and 9810 Darnestown Road 1330 Piccard Drive 131,511 — — 131,511 1 4,034 100.0 100.0 1405 and 1450 (1) Research Boulevard 114,849 — — 114,849 2 2,631 62.8 62.8 1500 and 1550 East Gude Drive 91,359 — — 91,359 2 1,844 100.0 100.0 5 Research Place 63,852 — — 63,852 1 2,999 100.0 100.0 5 Research Court 51,520 — — 51,520 1 1,788 100.0 100.0 12301 Parklawn Drive 49,185 — — 49,185 1 1,530 100.0 100.0 Rockville 1,592,378 282,000 61,322 1,935,700 27 64,179 96.6 93.0 Gaithersburg Alexandria Technology Center ® – Gaithersburg I 613,438 — — 613,438 9 17,359 98.6 98.6 9, 25, 35, 45, 50, and 55 West Watkins Mill Road and 910, 930, and 940 Clopper Road Alexandria Technology Center ® – Gaithersburg II 486,324 — — 486,324 7 17,632 96.5 96.5 700, 704, and 708 Quince Orchard Road and 19, 20, 21, and 22 Firstfield Road 20400 Century Boulevard 50,738 — 29,812 80,550 1 2,035 100.0 63.0 401 Professional Drive 63,154 — — 63,154 1 1,918 100.0 100.0 950 Wind River Lane 50,000 — — 50,000 1 1,234 100.0 100.0 620 Professional Drive 27,950 — — 27,950 1 1,207 100.0 100.0 Gaithersburg 1,291,604 — 29,812 1,321,416 20 41,385 98.0 95.8 Beltsville 8000/9000/10000 Virginia Manor Road 191,884 — — 191,884 1 2,951 100.0 100.0 101 West Dickman Street (1) 135,423 — — 135,423 1 705 51.1 51.1 Beltsville 327,307 — — 327,307 2 3,656 79.8 79.8 Northern Virginia 14225 Newbrook Drive 248,186 — — 248,186 1 6,127 100.0 100.0 Maryland 3,459,475 282,000 91,134 3,832,609 50 $ 115,347 95.8 % 93.3 % Refer to the “New Class A development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to the “Consolidated and unconsolidated real estate joint ventures” section under Item 7 in this annual report in Form 10-K for additional information. 61 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Maryland Rockville Mega Campus: Alexandria Center ® for Life Science – Shady Grove 1,176,744 510,601 — 1,687,345 20 $ 53,655 96.6 % 96.6 % 9601, 9603, 9605, 9704, 9708, 9712, 9714, 9800, 9804, 9808, 9900, and 9950 Medical Center Drive, 14920 and 15010 Broschart Road, 9920 Belward Campus Drive, and 9810 and 9820 Darnestown Road 1330 Piccard Drive 131,508 — — 131,508 1 4,197 100.0 100.0 1405 and 1450 (1) Research Boulevard 114,849 — — 114,849 2 3,025 73.3 73.3 1500 and 1550 East Gude Drive 91,359 — — 91,359 2 1,844 100.0 100.0 5 Research Place 63,852 — — 63,852 1 3,073 100.0 100.0 5 Research Court 51,520 — — 51,520 1 1,788 100.0 100.0 12301 Parklawn Drive 49,185 — — 49,185 1 1,598 100.0 100.0 Rockville 1,679,017 510,601 — 2,189,618 28 69,180 95.8 95.8 Gaithersburg Alexandria Technology Center ® – Gaithersburg I 619,241 — — 619,241 9 17,532 93.6 93.6 9, 25, 35, 45, 50, and 55 West Watkins Mill Road and 910, 930, and 940 Clopper Road Alexandria Technology Center ® – Gaithersburg II 486,633 — — 486,633 7 18,543 100.0 100.0 700, 704, and 708 Quince Orchard Road and 19, 20, 21, and 22 Firstfield Road 20400 Century Boulevard 81,006 — — 81,006 1 3,298 100.0 100.0 401 Professional Drive 63,154 — — 63,154 1 2,135 100.0 100.0 950 Wind River Lane 50,000 — — 50,000 1 1,234 100.0 100.0 620 Professional Drive 27,950 — — 27,950 1 1,207 100.0 100.0 Gaithersburg 1,327,984 — — 1,327,984 20 43,949 97.0 97.0 Beltsville 8000/9000/10000 Virginia Manor Road 191,884 — — 191,884 1 3,021 100.0 100.0 101 West Dickman Street (1) 135,423 — — 135,423 1 1,503 64.4 64.4 Beltsville 327,307 — — 327,307 2 4,524 85.3 85.3 Northern Virginia 14225 Newbrook Drive 248,186 — — 248,186 1 6,127 100.0 100.0 Maryland 3,582,494 510,601 — 4,093,095 51 $ 123,780 95.6 % 95.6 % Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
(1) Total square footage includes 4,550,537 RSF of buildings currently in operation that we intend to demolish or redevelop and commence future construction. Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information. (2) Total book value includes $3.7 billion of projects currently under construction that are 61% leased.
Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property and commence future construction. Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information. (2) We own a partial interest in this property through a real estate joint venture.
(2) We own 100% of this property. 61 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total San Diego Torrey Pines Mega Campus: One Alexandria Square and One Alexandria North 904,883 — — 904,883 10 $ 53,236 99.9 % 99.9 % 3115 and 3215 (1) Merryfield Row, 3010, 3013, and 3033 Science Park Road, 10975 and 11119 North Torrey Pines Road, 10975, 10995, and 10996 Torreyana Road, and 3545 Cray Court ARE Torrey Ridge 298,863 — — 298,863 3 15,747 100.0 100.0 10578, 10618, and 10628 Science Center Drive ARE Nautilus 213,900 — — 213,900 4 11,297 88.1 88.1 3530 and 3550 John Hopkins Court and 3535 and 3565 General Atomics Court Torrey Pines 1,417,646 — — 1,417,646 17 80,280 98.2 98.2 University Town Center Mega Campus: Campus Point by Alexandria (1) 1,662,342 — — 1,662,342 11 75,970 97.7 97.7 9880 (2) , 10010 (2) , 10140 (2) , 10210, 10260, 10290, and 10300 Campus Point Drive and 4161, 4224, 4242, and 4275 (2) Campus Point Court Mega Campus: 5200 Illumina Way (1) 792,687 — — 792,687 6 29,978 100.0 100.0 Mega Campus: University District 415,462 — — 415,462 7 18,641 100.0 100.0 9625 Towne Centre Drive (1) , 4755, 4757, and 4767 Nexus Center Drive, 4796 Executive Drive, 8505 Costa Verde Boulevard, and 4260 Nobel Drive University Town Center 2,870,491 — — 2,870,491 24 124,589 98.7 98.7 Sorrento Mesa Mega Campus: SD Tech by Alexandria (1) 1,059,754 254,771 — 1,314,525 15 43,387 94.1 94.1 9605, 9645, 9675, 9685, 9725, 9735, 9808, 9855, and 9868 Scranton Road, 5505 Morehouse Drive (2) , and 10055, 10065, 10075, 10121 (2) , and 10151 (2) Barnes Canyon Road Mega Campus: Sequence District by Alexandria 803,319 — — 803,319 7 23,993 89.0 89.0 6260, 6290, 6310, 6340, 6350, 6420, and 6450 Sequence Drive Pacific Technology Park (1) 544,352 — — 544,352 5 8,106 88.6 88.6 9389, 9393, 9401, 9455, and 9477 Waples Street Summers Ridge Science Park (1) 316,531 — — 316,531 4 11,521 100.0 100.0 9965, 9975, 9985, and 9995 Summers Ridge Road Scripps Science Park by Alexandria 244,083 — — 244,083 3 10,226 100.0 100.0 10102 Hoyt Park Drive and 10256 and 10260 Meanley Drive ARE Portola 101,857 — — 101,857 3 3,880 100.0 100.0 6175, 6225, and 6275 Nancy Ridge Drive 5810/5820 Nancy Ridge Drive 83,354 — — 83,354 1 3,853 100.0 100.0 9877 Waples Street 63,774 — — 63,774 1 2,521 100.0 100.0 5871 Oberlin Drive 33,842 — — 33,842 1 1,772 100.0 100.0 Sorrento Mesa 3,250,866 254,771 — 3,505,637 40 $ 109,259 93.5 % 93.5 % Refer to the “New Class A development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
(2) We own 100% of this property. 59 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total San Diego Torrey Pines Mega Campus: One Alexandria Square 833,589 334,996 — 1,168,585 12 $ 49,861 100.0 % 100.0 % 3115 and 3215 (1) Merryfield Row, 3010, 3013, and 3033 Science Park Road, 10935, 10945, and 10955 Alexandria Way, 10975 North Torrey Pines Road, 10975, 10995, and 10996 Torreyana Road, and 3545 Cray Court ARE Torrey Ridge 296,290 — — 296,290 3 13,969 85.8 85.8 10578, 10618, and 10628 Science Center Drive ARE Nautilus 213,900 — — 213,900 4 8,729 88.2 88.2 3530 and 3550 John Hopkins Court and 3535 and 3565 General Atomics Court Torrey Pines 1,343,779 334,996 — 1,678,775 19 72,559 95.0 95.0 University Town Center Mega Campus: Campus Point by Alexandria (1) 1,666,590 598,029 — 2,264,619 13 77,574 99.0 99.0 9880 (2) , 10010 (2) , 10140 (2) , 10210, 10260, 10290, and 10300 Campus Point Drive and 4135, 4155, 4161, 4224, 4242, and 4275 (2) Campus Point Court Mega Campus: 5200 Illumina Way (1) 792,687 — — 792,687 6 29,978 100.0 100.0 ARE Esplanade 243,084 — — 243,084 4 5,022 47.7 47.7 4755, 4757, and 4767 Nexus Center Drive and 4796 Executive Drive 9625 Towne Centre Drive (1) 163,648 — — 163,648 1 6,528 100.0 100.0 Costa Verde by Alexandria 8,730 — — 8,730 2 879 100.0 100.0 8505 Costa Verde Boulevard and 4260 Nobel Drive University Town Center 2,874,739 598,029 — 3,472,768 26 119,981 95.0 95.0 Sorrento Mesa Mega Campus: SD Tech by Alexandria (1) 1,064,267 254,771 — 1,319,038 15 44,628 95.6 95.6 9605, 9645, 9675, 9685, 9725, 9735, 9808, 9855, and 9868 Scranton Road, 5505 Morehouse Drive (2) , and 10055, 10065, 10075, 10121 (2) , and 10151 (2) Barnes Canyon Road Mega Campus: Sequence District by Alexandria 800,151 — — 800,151 7 23,930 89.0 89.0 6260, 6290, 6310, 6340, 6350, 6420, and 6450 Sequence Drive Pacific Technology Park (1) 544,352 — — 544,352 5 8,969 89.1 89.1 9389, 9393, 9401, 9455, and 9477 Waples Street Summers Ridge Science Park (1) 316,531 — — 316,531 4 11,521 100.0 100.0 9965, 9975, 9985, and 9995 Summers Ridge Road Scripps Science Park by Alexandria 144,113 — — 144,113 1 11,069 100.0 100.0 10102 Hoyt Park Drive ARE Portola 101,857 — — 101,857 3 4,034 100.0 100.0 6175, 6225, and 6275 Nancy Ridge Drive 5810/5820 Nancy Ridge Drive 83,354 — — 83,354 1 4,693 100.0 100.0 9877 Waples Street 63,774 — — 63,774 1 2,680 100.0 100.0 5871 Oberlin Drive 33,842 — — 33,842 1 1,799 100.0 100.0 Sorrento Mesa 3,152,241 254,771 — 3,407,012 38 $ 113,323 93.8 % 93.8 % Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Summary of occupancy percentages in North America The following table sets forth the occupancy percentages for our operating properties and our operating and redevelopment properties in each of our North America markets, excluding properties held for sale, as of the following dates: Operating Properties Operating and Redevelopment Properties Market 12/31/22 12/31/21 12/31/20 12/31/22 12/31/21 12/31/20 Greater Boston 94.5 % 95.2 % 98.1 % 85.5 % 83.2 % 94.8 % San Francisco Bay Area 96.7 93.0 95.8 93.3 92.6 94.7 New York City 92.3 98.4 97.3 92.3 91.0 87.8 San Diego 95.4 93.1 93.5 95.4 91.7 92.4 Seattle 97.0 95.6 96.0 90.1 88.5 85.5 Maryland 95.8 99.8 96.1 93.3 96.0 90.6 Research Triangle 94.0 94.6 89.6 85.0 86.1 72.7 Texas 91.2 N/A N/A 81.6 N/A N/A Subtotal 95.1 94.9 95.5 89.9 89.1 90.7 Canada 80.8 78.6 81.8 68.2 78.6 81.8 Non-cluster/other markets 75.0 75.1 52.7 75.0 75.1 52.7 North America 94.8 % 94.0 % 94.6 % 89.4 % 88.5 % 90.0 % 56 Top 20 tenants 90% of Top 20 Tenants Annual Rental Revenue Is From Investment-Grade or Publicly Traded Large Cap Tenants (1) Our properties are leased to a high-quality and diverse group of tenants, with no individual tenant accounting for more than 3.5% of our annual rental revenue in effect as of December 31, 2022.
Summary of occupancy percentages in North America The following table sets forth the occupancy percentages for our operating properties and our operating and redevelopment properties in each of our North America markets, excluding properties held for sale, as of the following dates: Operating Properties Operating and Redevelopment Properties Market 12/31/23 12/31/22 12/31/21 12/31/23 12/31/22 12/31/21 Greater Boston 94.9 % 94.5 % 95.2 % 84.7 % 85.5 % 83.2 % San Francisco Bay Area 94.8 96.7 93.0 91.4 93.3 92.6 New York City 85.3 (1) 92.3 98.4 85.3 92.3 91.0 San Diego 94.1 95.4 93.1 94.1 95.4 91.7 Seattle 95.2 97.0 95.6 90.7 90.1 88.5 Maryland 95.6 95.8 99.8 95.6 93.3 96.0 Research Triangle 97.8 94.0 94.6 97.8 85.0 86.1 Texas 95.1 91.2 N/A 91.5 81.6 N/A Subtotal 94.9 95.1 94.9 90.7 89.9 89.1 Canada 87.1 80.8 78.6 73.0 68.2 78.6 Non-cluster/other markets 78.5 75.0 75.1 78.5 75.0 75.1 North America 94.6 % 94.8 % 94.0 % 90.2 % 89.4 % 88.5 % (1) Occupancy in our New York City market includes vacancy at our Alexandria Center ® for Life Science – Long Island City property that is 41.7% occupied as of December 31, 2023.
The following table sets forth information regarding leases with our 20 largest tenants in North America based upon annual rental revenue in effect as of December 31, 2022 (dollars in thousands, except average market cap amounts): Remaining Lease Term (1) (in Years) Aggregate RSF Annual Rental Revenue (1) Percentage of Aggregate Annual Rental Revenue (1) Investment-Grade Credit Ratings Average Market Cap (1) (in billions) Tenant Moody’s S&P 1 Bristol-Myers Squibb Company 4.3 962,439 $ 69,870 3.5 % A2 A+ $ 156.1 2 Moderna, Inc. 13.8 908,340 51,926 2.6 — — $ 62.1 3 Eli Lilly and Company 6.2 743,267 49,890 2.5 A2 A+ $ 292.5 4 Takeda Pharmaceutical Company Limited 7.0 549,760 37,399 1.9 Baa2 BBB+ $ 45.0 5 Illumina, Inc. 7.6 891,495 36,204 1.8 Baa3 BBB $ 40.2 6 Sanofi 7.6 434,648 34,104 1.7 A1 AA $ 122.2 7 2seventy bio, Inc.
The following table sets forth information regarding leases with our 20 largest tenants in North America based upon annual rental revenue in effect as of December 31, 2023 (dollars in thousands, except average market cap amounts): Remaining Lease Term (1) (in Years) Aggregate RSF Annual Rental Revenue (1) Percentage of Aggregate Annual Rental Revenue (1) Investment-Grade Credit Ratings Average Market Cap (1) (in billions) Tenant Moody’s S&P 1 Moderna, Inc. 13.2 1,370,536 $ 122,763 5.7 % — — $ 47.4 2 Eli Lilly and Company 9.1 1,154,917 93,815 4.3 A2 A+ $ 440.5 3 Bristol-Myers Squibb Company 6.7 852,830 66,339 3.1 A2 A+ $ 131.5 4 Roche 6.4 770,279 46,192 2.1 Aa2 AA $ 242.1 5 Takeda Pharmaceutical Company Limited 6.0 549,760 37,399 1.7 Baa2 BBB+ $ 49.0 6 Alphabet Inc. 2.9 654,423 36,809 1.7 Aa2 AA+ $ 1,509.5 7 Illumina, Inc. 6.6 890,389 36,204 1.7 Baa3 BBB $ 27.9 8 2seventy bio, Inc.
(1) Represents annual rental revenue in effect as of December 31, 2022.
(1) Based on total annual rental revenue in effect as of December 31, 2023.
(2) Our other tenants, which aggregate 2.0% of our annual rental revenue, comprise technology, professional services, finance, telecommunications, and construction/real estate companies and less than 1.0% of retail-related tenants by annual rental revenue. (3) Represents annual rental revenue in effect as of December 31, 2022.
(3) Our “Other” tenants, which represent an aggregate of 3.0% of our annual rental revenue, comprise technology, professional services, finance, telecommunications, and construction/real estate companies, and (by less than 1.0% of our annual rental revenue) retail-related tenants. (4) Represents average occupancy of operating properties in North America as of each December 31 for the last 10 years.
The following chart presents renewed/re-leased space and developed/redeveloped/previously vacant space leased for the years ended December 31, 2020, 2021, and 2022: Lease structure Our Same Properties total revenue growth of 9.8% for the year ended December 31, 2022, and our Same Properties net operating income and Same Properties net operating income increases (cash basis) for the year ended December 31, 2022 of 6.6% and 9.6%, respectively, benefited significantly from strong market fundamentals.
Lease structure Our Same Properties total revenue growth of 4.3% for the year ended December 31, 2023, and our Same Properties net operating income and Same Properties net operating income increases (cash basis) for the year ended December 31, 2023 of 3.4% and 4.6%, respectively, benefited significantly from strong market fundamentals.
Refer to the “Joint venture financial information” section under Item 7 in this annual report in Form 10-K for additional details. 60 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total San Francisco Bay Area Mission Bay Mega Campus: Alexandria Center ® for Science and Technology – Mission Bay (1) 2,015,177 212,796 — 2,227,973 10 $ 98,444 100.0 % 100.0 % 1455 (2) , 1515 (2) , 1655, and 1725 Third Street, 409 and 499 Illinois Street, 1450, 1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South Mission Bay 2,015,177 212,796 — 2,227,973 10 98,444 100.0 100.0 South San Francisco Mega Campus: Alexandria Technology Center ® – Gateway (1) 1,114,890 230,592 300,010 1,645,492 12 60,385 92.6 73.0 600 (2) , 601, 611, 630 (2) , 650 (2) , 651, 681, 685, 701, 751, 901 (2) , and 951 (2) Gateway Boulevard Mega Campus: 213 (1) , 249, 259, 269, and 279 East Grand Avenue 919,704 — — 919,704 5 48,854 100.0 100.0 Mega Campus: 1122 and 1150 El Camino Real 725,172 — — 725,172 2 10,948 97.8 97.8 Alexandria Center ® for Life Science – South San Francisco 504,551 — — 504,551 3 37,153 100.0 100.0 201 Haskins Way and 400 and 450 East Jamie Court 500 Forbes Boulevard (1) 155,685 — — 155,685 1 10,680 100.0 100.0 849/863 Mitten Road/866 Malcolm Road 103,857 — — 103,857 1 4,834 100.0 100.0 South San Francisco 3,523,859 230,592 300,010 4,054,461 24 172,854 97.2 89.6 Greater Stanford Mega Campus: Alexandria Center ® for Life Science – San Carlos 739,192 — — 739,192 9 49,953 97.3 97.3 825, 835, 960, and 1501-1599 Industrial Road Alexandria Stanford Life Science District 703,742 — — 703,742 9 65,349 100.0 100.0 3160, 3165, 3170, and 3181 Porter Drive and 3301, 3303, 3305, 3307, and 3330 Hillview Avenue 3875 Fabian Way 228,000 — — 228,000 1 9,402 100.0 100.0 3412, 3420, 3440, 3450, and 3460 Hillview Avenue 338,751 — — 338,751 5 20,926 73.8 73.8 2100, 2200, 2300, and 2400 Geng Road 196,276 — — 196,276 4 8,448 70.7 70.7 2475 and 2625/2627/2631 Hanover Street and 1450 Page Mill Road 194,503 — — 194,503 3 18,040 100.0 100.0 2425 Garcia Avenue/2400/2450 Bayshore Parkway 99,208 — — 99,208 1 4,257 100.0 100.0 3350 West Bayshore Road 61,537 — — 61,537 1 4,518 99.9 99.9 Greater Stanford 2,561,209 — — 2,561,209 33 180,893 93.5 93.5 San Francisco Bay Area 8,100,245 443,388 300,010 8,843,643 67 452,191 96.7 93.3 New York City New York City Mega Campus: Alexandria Center ® for Life Science – New York City 740,972 — — 740,972 3 71,779 94.2 94.2 430 and 450 East 29th Street 219 East 42nd Street 349,947 — — 349,947 1 18,638 100.0 100.0 Alexandria Center ® for Life Science – Long Island City 179,100 — — 179,100 1 6,996 69.1 69.1 30-02 48th Avenue New York City 1,270,019 — — 1,270,019 5 $ 97,413 92.3 % 92.3 % Refer to the “New Class A development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to the “Consolidated and unconsolidated real estate joint ventures” section under Item 7 in this annual report in Form 10-K for additional details. 58 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total San Francisco Bay Area Mission Bay Mega Campus: Alexandria Center ® for Science and Technology – Mission Bay (1) 2,012,791 212,796 — 2,225,587 10 $ 91,856 94.9 % 94.9 % 1455 (2) , 1515 (2) , 1655, and 1725 Third Street, 409 and 499 Illinois Street, 1450, 1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South Mission Bay 2,012,791 212,796 — 2,225,587 10 91,856 94.9 94.9 South San Francisco Mega Campus: Alexandria Technology Center ® – Gateway (1) 1,342,194 — 300,010 1,642,204 12 75,299 86.6 70.8 600 (2) , 601, 611, 630 (2) , 650 (2) , 651, 681, 685, 701, 751, 901 (2) , and 951 (2) Gateway Boulevard Mega Campus: Alexandria Center ® for Advanced Technologies – South San Francisco 919,704 — — 919,704 5 57,055 100.0 100.0 213 (1) , 249, 259, 269, and 279 East Grand Avenue Alexandria Center ® for Life Science – South San Francisco 503,388 — — 503,388 3 32,372 89.8 89.8 201 Haskins Way and 400 and 450 East Jamie Court Mega Campus: Alexandria Center ® for Advanced Technologies – Tanforan 445,232 — — 445,232 2 4,011 100.0 100.0 1122 and 1150 El Camino Real Alexandria Center ® for Life Science – Millbrae (1) — 285,346 — 285,346 1 — N/A N/A 230 Harriet Tubman Way 500 Forbes Boulevard (1) 155,685 — — 155,685 1 10,680 100.0 100.0 South San Francisco 3,366,203 285,346 300,010 3,951,559 24 179,417 93.1 85.5 Greater Stanford Mega Campus: Alexandria Center ® for Life Science – San Carlos 739,157 — — 739,157 9 50,755 99.0 99.0 825, 835, 960, and 1501-1599 Industrial Road Alexandria Stanford Life Science District 703,570 — — 703,570 9 65,005 98.3 98.3 3160, 3165, 3170, and 3181 Porter Drive and 3301, 3303, 3305, 3307, and 3330 Hillview Avenue 3412, 3420, 3440, 3450, and 3460 Hillview Avenue 338,751 — — 338,751 5 24,275 83.2 83.2 3875 Fabian Way 228,000 — — 228,000 1 9,402 100.0 100.0 2475 and 2625/2627/2631 Hanover Street and 1450 Page Mill Road 194,503 — — 194,503 3 18,294 100.0 100.0 2100, 2200, 2300, and 2400 Geng Road 162,584 — — 162,584 4 12,241 100.0 100.0 2425 Garcia Avenue/2400/2450 Bayshore Parkway 99,208 — — 99,208 1 4,257 100.0 100.0 3350 West Bayshore Road 61,431 — — 61,431 1 4,770 100.0 100.0 Greater Stanford 2,527,204 — — 2,527,204 33 188,999 97.0 97.0 San Francisco Bay Area 7,906,198 498,142 300,010 8,704,350 67 460,272 94.8 91.4 New York City New York City Mega Campus: Alexandria Center ® for Life Science – New York City 743,377 — — 743,377 3 67,706 95.8 95.8 430 and 450 East 29th Street Alexandria Center ® for Life Science – Long Island City 179,100 — — 179,100 1 5,287 41.7 41.7 30-02 48th Avenue New York City 922,477 — — 922,477 4 $ 72,993 85.3 % 85.3 % Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
As of December 31, 2022, the noncontrolling interest share of our joint venture partner was 40.3%. 71 New Class A development and redevelopment properties Refer to “Net operating income” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional details and its reconciliation from the most directly comparable financial measures presented in accordance with GAAP.
We will develop and operate the completed project and will earn development fees over the next three years. 70 New Class A/A+ development and redevelopment properties Refer to “Net operating income” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional details and its reconciliation from the most directly comparable financial measures presented in accordance with GAAP.
(4) The largest remaining contractual expiration for 2023 and 2024 is 108,020 RSF in our Bothell submarket and 98,808 RSF in our Mission Bay submarket, respectively. 68 Investments in real estate A key component of our business model is our disciplined allocation of capital to the development and redevelopment of new Class A properties, and property enhancements identified during the underwriting of certain acquired properties, located in collaborative life science, agtech, and technology campuses in AAA innovation clusters.
(8) Includes 905,127 RSF in our Cambridge/Inner Suburbs submarket with the largest remaining contractual lease expiration aggregating 171,945 RSF at our Alexandria Technology Square ® mega campus. 67 Investments in real estate A key component of our business model is our disciplined allocation of capital to the development and redevelopment of new Class A/A+ properties, and property enhancements identified during the underwriting of certain acquired properties, located in collaborative life science, agtech, and advanced technology mega campuses in AAA innovation clusters.
(2) Relates to total operating RSF placed in service as of the most recent delivery. 75 New Class A development and redevelopment properties: current projects 325 Binney Street One Rogers Street 99 Coolidge Avenue 500 North Beacon Street and 4 Kingsbury Avenue (1) 201 Brookline Avenue Greater Boston/ Cambridge/Inner Suburbs Greater Boston/ Cambridge/Inner Suburbs Greater Boston/ Cambridge/Inner Suburbs Greater Boston/ Cambridge/Inner Suburbs Greater Boston/Fenway 462,100 RSF 403,892 RSF 320,809 RSF 248,018 RSF 170,043 RSF 100% Leased 100% Leased 36% Leased/Negotiating 85% Leased/Negotiating 98% Leased/Negotiating 15 Necco Street 40, 50, and 60 Sylvan Road (2) 1450 Owens Street 651 Gateway Boulevard 751 Gateway Boulevard Greater Boston/ Seaport Innovation District Greater Boston/Route 128 San Francisco Bay Area/ Mission Bay San Francisco Bay Area/ South San Francisco San Francisco Bay Area/ South San Francisco 345,995 RSF 202,428 RSF 212,796 RSF 300,010 RSF 230,592 RSF 97% Leased/Negotiating 61% Leased/Negotiating —% Leased/Negotiating 7% Leased/Negotiating 100% Leased (1) Image represents 500 North Beacon Street in our The Arsenal on the Charles mega campus.
(2) Relates to total operating RSF placed in service as of the most recent delivery. 74 New Class A/A+ development and redevelopment properties: current projects 99 Coolidge Avenue 500 North Beacon Street and 4 Kingsbury Avenue (1) 201 Brookline Avenue 401 Park Drive 421 Park Drive Greater Boston/ Cambridge/Inner Suburbs Greater Boston/ Cambridge/Inner Suburbs Greater Boston/Fenway Greater Boston/Fenway Greater Boston/Fenway 277,241 RSF 248,018 RSF 58,149 RSF 133,578 RSF 392,011 RSF 36% Leased 85% Leased 98% Leased 17% Leased 13% Leased 40, 50, and 60 Sylvan Road (2) 840 Winter Street 1450 Owens Street (3) 651 Gateway Boulevard 230 Harriet Tubman Way Greater Boston/Route 128 Greater Boston/Route 128 San Francisco Bay Area/ Mission Bay San Francisco Bay Area/ South San Francisco San Francisco Bay Area/ South San Francisco 576,924 RSF 139,680 RSF 212,796 RSF 300,010 RSF 285,346 RSF 29% Leased 100% Leased —% Leased/Negotiating 22% Leased 100% Leased (1) Image represents 500 North Beacon Street on the Arsenal on the Charles mega campus.
Annual rental revenue is presented using 100% of the annual rental revenue from our consolidated properties and our share of annual rental revenue from our unconsolidated real estate joint ventures. Refer to footnote 1 for additional details.
Annual rental revenue is presented using 100% of the annual rental revenue from our consolidated properties and our share of annual rental revenue from our unconsolidated real estate joint ventures. Refer to footnote 1 for additional details. Excluding the ground leases, the weighted-average remaining lease term for our top 20 tenants was 7.8 years as of December 31, 2023.
(2) We own 100% of this property. 62 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total San Diego (continued) Sorrento Valley 3911, 3931, 3985, 4025, and 4045 Sorrento Valley Boulevard 131,698 — — 131,698 5 $ 3,930 75.7 % 75.7 % 11025, 11035, 11045, 11055, 11065, and 11075 Roselle Street 119,513 — — 119,513 6 4,312 100.0 100.0 Sorrento Valley 251,211 — — 251,211 11 8,242 87.3 87.3 Other 309,743 — — 309,743 2 8,343 79.5 79.5 San Diego 8,099,957 254,771 — 8,354,728 94 330,713 95.4 95.4 Seattle Lake Union Mega Campus: The Eastlake Life Science Campus by Alexandria 937,290 311,631 — 1,248,921 9 56,305 97.4 97.4 1150, 1165, 1201 (1) , 1208 (1) , 1551, and 1616 Eastlake Avenue East, 188 and 199 (1) East Blaine Street, and 1600 Fairview Avenue East Mega Campus: Alexandria Center ® for Life Science – South Lake Union 400 (1) and 601 Dexter Avenue North 309,434 — — 309,434 2 15,494 100.0 100.0 219 Terry Avenue North 30,705 — — 30,705 1 1,935 100.0 100.0 Lake Union 1,277,429 311,631 — 1,589,060 12 73,734 98.1 98.1 SoDo 830 4th Avenue South 42,380 — — 42,380 1 1,691 70.5 70.5 Elliott Bay 3000/3018 Western Avenue 47,746 — — 47,746 1 3,147 100.0 100.0 410 West Harrison Street and 410 Elliott Avenue West 36,849 — — 36,849 2 1,613 100.0 100.0 Elliott Bay 84,595 — — 84,595 3 4,760 100.0 100.0 Bothell Mega Campus: Alexandria Center ® for Advanced Technologies – Canyon Park 1,060,958 — — 1,060,958 22 23,042 96.7 96.7 22121 and 22125 17th Avenue Southeast, 22021, 22025, 22026, 22030, 22118, and 22122 20th Avenue Southeast, 22333, 22422, 22515, 22522, 22722, and 22745 29th Drive Southeast, 21540, 22213, and 22309 30th Drive Southeast, and 1629, 1631, 1725, 1916, and 1930 220th Street Southeast Alexandria Center ® for Advanced Technologies – Monte Villa Parkway 246,647 — 213,976 460,623 6 4,657 97.3 52.1 3301, 3303, 3305, 3307, 3555, and 3755 Monte Villa Parkway Bothell 1,307,605 — 213,976 1,521,581 28 27,699 96.8 83.2 Other 102,437 — — 102,437 2 1,145 93.5 93.5 Seattle 2,814,446 311,631 213,976 3,340,053 46 $ 109,029 97.0 % 90.1 % Refer to the “New Class A development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
(2) We own 100% of this property. 60 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total San Diego (continued) Sorrento Valley 3911, 3931, and 3985 Sorrento Valley Boulevard 108,812 — — 108,812 3 $ 4,112 85.0 % 85.0 % 11045 and 11055 Roselle Street 42,055 — — 42,055 2 2,156 100.0 100.0 Sorrento Valley 150,867 — — 150,867 5 6,268 89.2 89.2 Other 309,744 — — 309,744 2 8,329 87.6 87.6 San Diego 7,831,370 1,187,796 — 9,019,166 90 320,460 94.1 94.1 Seattle Lake Union Mega Campus: The Eastlake Life Science Campus by Alexandria 1,214,448 33,349 — 1,247,797 9 80,053 95.9 95.9 1150, 1165, 1201 (1) , 1208 (1) , 1551, and 1616 Eastlake Avenue East, 188 and 199 (1) East Blaine Street, and 1600 Fairview Avenue East Mega Campus: Alexandria Center ® for Life Science – South Lake Union 290,754 — — 290,754 1 17,969 100.0 100.0 400 Dexter Avenue North (1) 219 Terry Avenue North 25,966 — — 25,966 1 1,372 90.7 90.7 Lake Union 1,531,168 33,349 — 1,564,517 11 99,394 96.6 96.6 SoDo 830 4th Avenue South 42,380 — — 42,380 1 1,052 70.5 70.5 Elliott Bay 3000/3018 Western Avenue 47,746 — — 47,746 1 3,147 100.0 100.0 410 West Harrison Street and 410 Elliott Avenue West 36,849 — — 36,849 2 1,586 100.0 100.0 Elliott Bay 84,595 — — 84,595 3 4,733 100.0 100.0 Bothell Mega Campus: Alexandria Center ® for Advanced Technologies – Canyon Park 916,446 — — 916,446 21 19,348 92.6 92.6 22121 and 22125 17th Avenue Southeast, 22021, 22025, 22026, 22030, 22118, and 22122 20th Avenue Southeast, 22333, 22422, 22515, 22522, 22722, and 22745 29th Drive Southeast, 22213 and 22309 30th Drive Southeast, and 1629, 1631, 1725, 1916, and 1930 220th Street Southeast Alexandria Center ® for Advanced Technologies – Monte Villa Parkway 311,030 — 148,890 459,920 6 5,972 96.8 65.4 3301, 3303, 3305, 3307, 3555, and 3755 Monte Villa Parkway Bothell 1,227,476 — 148,890 1,376,366 27 25,320 93.7 83.6 Other 77,376 — — 77,376 2 878 100.0 100.0 Seattle 2,962,995 33,349 148,890 3,145,234 44 $ 131,377 95.2 % 90.7 % Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
(4) Pursuant to an option agreement, we are currently negotiating a long-term ground lease with the City of New York for the future site of a new building of approximately 550,000 SF. 83 New Class A development and redevelopment properties: summary of pipeline (continued) Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Under Construction Near Term Intermediate Term Future San Diego Mega Campus: SD Tech by Alexandria/Sorrento Mesa 50.0 % $ 116,330 254,771 — 160,000 333,845 748,616 9805 Scranton Road and 10065 and 10075 Barnes Canyon Road Mega Campus: One Alexandria Square and One Alexandria North/Torrey Pines 100 % 262,456 — 608,252 125,280 — 733,532 10931, 10933, 11255, and 11355 North Torrey Pines Road and 10975 and 10995 Torreyana Road Mega Campus: Campus Point by Alexandria/University Town Center 55.0 % 259,044 — 598,029 — 1,074,445 1,672,474 10010 (2) , 10140 (2) , and 10260 Campus Point Drive and 4110, 4150, 4161, and 4275 (2) Campus Point Court Mega Campus: Sequence District by Alexandria/Sorrento Mesa 100 % 43,100 — 200,000 509,000 1,089,915 1,798,915 6260, 6290, 6310, 6340, 6350, and 6450 Sequence Drive Scripps Science Park by Alexandria/Sorrento Mesa 100 % 69,978 — 105,000 175,041 164,000 444,041 10048 and 10219 Meanley Drive, and 10277 Scripps Ranch Boulevard Mega Campus: University District/University Town Center 100 % 143,990 — — 937,000 — 937,000 9363, 9373, and 9393 Towne Centre Drive, 8410-8750 Genesee Avenue, and 4282 Esplanade Court Pacific Technology Park/Sorrento Mesa 50.0 % 21,981 — — 149,000 — 149,000 9444 Waples Street Mega Campus: 5200 Illumina Way/University Town Center 51.0 % 16,652 — — — 451,832 451,832 4025, 4031, 4045, and 4075 Sorrento Valley Boulevard/Sorrento Valley 100 % 21,282 — — — 247,000 247,000 Other value-creation projects 100 % 68,606 — — — 475,000 475,000 1,023,419 254,771 1,511,281 2,055,321 3,836,037 7,657,410 Seattle Mega Campus: The Eastlake Life Science Campus by Alexandria/Lake Union 100 % 213,339 311,631 — — — 311,631 1150 Eastlake Avenue East Alexandria Center ® for Advanced Technologies – Monte Villa Parkway/Bothell 100 % 99,001 213,976 50,552 — — 264,528 3301, 3555, and 3755 Monte Villa Parkway Mega Campus: Alexandria Center ® for Life Science – South Lake Union/ Lake Union (3) 377,870 — 1,095,586 — 188,400 1,283,986 601 and 701 Dexter Avenue North and 800 Mercer Street 830 and 1010 4th Avenue South/SoDo 100 % $ 53,937 — — — 597,313 597,313 Refer to the definition of “Mega campus” in the “Definitions and reconciliations” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
(3) Pursuant to an option agreement, we are currently negotiating a long-term ground lease with the City of New York for the future site of a new building aggregating approximately 550,000 SF. 80 New Class A/A+ development and redevelopment properties: summary of pipeline (continued) Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Active and Near-Term Construction Future Opportunities Subject to Market Conditions and Leasing Under Construction Committed Near Term Priority Anticipated Future San Diego Mega Campus: One Alexandria Square/Torrey Pines 100 % $ 232,897 334,996 — — 125,280 460,276 10935, 10945, and 10955 Alexandria Way and 10975 and 10995 Torreyana Road Mega Campus: Campus Point by Alexandria/University Town Center 55.0 % 419,857 598,029 492,570 — 650,000 1,740,599 10010 (2) , 10140 (2) , and 10260 Campus Point Drive and 4135, 4155, 4161, 4165, and 4275 (2) Campus Point Court Mega Campus: SD Tech by Alexandria/Sorrento Mesa 50.0 % 241,448 254,771 — — 493,845 748,616 9805 Scranton Road and 10065 and 10075 Barnes Canyon Road 11255 and 11355 North Torrey Pines Road/Torrey Pines 100 % 143,262 — — 309,094 — 309,094 Scripps Science Park by Alexandria/Sorrento Mesa 100 % 114,859 — — 105,000 493,349 598,349 10048, 10219, 10256, and 10260 Meanley Drive and 10277 Scripps Ranch Boulevard Costa Verde by Alexandria/University Town Center 100 % 131,264 — — — 537,000 537,000 8410-8750 Genesee Avenue and 4282 Esplanade Court Mega Campus: 5200 Illumina Way/University Town Center 51.0 % 17,461 — — — 451,832 451,832 ARE Towne Centre/University Town Center 100 % 26,503 — — — 400,000 400,000 9363, 9373, and 9393 Towne Centre Drive 9625 Towne Centre Drive/University Town Center 30.0 % 837 — — — 100,000 100,000 Mega Campus: Sequence District by Alexandria/Sorrento Mesa 100 % 45,889 — — — 1,798,915 1,798,915 6260, 6290, 6310, 6340, 6350, and 6450 Sequence Drive Pacific Technology Park/Sorrento Mesa 50.0 % 23,514 — — — 149,000 149,000 9444 Waples Street 4025, 4031, 4045, and 4075 Sorrento Valley Boulevard/Sorrento Valley 100 % 39,707 — — — 247,000 247,000 Other value-creation projects 100 % 72,465 — — — 475,000 475,000 $ 1,509,963 1,187,796 492,570 414,094 5,921,221 8,015,681 Refer to the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Approximately 63% of the 336 leases executed during the year ended December 31, 2022 did not include concessions for free rent. During the year ended December 31, 2022, we granted tenant concessions/free rent averaging 2.1 months with respect to the 8.4 million RSF leased.
During the year ended December 31, 2023, we granted tenant concessions/free rent averaging 0.6 months per annum with respect to the 4.3 million RSF leased.
(2) We have a 98.8% ownership interest in 201 Brookline Avenue aggregating 170,043 RSF, which is currently under construction, and a 100% ownership interest in the near-term development project at 421 Park Drive aggregating 507,997 SF. 82 New Class A development and redevelopment properties: summary of pipeline (continued) Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Under Construction Near Term Intermediate Term Future San Francisco Bay Area Mega Campus: Alexandria Center ® for Science and Technology – Mission Bay/Mission Bay 59.7 % $ 122,012 212,796 — — — 212,796 1450 Owens Street Mega Campus: Alexandria Technology Center ® – Gateway/South San Francisco (2) 378,730 530,602 — — 291,000 821,602 651 and 751 Gateway Boulevard Alexandria Center ® for Life Science – Millbrae/South San Francisco 45.3 % 252,173 — 633,747 — — 633,747 230 Harriet Tubman Way, 201 and 231 Adrian Road, and 6 and 30 Rollins Road 3825 and 3875 Fabian Way/Greater Stanford 100 % 137,076 — — 250,000 228,000 478,000 Mega Campus: Alexandria Center ® for Life Science – San Carlos/Greater Stanford 100 % 397,323 — 105,000 700,000 692,830 1,497,830 960 Industrial Road, 987 and 1075 Commercial Street, and 888 Bransten Road 901 California Avenue/Greater Stanford 100 % 11,698 — 56,924 — — 56,924 Mega Campus: 88 Bluxome Street/SoMa 100 % 348,135 — 1,070,925 — — 1,070,925 Mega Campus: 1122, 1150, and 1178 El Camino Real/South San Francisco 100 % 350,590 — — — 1,930,000 1,930,000 Mega Campus: 211 (3) , 213 (3) , 249, 259, 269, and 279 East Grand Avenue/ South San Francisco 100 % 6,655 — — — 90,000 90,000 211 East Grand Avenue Other value-creation projects 100 % — — — — 25,000 25,000 2,004,392 743,398 1,866,596 950,000 3,256,830 6,816,824 New York City Mega Campus: Alexandria Center ® for Life Science – New York City/New York City 100 % 133,505 — — 550,000 (4) — 550,000 219 East 42nd Street/New York City 100 % — — — 579,947 — 579,947 $ 133,505 — — 1,129,947 — 1,129,947 Refer to the definition of “Mega campus” in the “Definitions and reconciliations” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements under Item 15 of this annual report on Form 10-K for additional details. 79 New Class A/A+ development and redevelopment properties: summary of pipeline (continued) Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Active and Near-Term Construction Future Opportunities Subject to Market Conditions and Leasing Under Construction Committed Near Term Priority Anticipated Future San Francisco Bay Area Mega Campus: Alexandria Center ® for Science and Technology – Mission Bay/Mission Bay 40.6 % $ 268,290 212,796 — — — 212,796 1450 Owens Street Mega Campus: Alexandria Technology Center ® – Gateway/South San Francisco 50.0 % 332,447 300,010 — — 291,000 591,010 651 Gateway Boulevard Alexandria Center ® for Life Science – Millbrae/South San Francisco 47.1 % 388,202 285,346 — 198,188 150,213 633,747 230 Harriet Tubman Way, 201 and 231 Adrian Road, and 6 and 30 Rollins Road Mega Campus: Alexandria Center ® for Advanced Technologies – South San Francisco/South San Francisco 100 % 6,655 — — 107,250 90,000 197,250 211 (2) and 269 East Grand Avenue Mega Campus: Alexandria Center ® for Life Science – San Carlos/Greater Stanford 100 % 423,593 — — 105,000 1,392,830 1,497,830 960 Industrial Road, 987 and 1075 Commercial Street, and 888 Bransten Road Mega Campus: Alexandria Center ® for Advanced Technologies – Tanforan/South San Francisco 100 % 377,159 — — — 1,930,000 1,930,000 1122, 1150, and 1178 El Camino Real 3825 and 3875 Fabian Way/Greater Stanford 100 % 147,079 — — — 478,000 478,000 2100, 2200, 2300, and 2400 Geng Road/Greater Stanford 100 % — — — — 240,000 240,000 901 California Avenue/Greater Stanford 100 % 16,419 — — — 56,924 56,924 Mega Campus: 88 Bluxome Street/SoMa 100 % 378,835 — — — 1,070,925 1,070,925 Other value-creation projects 100 % — — — — 25,000 25,000 2,338,679 798,152 — 410,438 5,724,892 6,933,482 New York City Mega Campus: Alexandria Center ® for Life Science – New York City/New York City 100 % 151,846 — — — 550,000 (3) 550,000 $ 151,846 — — — 550,000 550,000 Refer to the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to the “Joint venture financial information” section under Item 7 in this annual report in Form 10-K for additional information. 64 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Research Triangle Research Triangle Mega Campus: Alexandria Center ® for Life Science – Durham 1,880,185 — 376,871 2,257,056 16 $ 37,681 93.2 % 77.6 % 6, 8, 10, 12, 14, 40, 41, 42, and 65 Moore Drive, 21, 25, 27, 29, and 31 Alexandria Way, 2400 Ellis Road, and 14 TW Alexander Drive Mega Campus: Alexandria Center ® for Advanced Technologies – Research Triangle 350,267 180,000 — 530,267 5 15,869 93.9 93.9 4, 6, 8, 10, and 12 Davis Drive Alexandria Center ® for AgTech 342,881 — — 342,881 2 15,315 94.1 94.1 5 and 9 Laboratory Drive 104, 108, 110, 112, and 114 TW Alexander Drive 227,902 — — 227,902 5 7,375 94.3 94.3 Alexandria Technology Center ® – Alston 186,870 — — 186,870 3 4,009 94.1 94.1 100, 800, and 801 Capitola Drive 6040 George Watts Hill Drive 61,547 88,038 — 149,585 2 2,148 100.0 100.0 Alexandria Innovation Center ® – Research Triangle 136,729 — — 136,729 3 3,963 97.2 97.2 7010, 7020, and 7030 Kit Creek Road 7 Triangle Drive 104,531 — — 104,531 1 4,422 100.0 100.0 2525 East NC Highway 54 82,996 — — 82,996 1 3,651 100.0 100.0 407 Davis Drive 81,956 — — 81,956 1 1,644 100.0 100.0 601 Keystone Park Drive 77,395 — — 77,395 1 1,072 74.3 74.3 5 Triangle Drive 32,120 — — 32,120 1 1,147 100.0 100.0 6101 Quadrangle Drive 31,600 — — 31,600 1 759 100.0 100.0 Research Triangle 3,596,979 268,038 376,871 4,241,888 42 99,055 94.0 85.0 Texas Austin Mega Campus: Intersection Campus 1,525,613 — — 1,525,613 12 39,039 90.0 90.0 1001 Trinity Street and 1020 Red River Street 198,972 — — 198,972 2 6,746 100.0 100.0 Austin 1,724,585 — — 1,724,585 14 45,785 90.0 90.0 Greater Houston 8800 Technology Forest Place — — 201,499 201,499 1 — N/A — Texas 1,724,585 — 201,499 1,926,084 15 45,785 91.2 81.6 Canada 577,225 — 107,081 684,306 8 9,868 80.8 68.2 Non-cluster/other markets 382,960 — — 382,960 11 14,554 75.0 75.0 North America, excluding properties held for sale 41,476,438 3,106,793 2,490,744 47,073,975 422 2,004,965 94.8 % 89.4 % Properties held for sale 297,284 — — 297,284 10 2,476 34.0 % 34.0 % Total – North America 41,773,722 3,106,793 2,490,744 47,371,259 432 $ 2,007,441 Refer to the “New Class A development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information. 65 Leasing activity During the year ended December 31, 2022, strong demand for our high-quality office/laboratory space has translated into the second-highest year of leasing volume in Company history and solid rental rate growth in 2022 for our overall portfolio and our value-creation pipeline. • Executed a total of 336 leases, with a weighted-average lease term of 8.1 years, for 8.4 million RSF, representing the second-highest leasing year in Company history, 74% of which was generated from our client base of approximately 1,000 tenants, including 2.8 million RSF related to our development and redevelopment projects; • Annual leasing activity of 4.5 million RSF for renewed and re-leased spaces; and • Annual rental rate increases of 31.0% and 22.1% (cash basis) on renewed and re-leased space, representing the second-highest annual rental rate growth (cash basis) in Company history.
Refer to the “Consolidated and unconsolidated real estate joint ventures” section under Item 7 in this annual report in Form 10-K for additional information. 62 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Research Triangle Research Triangle Mega Campus: Alexandria Center ® for Life Science – Durham 2,155,252 — — 2,155,252 15 $ 52,175 97.5 % 97.5 % 6, 8, 10, 12, 14, 40, 42, and 65 Moore Drive, 21, 25, 27, 29, and 31 Alexandria Way, 2400 Ellis Road, and 14 TW Alexander Drive Mega Campus: Alexandria Center ® for Sustainable Technologies 364,493 — — 364,493 7 14,233 99.9 99.9 104, 108, 110, 112, and 114 TW Alexander Drive and 5 and 7 Triangle Drive Alexandria Center ® for AgTech 345,467 — — 345,467 2 16,541 97.2 97.2 5 and 9 Laboratory Drive Mega Campus: Alexandria Center ® for Advanced Technologies – Research Triangle 341,626 — — 341,626 4 16,079 99.4 99.4 6, 8, 10, and 12 Davis Drive Alexandria Technology Center ® – Alston 155,533 — — 155,533 3 3,837 90.9 90.9 100, 800, and 801 Capitola Drive 6040 George Watts Hill Drive 149,585 — — 149,585 2 7,375 100.0 100.0 Alexandria Innovation Center ® – Research Triangle 136,729 — — 136,729 3 4,093 97.2 97.2 7010, 7020, and 7030 Kit Creek Road 2525 East NC Highway 54 82,996 — — 82,996 1 3,651 100.0 100.0 601 Keystone Park Drive 77,595 — — 77,595 1 2,137 100.0 100.0 6101 Quadrangle Drive 31,600 — — 31,600 1 861 100.0 100.0 Research Triangle 3,840,876 — — 3,840,876 39 120,982 97.8 97.8 Texas Austin Mega Campus: Intersection Campus 1,525,359 — — 1,525,359 12 43,031 98.8 98.8 507 East Howard Lane, 13011 McCallen Pass, 13813 and 13929 Center Lake Drive, and 12535, 12545, 12555, and 12565 Riata Vista Circle 1001 Trinity Street and 1020 Red River Street 198,972 — — 198,972 2 11,630 100.0 100.0 Austin 1,724,331 — — 1,724,331 14 54,661 98.9 98.9 Greater Houston Alexandria Center ® for Advanced Technologies at The Woodlands 120,828 — 73,298 194,126 1 2,930 41.5 25.8 8800 Technology Forest Place Texas 1,845,159 — 73,298 1,918,457 15 57,591 95.1 91.5 Canada 898,740 — 172,936 1,071,676 12 17,222 87.1 73.0 Non-cluster/other markets 347,806 — — 347,806 10 15,827 78.5 78.5 North America, excluding properties held for sale 40,974,858 3,205,307 1,999,185 46,179,350 404 2,141,263 94.6 % 90.2 % Properties held for sale 1,049,135 — — 1,049,135 7 26,907 63.3 % 63.3 % Total – North America 42,023,993 3,205,307 1,999,185 47,228,485 411 $ 2,168,170 Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” section within this Item 2 and the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information. 63 Leasing activity During the year ended December 31, 2023, strong demand for our high-quality Class A/A+ properties translated into solid leasing activity and rental rate growth in 2023 for our overall portfolio and our value-creation pipeline. • Executed a total of 222 leases, with a weighted-average lease term of 11.3 years, for 4.3 million RSF, including 596,533 RSF related to our development and redevelopment projects; • 76% of our leasing activity during the last twelve months was generated from our existing tenant base; • Annual leasing activity of 3.0 million RSF for renewed and re-leased spaces; and • Annual rental rate increases of 29.4% and 15.8% (cash basis) on renewed and re-leased space.
(2) 10.7 312,805 33,617 1.7 — — $ 0.5 8 Novartis AG 5.6 447,831 30,749 1.5 A1 AA- $ 206.3 9 TIBCO Software, Inc. 4.2 (3) 292,013 28,537 1.4 — — $ — 10 Uber Technologies, Inc. 59.7 (4) 1,009,188 27,704 1.4 — — $ 57.7 11 Roche 6.5 417,011 27,188 1.4 Aa2 AA $ 290.6 12 Amgen Inc. 3.5 503,832 24,680 1.2 Baa1 BBB+ $ 133.2 13 Pfizer Inc. 1.7 416,996 22,376 1.1 A1 A+ $ 280.1 14 Massachusetts Institute of Technology 6.1 257,626 21,438 1.1 Aaa AAA $ — 15 Harvard University 2.0 (3) 286,580 20,086 1.0 Aaa AAA $ — 16 Boston Children’s Hospital 13.8 269,816 20,066 1.0 Aa2 AA $ — 17 United States Government 7.3 315,908 19,660 1.0 Aaa AA+ $ — 18 New York University 8.9 203,500 19,241 1.0 Aa1 AA+ $ — 19 Merck & Co., Inc. 11.3 300,930 18,913 0.9 A1 A+ $ 227.3 20 AstraZeneca PLC 3.8 348,363 18,641 0.9 A3 A $ 195.1 Total/weighted average 9.4 (4) 9,872,348 $ 612,289 30.6 % Annual rental revenue and RSF include 100% of each property managed by us in North America.
(2) 9.7 312,805 33,617 1.6 — — $ 0.4 9 Harvard University 6.0 389,233 32,494 1.5 Aaa AAA $ — 10 Novartis AG 4.6 450,563 31,196 1.4 A1 AA- $ 221.7 11 Cloud Software Group, Inc. 3.2 (3) 292,013 28,537 1.3 — — $ — 12 Uber Technologies, Inc. 58.7 (4) 1,009,188 27,750 1.3 — — $ 84.8 13 Pfizer Inc. 1.2 (5) 524,159 25,242 1.2 A1 A+ $ 208.5 14 AstraZeneca PLC 6.0 416,761 24,583 1.1 A3 A $ 212.5 15 United States Government 6.8 340,238 23,023 1.1 Aaa AA+ $ — 16 Sanofi 7.0 267,278 21,444 1.0 A1 AA $ 129.2 17 New York University 8.1 218,983 21,056 1.0 Aa2 AA- $ — 18 Massachusetts Institute of Technology 5.4 246,725 20,504 0.9 Aaa AAA $ — 19 Boston Children’s Hospital 12.8 266,857 20,066 0.9 Aa2 AA $ — 20 Merck & Co., Inc. 9.9 312,935 20,033 0.9 A1 A+ $ 274.8 Total/weighted-average 9.6 (4) 11,290,872 $ 769,066 35.5 % Annual rental revenue and RSF include 100% of each property managed by us in North America.
(2) Represents the operating component of our value-creation acquisitions that is not expected to undergo future development or redevelopment. (3) Represents total square footage upon completion of development or redevelopment of one or more new Class A properties. Square footage presented includes RSF of buildings currently in operations with future development or redevelopment opportunities.
(1) Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property.
Multi-tenant projects may have occupancy by tenants over a period of time. Stabilized occupancy may vary depending on single tenancy versus multi-tenancy.
Stabilized occupancy may vary depending on single tenancy versus multi-tenancy. Multi-tenant projects may increase in occupancy over a period of time. (2) These projects are focused on demand from our existing tenants in our adjacent properties/campuses and will also address demand from other non-Alexandria properties/campuses.
(2) Based on total annual rental revenue in effect as of December 31, 2022. 58 High-Quality and Diverse Client Base in AAA Locations Industry Mix of Approximately 1,000 Tenants AAA Locations Percentage of ARE’s Annual Rental Revenue (3) Solid Occupancy From Historically Strong Demand for Class A Properties in AAA Locations Solid Historical Occupancy (4) Occupancy Across Key Locations 96% Over 10 Years Refer to the definition of “Annual rental revenue” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information on our methodology of calculating annual rental revenue for unconsolidated real estate joint ventures.
Government) $ 59.95 Public Biotechnology – Preclinical or Clinical Stage $ 70.25 Private Biotechnology $ 82.51 Life Science Product, Service, and Device $ 43.45 Future Change in Use (2) $ 44.38 Investment-Grade or Large Cap Tech $ 31.93 Other (3) $ 32.61 Percentage of ARE’s Annual Rental Revenue (1) Solid Historical Occupancy of 96% Over Past 10 Years (4) From Historically Strong Demand for Our Class A/A+ Properties in AAA Locations AAA Locations Occupancy Across Key Locations Percentage of ARE’s Annual Rental Revenue (1) Refer to the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
(2) Image represents 50 Sylvan Road. 76 New Class A development and redevelopment properties: current projects (continued) 10075 Barnes Canyon Road 1150 Eastlake Avenue East 9810 Darnestown Road 9808 Medical Center Drive San Diego/Sorrento Mesa Seattle/Lake Union Maryland/Rockville Maryland/Rockville 254,771 RSF 311,631 RSF 192,000 RSF 90,000 RSF —% Leased/Negotiating 89% Leased/Negotiating 100% Leased 73% Leased/Negotiating 9601 and 9603 Medical Center Drive 2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive (1) 4 Davis Drive 6040 George Watts Hill Drive, Phase II Maryland/Rockville Research Triangle/Research Triangle Research Triangle/Research Triangle Research Triangle/Research Triangle 61,322 RSF 376,871 RSF 180,000 RSF 88,038 RSF 100% Leased 86% Leased/Negotiating 6% Leased/Negotiating 100% Leased (1) Image represents 41 Moore Drive in our Alexandria Center ® for Life Science – Durham mega campus. 77 New Class A development and redevelopment properties: current projects (continued) The following tables set forth a summary of our new Class A development and redevelopment properties under construction and pre-leased/negotiating near-term projects as of December 31, 2022 (dollars in thousands): Market Property/Submarket Square Footage Percentage Occupancy (1) Dev/Redev In Service CIP Total Leased Leased/Negotiating Initial Stabilized Under construction Greater Boston 325 Binney Street/Cambridge/Inner Suburbs Dev — 462,100 462,100 100 % 100 % 2023 2024 One Rogers Street/Cambridge/Inner Suburbs Redev 4,367 403,892 408,259 100 100 2023 2023 99 Coolidge Avenue/Cambridge/Inner Suburbs Dev — 320,809 320,809 36 36 2024 2025 500 North Beacon Street and 4 Kingsbury Avenue/Cambridge/Inner Suburbs Dev — 248,018 248,018 85 85 2024 2025 201 Brookline Avenue/Fenway Dev 340,073 170,043 510,116 97 98 3Q22 2023 15 Necco Street/Seaport Innovation District Dev — 345,995 345,995 97 97 2024 2024 40, 50, and 60 Sylvan Road/Route 128 Redev 312,845 202,428 515,273 61 61 2023 2024 840 Winter Street/Route 128 Redev 28,230 139,984 168,214 100 100 2024 2024 Other Redev — 453,869 453,869 — — (2) 2023 2025 San Francisco Bay Area 1450 Owens Street/Mission Bay Dev — 212,796 212,796 — — (2) 2024 2025 651 Gateway Boulevard/South San Francisco Redev — 300,010 300,010 7 7 (2) 2023 2025 751 Gateway Boulevard/South San Francisco Dev — 230,592 230,592 100 100 2023 2023 San Diego 10075 Barnes Canyon Road/Sorrento Mesa Dev — 254,771 254,771 — — (2) 2024 2025 Seattle 1150 Eastlake Avenue East/Lake Union Dev — 311,631 311,631 89 89 2023 2024 Alexandria Center ® for Advanced Technologies – Monte Villa Parkway/Bothell Redev 246,647 213,976 460,623 84 84 2023 2024 Maryland 9810 Darnestown Road/Rockville Dev — 192,000 192,000 100 100 2024 2024 9808 Medical Center Drive/Rockville Dev — 90,000 90,000 29 73 2023 2024 9601 and 9603 Medical Center Drive/Rockville Redev 34,589 61,322 95,911 100 100 4Q21 2023 20400 Century Boulevard/Gaithersburg Redev 50,738 29,812 80,550 100 100 1Q22 2023 Research Triangle 2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive/ Research Triangle Redev 326,445 376,871 703,316 86 86 2Q21 2024 4 Davis Drive/Research Triangle Dev — 180,000 180,000 — 6 (2) 2023 2024 6040 George Watts Hill Drive, Phase II/Research Triangle Dev — 88,038 88,038 100 100 2024 2024 Texas 8800 Technology Forest Place/Greater Houston Redev — 201,499 201,499 23 23 2023 2024 Canada Canada Redev 22,992 107,081 130,073 71 81 2023 2024 1,366,926 5,597,537 6,964,463 67 % 68 % (1) Initial occupancy dates are subject to leasing and/or market conditions.
We are currently marketing the space for lease and have initial interest from publicly traded biotechnology and institutional tenants. 75 New Class A/A+ development and redevelopment properties: current projects (continued) 10935, 10945, and 10955 Alexandria Way 4135 Campus Point Court 4155 Campus Point Court 10075 Barnes Canyon Road 1150 Eastlake Avenue East San Diego/Torrey Pines San Diego/ University Town Center San Diego/ University Town Center San Diego/Sorrento Mesa Seattle/Lake Union 334,996 RSF 426,927 RSF 171,102 RSF 254,771 RSF 33,349 RSF 75% Leased 100% Leased 100% Leased 24% Leased/Negotiating 100% Leased Alexandria Center ® for Advanced Technologies – Monte Villa Parkway (1) 9810 and 9820 Darnestown Road 9808 Medical Center Drive 8800 Technology Forest Place Seattle/Bothell Maryland/Rockville Maryland/Rockville Texas/Greater Houston 148,890 RSF 442,000 RSF 68,601 RSF 73,298 RSF 90% Leased 100% Leased 60% Leased 41% Leased (1) Image represents 3755 Monte Villa Parkway. 76 New Class A/A+ development and redevelopment properties: current projects (continued) The following tables set forth a summary of our new Class A/A+ development and redevelopment properties under construction and pre-leased/negotiating near-term projects as of December 31, 2023 (dollars in thousands): Property/Market/Submarket Square Footage Percentage Occupancy (1) Dev/Redev In Service CIP Total Leased Leased/Negotiating Initial Stabilized Under construction 2024 stabilization 201 Brookline Avenue/Greater Boston/Fenway Dev 451,967 58,149 510,116 98 % 98 % 3Q22 2024 840 Winter Street/Greater Boston/Route 128 Redev 28,534 139,680 168,214 100 100 2024 2024 230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco Dev — 285,346 285,346 100 100 2024 2024 4155 Campus Point Court/San Diego/University Town Center Dev — 171,102 171,102 100 100 2024 2024 1150 Eastlake Avenue East/Seattle/Lake Union Dev 278,282 33,349 311,631 100 100 4Q23 2024 Alexandria Center ® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell Redev 311,733 148,890 460,623 90 90 1Q23 2024 9820 Darnestown Road/Maryland/Rockville Dev — 250,000 250,000 100 100 2024 2024 9810 Darnestown Road/Maryland/Rockville Dev — 192,000 192,000 100 100 2024 2024 9808 Medical Center Drive/Maryland/Rockville Dev 26,460 68,601 95,061 60 60 3Q23 2024 8800 Technology Forest Place/Texas/Greater Houston Redev 50,094 73,298 123,392 41 41 2Q23 2024 1,147,070 1,420,415 2,567,485 93 93 2025 stabilization 99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs Dev 43,568 277,241 320,809 36 36 4Q23 2025 500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs Dev — 248,018 248,018 85 85 2024 2025 651 Gateway Boulevard/San Francisco Bay Area/South San Francisco Redev — 300,010 300,010 22 22 2024 2025 10075 Barnes Canyon Road/San Diego/Sorrento Mesa Dev — 254,771 254,771 12 24 2024 2025 Canada Redev 77,854 172,936 250,790 73 73 3Q23 2025 121,422 1,252,976 1,374,398 44 46 (2) 1,268,492 2,673,391 3,941,883 76 77 2026 and beyond stabilization 401 Park Drive/Greater Boston/Fenway Redev — 133,578 133,578 17 17 2024 2026 421 Park Drive/Greater Boston/Fenway Dev — 392,011 392,011 13 13 2026 2027 40, 50, and 60 Sylvan Road/Greater Boston/Route 128 Redev — 576,924 576,924 29 29 2025 2027 Other/Greater Boston Redev — 453,869 453,869 — — 2025 2026 1450 Owens Street/San Francisco Bay Area/Mission Bay Dev — 212,796 212,796 — — (3) 2025 2026 10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines Dev — 334,996 334,996 75 75 2025 2026 4135 Campus Point Court/San Diego/University Town Center Dev — 426,927 426,927 100 100 2026 2026 — 2,531,101 2,531,101 36 36 (2) 1,268,492 5,204,492 6,472,984 61 61 Near-term project expected to commence construction in the next two years 4165 Campus Point Court/San Diego/University Town Center Dev — 492,570 492,570 — 51 Total 1,268,492 5,697,062 6,965,554 56 % 60 % (1) Initial occupancy dates are subject to leasing and/or market conditions.
(2) Represents our share of investment based on our ownership percentages at the completion of development or redevelopment projects. 81 New Class A development and redevelopment properties: summary of pipeline The following table summarizes the key information for all our development and redevelopment projects in North America as of December 31, 2022 (dollars in thousands): Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Under Construction Near Term Intermediate Term Future Greater Boston Mega Campus: Alexandria Center ® at One Kendall Square/Cambridge/ Inner Suburbs 100 % $ 477,206 462,100 — — — 462,100 325 Binney Street Mega Campus: Alexandria Center ® at Kendall Square/Cambridge/ Inner Suburbs 100 % 1,097,991 403,892 104,500 — 41,955 550,347 One Rogers Street and 100 Edwin H.
(3) Represents our share of investment based on our ownership percentages at the completion of development or redevelopment projects. 78 New Class A/A+ development and redevelopment properties: summary of pipeline The following table summarizes the key information for all our development and redevelopment projects in North America as of December 31, 2023 (dollars in thousands): Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Active and Near-Term Construction Future Opportunities Subject to Market Conditions and Leasing Under Construction Committed Near Term Priority Anticipated Future Greater Boston 99 Coolidge Avenue/Cambridge/Inner Suburbs 75.0 % $ 245,314 277,241 — — — 277,241 Mega Campus: The Arsenal on the Charles/Cambridge/Inner Suburbs 100 % 348,919 248,018 — 333,758 34,157 615,933 311 Arsenal Street, 500 North Beacon Street, and 4 Kingsbury Avenue Mega Campus: Alexandria Center ® for Life Science – Fenway/Fenway (2) 522,490 583,738 — — — 583,738 201 Brookline Avenue and 401 and 421 Park Drive Mega Campus: Alexandria Center ® for Life Science – Waltham/Route 128 100 % 588,757 716,604 — — 515,000 1,231,604 40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street Mega Campus: Alexandria Center ® at Kendall Square/Cambridge 100 % 115,187 — — — 216,455 216,455 100 Edwin H.
Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property and commence future construction. Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information. (2) Based on total annual rental revenue in effect as of December 31, 2023.
Land Boulevard Mega Campus: Alexandria Center ® at One Kendall Square 903,777 462,100 — 1,365,877 12 76,350 95.8 95.8 One Kendall Square (Buildings 100, 200, 300, 400, 500, 600/700, 1400, 1800, and 2000), 325 and 399 Binney Street, and One Hampshire Street Mega Campus: Alexandria Technology Square ® 1,185,190 — — 1,185,190 7 116,609 99.1 99.1 100, 200, 300, 400, 500, 600, and 700 Technology Square Mega Campus: The Arsenal on the Charles 872,665 248,018 — 1,120,683 13 50,582 96.2 96.2 311, 321, and 343 Arsenal Street, 300, 400, and 500 North Beacon Street, 1, 2, 3, and 4 Kingsbury Avenue, and 100, 200, and 400 Talcott Avenue Mega Campus: 480 Arsenal Way and 446, 458, 500, and 550 Arsenal Street 533,327 — — 533,327 5 24,241 97.6 97.6 99 Coolidge Avenue (2) — 320,809 — 320,809 1 — N/A N/A 640 Memorial Drive 242,477 — — 242,477 1 19,320 77.6 77.6 780 and 790 Memorial Drive 99,658 — — 99,658 2 9,257 100.0 100.0 Cambridge/Inner Suburbs 6,286,448 1,030,927 403,892 7,721,267 52 494,732 97.3 91.4 Fenway Mega Campus: Alexandria Center ® for Life Science – Fenway 1,267,572 170,043 — 1,437,615 2 94,904 92.9 92.9 401 Park Drive and 201 Brookline Avenue (2) Seaport Innovation District 5 and 15 (2) Necco Street 95,400 345,995 — 441,395 2 4,414 86.6 86.6 Mega Campus: 380 and 420 E Street 195,506 — — 195,506 2 4,490 100.0 100.0 Seaport Innovation District 290,906 345,995 — 636,901 4 8,904 95.6 95.6 Route 128 Mega Campus: 40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street 638,651 — 342,412 981,063 5 38,439 100.0 65.1 Mega Campus: One Moderna Way 706,988 — — 706,988 4 29,059 100.0 100.0 19, 225, and 235 Presidential Way 585,022 — — 585,022 3 13,996 99.9 99.9 275 Grove Street 509,702 — — 509,702 3 15,704 66.1 66.1 225, 266, and 275 Second Avenue 329,005 — — 329,005 3 18,650 100.0 100.0 100 Beaver Street 82,330 — — 82,330 1 5,262 100.0 100.0 Route 128 2,851,698 — 342,412 3,194,110 19 121,110 93.9 83.8 Other 753,923 — 453,869 1,207,792 7 11,360 75.2 46.9 Greater Boston 11,450,547 1,546,965 1,200,173 14,197,685 84 $ 731,010 94.5 % 85.5 % (1) As of December 31, 2022.
Land Boulevard Mega Campus: Alexandria Center ® at One Kendall Square 1,370,989 — — 1,370,989 12 140,216 88.0 88.0 One Kendall Square (Buildings 100, 200, 300, 400, 500, 600/700, 1400, 1800, and 2000), 325 and 399 Binney Street, and One Hampshire Street Mega Campus: Alexandria Technology Square ® 1,185,284 — — 1,185,284 7 115,886 99.9 99.9 100, 200, 300, 400, 500, 600, and 700 Technology Square Mega Campus: The Arsenal on the Charles 872,883 248,018 — 1,120,901 13 51,957 97.6 97.6 311, 321, and 343 Arsenal Street, 300, 400, and 500 North Beacon Street, 1, 2, 3, and 4 Kingsbury Avenue, and 100, 200, and 400 Talcott Avenue Mega Campus: 480 Arsenal Way and 446, 458, 500, and 550 Arsenal Street 521,735 — — 521,735 5 27,136 99.2 99.2 99 Coolidge Avenue (2) 43,568 277,241 — 320,809 1 5,221 100.0 100.0 Cambridge/Inner Suburbs 6,850,502 525,259 — 7,375,761 49 606,965 97.0 97.0 Fenway Mega Campus: Alexandria Center ® for Life Science – Fenway 1,234,888 450,160 133,578 1,818,626 3 98,035 92.0 83.0 401 and 421 (2) Park Drive and 201 Brookline Avenue (2) Seaport Innovation District 5 and 15 (2) Necco Street 441,396 — — 441,396 2 39,724 75.7 75.7 Seaport Innovation District 441,396 — — 441,396 2 39,724 75.7 75.7 Route 128 Mega Campus: Alexandria Center ® for Life Science – Waltham 326,110 — 716,604 1,042,714 5 22,738 100.0 31.3 40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street Mega Campus: One Moderna Way 706,988 — — 706,988 4 29,059 100.0 100.0 19, 225, and 235 Presidential Way 585,226 — — 585,226 3 13,374 100.0 100.0 Route 128 1,618,324 — 716,604 2,334,928 12 65,171 100.0 69.3 Other 691,633 — 453,869 1,145,502 6 10,864 79.2 47.8 Greater Boston 10,836,743 975,419 1,304,051 13,116,213 72 $ 820,759 94.9 % 84.7 % (1) As of December 31, 2023.
(3) We have a 100% ownership interest in 601 and 701 Dexter Avenue North aggregating 414,986 SF and a 60% ownership interest in the near-term development project at 800 Mercer Street aggregating 869,000 SF. 84 New Class A development and redevelopment properties: summary of pipeline (continued) Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Under Construction Near Term Intermediate Term Future Seattle (continued) Mega Campus: Alexandria Center ® for Advanced Technologies – Canyon Park/Bothell 100 % $ 14,059 — — — 230,000 230,000 21660 20th Avenue Southeast Other value-creation projects 100 % 84,369 — — — 691,000 691,000 842,575 525,607 1,146,138 — 1,706,713 3,378,458 Maryland Mega Campus: Alexandria Center ® for Life Science – Shady Grove/Rockville 100 % 218,117 343,322 250,000 258,000 38,000 889,322 9601, 9603, and 9808 Medical Center Drive and 9810, 9820, and 9830 Darnestown Road 20400 Century Boulevard/Gaithersburg 100 % 7,584 29,812 — — — 29,812 225,701 373,134 250,000 258,000 38,000 919,134 Research Triangle Mega Campus: Alexandria Center ® for Life Science – Durham/ Research Triangle 100 % 271,547 376,871 — — 2,060,000 2,436,871 40 and 41 Moore Drive and 14 TW Alexander Drive Mega Campus: Alexandria Center ® for Advanced Technologies – Research Triangle/Research Triangle 100 % 74,801 180,000 — — 990,000 1,170,000 4 and 12 Davis Drive 6040 George Watts Hill Drive, Phase II/Research Triangle 100 % 20,583 88,038 — — — 88,038 Mega Campus: Alexandria Center ® for NextGen Medicines/ Research Triangle 100 % 100,290 — 100,000 100,000 855,000 1,055,000 3029 East Cornwallis Road 120 TW Alexander Drive, 2752 East NC Highway 54, and 10 South Triangle Drive/Research Triangle 100 % 51,083 — — — 750,000 750,000 Other value-creation projects 100 % 4,185 — — — 76,262 76,262 $ 522,489 644,909 100,000 100,000 4,731,262 5,576,171 Refer to the definition of “Mega campus” in the “Definitions and reconciliations” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Refer to the definition of “Investments in real estate – value-creation square footage currently in rental properties” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information (2) We have a 100% interest in this property. 81 New Class A/A+ development and redevelopment properties: summary of pipeline (continued) Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Active and Near-Term Construction Future Opportunities Subject to Market Conditions and Leasing Under Construction Committed Near Term Priority Anticipated Future Seattle Mega Campus: The Eastlake Life Science Campus by Alexandria/Lake Union 100 % $ 33,827 33,349 — — — 33,349 1150 Eastlake Avenue East Alexandria Center ® for Advanced Technologies – Monte Villa Parkway/Bothell 100 % 104,608 148,890 — 50,552 — 199,442 3301, 3555, and 3755 Monte Villa Parkway Mega Campus: Alexandria Center ® for Life Science – South Lake Union/Lake Union (2) 432,644 — — 1,095,586 188,400 1,283,986 601 and 701 Dexter Avenue North and 800 Mercer Street 830 and 1010 4th Avenue South/SoDo 100 % 57,159 — — — 597,313 597,313 Mega Campus: Alexandria Center ® for Advanced Technologies – Canyon Park/Bothell 100 % 15,975 — — — 230,000 230,000 21660 20th Avenue Southeast Other value-creation projects 100 % 99,744 — — — 691,000 691,000 743,957 182,239 — 1,146,138 1,706,713 3,035,090 Maryland Mega Campus: Alexandria Center ® for Life Science – Shady Grove/Rockville 100 % 327,940 510,601 — — 296,000 806,601 9808 Medical Center Drive and 9810, 9820, and 9830 Darnestown Road $ 327,940 510,601 — — 296,000 806,601 Refer to the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
(2) We have a 50.0% ownership interest in 651 Gateway Boulevard aggregating 300,010 RSF and a 51.0% ownership interest in 751 Gateway Boulevard aggregating 230,592 RSF. (3) We own a partial interest in this property through a real estate joint venture.
(2) We have a 99.0% interest in 201 Brookline Avenue aggregating 58,149 RSF, a 100% interest in 401 Park Drive aggregating 133,578 RSF, and a 99.6% interest in 421 Park Drive aggregating 392,011 RSF. (3) Includes a property in which we own a partial interest through a real estate joint venture.
Excluding the ground leases, the weighted-average remaining lease term for our top 20 tenants was 7.1 years as of December 31, 2022. 57 Long-Duration and Stable Cash Flows From High-Quality Tenants Investment-Grade or Publicly Traded Large Cap Tenants Long-Duration Lease Terms 48% 7.1 Years of ARE’s Total Weighted-Average Annual Rental Revenue (1) Remaining Term (2) REIT Industry-Leading Tenant Client Base 90% of ARE’s Top 20 Tenants Annual Rental Revenue Is From Investment-Grade or Publicly Traded Large Cap Tenants (1) Refer to the definition of “Annual rental revenue” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information on our methodology of calculating annual rental revenue for unconsolidated real estate joint ventures.
(5) Primarily relates to one office building in our New York City submarket aggregating 349,947 RSF with a contractual lease expiration in the third quarter of 2024, which was classified as held for sale as of December 31, 2023. 55 Long-Duration and Stable Cash Flows From High-Quality and Diverse Tenants REIT Industry-Leading Client Base Investment-Grade or Publicly Traded Large Cap Tenants 92% 52% of ARE’s Top 20 Tenants Annual Rental Revenue (1) of ARE’s Total Annual Rental Revenue (1) Long-Duration Lease Terms 9.6 Years 7.4 Years Top 20 Tenants All Tenants Weighted-Average Remaining Term (2) Sustained Strength in Tenant Collections (3) 99.9% For the Three Months Ended December 31, 2023 99.4% January 2024 (1) Represents annual rental revenue in effect as of December 31, 2023.
Land Boulevard 99 Coolidge Avenue/Cambridge/Inner Suburbs 75.0 % 174,817 320,809 — — — 320,809 Mega Campus: The Arsenal on the Charles/Cambridge/Inner Suburbs 100 % 167,226 248,018 — — 342,603 590,621 311 Arsenal Street, 500 North Beacon Street, and 4 Kingsbury Avenue Mega Campus: Alexandria Center ® for Life Science – Fenway/Fenway (2) 524,791 170,043 507,997 — — 678,040 201 Brookline Avenue and 421 Park Drive 15 Necco Street/Seaport Innovation District 90.0 % 339,207 345,995 — — — 345,995 Mega Campus: 40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street/Route 128 100 % 308,205 342,412 341,075 — 515,000 1,198,487 275 Grove Street/Route 128 100 % — — 160,251 — — 160,251 10 Necco Street/Seaport Innovation District 100 % 98,667 — — 175,000 — 175,000 215 Presidential Way/Route 128 100 % 6,808 — — 112,000 — 112,000 Mega Campus: 480 Arsenal Way and 446, 458, 500, and 550 Arsenal Street/Cambridge/Inner Suburbs 100 % 77,582 — — — 902,000 902,000 446, 458, and 550 Arsenal Street Mega Campus: Alexandria Technology Square ® /Cambridge/ Inner Suburbs 100 % 7,881 — — — 100,000 100,000 Mega Campus: 380 and 420 E Street/Seaport Innovation District 100 % 125,786 — — — 1,000,000 1,000,000 99 A Street/Seaport Innovation District 100 % 49,800 — — — 235,000 235,000 Mega Campus: One Moderna Way/Route 128 100 % 24,686 — — — 1,100,000 1,100,000 Other value-creation projects 100 % 202,708 453,869 260,992 — 449,549 1,164,410 $ 3,683,361 2,747,138 1,374,815 287,000 4,686,107 9,095,060 Refer to the definition of “Mega campus” in the “Definitions and reconciliations” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Land Boulevard Mega Campus: Alexandria Technology Square ® /Cambridge 100 % 7,881 — — — 100,000 100,000 Mega Campus: 480 Arsenal Way and 446, 458, 500, and 550 Arsenal Street/Cambridge/Inner Suburbs 100 % 83,175 — — — 902,000 902,000 446, 458, 500, and 550 Arsenal Street 10 Necco Street/Seaport Innovation District 100 % 103,531 — — — 175,000 175,000 Mega Campus: One Moderna Way/Route 128 100 % 26,182 — — — 1,100,000 1,100,000 215 Presidential Way/Route 128 100 % 6,816 — — — 112,000 112,000 Other value-creation projects (3) 286,099 453,869 — — 1,323,541 1,777,410 $ 2,334,351 2,279,470 — 333,758 4,478,153 7,091,381 Refer to the definition of “Mega campus” in the “Non-GAAP measures and definitions” section under Item 7 in this annual report on Form 10-K for additional information.
Approximately 63% of the leases executed during the year ended December 31, 2022 did not include concessions for free rent. 67 Summary of contractual lease expirations The following table summarizes information with respect to the contractual lease expirations at our properties as of December 31, 2022: Year RSF Percentage of Occupied RSF Annual Rental Revenue (per RSF) (1) Percentage of Total Annual Rental Revenue 2023 (2) 2,871,438 7.3 % $ 45.10 6.5 % 2024 4,341,944 11.1 % $ 46.70 10.2 % 2025 3,312,092 8.5 % $ 48.22 8.1 % 2026 2,628,988 6.7 % $ 50.79 6.7 % 2027 2,669,028 6.8 % $ 55.36 7.5 % 2028 4,160,778 10.6 % $ 51.51 10.8 % 2029 2,467,070 6.3 % $ 53.31 6.6 % 2030 2,766,240 7.1 % $ 58.03 8.1 % 2031 3,006,892 7.7 % $ 52.83 8.0 % 2032 1,298,945 3.3 % $ 56.91 3.7 % Thereafter 9,613,205 24.6 % $ 48.72 23.8 % (1) Represents amounts in effect as of December 31, 2022.
(3) Refer to the “New Class A/A+ development and redevelopment properties: summary of pipeline” section within this Item 2 for additional information on total project costs. 65 Summary of contractual lease expirations The following table summarizes information with respect to the contractual lease expirations at our properties as of December 31, 2023: Year RSF Percentage of Occupied RSF Annual Rental Revenue (per RSF) (1) Percentage of Total Annual Rental Revenue 2024 (2) 3,443,219 8.8 % $ 49.36 7.9 % 2025 3,876,007 9.9 % $ 52.08 9.3 % 2026 2,576,109 6.6 % $ 52.02 6.2 % 2027 2,720,041 6.9 % $ 52.75 6.6 % 2028 4,685,961 11.9 % $ 51.92 11.2 % 2029 2,517,755 6.4 % $ 52.73 6.1 % 2030 2,549,798 6.5 % $ 50.18 5.9 % 2031 3,711,668 9.4 % $ 56.14 9.6 % 2032 1,157,219 2.9 % $ 59.66 3.2 % 2033 2,780,801 7.1 % $ 51.97 6.7 % Thereafter 9,310,793 23.6 % $ 63.13 27.3 % (1) Represents amounts in effect as of December 31, 2023.
(2) Excludes month-to-month leases aggregating 266,292 RSF as of December 31, 2022.
(1) Excludes month-to-month leases aggregating 86,092 RSF and 266,292 RSF as of December 31, 2023 and 2022, respectively. During the year ended December 31, 2023, we granted free rent concessions averaging 0.6 months per annum.
(3) Image represents 10 Davis Drive in our Alexandria Center ® for Advanced Technologies – Research Triangle mega campus. 74 New Class A development and redevelopment properties: recent deliveries (continued) The following table presents value-creation development and redevelopment of new Class A properties placed into service during the year ended December 31, 2022 (dollars in thousands): Deliveries in 4Q22 commenced $28 million in annual net operating income Property/Market/Submarket 4Q22 Delivery Date (1) Our Ownership Interest RSF Placed in Service Occupancy Percentage (2) Total Project Unlevered Yields Prior to 1/1/22 1Q22 2Q22 3Q22 4Q22 Total Initial Stabilized Initial Stabilized (Cash Basis) RSF Investment Development projects 201 Brookline Avenue/Greater Boston/Fenway 11/3/22 98.8% — — — 261,990 78,083 340,073 100% 510,116 $ 734,000 7.2 % 6.2 % 201 Haskins Way/San Francisco Bay Area/South San Francisco N/A 100% 270,879 52,311 — — — 323,190 100% 323,190 367,000 6.3 6.0 825 and 835 Industrial Road/San Francisco Bay Area/Greater Stanford N/A 100% 476,211 49,918 — — — 526,129 100% 526,129 631,000 6.7 6.5 3115 Merryfield Row/San Diego/Torrey Pines N/A 100% — 146,456 — — — 146,456 93% 146,456 150,000 6.3 6.2 10055 Barnes Canyon Road/San Diego/Sorrento Mesa 11/21/22 50.0% — — 110,454 9,473 75,508 195,435 100% 195,435 189,000 7.2 6.7 10102 Hoyt Park Drive/San Diego/Sorrento Mesa 11/15/22 100% — — — — 144,113 144,113 100% 144,113 114,000 7.4 6.8 9950 Medical Center Drive/Maryland/Rockville N/A 100% — 84,264 — — — 84,264 100% 84,264 57,000 8.9 7.8 5 and 9 Laboratory Drive/ Research Triangle/Research Triangle 12/21/22 100% 267,509 11,211 — 1,485 62,676 342,881 94% 342,881 221,000 6.9 7.0 8 and 10 Davis Drive/ Research Triangle/Research Triangle N/A 100% 65,247 44,980 139,773 — — 250,000 94% 250,000 159,000 7.6 7.3 Redevelopment projects The Arsenal on the Charles/Greater Boston/Cambridge/Inner Suburbs 12/31/22 100% 137,111 99,796 50,663 43,351 56,757 387,678 96% 872,665 834,000 6.3 5.6 3160 Porter Drive/San Francisco Bay Area/Greater Stanford N/A 100% 57,696 34,604 — — — 92,300 83% 92,300 117,000 4.6 4.6 30-02 48th Avenue/New York City/New York City 12/31/22 100% 41,848 11,092 18,689 10,197 55,361 137,187 69% 179,100 248,000 5.8 6.0 5505 Morehouse Drive/San Diego/Sorrento Mesa N/A 100% 28,324 — 51,621 — — 79,945 100% 79,945 68,000 7.1 7.2 9601 and 9603 Medical Center Drive/Maryland/Rockville 11/17/22 100% 17,378 — — — 17,211 34,589 100% 95,911 54,000 8.4 7.1 20400 Century Boulevard/Maryland/Gaithersburg 10/17/22 100% — 32,033 4,194 6,465 8,046 50,738 100% 80,550 35,000 8.5 8.6 2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive/Research Triangle/Research Triangle N/A 100% 326,445 — — — — 326,445 100% 703,316 337,000 7.5 6.7 Weighted average/total 11/18/22 1,688,648 566,665 375,394 332,961 497,755 3,461,423 4,626,371 $ 4,315,000 6.8 % 6.3 % Refer to “New Class A development and redevelopment properties: current projects” within this Item 2 for details on the RSF in service and under construction, if applicable.
(3) Image represents 2400 Ellis Road on the Alexandria Center ® for Life Science – Durham mega campus. 73 New Class A/A+ development and redevelopment properties: recent deliveries (continued) The following table presents value-creation development and redevelopment of new Class A/A+ properties placed into service during the year ended December 31, 2023 (dollars in thousands): Highest Incremental Annual Net Operating Income in Company History Generated From 2023 Deliveries Totaled $265 Million, Including $145 Million in 4Q23 Property/Market/Submarket 4Q23 Delivery Date (1) Our Ownership Interest RSF Placed in Service Occupancy Percentage (2) Total Project Unlevered Yields Prior to 1/1/23 1Q23 2Q23 3Q23 4Q23 Total Initial Stabilized Initial Stabilized (Cash Basis) RSF Investment Development projects 325 Binney Street/Greater Boston/Cambridge 11/17/23 100% — — — — 462,100 462,100 100% 462,100 $ 823,000 8.9 % 7.6 % 99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs 12/13/23 75.0% — — — — 43,568 43,568 100% 320,809 468,000 7.1 7.0 201 Brookline Avenue/Greater Boston/Fenway N/A 99.0% 340,073 107,174 4,720 — — 451,967 100% 510,116 775,000 7.2 6.5 15 Necco Street/Greater Boston/Seaport Innovation District 11/17/23 56.7% — — — — 345,996 345,996 97% 345,996 540,000 6.7 5.6 751 Gateway Boulevard/San Francisco Bay Area/South San Francisco N/A 51.0% — — — 230,592 — 230,592 100% 230,592 246,000 7.0 7.5 1150 Eastlake Avenue East/Seattle/Lake Union 10/28/23 100% — — — — 278,282 278,282 100% 311,631 443,000 6.6 6.7 9808 Medical Center Drive/Maryland/Rockville N/A 100% — — — 26,460 — 26,460 100% 95,061 113,000 5.5 5.5 6040 George Watts Hill Drive, Phase II/Research Triangle/Research Triangle 11/1/23 100% — — — — 88,038 88,038 100% 88,038 66,000 8.1 7.1 Redevelopment projects 140 First Street/Greater Boston/Cambridge N/A 100% — — 325,346 78,546 — 403,892 100% 408,259 1,248,000 5.6 4.7 Alexandria Center ® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell N/A 100% — 35,847 — 29,239 — 65,086 100% 460,623 229,000 6.3 6.2 9601 and 9603 Medical Center Drive/Maryland/Rockville N/A 100% 34,589 13,927 — 47,395 — 95,911 100% 95,911 63,000 8.0 6.8 20400 Century Boulevard/Maryland/Gaithersburg N/A 100% 50,738 19,692 10,576 — — 81,006 100% 81,006 35,000 9.5 9.3 2400 Ellis Road, 40 Moore Drive, and 14 TW Alexander Drive/Research Triangle/Research Triangle N/A 100% 326,445 276,871 — — — 603,316 100% 603,316 241,000 8.1 6.8 8800 Technology Forest Place/Texas/Greater Houston N/A 100% — — 46,434 3,660 — 50,094 100% 123,392 112,000 6.3 6.0 Canada 10/31/23 100% — — — 34,242 10,620 44,862 100% 250,790 104,000 7.0 7.0 Weighted average/total 11/12/23 751,845 453,511 387,076 450,134 1,228,604 3,271,170 4,387,640 $ 5,506,000 7.0 % 6.3 % Refer to “New Class A/A+ development and redevelopment properties: current projects” within this Item 2 for details on the RSF in service and under construction, if applicable.
Removed
The following table sets forth the total RSF, number of properties, and annual rental revenue in effect as of December 31, 2022 in each of our markets in North America (dollars in thousands, except per RSF amounts): RSF Number of Properties Annual Rental Revenue Market Operating Development Redevelopment Total % of Total Total % of Total Per RSF Greater Boston 11,450,547 1,546,965 1,200,173 14,197,685 30 % 84 $ 731,010 36 % $ 67.58 San Francisco Bay Area 8,100,245 443,388 300,010 8,843,643 19 67 452,191 23 61.88 New York City 1,270,019 — — 1,270,019 3 5 97,413 5 83.14 San Diego 8,099,957 254,771 — 8,354,728 18 94 330,713 16 42.79 Seattle 2,814,446 311,631 213,976 3,340,053 7 46 109,029 5 39.95 Maryland 3,459,475 282,000 91,134 3,832,609 8 50 115,347 6 35.12 Research Triangle 3,596,979 268,038 376,871 4,241,888 9 42 99,055 5 29.31 Texas 1,724,585 — 201,499 1,926,084 4 15 45,785 2 29.11 Canada 577,225 — 107,081 684,306 1 8 9,868 1 21.15 Non-cluster/other markets 382,960 — — 382,960 1 11 14,554 1 50.70 Properties held for sale 297,284 — — 297,284 — 10 (1) 2,476 — N/A North America 41,773,722 3,106,793 2,490,744 47,371,259 100 % 432 $ 2,007,441 100 % $ 51.75 5,597,537 (1) Represents properties held for sale in three submarkets, including eight contiguous properties aggregating 128,870 RSF in a non-core submarket.
Added
The following table sets forth the total RSF, number of properties, and annual rental revenue in effect as of December 31, 2023 in each of our markets in North America (dollars in thousands, except per RSF amounts): RSF Number of Properties Annual Rental Revenue Market Operating Development Redevelopment Total % of Total Total % of Total Per RSF Greater Boston 10,836,743 975,419 1,304,051 (1) 13,116,213 28 % 72 $ 820,759 38 % $ 79.82 San Francisco Bay Area 7,906,198 498,142 300,010 8,704,350 18 67 460,272 21 66.04 New York City 922,477 — — 922,477 2 4 72,993 3 92.75 San Diego 7,831,370 1,187,796 — 9,019,166 19 90 320,460 14 43.48 Seattle 2,962,995 33,349 148,890 3,145,234 7 44 131,377 6 46.57 Maryland 3,582,494 510,601 — 4,093,095 9 51 123,780 6 36.57 Research Triangle 3,840,876 — — 3,840,876 8 39 120,982 6 32.20 Texas 1,845,159 — 73,298 1,918,457 4 15 57,591 3 32.80 Canada 898,740 — 172,936 1,071,676 2 12 17,222 1 22.01 Non-cluster/other markets 347,806 — — 347,806 1 10 15,827 1 57.96 Properties held for sale 1,049,135 — — 1,049,135 2 7 26,907 1 N/A North America 42,023,993 3,205,307 1,999,185 47,228,485 100 % 411 $ 2,168,170 100 % $ 56.08 5,204,492 (1) Primarily relates to our active redevelopment projects at 840 Winter Street and 40, 50, and 60 Sylvan Road, aggregating 716,604 RSF located in our Alexandria Center ® for Life Science – Waltham mega campus, which are 43% leased/negotiating on a combined basis.
Removed
(1) Based on total annual rental revenue in effect as of December 31, 2022. Represents the percentage of our annual rental revenue generated by our top 20 tenants that are also investment-grade or publicly traded large cap tenants.
Added
This mega campus project is expected to capture demand in our Route 128 submarket of Greater Boston.
Removed
(2) Represents two leases in our Greater Boston and Seattle markets with in-place cash rents that are 20%–25% below current market. As of September 30, 2022, 2seventy bio, Inc. held $127.0 million of cash and cash equivalents. (3) Includes leases at recently acquired properties with future development and redevelopment opportunities.
Added
In addition, our mega campus at Alexandria Center ® for Life Science – New York City is 95.8% occupied as of December 31, 2023. 54 Top 20 tenants 92% of Top 20 Tenants Annual Rental Revenue Is From Investment-Grade or Publicly Traded Large Cap Tenants (1) Our properties are leased to a high-quality and diverse group of tenants, with no individual tenant accounting for more than 5.7% of our annual rental revenue in effect as of December 31, 2023.
Removed
The leases with these tenants were in place when we acquired the properties.
Added
(2) As of September 30, 2023, 2seventy bio, Inc. held $250.6 million of cash, cash equivalents, and marketable securities. Additionally, 90.0% of the annual rental revenue generated by 2seventy bio, Inc. is guaranteed by another public biotechnology company (a party related to 2seventy bio, Inc.). (3) Includes one lease at a recently acquired property with future development and redevelopment opportunities.
Removed
(1) Excludes month-to-month leases aggregating 266,292 RSF and 110,180 RSF as of December 31, 2022 and 2021, respectively. (2) Represents the second highest annual leasing volume and annual rental rate growth (cash basis) in Company history.
Added
This lease with Cloud Software Group, Inc. (formerly known as TIBCO Software, Inc.) was in place when we acquired the properties.
Removed
(3) Refer to the “New Class A development and redevelopment properties: summary of pipeline” section within this Item 2 for additional information on total project costs. (4) During the year ended December 31, 2022, we granted tenant concessions/free rent averaging 2.1 months with respect to the 8,405,587 RSF leased.
Added
(3) Represents the portion of total receivables billed for each indicated period collected through the date of this report. 56 High-Quality and Diverse Client Base in AAA Locations Solid and Well-Diversified Tenant Base Industry Annual Rental Revenue (1) per RSF Multinational Pharmaceutical $ 64.22 Public Biotechnology – Approved or Marketed Product $ 68.98 Institutional (Academic/Medical, Non-Profit, and U.S.
Removed
The following tables present information by market with respect to our 2023 and 2024 contractual lease expirations in North America as of December 31, 2022: 2023 Contractual Lease Expirations (in RSF) Annual Rental Revenue (per RSF) (3) Market Leased Negotiating/ Anticipating Targeted for Future Development/ Redevelopment (1) Remaining Expiring Leases (4) Total (2) Greater Boston 61,091 83,346 323,110 428,905 896,452 $ 56.56 San Francisco Bay Area 30,876 10,208 — 342,952 384,036 52.63 New York City — — — 88,372 88,372 N/A San Diego 184,287 124,745 — 426,615 735,647 33.50 Seattle 14,979 8,167 18,680 266,038 307,864 27.22 Maryland 6,674 115,454 — 131,735 253,863 35.41 Research Triangle 81,956 15,043 — 77,286 174,285 33.08 Texas — — — — — — Canada 13,321 — — 2,484 15,805 28.89 Non-cluster/other markets — — — 15,114 15,114 41.42 Total 393,184 356,963 341,790 1,779,501 2,871,438 $ 45.10 Percentage of expiring leases 14 % 12 % 12 % 62 % 100 % 2024 Contractual Lease Expirations (in RSF) Annual Rental Revenue (per RSF) (3) Market Leased Negotiating/ Anticipating Targeted for Future Development/ Redevelopment (1) Remaining Expiring Leases (4) Total Greater Boston 102,060 5,881 122,465 500,918 731,324 $ 73.74 San Francisco Bay Area 35,798 407,369 — 592,252 1,035,419 50.33 New York City — — 349,947 5,645 355,592 N/A San Diego — — 580,021 394,852 974,873 31.10 Seattle — 267,350 50,552 415,503 733,405 35.04 Maryland — 3,555 — 62,016 65,571 25.15 Research Triangle 15,519 — — 194,008 209,527 52.01 Texas — — 126,034 72,938 198,972 33.91 Canada — — — 6,786 6,786 24.38 Non-cluster/other markets — — — 30,475 30,475 65.74 Total 153,377 684,155 1,229,019 2,275,393 4,341,944 $ 46.70 Percentage of expiring leases 4 % 16 % 28 % 52 % 100 % (1) Represents RSF targeted for future development or redevelopment upon expiration of existing in-place leases primarily related to recently acquired properties with an average contractual lease expiration date of January 7, 2023 and July 13, 2024 for 2023 and 2024, respectively, weighted by annual rental revenue.
Added
(5) Refer to footnote 1 in the “Summary of occupancy percentages in North America” section within this Item 2 for additional details. (6) Acquired vacancy of 1.7% from properties recently acquired in 2021 and 2022 primarily represents lease-up opportunities.
Removed
(3) Represents amounts in effect as of December 31, 2022.
Added
(2) Includes the re-lease of 99,557 RSF to Cargo Therapeutics at 835 Industrial at a 4.1% decline in the cash rental rate compared with the rate from the former tenant that was less than three years into a 10-year lease.
Removed
Our investments in real estate consisted of the following as of December 31, 2022 (dollars in thousands): Development and Redevelopment Operating Under Construction Near Term Intermediate Term Future Subtotal Total Investments in real estate Gross book value as of December 31, 2022 (1) $ 25,568,121 $ 4,055,353 $ 1,738,913 $ 918,528 $ 2,002,541 $ 8,715,335 $ 34,283,456 Square footage Operating 41,773,722 — — — — — 41,773,722 New Class A development and redevelopment properties — 5,597,537 6,248,830 (2) 4,780,268 20,716,308 37,342,943 37,342,943 Value-creation square feet currently included in rental properties (3) — — (656,378) (434,776) (3,459,383) (4,550,537) (4,550,537) Total square footage 41,773,722 5,597,537 5,592,452 4,345,492 17,256,925 32,792,406 74,566,128 (1) Balances exclude accumulated depreciation and our share of the cost basis associated with our properties held by our unconsolidated real estate joint ventures, which is classified as investments in unconsolidated real estate joint ventures in our consolidated balance sheets.
Added
Excluding this lease, the rental rate increase on renewals and re-leasing of space was 32.4% and 17.0% (cash basis) for 2023 .

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeNo dividends can be paid on our common stock unless we have paid full cumulative dividends on our preferred stock. From the date of issuance of our preferred stock through December 31, 2022, we have paid full cumulative dividends on our preferred stock. As of December 31, 2022, we had no outstanding shares of preferred stock.
Biggest changeNo dividends can be paid on our common stock unless we have paid full cumulative dividends on our preferred stock. As of December 31, 2023, we had no outstanding shares of preferred stock.
We cannot assure our stockholders that we will make any future distributions. Refer to “Item 12. Security ownership of certain beneficial owners and management and related stockholder matters” in this annual report on Form 10-K for information on securities authorized for issuance under equity compensation plans. ITEM 6. [RESERVED]
We cannot assure our stockholders that we will make any future distributions. Refer to “Item 12. Security ownership of certain beneficial owners and management and related stockholder matters” in this annual report on Form 10-K for information on securities authorized for issuance under equity compensation plans. ITEM 6. [RESERVED] 84
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded on the NYSE under the symbol “ARE.” On January 13, 2023, the last reported sales price per share of our common stock wa s $155.57, and there were 683 holders of record of our common stock (excluding beneficial owners whose shares are held in the name of Cede & Co.).
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded on the NYSE under the symbol “ARE.” On January 12, 2024, the last reported sales price per share of our common stock w as $126.25, and there were 622 holders of record of our common stock (excluding beneficial owners whose shares are held in the name of Cede & Co.).

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

190 edited+138 added−141 removed131 unchanged
Biggest changeAn operationally excellent, industry-leading REIT with a high-quality client base of approximately 1,000 tenants supporting high-quality revenues, cash flows, and strong margins Percentage of total annual rental revenue in effect from investment-grade or publicly traded large cap tenants 48 % Sustained strength in tenant collections: Tenant receivables as of December 31, 2022 $ 7.6 million January 2023 tenant rent and receivables collected as of the date of this report 99.4 % Occupancy of operating properties in North America 94.8 % Operating margin 70 % (1) Adjusted EBITDA margin 69 % (1) Weighted-average remaining lease term: All tenants 7.1 years Top 20 tenants 9.4 years (1) For the three months ended December 31, 2022.
Biggest changeAn operationally excellent, industry-leading REIT with a high-quality, diverse client base to support growing revenues, stable cash flows, and strong margins Percentage of total annual rental revenue in effect from mega campuses as of December 31, 2023 75 % Percentage of total annual rental revenue in effect from investment-grade or publicly traded large cap tenants as of December 31, 2023 52 % Sustained strength in tenant collections: Low tenant receivables as of December 31, 2023 $ 8.2 million January 2024 tenant rents and receivables collected as of the date of this report 99.4 % Tenant rents and receivables for the three months ended December 31, 2023 collected as of the date of this report 99.9 % Occupancy of operating properties in North America as of December 31, 2023 94.6 % Adjusted EBITDA margin for the three months ended December 31, 2023 69 % Weighted-average remaining lease term as of December 31, 2023: Top 20 tenants 9.6 years All tenants 7.4 years Solid annual leasing volume and rental rate increases with continued long lease terms • Solid leasing volume aggregating 4.3 million RSF for the year ended December 31, 2023. • Weighted-average lease term of 11.3 years for the year ended December 31, 2023, above our historically long weighted-average lease term of 8.8 years over the last 10 years. • 76% of our leasing activity during the last twelve months was generated from our existing tenant base. 2023 Total leasing activity – RSF 4,306,072 Leasing of development and redevelopment space – RSF 596,533 Lease renewals and re-leasing of space: RSF (included in total leasing activity above) 3,046,386 Rental rate increase 29.4% (1) Rental rate increase (cash basis) 15.8% (1) (1) Includes the re-lease of 99,557 RSF to Cargo Therapeutics at 835 Industrial at a 4.1% decline in the cash rental rate compared with the rate from the former tenant that was less than three years into a 10-year lease.
The anticipated delivery of significant incremental EBITDA from our development and redevelopment of new Class A properties is expected to enable us to continue to debt fund a significant portion of our development and redevelopment projects on a leverage-neutral basis.
The anticipated delivery of significant incremental EBITDA from our development and redevelopment of new Class A/A+ properties is expected to enable us to continue to debt-fund a significant portion of our development and redevelopment projects on a leverage-neutral basis.
Over time, these conditions could result in declining demand for space at our properties, delays in construction and resulting increased construction costs, or in our inability to operate the buildings at all.
Over time, these conditions could result in declining demand for space at our properties, delays in construction and resulting increased construction costs, or our inability to operate the buildings at all.
Based upon our ability to achieve certain annual sustainability targets, the interest rate and facility fee rate are also subject to upward or downward adjustments of up to four basis points with respect to the interest rate and up to one basis point with respect to the facility fee.
Based upon our ability to achieve certain annual sustainability targets, the interest rate and facility fee rate are also subject to upward or downward adjustments of up to four basis points with respect to the interest rate and up to one basis point with respect to the facility fee rate.
Future sales will provide an important source of capital to fund a portion of pending and recently completed opportunistic acquisitions and our highly leased value-creation development and redevelopment projects, and also provide significant capital for growth. We may also consider additional sales of partial interests in core Class A properties and/or development projects.
Future sales will provide an important source of capital to fund a portion of pending and recently completed opportunistic acquisitions and our highly leased value-creation development and redevelopment projects, and also provide significant capital for growth. We may also consider additional sales of partial interests in core Class A/A+ properties and/or development projects.
We also incur additional capitalized project costs, including interest, property taxes, insurance, and other costs directly related and essential to the development, redevelopment, pre-construction, or construction of a project, during periods when activities necessary to prepare an asset for its intended use are in progress.
We incur capitalized construction costs related to development, redevelopment, pre-construction, and other construction activities. We also incur additional capitalized project costs, including interest, property taxes, insurance, and other costs directly related and essential to the development, redevelopment, pre-construction, or construction of a project, during periods when activities necessary to prepare an asset for its intended use are in progress.
General and administrative expenses consist primarily of accounting and corporate compensation, corporate insurance, professional fees, office rent, and office supplies that are incurred as part of corporate office management. We calculate operating margin as net operating income divided by total revenues.
General and administrative expenses consist primarily of accounting and corporate compensation, corporate insurance, professional fees, rent, and supplies that are incurred as part of corporate office management. We calculate operating margin as net operating income divided by total revenues.
We evaluate these investees on the basis of a qualitative assessment for indicators of impairment by monitoring the presence of the following triggering events or impairment indicators: (i) a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee; (ii) a significant adverse 144 change in the regulatory, economic, or technological environment of the investee, (iii) a significant adverse change in the general market condition, including the research and development of technology and products that the investee is bringing or attempting to bring to the market, (iv) significant concerns about the investee’s ability to continue as a going concern, or (v) a decision by investors to cease providing support to reduce their financial commitment to the investee.
We evaluate these investees on the basis of a qualitative assessment for indicators of impairment by monitoring the presence of the following triggering events or impairment indicators: (i) a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee; (ii) a significant adverse change in the regulatory, economic, or technological environment of the investee, (iii) a significant adverse change in the general market condition, including the research and development of technology and products that the investee is bringing or attempting to bring to the market, (iv) significant concerns about the investee’s ability to continue as a going concern, and/or (v) a decision by investors to cease providing support to reduce their financial commitment to the investee.
We expect existing cash, cash equivalents, and restricted cash, net cash provided by operating activities, proceeds from real estate asset sales, partial interest sales, strategic real estate joint ventures, non-real estate investment sales, borrowings under our unsecured senior line of credit, issuances under our commercial paper program, issuances of unsecured senior notes payable, borrowings under our secured construction loans, and issuances of common stock to continue to be sufficient to fund our operating activities and cash commitments for investing and financing activities, such as regular quarterly dividends, distributions to noncontrolling interests, scheduled debt repayments, acquisitions, and certain capital expenditures, including expenditures related to construction activities.
We expect existing cash, cash equivalents, and restricted cash, net cash provided by operating activities, proceeds from real estate asset sales, sales of partial interests, strategic real estate joint ventures, non-real estate investment sales, borrowings under our unsecured senior line of credit, issuances under our commercial paper program, issuances of unsecured senior notes payable, borrowings under our secured construction loans, and issuances of common stock to continue to be sufficient to fund our operating activities and cash commitments for investing and financing activities, such as regular quarterly dividends, distributions to noncontrolling interests, scheduled debt repayments, acquisitions, and certain capital expenditures, including expenditures related to construction activities.
Development, redevelopment, and pre-construction spending also includes the following costs: (i) amounts to bring certain acquired properties up to market standard and/or other costs identified during the acquisition process (generally within two years of acquisition) and (ii) permanent conversion of space for highly flexible, move-in-ready office/laboratory space to foster the growth of promising early- and growth-stage life science companies.
Development, redevelopment, and pre-construction spending also includes the following costs: (i) amounts to bring certain acquired properties up to market standard and/or other costs identified during the acquisition process (generally within two years of acquisition) and (ii) permanent conversion of space for highly flexible, move-in-ready laboratory space to foster the growth of promising early- and growth-stage life science companies.
If triggering events or impairment indicators are identified, we review an estimate of the future undiscounted cash flows, including, if necessary, a probability-weighted approach if multiple outcomes are under consideration. Long-lived assets to be held and used, are individually evaluated for impairment when conditions exist that may indicate that the carrying amount of a long-lived asset may not be recoverable.
If triggering events or impairment indicators are identified, we review an estimate of the future undiscounted cash flows, including, if necessary, a probability-weighted approach if multiple outcomes are under consideration. 126 Long-lived assets to be held and used, are individually evaluated for impairment when conditions exist that may indicate that the carrying amount of a long-lived asset may not be recoverable.
Additionally, termination fees, if any, are excluded from the results of same properties. Refer to “Same properties” section within this Item 7 in this annual report on Form 10-K for additional information. Stabilized occupancy date The stabilized occupancy date represents the estimated date on which the project is expected to reach occupancy of 95% or greater.
Additionally, termination fees, if any, are excluded from the results of same properties. Refer to “Same properties” within this Item 7 in this annual report on Form 10-K for additional information. Stabilized occupancy date The stabilized occupancy date represents the estimated date on which the project is expected to reach occupancy of 95% or greater.
Our development and redevelopment projects are generally in locations that are highly desirable to high-quality entities, which we believe results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. Development projects generally consist of the ground-up development of generic and reusable facilities.
Our development and redevelopment projects are generally in locations that are highly desirable to high-quality entities, which we believe results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. Development projects generally consist of the ground-up development of generic and reusable laboratory facilities.
Property taxes, insurance on real estate, and indirect project costs, such as construction administration, legal fees, and office costs that clearly relate to projects under development or construction, are capitalized as incurred during the period an asset is undergoing activities to prepare it for its intended use.
Property taxes, insurance on real estate, and indirect project costs, such as construction, office, legal, and administration costs that clearly relate to projects under development or construction, are capitalized as incurred during the period an asset is undergoing activities to prepare it for its intended use.
Equity holders are normally entitled to their respective legal ownership of any residual cash from a joint venture only after all liabilities, priority distributions, and claims have been repaid or satisfied. 153 We believe that this information can help investors estimate the balance sheet and operating results information related to our partially owned entities.
Equity holders are normally entitled to their respective legal ownership of any residual cash from a joint venture only after all liabilities, priority distributions, and claims have been repaid or satisfied. 136 We believe that this information can help investors estimate the balance sheet and operating results information related to our partially owned entities.
Total market capitalization Total market capitalization is equal to the sum of total equity capitalization and total debt. 157 Unencumbered net operating income as a percentage of total net operating income Unencumbered net operating income as a percentage of total net operating income is a non-GAAP financial measure that we believe is useful to investors as a performance measure of the results of operations of our unencumbered real estate assets as it reflects those income and expense items that are incurred at the unencumbered property level.
Total market capitalization Total market capitalization is equal to the sum of total equity capitalization and total debt. 140 Unencumbered net operating income as a percentage of total net operating income Unencumbered net operating income as a percentage of total net operating income is a non-GAAP financial measure that we believe is useful to investors as a performance measure of the results of operations of our unencumbered real estate assets as it reflects those income and expense items that are incurred at the unencumbered property level.
The tables below also provide a reconciliation of EPS attributable to Alexandria’s common stockholders – diluted, the most directly comparable financial measure presented in accordance with GAAP, to funds from operations per share, a non-GAAP measure, and other key assumptions included in our updated guidance for the year ending December 31, 2023.
The tables below also provide a reconciliation of EPS attributable to Alexandria’s common stockholders – diluted, the most directly comparable financial measure presented in accordance with GAAP, to funds from operations per share, a non-GAAP measure, and other key assumptions included in our updated guidance for the year ending December 31, 2024.
Our ability to meet our 2023 capital strategy objectives and expectations will depend in part on capital market conditions, real estate market conditions, and other factors beyond our control. Accordingly, there can be no assurance that we will be able to achieve these objectives and expectations. Refer to our discussion of “Forward-looking statements” under Part I and “Item 1A.
Our ability to meet our 2024 capital strategy objectives and expectations will depend in part on capital market conditions, real estate market conditions, and other factors beyond our control. Accordingly, there can be no assurance that we will be able to achieve these objectives and expectations. Refer to our discussion of “Forward-looking statements” under Part I and “Item 1A.
Risk factors” in this annual report on Form 10-K for discussion of the risks we face from climate change. 116 Results of operations We present a tabular comparison of items, whether gain or loss, that may facilitate a high-level understanding of our results and provide context for the disclosures included in this annual report on Form 10-K.
Risk factors” in this annual report on Form 10-K for discussion of the risks we face from climate change. 100 Results of operations We present a tabular comparison of items, whether gain or loss, that may facilitate a high-level understanding of our results and provide context for the disclosures included in this annual report on Form 10-K.
We intend to supplement our remaining capital needs with net cash flows from operating activities after dividends and proceeds from real estate asset sales, non-real estate investment sales, partial interest sales, and equity capital. For further information, refer to “Projected results, Sources of capital,” and “Uses of capital” within this Item 7.
We intend to supplement our remaining capital needs with net cash flows from operating activities after dividends and proceeds from real estate asset sales, partial interest sales, and equity capital. For further information, refer to “Projected results, Sources of capital,” and “Uses of capital” within this Item 7.
Development, redevelopment, and pre-construction A key component of our business model is our disciplined allocation of capital to the development and redevelopment of new Class A properties, and property enhancements identified during the underwriting of certain acquired properties, located in collaborative life science, agtech, and technology campuses in AAA innovation clusters.
Development, redevelopment, and pre-construction A key component of our business model is our disciplined allocation of capital to the development and redevelopment of new Class A/A+ properties, and property enhancements identified during the underwriting of certain acquired properties, located in collaborative life science, agtech, and advanced technology mega campuses in AAA innovation clusters.
Risk factors” in this annual report on Form 10-K for a discussion about risks that inflation directly or indirectly may pose to our business. 141 Issuer and guarantor subsidiary summarized financial information Alexandria Real Estate Equities, Inc.
Risk factors” in this annual report on Form 10-K for a discussion about risks that inflation directly or indirectly may pose to our business. 124 Issuer and guarantor subsidiary summarized financial information Alexandria Real Estate Equities, Inc.
The following summarized financial information presents on a combined basis, balance sheet information as of December 31, 2022 and 2021, and results of operations and comprehensive income for the years ended December 31, 2022 and 2021 for the Issuer and the Guarantor Subsidiary. The information presented below excludes eliminations necessary to arrive at the information on a consolidated basis.
The following summarized financial information presents on a combined basis, balance sheet information as of December 31, 2023 and 2022, and results of operations and comprehensive income for the years ended December 31, 2023 and 2022 for the Issuer and the Guarantor Subsidiary. The information presented below excludes eliminations necessary to arrive at the information on a consolidated basis.
The tables below summarize components of our non-real estate investments and investment income. Refer to Note 7 – “Investments” to our consolidated financial statements under Item 15 in this annual report on Form 10-K for additional information.
The tables below summarize components of our investment income (loss) and non-real estate investments (in thousands). For additional information, refer to Note 7 – “Investments” to our consolidated financial statements under Item 15 in this annual report on Form 10-K for additional information.
Investment-grade or publicly traded large cap tenants Investment-grade or publicly traded large cap tenants represent tenants that are investment-grade rated or publicly traded companies with an average daily market capitalization greater than $10 billion for the twelve months ended December 31, 2022, as reported by Bloomberg Professional Services.
Investment-grade or publicly traded large cap tenants Investment-grade or publicly traded large cap tenants represent tenants that are investment-grade rated or publicly traded companies with an average daily market capitalization greater than $10 billion for the twelve months ended December 31, 2023, as reported by Bloomberg Professional Services.
For more information about our sales of real estate, refer to the “Sales of real estate assets and impairment charges” section in Note 3 – “Investment in real estate” to our consolidated financial statements under Item 15 in this annual report on Form 10-K.
For more information about our sales of real estate, refer to the “Sales of real estate assets and impairment charges” section in Note 3 – “Investments in real estate” to our consolidated financial statements under Item 15 in this annual report on Form 10-K.
All assets and liabilities have been allocated to the Issuer and the Guarantor Subsidiary generally based on legal entity ownership. The following tables present combined summarized financial information as of December 31, 2022 and 2021, and for the years ended December 31, 2022 and 2021, for the Issuer and Guarantor Subsidiary.
All assets and liabilities have been allocated to the Issuer and the Guarantor Subsidiary generally based on legal entity ownership. The following tables present combined summarized financial information as of December 31, 2023 and 2022, and for the years ended December 31, 2023 and 2022, for the Issuer and Guarantor Subsidiary.
Refer to our consolidated statements of cash flows and Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements under Item 15 in this annual report on Form 10-K for additional information. 128 Investments We hold strategic investments in publicly traded companies and privately held entities primarily involved in the life science, agtech, and technology industries.
Refer to our consolidated statements of cash flows and Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements under Item 15 in this annual report on Form 10-K for additional information. 112 Investments We hold investments in publicly traded companies and privately held entities primarily involved in the life science, agtech, and technology industries.
The weighted-average shares of common stock outstanding used in calculating EPS – diluted, funds from operations per share – diluted, and funds from operations per share – diluted, as adjusted, for the years ended December 31, 2022, 2021, and 2020 are calculated as follows.
The weighted-average shares of common stock outstanding used in calculating EPS – diluted, funds from operations per share – diluted, and funds from operations per share – diluted, as adjusted, for the years ended December 31, 2023, 2022, and 2021 are calculated as follows.
(7) Includes 9605, 9645, 9675, 9685, 9725, 9735, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road. (8) Includes 9965, 9975, 9985, and 9995 Summers Ridge Road. (9) In addition to the unconsolidated real estate joint ventures listed, we hold an interest in one other insignificant unconsolidated real estate joint venture in North America.
(6) Includes 9605, 9645, 9675, 9685, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road. (7) Includes 9965, 9975, 9985, and 9995 Summers Ridge Road. (8) In addition to the unconsolidated real estate joint ventures listed, we hold an interest in one other insignificant unconsolidated real estate joint venture in North America.
(2) Represents total interest incurred divided by the average debt balance outstanding during the respective periods.
(2) Represents annualized total interest incurred divided by the average debt balance outstanding during the respective periods.
We provide a comparison of the results for the year ended December 31, 2021 to the year ended December 31, 2020, including a comparison of the components of net operating income for our Same Properties and Non-Same Properties for the year ended December 31, 2021, compared to the year ended December 31, 2020, in the “Results of operations” section within this Item 7 of our annual report on Form 10-K for the year ended December 31, 2021.
We provide a comparison of the results for the year ended December 31, 2022 to the year ended December 31, 2021, including a comparison of the components of net operating income for our Same Properties and Non-Same Properties for the year ended December 31, 2022, compared to the year ended December 31, 2021, in the “Results of operations” section within Item 7 of our annual report on Form 10-K for the year ended December 31, 2022.
However, the physical effects of climate change could have a material adverse effect on our properties, operations, and business. For example, most of our properties are located along the east and west coasts of the U.S. and some of our properties are located in close proximity to shorelines.
However, the physical effects of climate change may potentially have a material adverse effect on our properties, operations, and business. For example, most of our properties are located along the east and west coasts of the U.S. and some of our properties are located in close proximity to shorelines.
We compute funds from operations, as adjusted, as funds from operations calculated in accordance with the Nareit White Paper, excluding significant gains, losses, and impairments realized on non-real estate investments, unrealized gains or losses on non-real estate investments, gains or losses on early extinguishment of debt, significant termination fees, acceleration of stock compensation expense due to the resignation of an executive officer, deal costs, the income tax effect related to such items, and the amount of such items that is allocable to our unvested restricted stock awards.
We compute funds from operations, as adjusted, as funds from operations calculated in accordance with the Nareit White Paper, excluding significant gains, losses, and impairments realized on non-real estate investments, unrealized gains or losses on non-real estate investments, gains or losses on early extinguishment of debt, significant termination fees, acceleration of stock compensation expense due to the resignations of executive officers, deal costs, the income tax effect related to such items, and the amount of such items that is allocable to our unvested restricted stock awards.
At a management level, Alexandria’s Sustainability Committee, which comprises members of the executive management team and senior decision makers spanning the Company’s Real Estate Development, Asset Management, Risk, and Sustainability teams, leads the development and execution of our approach to climate-related risk.
At a management level, Alexandria’s Sustainability Committee, which comprises members of the executive management team and senior decision makers spanning the Company’s real estate development, asset management, risk management, and sustainability teams, leads the development and execution of our approach to climate-related risk. Refer to “Item 1A.
As of December 31, 2022, approximately 93% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in addition to base rent.
As of December 31, 2023, approximately 94% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in addition to base rent.
Board of directors and leadership oversight The Audit Committee of Alexandria’s Board of Directors oversees the management of the Company’s financial and other systemic risks, including those related to climate.
Board of directors and leadership oversight The Audit Committee oversees the management of the Company’s financial and other systemic risks, including those related to climate change.
The gains were classified in gain on sales of real estate within our consolidated statements of operations for the year ended December 31, 2022.
The gains were classified in gain on sales of real estate within our consolidated statement of operations for the year ended December 31, 2022.
Consistent with 2022, our capital strategy for 2023 includes the following elements: • Allocate capital to Class A properties located in life science, agtech, and tech campuses in AAA urban innovation clusters. • Maintain prudent access to diverse sources of capital, which include net cash flows from operating activities after dividends, incremental leverage-neutral debt supported by growth in Adjusted EBITDA, strategic value harvesting and asset recycling through real estate disposition and partial interest sales, non-real estate investment sales, sales of equity, and other capital. • Continue to improve our credit profile. • Maintain commitment to long-term capital to fund growth. • Prudently ladder debt maturities and manage short-term variable-rate debt. • Prudently manage equity investments to support corporate-level investment strategies. • Maintain a stable and flexible balance sheet with significant liquidity.
Consistent with 2023, our capital strategy for 2024 includes the following elements: • Allocate capital to Class A/A+ properties located in life science, agtech, and advanced technology mega campuses in AAA innovation clusters. • Maintain prudent access to diverse sources of capital, which include net cash flows from operating activities after dividends, incremental leverage-neutral debt supported by growth in Adjusted EBITDA, strategic value harvesting and asset recycling through real estate disposition and partial interest sales, non-real estate investment sales, sales of equity, joint venture capital, and other sources of capital. • Continue to improve our credit profile. • Maintain commitment to long-term capital to fund growth. • Prudently ladder debt maturities and manage short-term variable-rate debt. • Prudently manage non-real estate equity investments to support corporate-level investment strategies. • Maintain a stable and flexible balance sheet with significant liquidity.
The increase in capitalized costs for the year ended December 31, 2022, compared to the year ended December 31, 2021, was primarily due to an increase in our value-creation pipeline projects undergoing construction and pre-construction activities in 2022 over 2021. Pre-construction activities include entitlements, permitting, design, site work, and other activities preceding commencement of construction of aboveground building improvements.
The increase in capitalized costs for the year ended December 31, 2023, compared to the same period in 2022, was primarily due to an increase in our value-creation pipeline projects undergoing construction and pre-construction activities in 2023 over 2022. Pre-construction activities include entitlements, permitting, design, site work, and other activities preceding commencement of construction of aboveground building improvements.
These projects are generally focused on providing high-quality, generic, and reusable spaces that meet the real estate requirements of, and are reusable by, a wide range of tenants. Upon completion, each value-creation project is expected to generate a significant increase in rental income, net operating income, and cash flows.
These projects are generally focused on providing high-quality, generic, and reusable spaces that meet the real estate requirements of a wide range of tenants. Upon completion, each value-creation project is expected to generate increases in rental income, net operating income, and cash flows.
To the extent that climate change impacts weather patterns, our markets could experience severe weather, including hurricanes, severe winter storms, wild fires, droughts, and coastal flooding due to increases in storm intensity and rising sea levels.
To the extent that climate change impacts weather patterns, our markets could experience severe weather, including hurricanes, severe winter storms, wildfires, droughts, and coastal flooding due to increases in storm intensity and rising sea levels.
For the year ending December 31, 2023, we expect our recently delivered projects, our highly pre-leased value-creation projects expected to be delivered, and contributions from Same Properties and recently acquired properties to contribute significant increases in income from rentals, net operating income, and cash flows.
For the year ending December 31, 2024, we expect our recently delivered projects, our highly pre-leased value-creation projects expected to be delivered, contributions from Same Properties, and recently acquired income-producing properties to contribute increases in income from rentals, net operating income, and cash flows.
Also includes development rights associated with existing operating campuses. These projects aggregate 1.1% of total annual rental revenue as of December 31, 2022 and are included in targeted for a future change in use in our industry mix chart.
Also includes development rights associated with existing operating campuses. These projects aggregated 1.1% of total annual rental revenue as of December 31, 2023 and are included in our industry mix chart as targeted for a future change in use.
As of December 31, 2022, approximately 93% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in addition to base rent.
As of December 31, 2023, 94% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in addition to base rent.
(2) Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2022. (3) This loan is subject to a fixed SOFR floor rate of 0.75%.
(2) Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2023. (3) This loan is subject to a fixed SOFR floor of 0.75%.
Significant realized and unrealized gains or losses on non-real estate investments, impairments of real estate and non-real estate investments, and acceleration of stock compensation expense due to the resignation of an executive officer are not related to the operating performance of our real estate assets as they result from strategic, corporate-level non-real estate investment decisions and external market conditions.
Significant realized and unrealized gains or losses on non-real estate investments, impairments of real estate and non-real estate investments, and acceleration of stock compensation expense due to the resignations of executive officers are not related to the operating performance of our real estate assets as they result from strategic, corporate-level non-real estate investment decisions and external market conditions.
During the years ended December 31, 2022, 2021, and 2020, we recognized impairment charges aggregating 4% , 0% , and 6% of the carrying amounts of our investments in privately held entities that do not report NAV, respectively.
During the years ended December 31, 2023, 2022, and 2021, we recognized impairment charges aggregating 14% , 4% , and 0%, respectively, of the carrying amounts of our investments in privately held entities that do not report NAV.
Dividend yield Dividend yield for the quarter represents the annualized quarter dividend divided by the closing common stock price at the end of the quarter. 151 Fixed-charge coverage ratio Fixed-charge coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to fixed charges.
Dividend yield Dividend yield for the quarter represents the annualized quarter dividend divided by the closing common stock price at the end of the quarter. Fixed-charge coverage ratio Fixed-charge coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to cash interest and fixed charges.
For operating metrics based on annual rental revenue, refer to the definition of “Annual rental revenue” in this “Non-GAAP measures and definitions” section. 156 Same property comparisons As a result of changes within our total property portfolio during the comparative periods presented, including changes from assets acquired or sold, properties placed into development or redevelopment, and development or redevelopment properties recently placed into service, the consolidated total income from rentals, as well as rental operating expenses in our operating results, can show significant changes from period to period.
For operating metrics based on annual rental revenue, refer to the definition of “Annual rental revenue” in this “Non-GAAP measures and definitions” section within this Item 7 in this annual report on Form 10-K. 139 Same property comparisons As a result of changes within our total property portfolio during the comparative periods presented, including changes from assets acquired or sold, properties placed into development or redevelopment, and development or redevelopment properties recently placed into service, the consolidated total income from rentals, as well as rental operating expenses in our operating results, can show significant changes from period to period.
We provide investors with a separate presentation of rental revenues and tenant recoveries in “Comparison of results for the year ended December 31, 2022 to the year ended December 31, 2021” in the “Results of operations” section within this Item 7 because we believe it promotes investors’ understanding of our operating results.
We provide investors with a separate presentation of rental revenues and tenant recoveries in the “Comparison of results for the year ended December 31, 2023 to the year ended December 31, 2022” subsection of the “Results of operations” section within this Item 7 because we believe it promotes investors’ understanding of our operating results.
We expect to update our forecast of key sources and uses of capital on a quarterly basis. 134 Sources of capital Net cash provided by operating activities after dividends We expect to retain $350.0 million to $400.0 million of net cash flows from operating activities after payment of common stock dividends and distributions to noncontrolling interests for the year ending December 31, 2023.
We expect to update our forecast for key sources and uses of capital on a quarterly basis. 118 Sources of capital Net cash provided by operating activities after dividends We expect to retain $400.0 million to $500.0 million of net cash flows from operating activities after payment of common stock dividends and distributions to noncontrolling interests for the year ending December 31, 2024.
During the year ended December 31, 2022, we capitalized total initial direct leasing costs of $186.7 million. Costs that we incur to negotiate or arrange a lease regardless of its outcome, such as fixed employee compensation, tax, or legal advice to negotiate lease terms, and other costs, are expensed as incurred.
During the year ended December 31, 2023, we capitalized total initial direct leasing costs of $75.3 million. Costs that we incur to negotiate or arrange a lease regardless of its outcome, such as fixed employee compensation, tax, or legal advice to negotiate lease terms, and other costs, are expensed as incurred.
The key assumptions behind the sources and uses of capital in the table above include a favorable capital market environment, performance of our core operating properties, lease-up and delivery of current and future development and redevelopment projects, and leasing activity.
The key assumptions behind the sources and uses of capital in the table above include a favorable real estate transaction and capital market environments, performance of our core operating properties, lease-up and delivery of current and future development and redevelopment projects, and leasing activity.
Refer to “Cash flows” within this Item 7 in this annual report on Form 10-K for a discussion of cash flows provided by operating activities for the year ended December 31, 2022.
Refer to the “Cash flows” subsection of the “Liquidity” section within this Item 7 in this annual report on Form 10-K for a discussion of cash flows provided by operating activities for the year ended December 31, 2023.
For example, had we experienced a 10% reduction in development, redevelopment, and construction activities without a corresponding decrease in indirect project costs, including interest and payroll, total expenses would have increased by approximately $36.2 million for the year ended December 31, 2022.
For example, had we experienced a 10% reduction in development, redevelopment, and construction activities without a corresponding decrease in indirect project costs, including interest and payroll, total expenses would have increased by approximately $60.1 million for the year ended December 31, 2023.
In addition, we carry pollution legal liability insurance covering exposure to certain environmental losses at substantially all of our properties. 140 Foreign currency translation gains and losses The following table presents the change in accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc.’s stockholders during the year ended December 31, 2022 due to the changes in the foreign exchange rates for our real estate investments in Canada and Asia.
In addition, we carry a policy of pollution legal liability insurance covering exposure to certain environmental losses at substantially all of our properties. 123 Foreign currency translation gains and losses The following table presents the change in accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc.’s stockholders during the year ended December 31, 2023 primarily due to the changes in the foreign exchange rates for our real estate investments in Canada (in thousands).
As of December 31, 2022, the weighted-average remaining lease term of operating leases in which we are the lessee was approximately 42 years, and the weighted-average discount rate was 4.6%. Our corresponding operating lease right-of-use assets, adjusted for initial direct leasing costs and other consideration exchanged with the landlord prior to the commencement of the lease, aggregated $558.3 million.
As of December 31, 2023, the weighted-average remaining lease term of operating leases in which we are the lessee was approximately 41 years, and the weighted-average discount rate was 4.6%. Our corresponding operating lease right-of-use assets, adjusted for initial direct leasing costs and other consideration exchanged with the landlord prior to the commencement of the lease, aggregated $516.5 million.
Loss on early extinguishment of debt During the year ended December 31, 2022, we recognized a loss on early extinguishment of debt of $3.3 million, including a prepayment penalty and the write-off of unamortized loan fees, related to the repayment of two secured notes payable.
During the year ended December 31, 2022, we recognized a loss on early extinguishment of debt of $3.3 million, including a prepayment penalty and the write-off of unamortized loan fees, related to the repayment of two secured notes payable. Investment loss During the year ended December 31, 2023, we recognized an investment loss aggregating $195.4 million.
These funding commitments are primarily associated with our investments in privately held entities that report NAV and expire at various dates over the next 12 years, with a weighted-average expiration of 8.6 years as of December 31, 2022.
These funding commitments are primarily associated with our investments in privately held entities that report NAV and expire at various dates over the next 11 years, with a weighted-average expiration of 8.2 years as of December 31, 2023.
In the event we are unable to issue commercial paper notes or refinance outstanding commercial paper notes under terms equal to or more favorable than those under the unsecured senior line of credit, we expect to borrow under the unsecured senior line of credit at SOFR plus 0.875%.
In the event we are unable to issue commercial paper notes or refinance outstanding commercial paper notes under terms equal to or more favorable than those under the unsecured senior line of credit, we expect to borrow under the unsecured senior line of credit.
Unsecured senior notes payable and unsecured senior line of credit The requirements of, and our actual performance with respect to, the key financial covenants under our unsecured senior notes payable as of December 31, 2022 were as follows: Covenant Ratios (1) Requirement December 31, 2022 Total Debt to Total Assets Less than or equal to 60% 27% Secured Debt to Total Assets Less than or equal to 40% 0.2% Consolidated EBITDA (2) to Interest Expense Greater than or equal to 1.5x 18.2x Unencumbered Total Asset Value to Unsecured Debt Greater than or equal to 150% 363% (1) All covenant ratio titles utilize terms as defined in the respective debt agreements.
Unsecured senior notes payable and unsecured senior line of credit The requirements of, and our actual performance with respect to, the key financial covenants under our unsecured senior notes payable as of December 31, 2023 were as follows: Covenant Ratios (1) Requirement December 31, 2023 Total Debt to Total Assets Less than or equal to 60% 28% Secured Debt to Total Assets Less than or equal to 40% 0.3% Consolidated EBITDA (2) to Interest Expense Greater than or equal to 1.5x 15.3x Unencumbered Total Asset Value to Unsecured Debt Greater than or equal to 150% 346% (1) All covenant ratio titles utilize terms as defined in the respective debt agreements.
As of each December 31, 2022, 2021, and 2020, the carrying amounts of our investments in privately held entities that do not report NAV per share accounted for approximately 2% of our total assets and aggregated $582.7 million, $491.3 million, and $389.2 million, respectively.
As of each December 31, 2023, 2022, and 2021, the carrying amounts of our investments in privately held entities that do not report NAV per share accounted for approximately 1% to 2% of our total assets and aggregated $542.9 million, $582.7 million, and $491.3 million, respectively.
During the fiscal years ended 2022, 2021, and 2020, specific write-offs and a general allowance related to deferred rent balances of tenants recognized in our consolidated statements of operations have not exceeded 0.8% of our income from rentals for each respective year.
During the years ended December 31, 2023, 2022, and 2021, specific write-offs and increases to our general allowance related to deferred rent balances of tenants recognized in our consolidated statements of operations have not exceeded 0.8% of our income from rentals for each respective year.
Risk factors” in this annual report on Form 10-K. 105 Operating summary Historical Same Property Net Operating Income Growth (1) Favorable Lease Structure (3) Strategic Lease Structure by Owner and Operator of Collaborative Life Science, Agtech, and Technology Campuses Increasing cash flows Percentage of leases containing annual rent escalations 96% Stable cash flows Percentage of triple net leases 93% Lower capex burden Percentage of leases providing for the recapture of capital expenditures 93% Historical Rental Rate Growth: Renewed/Re-Leased Space Margins (4) Operating Adjusted EBITDA 70% 69% Net Debt and Preferred Stock to Adjusted EBITDA (5) Fixed-Charge Coverage Ratio (5) (1) Refer to “Same properties” and “Non-GAAP measures and definitions“ within this Item 7 for additional details.
Risk factors” in this annual report on Form 10-K. 94 Operating summary Historical Same Property Net Operating Income Growth Historical Rental Rate Growth: Renewed/Re-Leased Space Margins (2) Favorable Lease Structure (3) Operating Adjusted EBITDA Strategic Lease Structure by Owner and Operator of Collaborative Life Science, Agtech, and Advanced Technology Mega Campuses 71% 69% Increasing cash flows Percentage of leases containing annual rent escalations 96% Stable cash flows Weighted-Average Lease Term of Executed Leases Percentage of triple net leases 94% Lower capex burden 8.8 Years Percentage of leases providing for the recapture of capital expenditures 93% 10 Years (2014–2023) Net Debt and Preferred Stock to Adjusted EBITDA (4) Fixed-Charge Coverage Ratio (4) Refer to “Same properties” and “Non-GAAP measures and definitions” within this Item 7 for additional details.
Consolidated Real Estate Joint Ventures Property/Market/Submarket Noncontrolling (1) Interest Share Operating RSF at 100% 50 and 60 Binney Street/Greater Boston/Cambridge/Inner Suburbs 66.0 % 532,395 75/125 Binney Street/Greater Boston/Cambridge/Inner Suburbs 60.0 % 388,270 100 and 225 Binney Street and 300 Third Street/Greater Boston/Cambridge/Inner Suburbs 70.0 % (2) 870,106 99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs 25.0 % — (3) Alexandria Center ® for Science and Technology – Mission Bay/San Francisco Bay Area/Mission Bay (4) 75.0 % 1,005,989 1450 Owens Street/San Francisco Bay Area/Mission Bay 40.3 % (2)(5) — (3) 601, 611, 651, 681, 685, and 701 Gateway Boulevard/San Francisco Bay Area/South San Francisco 50.0 % 789,567 751 Gateway Boulevard/San Francisco Bay Area/South San Francisco 49.0 % — (3) 211 and 213 East Grand Avenue/San Francisco Bay Area/South San Francisco 70.0 % 300,930 500 Forbes Boulevard/San Francisco Bay Area/South San Francisco 90.0 % 155,685 Alexandria Center ® for Life Science – Millbrae/San Francisco Bay Area/South San Francisco 54.7 % — 3215 Merryfield Row/San Diego/Torrey Pines 70.0 % (2) 170,523 Campus Point by Alexandria/San Diego/University Town Center (6) 45.0 % 1,337,916 5200 Illumina Way/San Diego/University Town Center 49.0 % 792,687 9625 Towne Centre Drive/San Diego/University Town Center 49.9 % 163,648 SD Tech by Alexandria/San Diego/Sorrento Mesa (7) 50.0 % 876,869 Pacific Technology Park/San Diego/Sorrento Mesa 50.0 % 544,352 Summers Ridge Science Park/San Diego/Sorrento Mesa (8) 70.0 % (2) 316,531 1201 and 1208 Eastlake Avenue East and 199 East Blaine Street /Seattle/Lake Union 70.0 % 321,218 400 Dexter Avenue North/Seattle/Lake Union 70.0 % 290,754 800 Mercer Street/Seattle/Lake Union 40.0 % (2) — Unconsolidated Real Estate Joint Ventures Property/Market/Submarket Our Ownership Share (9) Operating RSF at 100% 1655 and 1725 Third Street/San Francisco Bay Area/Mission Bay 10.0 % 586,208 1401/1413 Research Boulevard/Maryland/Rockville 65.0 % (10) (11) 1450 Research Boulevard/Maryland/Rockville 73.2 % (12) 42,679 101 West Dickman Street/Maryland/Beltsville 57.9 % (12) 135,423 (1) In addition to the consolidated real estate joint ventures listed, various partners hold insignificant noncontrolling interests in three other real estate joint ventures in North America.
Consolidated Real Estate Joint Ventures Property/Market/Submarket Noncontrolling (1) Interest Share Operating RSF at 100% 50 and 60 Binney Street/Greater Boston/Cambridge/Inner Suburbs 66.0 % 532,395 75/125 Binney Street/Greater Boston/Cambridge/Inner Suburbs 60.0 % 388,270 100 and 225 Binney Street and 300 Third Street/Greater Boston/Cambridge/Inner Suburbs 70.0 % 870,106 99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs 25.0 % 43,568 (2) 15 Necco Street/Greater Boston/Seaport Innovation District 43.3 % 345,996 Other joint venture/Greater Boston 38.8 % — (2) Alexandria Center ® for Science and Technology – Mission Bay/San Francisco Bay Area/Mission Bay (3) 75.0 % 1,003,603 1450 Owens Street/San Francisco Bay Area/Mission Bay 59.4 % (4) — (2) 601, 611, 651 (2) , 681, 685, and 701 Gateway Boulevard/San Francisco Bay Area/South San Francisco 50.0 % 786,549 751 Gateway Boulevard/San Francisco Bay Area/South San Francisco 49.0 % 230,592 211 (2) and 213 East Grand Avenue/San Francisco Bay Area/South San Francisco 70.0 % 300,930 500 Forbes Boulevard/San Francisco Bay Area/South San Francisco 90.0 % 155,685 Alexandria Center ® for Life Science – Millbrae/San Francisco Bay Area/South San Francisco 52.9 % — (2) 3215 Merryfield Row/San Diego/Torrey Pines 70.0 % 170,523 Campus Point by Alexandria/San Diego/University Town Center (5) 45.0 % 1,342,164 5200 Illumina Way/San Diego/University Town Center 49.0 % 792,687 9625 Towne Centre Drive/San Diego/University Town Center 70.0 % 163,648 SD Tech by Alexandria/San Diego/Sorrento Mesa (6) 50.0 % 881,930 Pacific Technology Park/San Diego/Sorrento Mesa 50.0 % 544,352 Summers Ridge Science Park/San Diego/Sorrento Mesa (7) 70.0 % 316,531 1201 and 1208 Eastlake Avenue East and 199 East Blaine Street /Seattle/Lake Union 70.0 % 321,115 400 Dexter Avenue North/Seattle/Lake Union 70.0 % 290,754 800 Mercer Street/Seattle/Lake Union 40.0 % — (2) Unconsolidated Real Estate Joint Ventures Property/Market/Submarket Our Ownership Share (8) Operating RSF at 100% 1655 and 1725 Third Street/San Francisco Bay Area/Mission Bay 10.0 % 586,208 1401/1413 Research Boulevard/Maryland/Rockville 65.0 % (9) (10) 1450 Research Boulevard/Maryland/Rockville 73.2 % (9) 42,679 101 West Dickman Street/Maryland/Beltsville 57.9 % (9) 135,423 (1) In addition to the consolidated real estate joint ventures listed, various joint venture partners hold insignificant noncontrolling interests in three other real estate joint ventures in North America.
Capitalized interest for the years ended December 31, 2022 and 2021 of $278.6 million and $170.6 million, respectively, was classified in investments in real estate in our consolidated balance sheets.
Capitalized interest for the years ended December 31, 2023 and 2022 of $364.0 million and $278.6 million, respectively, was classified in investments in real estate in our consolidated balance sheets.
Significant items included in the tabular disclosure for current periods are described in further detail under this Item 7 in this annual report on Form 10-K.
Significant items, whether a gain or loss, included in the tabular disclosure for current periods are described in further detail under this Item 7 in this annual report on Form 10-K.
As of December 31, 2022, the present value of the remaining contractual payments, aggregating $904.2 million, under our operating lease agreements, including our extension options that we are reasonably certain to exercise, was $406.7 million, which was classified in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheets.
As of December 31, 2023, the present value of the remaining contractual payments, aggregating $848.9 million, under our operating lease agreements, including our extension options that we are reasonably certain to exercise, was $382.9 million, which was classified in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheets.
The requirements of, and our actual performance with respect to, the key financial covenants under our unsecured senior line of credit as of December 31, 2022 were as follows: Covenant Ratios (1) Requirement December 31, 2022 Leverage Ratio Less than or equal to 60.0% 26.6% Secured Debt Ratio Less than or equal to 45.0% 0.1% Fixed-Charge Coverage Ratio Greater than or equal to 1.50x 4.34x Unsecured Interest Coverage Ratio Greater than or equal to 1.75x 18.87x (1) All covenant ratio titles utilize terms as defined in the credit agreement.
The requirements of, and our actual performance with respect to, the key financial covenants under our unsecured senior line of credit as of December 31, 2023 were as follows: Covenant Ratios (1) Requirement December 31, 2023 Leverage Ratio Less than or equal to 60.0% 27.0% Secured Debt Ratio Less than or equal to 45.0% 0.2% Fixed-Charge Coverage Ratio Greater than or equal to 1.50x 4.13x Unsecured Interest Coverage Ratio Greater than or equal to 1.75x 28.55x (1) All covenant ratio titles utilize terms as defined in the credit agreement.
We capitalized payroll and other indirect costs related to development, redevelopment, pre-construction, and construction projects, aggregating $83.8 million and $69.8 million, and property taxes, insurance on real estate and indirect project costs aggregating $97.3 million and $73.8 million during the years ended December 31, 2022 and 2021, respectively.
We capitalized payroll and other indirect costs related to development, redevelopment, pre-construction, and construction projects, aggregating $108.4 million and $83.8 million, and property taxes, insurance on real estate and indirect project costs aggregating $129.1 million and $97.3 million during the years ended December 31, 2023 and 2022, respectively.
Refer to Note 3 – “Investment in real estate”, Note 4 – “Consolidated and unconsolidated real estate joint ventures”, and Note 15 – “Stockholders’ equity” to our consolidated financial statements under Item 15 and “Dispositions and sales of partial interests” under Item 2 in this annual report on Form 10-K for additional information on our dispositions, sales of partial interests, and issuances of common equity.
Refer to Note 3 – “Investments in real estate,” Note 4 – “Consolidated and unconsolidated real estate joint ventures,” and Note 15 – “Stockholders’ equity” to our consolidated financial statements under Item 15 and “Dispositions and sales of partial interests” under Item 2 in this annual report on Form 10-K for additional information on our real estate dispositions and sales of partial interests.
We anticipate significant contractual near-term growth in annual cash rents of $57 million related to the commencement of contractual rents on the projects recently placed into service that are near the end of their initial free rent period.
We anticipate contractual near-term growth in annual net operating income (cash basis) of $114 million related to the commencement of contractual rents on the projects recently placed into service that are near the end of their initial free rent period.
The following table reconciles income from rentals to tenant recoveries for the years ended December 31, 2022, 2021, and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Income from rentals $ 2,576,040 $ 2,108,249 $ 1,878,208 Rental revenues (1,950,098) (1,618,592) (1,471,840) Tenant recoveries $ 625,942 $ 489,657 $ 406,368 Total equity capitalization Total equity capitalization is equal to the outstanding shares of common stock multiplied by the closing price on the last trading day at the end of each period presented.
The following table reconciles income from rentals to tenant recoveries for the years ended December 31, 2023, 2022, and 2021 (in thousands): Year Ended December 31, 2023 2022 2021 Income from rentals $ 2,842,456 $ 2,576,040 $ 2,108,249 Rental revenues (2,143,971) (1,950,098) (1,618,592) Tenant recoveries $ 698,485 $ 625,942 $ 489,657 Total equity capitalization Total equity capitalization is equal to the outstanding shares of common stock multiplied by the closing price on the last trading day at the end of each period presented.
The following table summarizes unencumbered net operating income as a percentage of total net operating income for the years ended December 31, 2022, 2021, and 2020 (dollars in thousands): Year Ended December 31, 2022 2021 2020 Unencumbered net operating income $ 1,790,033 $ 1,444,307 $ 1,295,520 Encumbered net operating income 15,776 46,288 59,893 Total net operating income $ 1,805,809 $ 1,490,595 $ 1,355,413 Unencumbered net operating income as a percentage of total net operating income 99% 97% 96% Weighted-average shares of common stock outstanding – diluted From time to time, we enter into capital market transactions, including forward equity sales agreements (“Forward Agreements”), to fund acquisitions, to fund construction of our highly leased development and redevelopment projects, and for general working capital purposes.
The following table summarizes unencumbered net operating income as a percentage of total net operating income for the years ended December 31, 2023, 2022, and 2021 (dollars in thousands): Year Ended December 31, 2023 2022 2021 Unencumbered net operating income $ 2,022,177 $ 1,790,033 $ 1,444,307 Encumbered net operating income 4,342 15,776 46,288 Total net operating income $ 2,026,519 $ 1,805,809 $ 1,490,595 Unencumbered net operating income as a percentage of total net operating income 99.8% 99.1% 96.9% Weighted-average shares of common stock outstanding – diluted From time to time, we enter into capital market transactions, including forward equity sales agreements (“Forward Agreements”), to fund acquisitions, to fund construction of our highly leased development and redevelopment projects, and for general working capital purposes.
Estimated interest payments Estimated interest payments on our fixed-rate debt are calculated based upon contractual interest rates, including interest payment dates and scheduled maturity dates. As of December 31, 2022, 99.4% of our debt was fixed-rate debt.
Estimated interest payments Estimated interest payments on our fixed-rate debt are calculated based upon contractual interest rates, including interest payment dates and scheduled maturity dates. As of December 31, 2023, 98.1% of our debt was fixed-rate debt.
Also shown are the weighted-average unvested shares associated with restricted stock awards used in calculating the amounts allocable to unvested stock award holders for each of the respective periods presented below (in thousands): Year Ended December 31, 2022 2021 2020 Basic shares for earnings per share 161,659 146,921 126,106 Forward Agreements — 539 384 Diluted shares for earnings per share 161,659 147,460 126,490 Basic shares for funds from operations per share and funds from operations per share, as adjusted 161,659 146,921 126,106 Forward Agreements — 539 384 Diluted shares for funds from operations per share and funds from operations per share, as adjusted 161,659 147,460 126,490 Unvested restricted shares used in the allocation of net income, funds from operations, and funds from operations, as adjusted 1,723 1,782 1,728 158
Also shown are the weighted-average unvested shares associated with restricted stock awards used in calculating the amounts allocable to unvested stock award holders for each of the respective periods presented below (in thousands): Year Ended December 31, 2023 2022 2021 Basic shares for earnings per share 170,909 161,659 146,921 Forward Agreements — — 539 Diluted shares for earnings per share 170,909 161,659 147,460 Basic shares for funds from operations per share and funds from operations per share, as adjusted 170,909 161,659 146,921 Forward Agreements — — 539 Diluted shares for funds from operations per share and funds from operations per share, as adjusted 170,909 161,659 147,460 Weighted-average unvested restricted shares used in the allocations of net income, funds from operations, and funds from operations, as adjusted 2,325 1,723 1,782 141
Commitments As of December 31, 2022, remaining aggregate costs under contract for the construction of properties undergoing development, redevelopment, and improvements under the terms of leases approximated $3.5 billion.
Commitments As of December 31, 2023, remaining aggregate costs under contract for the construction of properties undergoing development, redevelopment, and improvements under the terms of leases approximated $1.9 billion.
These securities may be issued, from time to time, at our discretion based on our needs and market conditions, including, as necessary, to balance our use of incremental debt capital. Additionally, we, together with joint venture partners, hold interests in real estate joint ventures that we consolidate in our financial statements.
Other sources As a well-known seasoned issuer, from time to time, we may issue securities at our discretion based on our needs and market conditions, including, as necessary, to balance our use of incremental debt capital. Additionally, we, together with joint venture partners, hold interests in real estate joint ventures that we consolidate in our financial statements.
Over the next several years, our balance sheet, capital structure, and liquidity objectives are as follows: • Retain positive cash flows from operating activities after payment of dividends and distributions to noncontrolling interests for investment in development and redevelopment projects and/or acquisitions. • Improve credit profile and relative long-term cost of capital. • Maintain diverse sources of capital, including sources from net cash provided by operating activities, unsecured debt, secured debt, selective real estate asset sales, strategic real estate joint ventures, non-real estate investment sales, and common stock. • Maintain commitment to long-term capital to fund growth. • Maintain prudent laddering of debt maturities. • Maintain solid credit metrics. • Maintain significant balance sheet liquidity. • Prudently manage variable-rate debt exposure through the reduction of short-term and medium-term variable-rate debt. • Maintain a large unencumbered asset pool to provide financial flexibility. • Fund common stock dividends and distributions to noncontrolling interests from net cash provided by operating activities. • Manage a disciplined level of value-creation projects as a percentage of our gross real estate assets. • Maintain high levels of pre-leasing and percentage leased in value-creation projects. 130 The following table presents the availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program; outstanding forward equity sales agreements; cash, cash equivalents, and restricted cash; availability under our secured construction loan; and investments in publicly traded companies as of December 31, 2022 (dollars in thousands): Description Stated Rate Aggregate Commitments Outstanding Balance (1) Remaining Commitments/Liquidity Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program SOFR+0.875% $ 4,000,000 $ — $ 4,000,000 Outstanding forward equity sales agreements (2) 102,427 Cash, cash equivalents, and restricted cash 857,975 Remaining construction loan commitments SOFR+2.70% $ 195,300 $ 58,396 135,583 Investments in publicly traded companies 207,139 Liquidity as of December 31, 2022 $ 5,303,124 (1) Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2022.
Over the next several years, our balance sheet, capital structure, and liquidity objectives are as follows: • Retain cash flows from operating activities after payment of dividends and distributions to noncontrolling interests for investment in development and redevelopment projects and/or acquisitions; • Maintain significant balance sheet liquidity; • Improve credit profile and relative long-term cost of capital; • Maintain diverse sources of capital, including sources from net cash provided by operating activities, unsecured debt, secured debt, selective real estate asset sales, strategic real estate joint ventures, non-real estate investment sales, and common stock; • Maintain commitment to long-term capital to fund growth; • Maintain prudent laddering of debt maturities; • Maintain solid credit metrics; • Prudently manage variable-rate debt exposure; • Maintain a large unencumbered asset pool to provide financial flexibility; • Fund common stock dividends and distributions to noncontrolling interests from net cash provided by operating activities; • Manage a disciplined level of value-creation projects as a percentage of our gross real estate assets; and • Maintain high levels of pre-leasing and percentage leased in value-creation projects. 114 The following table presents the availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program; cash, cash equivalents, and restricted cash; availability under our secured construction loan; and investments in publicly traded companies as of December 31, 2023 (in thousands): Description Stated Rate Aggregate Commitments Outstanding Balance (1) Remaining Commitments/Liquidity Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program SOFR+0.835% $ 5,000,000 $ 99,952 $ 4,900,000 Cash, cash equivalents, and restricted cash 660,771 Construction loan SOFR+2.70% $ 195,300 $ 119,043 75,626 Investments in publicly traded companies 159,566 Liquidity as of December 31, 2023 $ 5,795,963 (1) Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe following tables illustrate the effect of a 1% change in interest rates, assuming a zero percent interest rate floor, on our fixed- and variable-rate debt as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Annualized effect on future earnings due to variable-rate debt: Rate increase of 1% $ (597) $ (527) Rate decrease of 1% $ 597 $ 106 Effect on fair value of total consolidated debt: Rate increase of 1% $ (668,639) $ (811,028) Rate decrease of 1% $ 759,638 $ 944,392 These amounts are determined by considering the effect of the hypothetical interest rates on our borrowings as of December 31, 2022 and 2021, respectively.
Biggest changeThe following tables illustrate the effect of a 1% change in interest rates, assuming a zero percent interest rate floor, on our fixed- and variable-rate debt as of December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Annualized effect on future earnings due to variable-rate debt: Rate increase of 1% $ (339) $ (597) Rate decrease of 1% $ 339 $ 597 Effect on fair value of total consolidated debt: Rate increase of 1% $ (742,460) $ (668,639) Rate decrease of 1% $ 847,335 $ 759,638 These amounts are determined by considering the effect of the hypothetical interest rates on our borrowings as of December 31, 2023 and 2022, respectively.
The use of these types of instruments to hedge a portion of our exposure to changes in interest rates may carry additional risks, such as counterparty credit risk and the legal enforceability of hedge agreements. As of December 31, 2022, we did not have any outstanding interest rate hedge agreements.
The use of these types of instruments to hedge a portion of our exposure to changes in interest rates may carry additional risks, such as counterparty credit risk and the legal enforceability of hedge agreements. As of December 31, 2023, we did not have any outstanding interest rate hedge agreements.
The following tables illustrate the effect that a 10% change in foreign currency rates relative to the U.S. dollar would have on our potential future earnings and on the fair value of our net investment in foreign subsidiaries based on our current operating assets outside the U.S. as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Effect on potential future earnings due to foreign currency exchange rate: Rate increase of 10% $ 147 $ 120 Rate decrease of 10% $ (147) $ (120) Effect on the fair value of net investment in foreign subsidiaries due to foreign currency exchange rate: Rate increase of 10% $ 22,523 $ 18,790 Rate decrease of 10% $ (22,523) $ (18,790) The sensitivity analyses assume a parallel shift of all foreign currency exchange rates with respect to the U.S. dollar; however, foreign currency exchange rates do not typically move in such a manner, and actual results may differ materially.
The following tables illustrate the effect that a 10% change in foreign currency rates relative to the U.S. dollar would have on our potential future earnings and on the fair value of our net investment in foreign subsidiaries based on our current operating assets outside the U.S. as of December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Effect on potential future earnings due to foreign currency exchange rate: Rate increase of 10% $ 311 $ 147 Rate decrease of 10% $ (311) $ (147) Effect on the fair value of net investment in foreign subsidiaries due to foreign currency exchange rate: Rate increase of 10% $ 37,346 $ 22,523 Rate decrease of 10% $ (37,346) $ (22,523) The sensitivity analyses assume a parallel shift of all foreign currency exchange rates with respect to the U.S. dollar; however, foreign currency exchange rates do not typically move in such a manner, and actual results may differ materially.
Our exposure to market risk elements for the year ended December 31, 2022 was consistent with the risk elements presented above, including the effects of changes in interest rates, equity prices, and foreign currency exchange rates. 160
Our exposure to market risk elements for the year ended December 31, 2023 was consistent with the risk elements presented above, including the effects of changes in interest rates, equity prices, and foreign currency exchange rates. 143
The following table illustrates the effect that a 10% change in the value of our equity investments would have on earnings as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Equity price risk: Fair value increase of 10% $ 161,507 $ 187,656 Fair value decrease of 10% $ (161,507) $ (187,656) 159 Foreign currency exchange rate risk We have exposure to foreign currency exchange rate risk related to our subsidiaries operating in Canada and Asia.
The following table illustrates the effect that a 10% change in the value of our equity investments would have on earnings as of December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Equity price risk: Fair value increase of 10% $ 144,952 $ 161,507 Fair value decrease of 10% $ (144,952) $ (161,507) 142 Foreign currency exchange rate risk We have exposure to foreign currency exchange rate risk related to our subsidiaries operating in Canada and Asia.

Other ARE 10-K year-over-year comparisons