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What changed in Alexandria Real Estate Equities's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Alexandria Real Estate Equities's 2024 and 2025 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 2025 report.

+506 added−447 removedSource: 10-K (2026-01-26) vs 10-K (2025-01-27)

Top changes in Alexandria Real Estate Equities's 2025 10-K

506 paragraphs added · 447 removed · 322 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

5 edited+0 added−0 removed9 unchanged
Biggest changeAs of December 31, 2024 , we had 391 properties in North America consisting of approximately 44.1 million RSF of operating properties and new Class A/A+ development and redevelopment properties under construction , including 67 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.
Biggest changeAs of December 31, 2025 , we had 340 properties in North America consisting of approximately 39.4 million RSF of operating properties and new Class A/A+ development and redevelopment properties under construction, including 47 operating properties and development projects that are held by consolidated real estate joint ventures and three properties that are held by unconsolidated real estate joint ventures.
Our tenants include multinational pharmaceutical companies; public and private biotechnology companies; life science product, service, and medical device companies; digital health, technology, and agtech companies; academic and medical research institutions; U.S. government research agencies; non-profit organizations; and venture capital firms.
Our tenants include multinational pharmaceutical companies; public and private biotechnology companies; life science product, service, and medical device companies; digital health, advanced technology, and agtech companies; academic and medical research institutions; U.S. government research agencies; non-profit organizations; and venture capital firms.
Our strategy also includes drawing upon our deep, broad, and longstanding real estate and life science industry relationships in order to retain tenants, identify and attract new and leading tenants, and source additional real estate. Our tenant base is broad and diverse within the life science industry. For a more detailed description of our properties and tenants, refer to “
Our strategy also includes drawing upon our deep, broad, and long-standing real estate and life science industry relationships in order to retain tenants, identify and attract new and leading tenants, and source additional real estate. Our tenant base is broad and diverse within the life science industry. For a more detailed description of our properties and tenants, refer to “
The occupancy percentage of our operating properties in North America was 94.6% as of December 31, 2024 . The 10-year average occupancy percentage of our operating properties as of December 31, 2024 was 96% . Investment-grade or publicly traded large cap tenants represented 52% of our total annual rental revenue in effect as of December 31, 2024 .
The occupancy percentage of our operating properties in North America was 90.9% as of December 31, 2025 . The 10-year average occupancy percentage of our operating properties as of December 31, 2025 was 95% . Investment-grade or publicly traded large cap tenants represented 53% of our total annual rental revenue in effect as of December 31, 2025 .
As of December 31, 2024 , Alexandria has a total market capitalization of $29.0 billion and an asset base in North America that includes 39.8 million RSF of operating properties and 4.4 million RSF of Class A/A+ properties undergoing construction .
As of December 31, 2025 , Alexandria has a total market capitalization of $20.75 billion and an asset base in North America that includes 35.9 million RSF of operating properties and 3.5 million RSF of Class A/A+ properties undergoing construction .

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

94 edited+25 added−22 removed106 unchanged
Biggest changeRefer to Note 5 – “Leases” and Note 8 – “Other assets” to our consolidated financial statements in Item 15 for additional information. 129 Year Ended December 31, (Per share) 2024 2023 2022 Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted $ 1.80 $ 0.54 $ 3.18 Depreciation and amortization of real estate assets 6.20 5.67 5.47 Gain on sales of real estate (0.74) (1.62) (3.33) Impairment of real estate – rental properties and land 1.12 2.64 0.13 Allocation to unvested restricted stock awards (0.06) (0.04) (0.01) Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted 8.32 7.19 5.44 Unrealized losses on non-real estate investments 0.65 1.18 2.55 Impairment of non-real estate investments 0.34 0.44 0.13 Impairment of real estate 0.18 0.06 0.27 Loss on early extinguishment of debt — — 0.02 Acceleration of stock compensation expense due to executive officer resignations — 0.12 0.04 Allocation to unvested restricted stock awards (0.02) (0.02) (0.03) Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted $ 9.47 $ 8.97 $ 8.42 Weighted-average shares of common stock outstanding – diluted (1) 172,071 170,909 161,659 (1) Refer to “ Weighted-average shares of common stock outstanding – diluted ” in this section for additional information. 130 Adjusted EBITDA and Adjusted EBITDA margin We use Adjusted EBITDA as a supplemental performance measure of our operations, for financial and operational decision- making, and as a supplemental means of evaluating period-to-period comparisons on a consistent basis.
Biggest changeRyan, from his position as Co-President and Regional Marketing Director – San Diego. 131 Year Ended December 31, (Per share) 2025 2024 2023 Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted $ (8.44) $ 1.80 $ 0.54 Depreciation and amortization of real estate assets 6.99 6.20 5.67 Gain on sales of real estate (1.94) (0.74) (1.62) Impairment of real estate – rental properties and land 11.12 1.12 2.64 Allocation to unvested restricted stock awards (0.04) (0.06) (0.04) Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted 7.69 8.32 7.19 Unrealized (gains) losses on non-real estate investments (0.16) 0.65 1.18 Significant realized losses on non-real estate investments 0.62 — — Impairment of non-real estate investments 0.56 0.34 0.44 Impairment of real estate 0.30 0.18 0.06 Acceleration of stock compensation expense due to executive officer resignation 0.01 — 0.12 Allocation to unvested restricted stock awards (0.01) (0.02) (0.02) Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted $ 9.01 $ 9.47 $ 8.97 Weighted-average shares of common stock outstanding – diluted (1) Earnings per share – diluted 170,307 172,071 170,909 Funds from operations – diluted, per share 170,390 172,071 170,909 Funds from operations – diluted, as adjusted, per share 170,390 172,071 170,909 (1) Refer to “ Weighted-average shares of common stock outstanding – diluted ” in this section for additional information.
Our attempt to predict these amounts may produce significant but inaccurate estimates, which would be potentially misleading for our investors.
Our attempt to predict these amounts may produce significant but inaccurate estimates, which would potentially be misleading for our investors.
We present the proportionate share of certain financial line items as follows: (i) for each real estate joint venture that we consolidate in our financial statements, which are controlled by us through contractual rights or majority voting rights, but of which we own less than 100%, we apply the noncontrolling interest economic ownership percentage to each financial item to arrive at the amount of such cumulative noncontrolling interest share of each component presented; and (ii) for each real estate joint venture that we do not control and do not consolidate, and are instead controlled jointly or by our joint venture partners through contractual rights or majority voting rights, we apply our economic ownership percentage to each financial item to arrive at our proportionate share of each component presented.
We present the proportionate share of certain financial line items as follows: (i) for each real estate joint venture that we consolidate in our financial statements, which are controlled by us through contractual rights or majority voting rights, but of which we own less than 100%, we apply the noncontrolling interest economic ownership percentage to each financial item to arrive at the amount of such cumulative noncontrolling interest share of each component presented; and (ii) for each real estate joint venture that we do not control and do not consolidate, which are instead controlled jointly or by our joint venture partners through contractual rights or majority voting rights, we apply our economic ownership percentage to each financial item to arrive at our proportionate share of each component presented.
Our calculation of net operating income also excludes charges incurred from changes in certain financing decisions, such as losses on early extinguishment of debt and provision for expected credit losses on financial instruments, as these charges often relate to corporate strategy.
Our calculation of net operating income also excludes charges incurred from changes in certain financing decisions, such as losses on early extinguishment of debt and changes in provision for expected credit losses on financial instruments, as these charges often relate to corporate strategy.
We exercise judgement to determine key assumptions used in each valuation technique. For example, to estimate future cash flows in the discounted cash flow analysis, we are required to use judgment and make a number of assumptions, including those related to projected growth in rental rates and operating expenses, and anticipated trends and market/economic conditions.
We exercise judgment to determine key assumptions used in each valuation technique. For example, to estimate future cash flows in the discounted cash flow analysis, we are required to use judgment and make a number of assumptions, including those related to projected growth in rental rates and operating expenses, and anticipated trends and market/economic conditions.
These critical activities add significant value for future ground-up development and are required for the vertical construction of 132 buildings. If we cease activities necessary to prepare a project for its intended use, interest costs related to such project are expensed as incurred.
These critical activities add significant value for future ground-up development and are required for the vertical construction of buildings. If we cease activities necessary to prepare a project for its intended use, interest costs related to such project are expensed as incurred.
Conversely, we may recognize a gain for a subsequent increase in fair value less cost to sell, limited to the cumulative net loss previously recognized. 125 Impairment of other long-lived assets For each reporting period, we review current activities and changes in the business conditions of all of our long-lived assets, including our rental properties, CIP, land held for development, right-of-use assets related to operating leases in which we are the lessee, and intangibles, to determine the existence of any triggering events or impairment indicators requiring an impairment analysis.
Conversely, we may recognize a gain for a subsequent increase in fair value less cost to sell, limited to the cumulative net loss previously recognized. 127 Impairment of other long-lived assets For each reporting period, we review current activities and changes in the business conditions of all of our long-lived assets, including our rental properties, CIP, land held for development, right-of-use assets related to operating leases in which we are the lessee, and intangibles, to determine the existence of any triggering events or impairment indicators requiring an impairment analysis.
For additional information, refer to “ Monitoring of tenant credit quality ” in Note 2 – “Summary of significant accounting policies” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information. 127 Definitions and reconciliations This section contains additional information on certain non-GAAP financial measures including reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP and the reasons why we use these supplemental measures of performance and believe they provide useful information to investors, as well as the definitions of other terms used in this annual report on Form 10-K.
For additional information, refer to “ Monitoring of tenant credit quality ” in Note 2 – “Summary of significant accounting policies” to our consolidated financial statements in Item 15 in this annual report on Form 10-K. 129 Definitions and reconciliations This section contains additional information on certain non-GAAP financial measures including reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP and the reasons why we use these supplemental measures of performance and believe they provide useful information to investors, as well as the definitions of other terms used in this annual report on Form 10-K.
While the Forward Agreements are outstanding, we are required to consider the potential dilutive effect of our Forward Agreements under the treasury stock method. Under this method, we also include the dilutive effect of unvested restricted stock awards (“RSAs”) with forfeitable rights to dividends in the calculation of diluted shares.
While the Forward Agreements are outstanding, we are required to consider the potential dilutive effect of our Forward Agreements under the treasury stock method. Under this method, we also include the dilutive effect of unvested restricted stock awards (“RSAs”) with forfeitable dividends in the calculation of diluted shares.
We believe that adjusting for the effects of impairments and gains or losses on sales of real estate, significant impairments and realized gains or losses on non-real estate investments, provision for expected credit losses on financial instruments, and significant termination fees allows investors to evaluate performance from period to period on a consistent basis without having to account for differences recognized because of investing and financing decisions related to our real estate and non-real estate investments or other corporate activities that may not be representative of the operating performance of our properties.
We believe that adjusting for the effects of impairments and gains or losses on sales of real estate, significant impairments and realized gains or losses on non-real estate investments, changes in provision for expected credit losses on financial instruments, and significant termination fees allows investors to evaluate performance from period to period on a consistent basis without having to account for differences recognized because of investing and financing decisions related to our real estate and non-real estate investments or other corporate activities that may not be representative of the operating performance of our properties.
For operating metrics based on annual rental revenue, refer to “ Annual rental revenue ” in this section. 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.
For operating metrics based on annual rental revenue, refer to “ Annual rental revenue ” in this section. 140 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.
Inflation As of December 31, 2024 , approximately 92% 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.
Inflation As of December 31, 2025 , approximately 92% 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, 2024 , approximately 92% 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, 2025 , approximately 92% 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.
Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation, and amortization (“EBITDA”), excluding stock compensation expense, gains or losses on early extinguishment of debt, gains or losses on sales of real estate, impairments of real estate, provision for expected credit losses on financial instruments, and significant termination fees.
Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation, and amortization (“EBITDA”), excluding stock compensation expense, gains or losses on early extinguishment of debt, gains or losses on sales of real estate, impairments of real estate, changes in provision for expected credit losses on financial instruments, and significant termination fees.
The following summarized financial information presents on a combined basis, balance sheet information as of December 31, 2024 and 2023 , and results of operations and comprehensive income for the years ended December 31, 2024 and 2023 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, 2025 and 2024 , and results of operations and comprehensive income for the years ended December 31, 2025 and 2024 for the Issuer and the Guarantor Subsidiary. The information presented below excludes eliminations necessary to arrive at the information on a consolidated basis.
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, 2024 , 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, 2025 , as reported by Bloomberg Professional Services.
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, 2024 and 2023 and for the years ended December 31, 2024 and 2023 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, 2025 and 2024 and for the years ended December 31, 2025 and 2024 for the Issuer and Guarantor Subsidiary.
Approximately 97% of our leases (on an annual rental revenue basis) contained effective annual rent escalations approximating 3% that were either fixed or indexed base d on a consumer price index or other indices. Accordingly, we do not believe that our cash flows or earnings from real estate operations are subject to significant risks from inflation.
Approximately 97% 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 indices. Accordingly, we do not believe that our cash flows or earnings from real estate operations are subject to significant risks from inflation.
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, 2024 , 2023 , and 2022 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, 2025 , 2024 , and 2023 are calculated as follows.
Refer to “New Class A/A+ development and redevelopment properties: current projects” in Item 2 and “Summary of capital expenditures” in Item 7 in this annual report on Form 10-K for more information on our capital expenditures.
Refer to “New Class A/A+ development and redevelopment properties: current projects” in Item 2 and “Summary of capital expenditures” in Item 7 in this annual report on Form 10-K for additional information on our capital expenditures.
These existing joint ventures provide significant equity capital to fund a portion of our future construction spend, and our joint venture partners may also contribute equity into these entities for financing-related activities.
These existing joint ventures provide significant equity capital to fund a portion of our future construction spending, and our joint venture partners may also contribute equity into these entities for financing-related activities.
We compute the amount that is allocable to our unvested restricted stock awards using the two-class method. Under the two- class method, we allocate net income (after amounts attributable to noncontrolling interests) to common stockholders and to unvested restricted stock awards by applying the respective weighted-average shares outstanding during each quarter-to-date and year-to-date period.
We compute the amount that is allocable to our unvested restricted stock awards with nonforfeitable dividends using the two-class method. Under the two-class method, we allocate net income (after amounts attributable to noncontrolling interests) to common stockholders and to unvested restricted stock awards with nonforfeitable dividends by applying the respective weighted-average shares outstanding during each quarter-to-date and year-to-date period.
Net operating income on a cash basis is net operating income adjusted to exclude the effect of straight-line rent, amortization of acquired above- and below-market lease revenue, amortization of deferred revenue related to tenant-funded and tenant-built landlord improvements, and provision for expected credit losses on financial instruments adjustments required by GAAP.
Net operating income on a cash basis is net operating income adjusted to exclude the effect of straight-line rent, amortization of acquired above- and below-market lease revenue, amortization of deferred revenue related to tenant-funded and tenant-built landlord improvements, and changes in the provision for expected credit losses on financial instruments required by GAAP.
Additionally, termination fees, if any, are excluded from the results of same properties. Refer to “ Same properties ” in 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 ” in 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 a development or redevelopment project is expected to reach occupancy of 95% or greater.
During the years ended December 31, 2024 , 2023 , and 2022 , we recognized impairment charges aggregating 10% , 14% , and 4% , respectively, of the carrying amounts of our investments in privately held entities that do not report NAV. 126 Monitoring of tenant credit quality We monitor, on an ongoing basis, the credit quality and any related material changes of our tenants by (i) monitoring the credit rating of tenants that are rated by a nationally recognized credit rating agency, (ii) reviewing financial statements of the tenants that are publicly available or that are required to be delivered to us pursuant to the applicable lease, (iii) monitoring news reports regarding our tenants and their respective businesses and industries in which they conduct business, and (iv) monitoring the timeliness of lease payments.
During the years ended December 31, 2025 , 2024 , and 2023 , we recognized impairment charges aggregating 18% , 10% , and 14% , respectively, of the carrying amounts of our investments in privately held entities that do not report NAV. 128 Monitoring of tenant credit quality We monitor, on an ongoing basis, the credit quality and any related material changes of our tenants by (i) monitoring the credit rating of tenants that are rated by a nationally recognized credit rating agency, (ii) reviewing financial statements of the tenants that are publicly available or that are required to be delivered to us pursuant to the applicable lease, (iii) monitoring news reports regarding our tenants and their respective businesses and industries in which they conduct business, and (iv) monitoring the timeliness of lease payments.
This is due to the inherent difficulty of forecasting the timing and/or amount of items that depend on market conditions outside of our control, including the timing of dispositions, capital events, and financing decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-real estate investments, impairment of real estate, impairment of non-real estate investments, and provision for expected credit losses on financial instruments.
This is due to the inherent difficulty of forecasting the timing and/or amount of items that depend on market conditions outside of our control, including the timing of dispositions, capital events, and financing decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-real estate investments, impairments of real estate, impairments of non-real estate investments, and changes in provision for expected credit losses on financial instruments.
This is due to the inherent difficulty of forecasting the timing and/or amount of items that depend on market conditions outside of our control, including the timing of dispositions, capital events, and financing decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-real estate investments, impairment of real estate, impairment of non-real estate investments, and provision for expected credit losses on financial instruments.
This is due to the inherent difficulty of forecasting the timing and/or amount of items that depend on market conditions outside of our control, including the timing of dispositions, capital events, and financing decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-real estate investments, impairments of real estate, impairments of non-real estate investments, and changes in provision for expected credit losses on financial instruments.
This is due to the inherent difficulty of forecasting the timing and/or amount of items that depend on market conditions outside of our control, including the timing of dispositions, capital events, and financing decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-real estate investments, impairment of real estate, impairment of non-real estate investments, and provision for expected credit losses on financial instruments.
This is due to the inherent difficulty of forecasting the timing and/or amount of items that depend on market conditions outside of our control, including the timing of dispositions, capital events, and financing decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-real estate investments, impairments of real estate, impairments of non-real estate investments, and changes in provision for expected credit losses on financial instruments.
As of December 31, 2024 , the remaining aggregate amount available under our ATM program for future sales of common stock was $1.47 billion .
As of December 31, 2025 , the remaining aggregate amount available under our ATM program for future sales of common stock was $1.47 billion .
A period of inflation, however, could cause an increase in the cost of our variable-rate borrowings, including borrowings under our unsecured senior line of credit and commercial paper program, issuances of unsecured senior notes payable, and borrowings under our secured construction loans, and secured loans held by our unconsolidated real estate joint ventures. In addition, refer to “Item 1A.
A period of inflation, however, could cause an increase in the cost of issuing new unsecured senior notes payable and our variable-rate borrowings, including borrowings under our unsecured senior line of credit and commercial paper program, and secured loans held by our unconsolidated real estate joint ventures. In addition, refer to “Item 1A.
During the years ended December 31, 2024 , 2023 , and 2022 , 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.
During the years ended December 31, 2025 , 2024 , and 2023 , specific write-offs and increases to our general allowance balances related to deferred rent balances of tenants recognized in our consolidated statements of operations have not exceeded 0.8% o f our income from rentals for each respective year.
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. 123 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 of risks that inflation directly or indirectly may pose to our business. 125 Issuer and guarantor subsidiary summarized financial information Alexandria Real Estate Equities, Inc.
Joint venture financial information should not be considered an alternative to our consolidated financial statements, which are presented and prepared in accordance with GAAP. Megacampus™ A Megacampus ecosystem is a cluster campus that consist of approximately 1 million RSF or more, including operating, active development/redevelopment, and land RSF less operating RSF expected to be demolished.
Joint venture financial information should not be considered an alternative to our consolidated financial statements, which are presented and prepared in accordance with GAAP. 137 Megacampus™ A Megacampus ecosystem is a cluster campus that consists of approximately 1 million RSF or greater, including operating, active development/redevelopment, and land RSF less operating RSF expected to be demolished.
We are not able to forecast the net income of future periods without unreasonable effort and therefore do not provide a reconciliation for Adjusted EBITDA on a forward-looking basis.
We are not able to forecast the net income of future periods without unreasonable effort and therefore do not provide a reconciliation for net operating income on a forward-looking basis.
Refer to Note 12 – “Earnings per share” and Note 15 – “Stockholders’ equity” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information.
Refer to Note 13 – “Earnings per share” and Note 16 – “Stockholders’ equity” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information.
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 $764.5 million . We classify the right-of-use asset in other assets in our consolidated balance sheets.
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 $697.9 million . We classify the right-of-use asset in other assets in our consolidated balance sheets.
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, impairment of real estate primarily consisting of pre-acquisition costs incurred in connection with acquisitions we decided to no longer pursue, gains or losses on early extinguishment of debt, provision for expected credit losses on financial instruments, 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.
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, impairments of real estate primarily consisting of right-of-use assets and pre-acquisition costs related to projects that we decided to no longer pursue, gains or losses on early extinguishment of debt, changes in the provision for expected credit losses on financial instruments, 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.
For additional information regarding our debt, refer to Note 10 – “Secured and unsecured senior debt” to our consolidated financial statements in Item 15 in this annual report on Form 10-K. Ground lease obligations Ground lease obligations as of December 31, 2024 included leases for 32 of our properties and accounted for approximately 8% of our total number of properties.
For additional information regarding our debt, refer to Note 10 – “Secured and unsecured senior debt” to our consolidated financial statements in Item 15 in this annual report on Form 10-K. 123 Ground lease obligations Ground lease obligations as of December 31, 2025 included leases for 31 of our properties and accounted for approximately 9% of our total number of properties.
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 $56.4 million for the year ended December 31, 2024 .
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 $57.3 million for the year ended December 31, 2025 .
As of each December 31, 2024 , 2023 , and 2022 , the carrying amounts of our investments in privately held entities that do not report NAV per share accounted for 2% , 1% , and 2% of our total assets and aggregated $575.2 million , $542.9 million , and $582.7 million , respectively.
As of each December 31, 2025 , 2024 , and 2023 , the carrying amounts of our investments in privately held entities that do not report NAV per share accounted for 2% , 2% , and 1% of our total assets and aggregated $536.6 million , $575.2 million , and $542.9 million , respectively.
Among these 32 properties, 17 properties are subject to ground leases with a weighted-average remaining lease term of 41 years , including extension options that we are reasonably certain to exercise. These leases are with a sin gle lessor in our Greater Stanford submarket with whom we have extended three ground leases over the past 10 years.
Among these 31 properties, 17 properties are subject to ground leases with a weighted-average remaining lease term of 53 years , including extension options that we are reasonably certain to exercise. These leases are with a single lessor in our Greater Stanford submarket with whom we have extended three ground leases over the past 10 years.
Unencumbered net operating income is derived from assets classified in continuing operations, which are not subject to any mortgage, deed of trust, lien, or other security interest, as of the period for which income is presented. 140 The following table summarizes unencumbered net operating income as a percentage of total net operating income for the years ended December 31, 2024 , 2023 , and 2022 (dollars in thousands): Year Ended December 31, 2024 2023 2022 Unencumbered net operating income $ 2,192,608 $ 2,022,177 $ 1,790,033 Encumbered net operating income 14,521 4,342 15,776 Total net operating income $ 2,207,129 $ 2,026,519 $ 1,805,809 Unencumbered net operating income as a percentage of total net operating income 99.3% 99.8% 99.1% 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 development and redevelopment projects, and for general working capital purposes.
Unencumbered net operating income is derived from assets classified in continuing operations, which are not subject to any mortgage, deed of trust, lien, or other security interest, as of the period for which income is presented. 141 The following table summarizes unencumbered net operating income as a percentage of total net operating income for the years ended December 31, 2025 , 2024 , and 2023 (dollars in thousands): Year Ended December 31, 2025 2024 2023 Unencumbered net operating income $ 2,101,038 $ 2,192,608 $ 2,022,177 Encumbered net operating income 2,913 14,521 4,342 Total net operating income $ 2,103,951 $ 2,207,129 $ 2,026,519 Unencumbered net operating income as a percentage of total net operating income 99.9% 99.3% 99.8% 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 development and redevelopment projects, and for general working capital purposes.
Also includes development rights associated with existing operating campuses. 135 The square footage presented in the table below is classified as operating as of December 31, 2024 .
Also includes development rights associated with existing operating campuses. 136 The square footage presented in the table below is classified as operating as of December 31, 2025 .
As of December 31, 2024 , the weighted-average remaining lease term of operating leases in which we are the lessee was approximately 56 years , including extension options that we are reasonably certain to exercise, and the weighted-average discount rate was 4.9% .
As of December 31, 2025 , the weighted-average remaining lease term of operating leases in which we are the lessee was approximately 61 years , including extension options that we are reasonably certain to exercise, and the weighted-average discount rate was 4.7% .
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, 2024 were as follows: Covenant Ratios (1) Requirement December 31, 2024 Total Debt to Total Assets Less than or equal to 60% 29% Secured Debt to Total Assets Less than or equal to 40% 0.4% Consolidated EBITDA (2) to Interest Expense Greater than or equal to 1.5x 11.0x Unencumbered Total Asset Value to Unsecured Debt Greater than or equal to 150% 330% (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, 2025 were as follows: Covenant Ratios (1) Requirement December 31, 2025 Total Debt to Total Assets Less than or equal to 60% 32% Secured Debt to Total Assets Less than or equal to 40% —% Consolidated EBITDA (2) to Interest Expense Greater than or equal to 1.5x 7.8x Unencumbered Total Asset Value to Unsecured Debt Greater than or equal to 150% 302% (1) All covenant ratio titles utilize terms as defined in the respective debt agreements.
Also shown are the weighted-average unvested RSAs with nonforfeitable rights to dividends used in calculating the amounts allocable to these awards pursuant to the two-class method for each of the respective periods presented below (in thousands): Year Ended December 31, 2024 2023 2022 Basic shares for earnings per share 172,071 170,909 161,659 Unvested RSAs with forfeitable rights to dividends — — — Forward Agreements — — — Diluted shares for earnings per share 172,071 170,909 161,659 Basic shares for funds from operations per share and funds from operations per share, as adjusted 172,071 170,909 161,659 Unvested RSAs with forfeitable rights to dividends — — — Forward Agreements — — — Diluted shares for funds from operations per share, and funds from operations per share, as adjusted 172,071 170,909 161,659 Weighted-average unvested RSAs with nonforfeitable rights to dividends used in the allocations of net income, funds from operations, and funds from operations, as adjusted 2,779 2,325 1,723 141
Also shown are the weighted-average unvested RSAs with nonforfeitable rights to dividends used in calculating the amounts allocable to these awards pursuant to the two-class method for each of the respective periods presented below (in thousands): Year Ended December 31, 2025 2024 2023 Basic shares for earnings per share 170,307 172,071 170,909 Unvested RSAs with forfeitable dividends — — — Diluted shares for earnings per share 170,307 172,071 170,909 Basic shares for funds from operations per share and funds from operations per share, as adjusted 170,307 172,071 170,909 Unvested RSAs with forfeitable dividends 83 — — Diluted shares for funds from operations per share and funds from operations per share, as adjusted 170,390 172,071 170,909 Weighted-average unvested RSAs with nonforfeitable dividends used in the allocations of net income, funds from operations, and funds from operations, as adjusted 1,883 2,779 2,325 142
As of December 31, 2024 , our operating lease liability, calculated as the present value of the remaining payments aggregating $949.4 million under our operating lease agreements, including our extension options that we are reasonably certain to exercise, was $507.1 million , which was classified in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheet.
As of December 31, 2025 , our operating lease liability, calculated as the present value of the remaining payments aggregating $773.4 million under our operating lease agreements, including our extension options that we are reasonably certain to exercise, was $360.5 million and was classified in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheet.
Our remaining 15 properties subject to ground leases are located across multiple submarkets and have remaining lease terms ranging from approximately 46 to 82 years . The weighted-average remaining lease term of these ground leases is 71 years , including extension options that we are reasonably certain to exercise.
Our remaining 14 properties subject to ground leases are located across multiple submarkets and have remaining lease terms ranging from approximately 45 to 81 years . The weighted-average remaining lease term of these ground leases is 73 years , including extension options that we are reasonably certain to exercise.
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, 2024 , 98.8% 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, 2025 , 97.2% of our debt was fixed-rate debt.
Operating lease agreements As of December 31, 2024 , the remaining contractual payments under ground and office lease agreements in which we are the lessee aggregated $925.0 million and $24.4 million , respectively.
Operating lease agreements As of December 31, 2025 , the remaining contractual payments under ground and office lease agreements in which we are the lessee aggregated $753.4 million and $20.0 million , respectively.
We capitalized payroll and other indirect costs related to development, redevelopment, pre-construction, and construction projects, aggregating $100.9 million and $108.4 million , and property taxes, insurance on real estate and indirect project costs aggregating $132.3 million and $129.1 million du ring the years ended December 31, 2024 and 2023 , respectively.
We capitalized payroll and other indirect costs related to development, redevelopment, pre-construction, and construction projects, aggregating $97.1 million and $100.9 million , and property taxes, insurance on real estate and indirect project costs aggregating $145.4 million and $132.3 million during the years ended December 31, 2025 and 2024 , respectively.
The following table reconciles income from rentals to tenant recoveries for the years ended December 31, 2024 , 2023 , and 2022 (in thousands): Year Ended December 31, 2024 2023 2022 Income from rentals $ 3,049,706 $ 2,842,456 $ 2,576,040 Rental revenues (2,304,339) (2,143,971) (1,950,098) Tenant recoveries $ 745,367 $ 698,485 $ 625,942 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, 2025 , 2024 , and 2023 (in thousands): Year Ended December 31, 2025 2024 2023 Income from rentals $ 2,945,175 $ 3,049,706 $ 2,842,456 Rental revenues (2,184,889) (2,304,339) (2,143,971) Tenant recoveries $ 760,286 $ 745,367 $ 698,485 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.
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.
Ultimately, these projects will provide high-quality facilities and are expected to generate significant revenue and cash flows. 134 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.
Dividend payout ratio (common stock) Dividend payout ratio (common stock) is the ratio of the absolute dollar amount of dividends on our common stock (shares of common stock outstanding on the respective record dates multiplied by the related dividend per share) to funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted. 133 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.
Dividend payout ratio (common stock) Dividend payout ratio (common stock) is the ratio of the absolute dollar amount of dividends on our common stock (shares of common stock outstanding on the respective record dates multiplied by the related dividend per share) to funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted.
W e currently have projects in our development and redevelopment pipeline aggregating 4.4 million RSF of Class A/A+ properties undergoing construction and 1.9 million RSF of priority anticipated development and redevelopment projects . We incur capitalized construction costs related to development, redevelopment, pre-construction, and other construction activities.
We currently have projects in our development and redevelopment pipeline aggregating 3.5 million RSF of Class A/A+ properties undergoing construction. We incur capitalized construction costs related to development, redevelopment, pre-construction, and other construction activities.
While Adjusted EBITDA is a relevant measure of performance, it does not represent net income (loss) or cash flows from operations calculated and presented in accordance with GAAP, and it should not be considered as an alternative to those indicators in evaluating performance or liquidity.
While Adjusted EBITDA is a relevant measure of performance, it does not represent net income (loss) or cash flows from operations calculated and presented in accordance with GAAP, and it should not be considered as an alternative to those indicators in evaluating performance or liquidity. 132 In order to calculate the Adjusted EBITDA margin, we divide Adjusted EBITDA by total revenues as presented in our consolidated statements of operations.
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.
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.
During the year ending December 31, 2025 , contributions from noncontrolling interests from existing joint venture partners are expected to aggregate $230.0 million . 119 Uses of capital Summary of capital expenditures One of our primary uses of capital relates to the development, redevelopment, pre-construction, and construction of properties.
During the year ending December 31, 2026 , contributions from noncontrolling interests from existing joint venture partners are expected to aggregate to up to $100.0 million at the midpoint of our guidance range for 2026 construction spending. 121 Uses of capital Summary of capital expenditures One of our primary uses of capital relates to the development, redevelopment, pre-construction, and construction of properties.
From January 1, 2025 through December 31, 2028 , we expect to receive capital contributions aggregating $684.1 million from existing consolidated real estate joint venture partners to fund construction.
From January 1, 2026 through December 31, 2027 and beyond, we expect to receive capital contributions aggregating $137.0 million from existing consolidated real estate joint venture partners to fund construction.
We generally will not commence new development projects for aboveground construction of new Class A/A+ laboratory space without first securing significant pre-leasing for such space, except when there is solid market demand for high-quality Class A/A+ properties.
We generally will not commence new development projects for aboveground construction of new Class A/A+ laboratory 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.
We are committed to funding approximately $399.2 million related to our non-real estate investments. 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 8.2 years as of December 31, 2024 .
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 8.1 years as of December 31, 2025 .
Our attempt to predict these amounts may produce significant but inaccurate estimates, which would be potentially misleading for our investors. 137 The following table reconciles debt to net debt and preferred stock and computes the ratio to Adjusted EBITDA as of December 31, 2024 and 2023 (dollars in thousands): December 31, 2024 2023 Secured notes payable $ 149,909 $ 119,662 Unsecured senior notes payable 12,094,465 11,096,028 Unsecured senior line of credit and commercial paper — 99,952 Unamortized deferred financing costs 77,649 76,329 Cash and cash equivalents (552,146) (618,190) Restricted cash (7,701) (42,581) Preferred stock — — Net debt and preferred stock $ 11,762,176 $ 10,731,200 Adjusted EBITDA: – quarter annualized $ 2,273,480 $ 2,094,988 – trailing 12 months $ 2,228,921 $ 1,997,518 Net debt and preferred stock to Adjusted EBITDA: – quarter annualized 5.2x 5.1x – trailing 12 months 5.3x 5.4x Net operating income, net operating income (cash basis), and operating margin The following table reconciles net income to net operating income and net operating income (cash basis) and computes operating margin for the years ended December 31, 2024 , 2023 , and 2022 (dollars in thousands): Year Ended December 31, 2024 2023 2022 Net income $ 510,733 $ 280,994 $ 670,701 Equity in earnings of unconsolidated real estate joint ventures (7,059) (980) (645) General and administrative expenses 168,359 199,354 177,278 Interest expense 185,838 74,204 94,203 Depreciation and amortization 1,202,380 1,093,473 1,002,146 Impairment of real estate 223,068 461,114 64,969 Loss on early extinguishment of debt — — 3,317 Gain on sales of real estate (129,312) (277,037) (537,918) Investment loss 53,122 195,397 331,758 Net operating income 2,207,129 2,026,519 1,805,809 Straight-line rent revenue (143,329) (133,917) (118,003) Amortization of deferred revenue related to tenant-funded and -built landlord improvements (1,543) — — Amortization of acquired below-market leases (85,679) (93,331) (74,346) Provision for expected credit losses on financial instruments (434) — — Net operating income (cash basis) $ 1,976,144 $ 1,799,271 $ 1,613,460 Net operating income (from above) $ 2,207,129 $ 2,026,519 $ 1,805,809 Total revenues $ 3,116,394 $ 2,885,699 $ 2,588,962 Operating margin 71% 70% 70% 138 Net operating income is a non-GAAP financial measure calculated as net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, excluding equity in the earnings of our unconsolidated real estate joint ventures, general and administrative expenses, interest expense, depreciation and amortization, impairments of real estate, gains or losses on early extinguishment of debt, gains or losses on sales of real estate, and investment income or loss.
Our attempt to predict these amounts may produce significant but inaccurate estimates, which would potentially be misleading for our investors. 138 The following table reconciles debt to net debt and preferred stock and computes the ratio to Adjusted EBITDA as of December 31, 2025 and 2024 (dollars in thousands): December 31, 2025 2024 Secured notes payable $ — $ 149,909 Unsecured senior notes payable 12,047,394 12,094,465 Unsecured senior line of credit and commercial paper 353,161 — Unamortized deferred financing costs 74,314 77,649 Cash and cash equivalents (549,062) (552,146) Restricted cash (4,693) (7,701) Preferred stock — — Net debt and preferred stock $ 11,921,114 $ 11,762,176 Adjusted EBITDA: – quarter annualized $ 2,097,444 $ 2,273,480 – trailing 12 months $ 2,141,811 $ 2,228,921 Net debt and preferred stock to Adjusted EBITDA: – quarter annualized 5.7x 5.2x – trailing 12 months 5.6x 5.3x Net operating income, net operating income (cash basis), and operating margin The following table reconciles net income to net operating income and net operating income (cash basis) and computes operating margin for the years ended December 31, 2025 , 2024 , and 2023 (dollars in thousands): Year Ended December 31, 2025 2024 2023 Net (loss) income $ (1,216,726) $ 510,733 $ 280,994 Equity in losses (earnings) of unconsolidated real estate joint ventures 9,631 (7,059) (980) General and administrative expenses 117,047 168,359 199,354 Interest expense 226,698 185,838 74,204 Depreciation and amortization 1,350,478 1,202,380 1,093,473 Impairment of real estate 2,202,818 223,068 461,114 Loss on early extinguishment of debt 107 — — Gain on sales of real estate (642,445) (129,312) (277,037) Investment loss 56,343 53,122 195,397 Net operating income 2,103,951 2,207,129 2,026,519 Straight-line rent revenue (73,476) (143,329) (133,917) Amortization of deferred revenue related to tenant-funded and -built landlord improvements (14,771) (1,543) — Amortization of acquired below-market leases (37,763) (85,679) (93,331) Provision for expected credit losses on financial instruments (56) (434) — Net operating income (cash basis) $ 1,977,885 $ 1,976,144 $ 1,799,271 Net operating income (from above) $ 2,103,951 $ 2,207,129 $ 2,026,519 Total revenues $ 3,026,556 $ 3,116,394 $ 2,885,699 Operating margin 70% 71% 70% 139 Net operating income is a non-GAAP financial measure calculated as net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, excluding equity in the earnings of our unconsolidated real estate joint ventures, general and administrative expenses, interest expense, depreciation and amortization, impairments of real estate, gains or losses on early extinguishment of debt, gains or losses on sales of real estate, and investment income or loss.
The following table reconciles interest expense, the most directly comparable financial measure calculated and presented in accordance with GAAP, to cash interest and computes fixed-charge coverage ratio for the three months and years ended December 31, 2024 and 2023 (dollars in thousands): Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Adjusted EBITDA $ 568,370 $ 523,747 $ 2,228,921 $ 1,997,518 Interest expense $ 55,659 $ 31,967 $ 185,838 $ 74,204 Capitalized interest 81,586 89,115 330,961 363,978 Amortization of loan fees (4,620) (4,059) (17,130) (15,486) Amortization of debt discounts (333) (309) (1,309) (1,207) Cash interest and fixed charges $ 132,292 $ 116,714 $ 498,360 $ 421,489 Fixed-charge coverage ratio: – quarter annualized 4.3x 4.5x N/A N/A – trailing 12 months N/A N/A 4.5x 4.7x We are not able to forecast the net income of future periods without unreasonable effort and therefore do not provide a reconciliation for fixed-charge coverage ratio on a forward-looking basis.
The following table reconciles interest expense, the most directly comparable financial measure calculated and presented in accordance with GAAP, to cash interest and computes fixed-charge coverage ratio for the three months and years ended December 31, 2025 and 2024 (dollars in thousands): Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 Adjusted EBITDA $ 524,361 $ 568,370 $ 2,141,811 $ 2,228,921 Interest expense $ 65,674 $ 55,659 $ 226,698 $ 185,838 Capitalized interest 81,845 81,586 330,424 330,961 Amortization of loan fees (4,481) (4,620) (18,292) (17,130) Amortization of debt discounts (327) (333) (1,336) (1,309) Cash interest and fixed charges $ 142,711 $ 132,292 $ 537,494 $ 498,360 Fixed-charge coverage ratio: – quarter annualized 3.7x 4.3x N/A N/A – trailing 12 months N/A N/A 4.0x 4.5x We are not able to forecast the net income of future periods without unreasonable effort and therefore do not provide a reconciliation for fixed-charge coverage ratio on a forward-looking basis.
AAA locations are in close proximity to concentrations of specialized skills, knowledge, institutions, and related businesses. It is important to note that our definition of property classification may not be directly comparable to other equity REITs.
AAA locations are in close proximity to concentrations of specialized skills, knowledge, institutions, and related businesses. It is important to note that our definition of property classification may not be directly comparable to other equity REITs. Credit rating Represents the credit ratings assigned by S&P Global Ratings or Moody’s Ratings as of December 31, 2025 .
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, 2024 primarily due to the changes in the foreign exchange rates for our real estate investments in Canada (in thousands).
In addition, we carry a policy of pollution legal liability insurance covering exposure to certain environmental losses at substantially all of our properties. 124 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, 2025 primarily due to the changes in the foreign exchange rates for our real estate investments in Canada (in thousands).
Amounts provided do not represent our total consolidated amounts (in thousands): December 31, 2024 2023 Assets: Cash, cash equivalents, and restricted cash $ 103,993 $ 210,755 Other assets 153,913 115,373 Total assets $ 257,906 $ 326,128 Liabilities: Unsecured senior notes payable $ 12,094,465 $ 11,096,028 Unsecured senior line of credit and commercial paper — 99,952 Other liabilities 542,322 504,659 Total liabilities $ 12,636,787 $ 11,700,639 Year Ended December 31, 2024 2023 Total revenues $ 59,023 $ 54,230 Total expenses (349,437) (273,990) Net loss (290,414) (219,760) Net income attributable to unvested restricted stock awards (13,394) (11,195) Net loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ (303,808) $ (230,955) As of December 31, 2024 , 376 of our 391 properties were held indirectly by the REIT’s wholly owned consolidated subsidiary, Alexandria Real Estate Equities, L.P. 124 Critical accounting estimates Our consolidated financial statements have been prepared in accordance with GAAP.
Amounts provided do not represent our total consolidated amounts (in thousands): December 31, 2025 2024 Assets: Cash, cash equivalents, and restricted cash $ 127,100 $ 103,993 Other assets 173,303 153,913 Total assets $ 300,403 $ 257,906 Liabilities: Unsecured senior notes payable $ 12,047,394 $ 12,094,465 Unsecured senior line of credit and commercial paper 353,161 — Other liabilities 433,707 542,322 Total liabilities $ 12,834,262 $ 12,636,787 Year Ended December 31, 2025 2024 Total revenues $ 48,748 $ 59,023 Total expenses (350,655) (349,437) Net loss (301,907) (290,414) Net income attributable to unvested restricted stock awards (8,417) (13,394) Net loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ (310,324) $ (303,808) As of December 31, 2025 , 328 of our 340 properties were held indirectly by the REIT’s wholly owned consolidated subsidiary, Alexandria Real Estate Equities, L.P. 126 Critical accounting estimates Our consolidated financial statements have been prepared in accordance with GAAP.
For purposes of this calculation, changes in operating assets and liabilities are excluded as they represent timing differences. Net debt and preferred stock to Adjusted EBITDA Net debt and preferred stock to Adjusted EBITDA is a non-GAAP financial measure that we believe is useful to investors as a supplemental measure of evaluating our balance sheet leverage.
Net debt and preferred stock to Adjusted EBITDA Net debt and preferred stock to Adjusted EBITDA is a non-GAAP financial measure that we believe is useful to investors as a supplemental measure of evaluating our balance sheet leverage.
Year Ended December 31, 2024 2023 2022 Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted $ 309,555 $ 92,444 $ 513,268 Depreciation and amortization of real estate assets 1,191,524 1,080,529 988,363 Noncontrolling share of depreciation and amortization from consolidated real estate JVs (129,711) (115,349) (107,591) Our share of depreciation and amortization from unconsolidated real estate JVs 4,238 3,589 3,666 Gain on sales of real estate (127,615) (1) (277,037) (537,918) Impairment of real estate – rental properties and land 192,455 (2) 450,428 20,899 Allocation to unvested restricted stock awards (8,696) (5,175) (1,118) Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted (3) 1,431,750 1,229,429 879,569 Unrealized losses on non-real estate investments 112,246 201,475 412,193 Impairment of non-real estate investments 58,090 (4) 74,550 20,512 Impairment of real estate 30,613 (2) 10,686 44,070 Loss on early extinguishment of debt — — 3,317 Acceleration of stock compensation expense due to executive officer resignations — 20,295 7,185 Provision for expected credit losses on financial instruments (434) (5) — — Allocation to unvested restricted stock awards (3,188) (4,121) (5,137) Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted $ 1,629,077 $ 1,532,314 $ 1,361,709 (1) Includes our share of gain on real estate from one unconsolidated real estate joint venture and one consolidated real estate joint venture.
Year Ended December 31, 2025 2024 2023 Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted $ (1,437,987) $ 309,555 $ 92,444 Depreciation and amortization of real estate assets 1,341,157 1,191,524 1,080,529 Noncontrolling share of depreciation and amortization from consolidated real estate JVs (154,727) (129,711) (115,349) Our share of depreciation and amortization from unconsolidated real estate JVs 3,703 4,238 3,589 Gain on sales of real estate (330,121) (1) (127,615) (277,037) Impairment of real estate – rental properties and land 1,894,263 (2) 192,455 450,428 Allocation to unvested restricted stock awards (5,681) (8,696) (5,175) Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted (3) 1,310,607 1,431,750 1,229,429 Unrealized (gains) losses on non-real estate investments (26,980) 112,246 201,475 Significant realized losses on non-real estate investments 103,329 (4) — — Impairment of non-real estate investments 95,716 (5) 58,090 74,550 Impairment of real estate 51,962 (2) 30,613 10,686 Loss on early extinguishment of debt 107 — — Acceleration of stock compensation expense due to executive officer resignation 2,455 (6) — 20,295 Decrease in provision for expected credit losses on financial instruments (56) (434) — Allocation to unvested restricted stock awards (2,476) (3,188) (4,121) Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted $ 1,534,664 $ 1,629,077 $ 1,532,314 (1) Excludes our partner’s share of gain on sale of real estate aggregating $312.8 million at our consolidated real estate joint venture at 409 and 499 Illinois Street.
Presenting this information provides a perspective not immediately available from consolidated financial statements and one that can supplement an understanding of the joint venture assets, liabilities, revenues, and expenses included in our consolidated results. 136 The components of balance sheet and operating results information related to our real estate joint ventures are limited as an analytical tool as the overall economic ownership interest does not represent our legal claim to each of our joint ventures’ assets, liabilities, or results of operations.
The components of balance sheet and operating results information related to our real estate joint ventures are limited as an analytical tool as the overall economic ownership interest does not represent our legal claim to each of our joint ventures’ assets, liabilities, or results of operations.
Capitalization rates Capitalization rates are calculated based on net operating income and net operating income (cash basis) annualized, excluding lease termination fees, on stabilized operating assets for the quarter preceding the date on which the property is sold, or near-term prospective net operating income.
Amounts recovered from our tenants related to these operating expenses, along with base rent, are classified in income from rentals in our consolidated statements of operations. 133 Capitalization rates Capitalization rates are calculated based on net operating income and net operating income (cash basis) annualized, excluding lease termination fees, on stabilized operating assets for the quarter preceding the date on which the property is sold, or near-term prospective net operating income.
Investments in real estate The following table presents our new Class A/A+ development and redevelopment pipeline, excluding properties held for sale, as a percentage of gross assets and as a percentage of annual rental revenue as of December 31, 2024 (dollars in thousands): Percentage of Book Value Gross Assets Annual Rental Revenue Under construction projects $3,893,557 9% —% Income-producing/potential cash flows/covered land play (1) 2,965,853 7 1 Land 1,759,317 4 — $8,618,727 20% 1% (1) Includes projects with existing buildings that are generating or can generate operating cash flows.
Investments in real estate The following table presents our new Class A/A+ development and redevelopment pipeline, excluding properties held for sale, as a percentage of gross assets and as a percentage of annual rental revenue as of December 31, 2025 (dollars in thousands): Percentage of Book Value Gross Assets Annual Rental Revenue Projects under active construction $ 3,181,012 8% —% Future development projects (1) and land parcels primarily located in Megacampuses 3,607,452 9 1 Total Class A/A+ development and redevelopment pipeline, excluding properties held for sale 6,788,464 17 1 Properties held for sale – land parcels 261,208 1 — Total Class A/A+ development and redevelopment pipeline $ 7,049,672 18% 1% (1) Includes projects with existing buildings that are generating or can generate operating cash flows.
In addition, the terms of the indentures, among other things, limit the ability of the Company, Alexandria Real Estate Equities, L.P., and the Company’s subsidiaries to (i) consummate a merger, or consolidate, or sell all or substantially all of the Company’s assets and (ii) incur certain secured or unsecured indebtedness. 121 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, 2024 were as follows: Covenant Ratios (1) Requirement December 31, 2024 Leverage Ratio Less than or equal to 60.0% 29.5% Secured Debt Ratio Less than or equal to 45.0% 0.3% Fixed-Charge Coverage Ratio Greater than or equal to 1.50x 3.91x Unsecured Interest Coverage Ratio Greater than or equal to 1.75x 10.38x (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, 2025 were as follows: Covenant Ratios (1) Requirement December 31, 2025 Leverage Ratio Less than or equal to 60.0% 33.5% Secured Debt Ratio Less than or equal to 45.0% —% Fixed-Charge Coverage Ratio Greater than or equal to 1.50x 3.41x Unsecured Interest Coverage Ratio Greater than or equal to 1.75x 7.63x (1) All covenant ratio titles utilize terms as defined in the credit agreement.
Gross assets Gross assets are calculated as total assets plus accumulated depreciation as of December 31, 2024 and 2023 (in thousands): December 31, 2024 2023 Total assets $ 37,527,449 $ 36,771,402 Accumulated depreciation 5,625,179 4,985,019 Gross assets $ 43,152,628 $ 41,756,421 134 Incremental annual net operating income on development and redevelopment projects Incremental annual net operating income represents the amount of net operating income, on an annual basis, expected to be realized upon a project being placed into service and achieving full occupancy.
Our attempt to predict these amounts may produce significant but inaccurate estimates, which would potentially be misleading for our investors. 135 Gross assets Gross assets are calculated as total assets plus accumulated depreciation as of December 31, 2025 and 2024 (in thousands): December 31, 2025 2024 Total assets $ 34,081,835 $ 37,527,449 Accumulated depreciation 6,127,525 5,625,179 Gross assets $ 40,209,360 $ 43,152,628 Incremental annual net operating income on development and redevelopment projects Incremental annual net operating income represents the amount of net operating income, on an annual basis, expected to be realized upon a project being placed into service and achieving full occupancy.
These lease expirations or vacant space at recently acquired properties represent future opportunities for which we have the intent, subject to market conditions and leasing, to commence first-time conversion from non-laboratory space to laboratory space, or to commence future ground-up development: Dev/Redev RSF of Lease Expirations Targeted for Development and Redevelopment Property/Submarket 2025 2026 Thereafter (1) Total Priority anticipated projects: 311 Arsenal Street/Cambridge/Inner Suburbs Redev 25,312 — — 25,312 10210 Campus Point Drive/University Town Center Dev 9,558 — 52,620 62,178 1020 Red River Street/Austin Redev 126,034 — — 126,034 160,904 — 52,620 213,524 Future projects: 446, 458, 500, and 550 Arsenal Street/Cambridge/Inner Suburbs Dev — — 375,898 375,898 Other/Greater Boston Redev — — 167,549 167,549 1122 and 1150 El Camino Real/South San Francisco Dev — — 375,232 375,232 3875 Fabian Way/Greater Stanford Dev — — 228,000 228,000 2100, 2200, and 2400 Geng Road/Greater Stanford Dev — — 78,501 78,501 960 Industrial Road/Greater Stanford Dev — — 112,590 112,590 Campus Point by Alexandria/University Town Center Dev 269,048 — 101,966 371,014 Sequence District by Alexandria/Sorrento Mesa Dev/Redev — — 686,290 686,290 410 West Harrison Street/Elliott Bay Dev — — 17,205 17,205 Other/Seattle Dev — — 75,663 75,663 100 Capitola Drive/Research Triangle Dev — — 34,527 34,527 1001 Trinity Street/Austin Dev 72,938 — — 72,938 Canada Redev — — 247,743 247,743 341,986 — 2,501,164 2,843,150 502,890 — 2,553,784 3,056,674 (1) Includes vacant square footage as of December 31, 2024 .
These lease expirations or vacant space at recently acquired properties represent future opportunities for which we have the intent, subject to market conditions and leasing, to commence first-time conversion from non-laboratory space to laboratory space, or to commence future ground-up development: Dev/Redev RSF of Lease Expirations Targeted for Development and Redevelopment Property/Submarket 2026 2027 Thereafter (1) Total Under construction project: Campus Point by Alexandria/University Town Center Dev 52,620 — — 52,620 Future projects: 446, 458, and 500 Arsenal Street/Cambridge/Inner Suburbs Dev — — 116,623 116,623 3000 Minuteman Road/Greater Boston Redev — — 167,549 167,549 1122 and 1150 El Camino Real/South San Francisco Dev — — 375,232 375,232 2100 and 2200 Geng Road/Greater Stanford Dev — — 62,526 62,526 960 Industrial Road/Greater Stanford Dev — — 112,590 112,590 Campus Point by Alexandria/University Town Center Dev — — 96,805 96,805 Sequence District by Alexandria/Sorrento Mesa Dev/Redev — — 555,754 555,754 410 West Harrison Street/Elliott Bay Dev — — 17,205 17,205 Other/Seattle Dev — — 63,057 63,057 Canada Redev — — 247,743 247,743 — — 1,815,084 1,815,084 Total 52,620 — 1,815,084 1,867,704 (1) Includes vacant square footage as of December 31, 2025 .
Capitalized interest for the years ended December 31, 2024 and 2023 of $331.0 million and $364.0 million , respectively, was classified in investments in real estate in our consolidated balance sheets.
Capitalized interest, classified in investments in real estate in our consolidated balance sheets, aggregated $330.4 million for the year ended December 31, 2025 , consistent with $331.0 million capitalized during the year ended December 31, 2024 .
The following table reconciles net income to funds from operations for the share of consolidated real estate joint ventures attributable to noncontrolling interests and our share of unconsolidated real estate joint ventures for the three months and year ended December 31, 2024 (in thousands): Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures Our Share of Unconsolidated Real Estate Joint Ventures December 31, 2024 December 31, 2024 Three Months Ended Year Ended Three Months Ended Year Ended Net income $ 46,150 $ 187,784 $ 6,635 $ 7,059 Depreciation and amortization of real estate assets 34,986 129,711 1,061 4,238 Gain on sales of real estate (5,025) (5,025) (3,328) (3,328) Funds from operations $ 76,111 $ 312,470 $ 4,368 $ 7,969 128 The following tables present a reconciliation of net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders, the most directly comparable financial measure presented in accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, and funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted, and the related per share amounts for the years ended December 31, 2024 , 2023 , and 2022 (in thousands, except per share amounts).
The following table reconciles net income (loss) to funds from operations for the share of consolidated real estate joint ventures attributable to noncontrolling interests and our share of unconsolidated real estate joint ventures (in thousands): Year Ended December 31, 2025 Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures Our Share of Unconsolidated Real Estate Joint Ventures Net income (loss) $ 212,844 $ (9,631) Depreciation and amortization of real estate assets 154,727 3,703 Gain on sale of real estate (312,807) (483) Impairment of real estate $ 265,266 $ 8,673 Funds from operations $ 320,030 $ 2,262 130 The following tables present a reconciliation of net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders, the most directly comparable financial measure presented in accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, and funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted, and the related per share amounts for the years ended December 31, 2025 , 2024 , and 2023 (in thousands, except per share amounts).
Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements in Item 15 for additional information. (2) Refer to “Sales of real estate assets and impairment charges” in Note 3 – “Investments in real estate” to our consolidated financial statements in Item 15 for additional information.
Refer to Note 3 – “Investments in real estate” to our consolidated financial statements in Item 15 for additional information.
The increase of $51.1 million in dividends paid on our common stock during the year ended December 31, 2024 , compared to the year ended December 31, 2023 , was primarily due to an increase in the number of common shares outstanding subsequent to January 1, 2023 as a result of settled forward equity sales agreements, and an increase in the related dividends to $5.14 per common share paid during the year ended December 31, 2024 from $4.90 per common share paid during the year ended December 31, 2023 .
The increase of $12.9 million in dividends paid on our common stock for the year ended December 31, 2025 , compared to the year ended December 31, 2024 , was primarily due to an increase in the related dividends to $5.28 per common share paid during the year ended December 31, 2025 from $5.14 per common share paid during the year ended December 31, 2024 .
Operating statistics We present certain operating statistics related to our properties, including number of properties, RSF, occupancy percentage, leasing activity, and contractual lease expirations as of the end of the period. We believe these measures are useful to investors because they facilitate an understanding of certain trends for our properties.
Our attempt to predict these amounts may produce significant but inaccurate estimates, which would potentially be misleading for our investors. Operating statistics We present certain operating statistics related to our properties, including number of properties, RSF, occupancy percentage, leasing activity, and contractual lease expirations as of the end of the period.
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. We believe that this ratio is useful to investors as a supplemental measure of our ability to satisfy fixed financing obligations and preferred stock dividends.
We believe that this ratio is useful to investors as a supplemental measure of our ability to satisfy fixed financing obligations and preferred stock dividends. Cash interest is equal to interest expense calculated in accordance with GAAP plus capitalized interest, less amortization of loan fees and debt premiums (discounts).

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

67 edited+38 added−45 removed27 unchanged
Biggest changeAccordingly, we adjusted the development project RSF and its related book value to reflect 109,435 RSF, with our ownership share expected to be 25% at completion of the project. 74 New Class A/A+ development and redevelopment properties: current projects (continued) 230 Harriet Tubman Way 269 East Grand Avenue 10935, 10945, and 10955 Alexandria Way (1) 4135 Campus Point Court San Francisco Bay Area/ South San Francisco San Francisco Bay Area/ South San Francisco San Diego/Torrey Pines San Diego/ University Town Center 285,346 RSF 107,250 RSF 241,504 RSF 426,927 RSF 100% Leased —% Leased/Negotiating 100% Leased 100% Leased 10075 Barnes Canyon Road 701 Dexter Avenue North 8800 Technology Forest Place San Diego/Sorrento Mesa Seattle/Lake Union Texas/Greater Houston 253,079 RSF 227,577 RSF 73,298 RSF 70% Leased/Negotiating —% Leased/Negotiating 41% Leased/Negotiating (1) Image represents 10955 Alexandria Way on the One Alexandria Square Megacampus. 75 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 as of December 31, 2024 (dollars in thousands): Property/Market/Submarket Square Footage Percentage Occupancy (1) Dev/Redev In Service CIP Total Leased Leased/ Negotiating Initial Stabilized Under construction 2025 stabilization 500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs Dev 211,574 36,444 248,018 92% 92% 1Q24 2025 230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco Dev — 285,346 285,346 100 100 1Q25 1Q25 Canada Redev 111,479 139,311 250,790 73 75 3Q23 2025 323,053 461,101 784,154 89 89 2026 and beyond stabilization One Hampshire Street/Greater Boston/Cambridge Redev — 104,956 104,956 — — 2027 2028 311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs Redev 82,216 (2) 308,446 390,662 21 21 2027 2027 99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs Dev 116,414 204,395 320,809 40 62 4Q23 2026 401 Park Drive/Greater Boston/Fenway (3) Redev — 137,675 137,675 — — 2026 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 — 596,064 596,064 31 31 2026 2027 Other/Greater Boston Redev — 453,869 453,869 — — (4) 2027 2027 1450 Owens Street/San Francisco Bay Area/Mission Bay Dev — 109,435 109,435 — — (5) 2026 2026 651 Gateway Boulevard/San Francisco Bay Area/South San Francisco Redev 67,017 259,689 326,706 21 21 1Q24 2027 269 East Grand Avenue/San Francisco Bay Area/South San Francisco Redev — 107,250 107,250 — — 2026 2027 10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines Dev 93,492 241,504 334,996 100 100 4Q24 2026 4135 Campus Point Court/San Diego/University Town Center Dev — 426,927 426,927 100 100 2026 2026 10075 Barnes Canyon Road/San Diego/Sorrento Mesa Dev — 253,079 253,079 70 70 2025 2026 701 Dexter Avenue North/Seattle/Lake Union Dev — 227,577 227,577 — — 2026 2027 8800 Technology Forest Place/Texas/Greater Houston Redev 50,094 73,298 123,392 41 41 2Q23 2026 409,233 3,896,175 4,305,408 35 37 732,286 4,357,276 5,089,562 43% 45% (1) Initial occupancy dates are subject to leasing and/or market conditions.
Biggest changeThe following table presents redevelopment projects removed from the pipeline during the three months ended December 31, 2025: As of September 30, 2025 Property Submarket CIP RSF Total Project Leased/ Negotiating Project Status as of December 31, 2025 Projects under construction as of September 30, 2025 4,239,762 43% Redevelopment projects removed from the pipeline during the three months ended December 31, 2025: 651 Gateway Boulevard South San Francisco (237,684) 21% Sold in 4Q25 Canada Canada (56,314) 78 Held for sale as of 4Q25 One Hampshire Street Cambridge (104,956) — Held for sale as of 4Q25 401 Park Drive Fenway (137,675) — Reclassified to operating (1) (536,629) 32 Projects placed into service during the three months ended December 31, 2025 (139,979) 100 Projects under construction as of December 31, 2025 3,563,154 46% (1) We plan to lease this property as office which will require less incremental capital. 76 New Class A/A+ development and redevelopment properties: current projects 99 Coolidge Avenue 311 Arsenal Street 50 and 60 Sylvan Road (1) 1450 Owens Street Greater Boston/ Cambridge/Inner Suburbs Greater Boston/ Cambridge/Inner Suburbs Greater Boston/Route 128 San Francisco Bay Area/ Mission Bay 191,396 RSF 333,758 RSF 267,015 RSF 212,796 RSF 81% Leased/Negotiating 7% Leased/Negotiating 74% Leased/Negotiating 49% Leased/Negotiating 269 East Grand Avenue 4135 Campus Point Court Campus Point by Alexandria 10075 Barnes Canyon Road 701 Dexter Avenue North San Francisco Bay Area/ South San Francisco San Diego/ University Town Center San Diego/ University Town Center San Diego/Sorrento Mesa Seattle/Lake Union 107,250 RSF 426,927 RSF 466,598 RSF 81,610 RSF 227,577 RSF —% Leased/Negotiating 100% Leased 100% Leased 68% Leased/Negotiating 23% Leased/Negotiating (1) Image represents 60 Sylvan Road on the Alexandria Center ® for Life Science – Waltham Megacampus. 77 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 as of December 31, 2025 (dollars in thousands): Property/Market/Submarket Located on Mega- campus Square Footage Percentage Occupancy (1) Dev/ Redev In Service CIP Total Leased Leased/ Negotiating Initial Stabilized Under construction 2026 stabilization 99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs X Dev 129,413 191,396 320,809 81% 81% 4Q23 4Q26 4135 Campus Point Court/San Diego/University Town Center X Dev — 426,927 426,927 100 100 3Q26 3Q26 10075 Barnes Canyon Road/San Diego/Sorrento Mesa X Dev 171,469 81,610 253,079 68 68 1Q25 2H26 300,882 699,933 1,000,815 86 86 2027-2028 stabilization 311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs X Redev 56,904 333,758 390,662 7 7 2027 2027 50 and 60 Sylvan Road/Greater Boston/Route 128 X Redev — 267,015 267,015 74 74 4Q26 2027 1450 Owens Street/San Francisco Bay Area/Mission Bay X Dev — 212,796 212,796 — 49 2027 2027 269 East Grand Avenue/San Francisco Bay Area/South San Francisco X Redev — 107,250 107,250 — — 2H26 2027 Campus Point by Alexandria/San Diego/University Town Center (2) X Dev — 466,598 466,598 100 100 2028 2028 701 Dexter Avenue North/Seattle/Lake Union X Dev — 227,577 227,577 23 23 4Q26 2027 56,904 1,614,994 1,671,898 45 51 Evaluating business strategy 8800 Technology Forest Place/Texas/Greater Houston Redev 50,094 73,298 123,392 46 46 2Q23 4Q26 3000 Minuteman Road/Greater Boston/Other X Redev — 453,869 453,869 — — 2027 2027 40 Sylvan Road/Greater Boston/Route 128 X Redev — 329,049 329,049 — — 2027 2027 421 Park Drive/Greater Boston/Fenway X Dev — 392,011 392,011 13 13 2027 2028 50,094 1,248,227 1,298,321 8 8 407,880 3,563,154 3,971,034 43% 46% (1) Initial occupancy dates are subject to leasing and/or market conditions.
We use these systems, among others, to manage our tenant and vendor relationships, for internal communications, for accounting to operate record- keeping function, and for many other key aspects of our business. Our business operations rely on the secure collection, storage, transmission, and other processing of proprietary, confidential, and sensitive data.
We use these systems, among others, to manage our tenant and vendor relationships, for internal communications, for accounting to operate our record-keeping function, and for many other key aspects of our business. Our business operations rely on the secure collection, storage, transmission, and other processing of proprietary, confidential, and other sensitive data.
Our cybersecurity incident response and vulnerability management processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances. Management, including the Chief Technology Officer and Chief Financial Officer and Treasurer, serves on the Company’s incident response team to help the Company mitigate and remediate cybersecurity incidents of which they are notified.
Our cybersecurity incident response and vulnerability management processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances. Management, including our Chief Technology Officer and Chief Financial Officer and Treasurer, serves on the Company’s incident response team to help the Company mitigate and remediate cybersecurity incidents of which they are notified.
(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) 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/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have 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 the RSF of buildings currently in operation at properties that also have future development or redevelopment opportunities.
Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties.
Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties.
We identify and assess risks from cybersecurity threats by monitoring and evaluating our threat environment and our risk profile using various methods including, for example, using manual and automated tools, subscribing to reports and services that identify cybersecurity threats, analyzing reports of threats and threat actors, conducting scans of the threat environment, evaluating our industry’s risk profile, utilizing internal and external audits, and conducting threat and vulnerability assessments.
We identify and assess risks from cybersecurity threats by monitoring and evaluating our threat environment and our risk profile using various methods including, for example, using manual and automated tools, subscribing to reports and services that identify cybersecurity threats, analyzing reports of threats and threat actors, conducting scans of the relevant-threat environment, evaluating our industry’s risk profile, utilizing internal and external audits, and conducting threat and vulnerability assessments.
The Audit Committee engages in regular discussions with management regarding the Company’s significant financial risk exposures and the measures implemented to monitor and control these risks, including those that may result from material cybersecurity threats. These discussions include the Company’s risk assessment and risk management policies. Our management, represented by our Chief Technology Officer, Greg C.
The Audit Committee engages in regular discussions with management regarding the Company’s significant financial risk exposures and the measures implemented to monitor and control these risks, including those that may result from material cybersecurity threats. These discussions include the Company’s risk assessment and risk management policies. Our management, represented by our EVP – Chief Technology Officer, Greg C.
He earned Bachelor of Science degrees in Systems Analysis and Finance from Miami University. Marc E. Binda, CPA, is an experienced risk management professional in our finance and risk management function and has served as Chief Financial Officer since September 2023 and as Treasurer since April 2018. Mr.
He earned Bachelor of Science degrees in Systems Analysis and Finance from Miami University. 55 Marc E. Binda, CPA, is an experienced risk management professional in our finance and risk management function and has served as Chief Financial Officer since September 2023 and as Treasurer since April 2018. Mr.
Thomas, and our Chief Financial Officer and Treasurer, Marc E. Binda , leads our cybersecurity risk assessment and management processes and oversees their implementation and maintenance. 51 Greg C. Thomas is an experienced information technology professional in our information technology department and has served as Chief Technology Officer since 2018.
Thomas, and our Chief Financial Officer and Treasurer, Marc E. Binda , leads our cybersecurity risk assessment and management processes and oversees their implementation and maintenance. Greg C. Thomas is an experienced information technology professional in our information technology department and has served as our Chief Technology Officer since 2018.
During the year ended December 31, 2024 , as a percentage of net operating income our ground lease rental expense aggregated 1.6% . 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.
During the year ended December 31, 2025 , as a percentage of net operating income, our ground lease rental expense aggregated 1.6% . 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.
(2) During the three months ended September 30, 2024, we filed a lawsuit against the New York City Health + Hospitals Corporation and the New York City Economic Development Corporation for fraud and breach of contract concerning our option to ground lease a land parcel to develop a future world-class life science building within the Alexandria Center ® for Life Science – New York City Megacampus.
(3) During the three months ended September 30, 2024, we filed a lawsuit against the New York City Health + Hospitals Corporation and the New York City Economic Development Corporation for fraud and breach of contract concerning our option to ground lease a land parcel to develop a future world-class life science building within the Alexandria Center ® for Life Science – New York City Megacampus.
As of December 31, 2024 , approximately 92% 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, 2025 , approximately 92% 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.
Refer to “ Annual rental revenue ” and “ Operating statistics ” under “ Definitions and reconciliations ” in Item 7 in this annual report on Form 10-K for a description of the basis used to compute the aforementioned measures. 53 Locations of properties Our properties are strategically located in AAA life science innovation cluster markets.
Refer to “ Annual rental revenue ” and “ Operating statistics ” under “ Definitions and reconciliations ” in Item 7 in this annual report on Form 10-K for a description of the basis used to compute the aforementioned measures. 57 Locations of properties Our properties are strategically located in AAA life science innovation cluster markets.
The Audit Committee holds quarterly meetings and receives periodic reports from management, including from our Chief Technology Officer and Chief Financial Officer and Treasurer , concerning the Company’s significant cybersecurity threats and risk and the processes the Company has implemented to address them. 52 ITEM 2.
The Audit Committee holds quarterly meetings and receives periodic reports from management, including from our Chief Technology Officer and Chief Financial Officer and Treasurer , concerning the Company’s significant cybersecurity threats and risk and the processes the Company has implemented to address them. 56 ITEM 2.
Additionally, as of December 31, 2024 : • Investment-grade or publicly traded large cap tenants represented 52% of our total annual rental revenue; • Approximately 97% of our leases (on an annual rental revenue basis) contained effective annual rent escalations approximating 3% th at were either fixed or indexed based on a consumer price index or other index; • Approximatel y 92% 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; • Approximately 92% 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; and • 84% of our leasing activity during the last twelve months was generated from our existing tenant base.
Additionally, as of December 31, 2025 : • Investment-grade or publicly traded large cap tenants represented 53% of our total annual rental revenue; • Approximately 97% 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 92% 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; • Approximately 92% 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; and • 82% of our leasing activity during the last twelve months was generated from our existing tenant base.
(1) Total square footage includes 3,056,674 RSF of buildings currently in operation that we expect to demolish or redevelop and commence future construction subject to market conditions and leasing. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties.
(1) Total square footage includes 1,867,704 RSF of buildings currently in operation that we expect to demolish or redevelop and commence future construction subject to market conditions and leasing. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties.
(1) We own a partial interest in this property through a real estate joint venture. Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details. (2) We own 100% of this property.
(1) We own a partial interest in this property through a real estate joint venture. Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details.
The occupancy percentage of our operating properties in North America was 94.6% as of December 31, 2024 . The exteriors of our properties typically resemble traditional office properties, but the interior infrastructures are designed to accommodate the needs of life science tenants. These improvements typically are generic rather than specific to a particular tenant.
The occupancy percentage of our operating properties in North America was 90.9% as of December 31, 2025 . The exteriors of our properties typically resemble traditional office properties, but the interior infrastructures are designed to accommodate the needs of life science tenants. These improvements typically are generic rather than specific to a particular tenant.
As of December 31, 2024 , we held a fee simple interest in each of our properties, with the exception of 32 properties in North America subject to ground leasehold interests, which accounted for approximately 8% of our total number of properties.
As of December 31, 2025 , we held a fee simple interest in each of our properties, with the exception of 31 properties in North America subject to ground leasehold interests, which accounted for approximately 9% of our total number of properties.
Of these 32 properties, we held eight properties in the Greater Boston market, 20 properties in the San Francisco Bay Area market, one property in the Seattle market, one property in the Maryland market, and two properties in the New York City market.
Of these 31 properties, we held eight properties in the Greater Boston market, 19 properties in the San Francisco Bay Area market, one property in the Seattle market, one property in the Maryland market, and two properties in the New York City market .
(1) Represents amounts in effect as of December 31, 2024 .
(1) Represents amounts in effect as of December 31, 2025 .
Rental rate increases for the year ended December 31, 2024 of 16.9% and 7.2% (cash basis) on 3.9 million renewed/re-leased RSF are attributable to the sustained appeal of our properties, strong property management expertise of our team, and effective operational strategies.
Rental rates for the year ended December 31, 2025 increased by 7.0% and 3.5% (cash basis) on 2.5 million renewed/re-leased RSF are attributable to the sustained appeal of our properties, strong property management expertise of our team, and effective operational strategies.
PROPERTIES General As of December 31, 2024 , we had 391 properties in North America consisting of approximately 44.1 million RSF of operating properties and new Class A/A+ development and redevelopment properties under construction, including 67 properties that are held by consolidated real estate joint ventures and four properties that are held by unconsolidated real estate joint ventures.
PROPERTIES General As of December 31, 2025 , we had 340 properties in North America consisting of approximately 39.4 million RSF of operating properties and new Class A/A+ development and redevelopment properties under construction, including 47 properties that are held by consolidated real estate joint ventures and three properties that are held by unconsolidated real estate joint ventures.
We have implemented and maintain various information security processes designed to identify, assess and manage material risks from cybersecurity threats to our critical computer networks, third-party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and tenant data (“Information Systems and Data”).
We have implemented and maintain various information security processes designed to identify, assess, and manage material risks from cybersecurity threats to our critical computer networks, third-party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and tenant data (collectively, “Information Systems and Data”). 54 We rely on a multidisciplinary team, including our information security function, legal department, management, and third-party service providers, as described further below, to identify, assess, and manage cybersecurity threats and risks.
(1) We expect to provide total estimated costs and related yields for each project with estimated stabilization in 2026 and beyond over the next several quarters. (2) Represents dollar amount rounded to the nearest $10 million and includes preliminary estimated amounts for projects listed as TBD.
(1) We expect to provide total estimated costs and related yields for each project over the next several quarters. (2) Refer to footnote 2 on the prior page for additional details. (3) Represents dollar amount rounded to the nearest $10 million and includes preliminary estimated amounts for projects listed as TBD.
The weighted-average expected delivery date of these spaces is May 12, 2025 . 54 Top 20 tenants 92% of Top 20 Tenant 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 4.3% of our annual rental revenue in effect as of December 31, 2024 .
The weighted-average expected delivery date is approximately August 2026 , and the expected annual rental revenue is approximately $52 million . 58 Top 20 tenants 84% of Top 20 Tenant 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 greater than 6.1% of our annual rental revenue in effect as of December 31, 2025 .
Additionally, approximatel y 97% o f our leases (on an annual rental revenue basis) contained contractual annual rent escalations approximati ng 3% that were either fixed or based on a consumer price index or another index, and approximat ely 92% 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, 2024 and 2023 : Year Ended December 31, 2024 2023 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 16.9% 7.2% 29.4% 15.8% New rates $65.48 $64.18 $52.35 $50.82 Expiring rates $56.01 $59.85 $40.46 $43.87 RSF 3,888,139 3,046,386 Tenant improvements/leasing commissions $46.89 (2) $26.09 Weighted-average lease term 8.5 years 8.7 years Developed/redeveloped/previously vacant space leased (3) New rates $59.44 $57.34 $65.66 $59.74 RSF 1,165,815 1,259,686 Weighted-average lease term 10.0 years 13.8 years Leasing activity summary (totals): New rates $64.16 $62.68 $56.09 $53.33 RSF 5,053,954 4,306,072 Weighted-average lease term 8.9 years 11.3 years Lease expirations (1) Expiring rates $53.82 $57.24 $43.84 $45.20 RSF 5,005,638 5,027,773 Leasing activity includes 100% of results for properties in North America in which we have an investment.
Additionally, approximately 97% 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 92% of our leases (on an annual rental revenue basis) provided for the recapture of certain capital expenditures. 67 Leasing activity (continued) The following table summarizes our leasing activity at our properties for the years ended December 31, 2025 and 2024 : Year Ended December 31, 2025 2024 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 7.0% 3.5% 16.9% 7.2% New rates $52.71 $53.66 $65.48 $64.18 Expiring rates $49.27 $51.87 $56.01 $59.85 RSF 2,543,473 3,888,139 Tenant improvements/leasing commissions $55.34 $46.89 Weighted-average lease term 9.0 years 8.5 years Developed/redeveloped/previously vacant space leased (2) New rates $72.30 $67.56 $59.44 $57.34 Previously vacant RSF 944,362 672,474 Developed/redeveloped RSF 704,821 493,341 Weighted-average lease term 13.8 years 10.0 years Leasing activity summary (totals): New rates $60.42 $59.13 $64.16 $62.68 RSF 4,192,656 5,053,954 Weighted-average lease term 11.9 years 8.9 years Lease expirations (1) Expiring rates $54.22 $55.56 $53.82 $57.24 RSF 4,460,081 5,005,638 Leasing activity includes 100% of results for properties in North America in which we have an investment.
During the year ended December 31, 2024 , we granted tenant concessions/free rent averag ing 0.7 mo nths per annum with respect to the 5.1 million RSF leased.
During the year ended December 31, 2025 , we granted tenant concessions/free rent averaging 1.5 months per annum with respect to the 4.2 million RSF leased.
Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements in Item 15 for additional information.
(2) We own a partial interest in this property through a real estate joint venture. Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements in Item 15 for additional details.
Risk factors” in this annual report on Form 10-K, including “If our information technology networks or data, or those of third parties upon which we rely, are or were disrupted or otherwise compromised, we could experience costly remediation or other expenses, liability under federal and state laws, and litigation and investigations, any of which could result in substantial reputational damage and materially and adversely affect our business, financial condition, results of operations, cash flows, and the market price of our common stock”, for additional discussion about cybersecurity-related risks.
Risk factors” in this annual report on Form 10-K, including “If our information technology networks or data, or those of third parties with whom we work, are or were disrupted or otherwise compromised, we could experience adverse consequences resulting from such compromise, including, but not limited to, costly remediation or other expenses, liability under federal and state laws, litigation and investigations, reputational damage, disruptions to our business operations, decreased cash flows, and other adverse consequences,” for additional discussion of cybersecurity-related risks.
(7) Represents the disposition of an unconsolidated real estate joint venture for which we recognized a gain on sale of real estate of $3.3 million , which is classified as equity in earnings of unconsolidated real estate joint ventures in our consolidated statement of operations.
(2) Excludes a gain on sale of interest related to an unconsolidated real estate joint venture of $458 thousand , which is classified as equity in earnings of unconsolidated real estate joint ventures in our consolidated statement of operations.
Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 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 Megacampus: Alexandria Center ® for Science and Technology – Mission Bay (1) 2,005,369 109,435 — 2,114,804 10 $ 90,452 95.1% 95.1% 1455 (2) , 1515 (2) , 1655, and 1725 Third Street, 409 and 499 Illinois Street, 1450 (3) , 1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South Mission Bay 2,005,369 109,435 — 2,114,804 10 90,452 95.1 95.1 South San Francisco Megacampus: Alexandria Technology Center ® – Gateway (1) 1,408,022 — 259,689 1,667,711 12 76,705 81.9 69.1 600 (2) , 601, 611, 630 (2) , 650 (2) , 651, 681, 685, 701, 751, 901 (2) , and 951 (2) Gateway Boulevard Megacampus: Alexandria Center ® for Advanced Technologies – South San Francisco 812,453 — 107,250 919,703 5 52,990 100.0 88.3 213 (1) , 249, 259, 269, and 279 East Grand Avenue Alexandria Center ® for Life Science – South San Francisco 504,053 — — 504,053 3 32,767 93.9 93.9 201 Haskins Way and 400 and 450 East Jamie Court Megacampus: Alexandria Center ® for Advanced Technologies – Tanforan 445,232 — — 445,232 2 3,829 100.0 100.0 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 3,325,445 285,346 366,939 3,977,730 24 176,971 91.4 82.3 Greater Stanford Megacampus: Alexandria Center ® for Life Science – San Carlos 738,038 — — 738,038 9 41,671 94.5 94.5 825, 835, 960, and 1501-1599 Industrial Road Alexandria Stanford Life Science District 704,560 — — 704,560 9 75,771 98.5 98.5 3160, 3165, 3170, and 3181 Porter Drive and 3301, 3303, 3305, 3307, and 3330 Hillview Avenue 3412, 3420, 3440, 3450, and 3460 Hillview Avenue 340,103 — — 340,103 5 23,603 82.9 82.9 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 198,558 — — 198,558 3 15,902 89.4 89.4 2100, 2200, and 2400 Geng Road 78,501 — — 78,501 3 4,803 100.0 100.0 3350 West Bayshore Road 61,431 — — 61,431 1 4,770 100.0 100.0 Greater Stanford 2,349,191 — — 2,349,191 31 175,922 94.5 94.5 San Francisco Bay Area 7,680,005 394,781 366,939 8,441,725 65 $ 443,345 93.3% 89.1% Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details. 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 Francisco Bay Area Mission Bay Megacampus: Alexandria Center ® for Science and Technology – Mission Bay (1) 1,557,403 212,796 — 1,770,199 8 $ 65,400 96.0% 96.0% 1455 (2) , 1515 (2) , 1655, and 1725 Third Street, 1450, 1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South Mission Bay 1,557,403 212,796 — 1,770,199 8 65,400 96.0 96.0 South San Francisco Megacampus: Alexandria Center ® for Advanced Technologies – South San Francisco 812,453 — 107,250 919,703 5 42,600 79.0 69.8 213 (1) , 249, 259, 269, and 279 East Grand Avenue Alexandria Center ® for Life Science – South San Francisco 504,232 — — 504,232 3 28,642 83.0 83.0 201 Haskins Way and 400 and 450 East Jamie Court Megacampus: Alexandria Center ® for Advanced Technologies – Tanforan 445,232 — — 445,232 2 2,365 100.0 100.0 1122 and 1150 El Camino Real Alexandria Technology Center ® – Gateway 326,197 — — 326,197 5 19,461 89.7 89.7 600, 630, 650, 901, and 951 Gateway Boulevard Alexandria Center ® for Life Science – Millbrae (1) 285,346 — — 285,346 1 37,003 100.0 100.0 230 Harriet Tubman Way 500 Forbes Boulevard (1) 155,685 — — 155,685 1 10,908 100.0 100.0 South San Francisco 2,529,145 — 107,250 2,636,395 17 140,979 88.5 84.9 Greater Stanford Megacampus: Alexandria Center ® for Life Science – San Carlos 738,038 — — 738,038 9 46,677 91.4 91.4 825, 835, 960, and 1501-1599 Industrial Road Alexandria Stanford Life Science District 705,787 — — 705,787 9 53,480 86.8 86.8 3160, 3165, 3170, and 3181 Porter Drive and 3301, 3303, 3305, 3307, and 3330 Hillview Avenue 3412, 3420, 3440, 3450, and 3460 Hillview Avenue 340,103 — — 340,103 5 24,429 86.5 86.5 2475 and 2625/2627/2631 Hanover Street and 1450 Page Mill Road 198,548 — — 198,548 3 13,751 100.0 100.0 2100 and 2200 Geng Road 62,526 — — 62,526 2 2,732 100.0 100.0 Greater Stanford 2,045,002 — — 2,045,002 28 141,069 90.1 90.1 San Francisco Bay Area 6,131,550 212,796 107,250 6,451,596 53 $ 347,448 90.9% 89.4% Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
(3) Includes a property in which we own a partial interest through a real estate joint venture. 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) Future Opportunities Subject to Market Conditions and Leasing Under Construction Priority Anticipated Future Seattle Megacampus: Alexandria Center ® for Life Science – South Lake Union/Lake Union (2) $ 516,743 227,577 869,000 188,400 1,284,977 601 and 701 Dexter Avenue North and 800 Mercer Street 1010 4th Avenue South/SoDo 100% 59,996 — — 544,825 544,825 410 West Harrison Street/Elliott Bay 100% — — — 91,000 91,000 Megacampus: Alexandria Center ® for Advanced Technologies – Canyon Park/ Bothell 100% 18,066 — — 230,000 230,000 21660 20th Avenue Southeast Other development and redevelopment projects 100% 144,644 — — 706,087 706,087 739,449 227,577 869,000 1,760,312 2,856,889 Maryland Megacampus: Alexandria Center ® for Life Science – Shady Grove/Rockville 100% 22,593 — — 296,000 296,000 9830 Darnestown Road 22,593 — — 296,000 296,000 Research Triangle Megacampus: Alexandria Center ® for Advanced Technologies and Agtech – Research Triangle/Research Triangle 100% 106,906 — 180,000 990,000 1,170,000 4 and 12 Davis Drive Megacampus: Alexandria Center ® for Life Science – Durham/Research Triangle 100% 158,277 — — 2,060,000 2,060,000 Megacampus: Alexandria Center ® for NextGen Medicines/Research Triangle 100% 109,368 — — 1,055,000 1,055,000 3029 East Cornwallis Road Megacampus: Alexandria Center ® for Sustainable Technologies/Research Triangle 100% 53,941 — — 750,000 750,000 120 TW Alexander Drive, 2752 East NC Highway 54, and 10 South Triangle Drive 100 Capitola Drive/Research Triangle 100% — — — 65,965 65,965 Other development and redevelopment projects 100% 4,185 — — 76,262 76,262 $ 432,677 — 180,000 4,997,227 5,177,227 Refer to “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional information.
(4) 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) Under Construction Future Seattle Megacampus: Alexandria Center ® for Advanced Technologies – South Lake Union/Lake Union (2) $ 596,213 227,577 1,057,400 1,284,977 601 and 701 Dexter Avenue North and 800 Mercer Street 1010 4th Avenue South/SoDo 100% 62,763 — 544,825 544,825 410 West Harrison Street/Elliott Bay 100% — — 91,000 91,000 Megacampus: Alexandria Center ® for Advanced Technologies – Canyon Park/Bothell 100% 20,256 — 230,000 230,000 21660 20th Avenue Southeast Other development and redevelopment projects 100% 155,787 — 706,087 706,087 835,019 227,577 2,629,312 2,856,889 Maryland Megacampus: Alexandria Center ® for Life Science – Shady Grove/Rockville 100% $ 28,382 — 296,000 296,000 9830 Darnestown Road 28,382 — 296,000 296,000 Research Triangle Megacampus: Alexandria Center ® for Life Science – Durham/Research Triangle 100% 165,816 — 2,060,000 2,060,000 Megacampus: Alexandria Center ® for Advanced Technologies and Agtech – Research Triangle/Research Triangle 100% 113,493 — 1,170,000 1,170,000 4 and 12 Davis Drive Megacampus: Alexandria Center ® for Sustainable Technologies/Research Triangle 100% 56,351 — 750,000 750,000 120 TW Alexander Drive, 2752 East NC Highway 54, and 10 South Triangle Drive Other development and redevelopment projects 100% 1,647 — 25,000 25,000 337,307 — 4,005,000 4,005,000 New York City Megacampus: Alexandria Center ® for Life Science – New York City/New York City 100% 178,148 — 550,000 (3) 550,000 $ 178,148 — 550,000 550,000 Refer to “Megacampus™” under “ Definitions and reconciliations ” in Item 7 for additional information.
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, 2024 (dollars in thousands, except average market cap amounts): Remaining Lease Term (1) (in Years) Aggregate RSF Annual Rental Revenue (1) Percentage of Annual Rental Revenue (1) Investment-Grade Credit Ratings Average Market Cap (in billions) Tenant Moody’s S&P 1 Eli Lilly and Company 8.4 1,122,777 $ 90,259 4.3% A1 A+ $ 769.8 2 Moderna, Inc. 11.3 634,045 90,103 4.3 — — $ 35.1 3 Bristol-Myers Squibb Company 5.4 999,379 77,188 3.7 A2 A $ 100.6 4 Takeda Pharmaceutical Company Limited 10.4 549,759 47,899 2.3 Baa1 BBB+ $ 44.2 5 Roche 8.2 647,069 37,405 1.8 Aa2 AA $ 232.8 6 Illumina, Inc. 5.9 857,967 35,924 1.7 Baa3 BBB $ 20.6 7 Alphabet Inc. 2.8 625,015 34,899 1.7 Aa2 AA+ $ 2,032.2 8 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, 2025 (dollars in thousands, except average market cap amounts): Remaining Lease Term (1) (in Years) Aggregate RSF Annual Rental Revenue (1) Percentage of Annual Rental Revenue (1) Investment-Grade Credit Ratings Average Market Cap (in billions) Tenant Moody’s S&P 1 Bristol-Myers Squibb Company 5.6 1,344,987 $ 116,140 6.1% A2 A $ 102.64 2 Eli Lilly and Company 9.3 1,000,591 84,928 4.5 Aa3 A+ $ 784.24 3 Moderna, Inc. 12.9 462,100 71,571 3.8 — — $ 11.32 4 Takeda Pharmaceutical Company Limited 9.4 549,759 47,899 2.5 Baa1 BBB+ $ 46.08 5 Eikon Therapeutics, Inc.
Annual rental revenue represents amounts in effect as of December 31, 2024 . Refer to “ Definitions and reconciliations ” in Item 7 for additional information.
Annual rental revenue represents amounts in effect as of December 31, 2025 . Refer to “ Definitions and reconciliations ” in Item 7 for additional information. (1) Represents the percentage of our annual rental revenue generated by professional services, finance, construction/real estate companies, and retail-related tenants.
Additionally, a favorable triple net lease structure with contractual annual rent escalations resulted in both a consisten t Same Properties operating margin of 68% and Same Properties current-period average occupancy of 94.2% for the year ended December 31, 2024 , an increase of 30 bps for the same-period prior-year average, across our 321 Same Properties aggregating 31.7 million RSF .
Additionally, a favorable triple net lease structure with contractual annual rent escalations resulted in a consistent Same Properties operating margin of 68% for the year ended December 31, 2025 a cross our 282 Same Properties aggregating 29.8 million RSF .
Refer to “New Class A/A+ development and redevelopment properties: current projects” in Item 2 for additional details. 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 Megacampus: One Alexandria Square 840,192 241,504 — 1,081,696 10 $ 47,915 99.0% 99.0% 3115 and 3215 (1) Merryfield Row, 3010, 3013, and 3033 Science Park Road, 10935, 10945, 10955, and 10970 Alexandria Way, 10996 Torreyana Road, and 3545 Cray Court ARE Torrey Ridge 299,138 — — 299,138 3 13,263 79.7 79.7 10578, 10618, and 10628 Science Center Drive ARE Nautilus 218,459 — — 218,459 4 12,184 97.7 97.7 3530 and 3550 John Hopkins Court and 3535 and 3565 General Atomics Court Torrey Pines 1,357,789 241,504 — 1,599,293 17 73,362 94.5 94.5 University Town Center Megacampus: Campus Point by Alexandria (1) 1,594,463 426,927 — 2,021,390 10 86,469 98.0 98.0 9880 (2) , 10210, 10260, 10290, and 10300 Campus Point Drive and 4135, 4155, 4161, 4224, and 4242 Campus Point Court Megacampus: 5200 Illumina Way (1) 792,687 — — 792,687 6 29,978 100.0 100.0 9625 Towne Centre Drive (1) 163,648 — — 163,648 1 6,520 100.0 100.0 University Town Center 2,550,798 426,927 — 2,977,725 17 122,967 98.8 98.8 Sorrento Mesa Megacampus: SD Tech by Alexandria (1) 878,805 253,079 — 1,131,884 12 39,988 93.6 93.6 9605, 9645, 9675, 9725, 9735, 9808, 9855, and 9868 Scranton Road, 5505 Morehouse Drive (2) , and 10055, 10065, and 10075 Barnes Canyon Road Megacampus: Sequence District by Alexandria 801,575 — — 801,575 7 28,766 100.0 100.0 6260, 6290, 6310, 6340, 6350, 6420, and 6450 Sequence Drive Pacific Technology Park (1) 544,352 — — 544,352 5 9,352 92.8 92.8 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 11,379 100.0 100.0 10102 Hoyt Park Drive ARE Portola 101,857 — — 101,857 3 4,022 100.0 100.0 6175, 6225, and 6275 Nancy Ridge Drive 5810/5820 Nancy Ridge Drive 83,354 — — 83,354 1 4,581 100.0 100.0 9877 Waples Street 63,774 — — 63,774 1 2,680 100.0 100.0 5871 Oberlin Drive 33,842 — — 33,842 1 1,909 100.0 100.0 Sorrento Mesa 2,968,203 253,079 — 3,221,282 35 $ 114,198 96.8% 96.8% Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
(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 Torrey Pines Megacampus: One Alexandria Square 1,090,906 — — 1,090,906 10 $ 77,138 96.5% 96.5% 3115 and 3215 (1) Merryfield Row, 3010, 3013, and 3033 Science Park Road, 10935, 10945, 10955, and 10970 Alexandria Way, 10996 Torreyana Road, and 3545 Cray Court ARE Torrey Ridge 308,565 — — 308,565 3 14,461 86.2 86.2 10578, 10618, and 10628 Science Center Drive Torrey Pines 1,399,471 — — 1,399,471 13 91,599 94.2 94.2 University Town Center Megacampus: Campus Point by Alexandria (1) 1,310,696 893,525 — 2,204,221 8 84,466 99.5 99.5 9880 (2) , 10210, 10290, and 10300 Campus Point Drive and 4135, 4155, 4224, and 4242 Campus Point Court Megacampus: 5200 Illumina Way (1) 792,687 — — 792,687 6 29,978 100.0 100.0 9625 Towne Centre Drive (1) 163,648 — — 163,648 1 6,520 100.0 100.0 University Town Center 2,267,031 893,525 — 3,160,556 15 120,964 99.7 99.7 Sorrento Mesa Megacampus: SD Tech by Alexandria (1) 969,416 81,610 — 1,051,026 11 48,072 98.0 98.0 9605, 9645, 9675, 9725, 9735, 9808, 9855, and 9868 Scranton Road, and 10055, 10065, and 10075 Barnes Canyon Road Megacampus: Sequence District by Alexandria 671,039 — — 671,039 6 24,306 100.0 100.0 6290, 6310, 6340, 6350, 6420, and 6450 Sequence Drive Summers Ridge Science Park (1) 316,531 — — 316,531 4 11,521 100.0 100.0 9965, 9975, 9985, and 9995 Summers Ridge Road 10102 Hoyt Park Drive 144,113 — — 144,113 1 11,379 100.0 100.0 5810/5820 Nancy Ridge Drive 83,354 — — 83,354 1 3,389 100.0 100.0 9877 Waples Street 63,774 — — 63,774 1 2,680 100.0 100.0 Sorrento Mesa 2,248,227 81,610 — 2,329,837 24 101,347 99.1 99.1 Sorrento Valley 3911, 3931, 3985, 4025, 4031, and 4045 Sorrento Valley Boulevard 151,406 — — 151,406 6 4,857 55.9 55.9 11045 Roselle Street 27,689 — — 27,689 1 1,814 100.0 100.0 Sorrento Valley 179,095 — — 179,095 7 6,671 62.7 62.7 San Diego 6,093,824 975,135 — 7,068,959 59 $ 320,581 97.2 % 97.2 % Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
(1) Excludes month-to-month leases aggregating 136,131 RSF and 86,092 RSF as of December 31, 2024 and 2023 , respectively. During the year ended December 31, 2024 , we granted free rent concessions averaging 0.7 months per annum.
(1) Excludes month-to-month leases aggregating 58,516 RSF and 136,131 RSF as of December 31, 2025 and 2024 , respectively. During the year ended December 31, 2025 , we granted free rent concessions averaging 1.5 months per annum. (2) Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 for additional information, including total project costs.
(8) Refer to footnotes 6 and 7. 70 New Class A/A+ development and redevelopment properties ALEXANDRIA’S FUTURE GROWTH IN ANNUAL NET OPERATING INCOME FROM DEVELOPMENT AND REDEVELOPMENT DELIVERIES $395 MILLION Placed Into Service Expected to Be Placed Into Service 2024 4Q24 $118M $55M 1.5M RSF 602,593 RSF 98% Occupied 2025 1Q26 – 2Q28 $83M $312M 89% Leased/Negotiating Aggregating 4.4M RSF (1) (2) (3) Refer to “Net operating income” under “ Definitions and reconciliations ” in Item 7 for additional details including its reconciliation from the most directly comparable financial measures presented in accordance with GAAP.
Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements in Item 15 for additional information. 72 New Class A/A+ development and redevelopment properties ALEXANDRIA’S DEVELOPMENT AND REDEVELOPMENT DELIVERIES ARE EXPECTED TO PROVIDE INCREMENTAL GROWTH IN ANNUAL NET OPERATING INCOME Placed Into Service Near-Term Deliveries Intermediate- Term Deliveries Evaluating Business Strategy 2025 2026 2027 – 2028 2026-2028 $78M $97M $123M $113M 97% Occupied 86% Leased/Negotiating 51% Leased/Negotiating 8% Leased/Negotiating 852,764 RSF 699,933 RSF 1.6 million RSF 1.2 million RSF (1) (2) (3) (4) (5) Refer to “Net operating income” under “ Definitions and reconciliations ” in Item 7 for additional details including its reconciliation from the most directly comparable financial measures presented in accordance with GAAP.
Lease structure Our Same Properties total revenue growth was 2.7% during the year ended December 31, 2024 , and our Same Properties net operating income and Same Properties net operating income increases (cash basis) for the year ended December 31, 2024 were 1.2% and 4.6% , respectively .
Lease structure Our Same P roperties total revenue declined by 0.5% during the year ended December 31, 2025 , and our Same Properties net operating income and Same Properties net operating income (cash basis) for the year ended December 31, 2025 decreased by 3.5% and increased by 0.9% , respectively.
(1) Our share of incremental annual net operating income from development and redevelopment projects expected to be placed into service primarily commencing from 1Q25 through 2Q28 is projected to be $334 million .
Our share of incremental annual net operating income from projects expected to be placed into service primarily commencing through 2026 is projected to be $74 million . Refer to the initial and stabilized occupancy years under “New Class A/A+ development and redevelopment properties: current projects” in Item 2 for additional details.
Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details. 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 Megacampus: Alexandria Center ® for Life Science – Shady Grove 1,692,350 — — 1,692,350 20 $ 79,076 97.5% 97.5% 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 4,323 100.0 100.0 1405 and 1450 (1) Research Boulevard 114,849 — — 114,849 2 3,029 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 3,082 100.0 100.0 5 Research Court 51,520 — — 51,520 1 1,976 100.0 100.0 12301 Parklawn Drive 49,185 — — 49,185 1 1,598 100.0 100.0 Rockville 2,194,623 — — 2,194,623 28 94,928 96.7 96.7 Gaithersburg Alexandria Technology Center ® – Gaithersburg I 619,061 — — 619,061 9 19,603 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 486,301 — — 486,301 7 18,816 100.0 100.0 700, 704, and 708 Quince Orchard Road and 19, 20, 21, and 22 Firstfield Road 20400 Century Boulevard 81,006 — — 81,006 1 2,107 100.0 100.0 401 Professional Drive 63,154 — — 63,154 1 1,949 90.1 90.1 950 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 1,327,472 — — 1,327,472 20 44,916 96.6 96.6 Beltsville 8000/9000/10000 Virginia Manor Road 191,884 — — 191,884 1 2,974 97.7 97.7 101 West Dickman Street (1) 135,949 — — 135,949 1 1,214 69.9 69.9 Beltsville 327,833 — — 327,833 2 4,188 86.1 86.1 Maryland 3,849,928 — — 3,849,928 50 144,032 95.7 95.7 Research Triangle Research Triangle Megacampus: Alexandria Center ® for Life Science – Durham 2,214,887 — — 2,214,887 16 $ 55,242 97.6 97.6 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 Megacampus: Alexandria Center ® for Advanced Technologies and AgTech – Research Triangle 687,824 — — 687,824 6 31,939 99.4 99.4 6, 8, 10, and 12 Davis Drive and 5 and 9 Laboratory Drive Megacampus: Alexandria Center ® for Sustainable Technologies 364,493 — — 364,493 7 $ 11,979 91.8% 91.8% 104, 108, 110, 112, and 114 TW Alexander Drive and 5 and 7 Triangle Drive Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details. 64 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Maryland (continued) Gaithersburg Alexandria Technology Center ® – Gaithersburg I 619,061 — — 619,061 9 $ 19,663 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 486,300 — — 486,300 7 16,254 95.1 95.1 700, 704, and 708 Quince Orchard Road and 19, 20, 21, and 22 Firstfield Road 401 Professional Drive 63,207 — — 63,207 1 1,351 79.7 79.7 950 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 1,246,518 — — 1,246,518 19 39,709 93.9 93.9 Beltsville 8000/9000/10000 Virginia Manor Road 191,884 — — 191,884 1 3,307 96.4 96.4 101 West Dickman Street (1) 142,933 — — 142,933 1 1,726 66.5 66.5 Beltsville 334,817 — — 334,817 2 5,033 83.6 83.6 Maryland 3,732,888 — — 3,732,888 48 153,169 93.6 93.6 Research Triangle Research Triangle Megacampus: Alexandria Center ® for Life Science – Durham 2,041,067 — — 2,041,067 15 44,493 97.3 97.3 6, 8, 10, 12, 14, 40, 41, 42, and 65 Moore Drive, 21, 25, 27, 29, and 31 Alexandria Way, and 2400 Ellis Road Megacampus: Alexandria Center ® for Advanced Technologies and AgTech – Research Triangle 711,886 — — 711,886 6 29,585 94.1 94.1 6, 8, 10, and 12 Davis Drive and 5 and 9 Laboratory Drive Megacampus: Alexandria Center ® for Sustainable Technologies 259,962 — — 259,962 6 7,343 84.8 84.8 104, 108, 110, 112, and 114 TW Alexander Drive and 5 Triangle Drive Alexandria Technology Center ® – Alston 121,204 — — 121,204 2 2,279 80.5 80.5 800 and 801 Capitola Drive Alexandria Innovation Center ® – Research Triangle 136,563 — — 136,563 3 4,064 96.1 96.1 7010, 7020, and 7030 Kit Creek Road 2525 East NC Highway 54 82,996 — — 82,996 1 3,580 100.0 100.0 407 Davis Drive 81,956 — — 81,956 1 3,323 100.0 100.0 Research Triangle 3,435,634 — — 3,435,634 34 $ 94,667 95.2% 95.2% Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
(2) Represents the portion of total receivables billed for each indicated period collected as of the date of this report. 57 Property listing Our Megacampus ™ Properties Account for 77% of Our Annual Rental Revenue The following table provides certain information about our properties as of December 31, 2024 (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 Megacampus: Alexandria Center ® at Kendall Square 2,199,030 — — 2,199,030 7 $ 228,062 100.0% 100.0% 50 (1) , 60 (1) , 75/125 (1) , 100 (1) , and 225 (1) Binney Street, 140 First Street, and 300 Third Street (1) Megacampus: Alexandria Center ® at One Kendall Square 1,281,580 — 104,956 1,386,536 12 145,576 94.8 87.6 One Kendall Square (Buildings 100, 200, 300, 400, 500, 600/700, 1400, 1800, and 2000), 325 and 399 Binney Street, and One Hampshire Street Megacampus: Alexandria Technology Square ® 1,185,190 — — 1,185,190 7 110,969 97.7 97.7 100, 200, 300, 400, 500, 600, and 700 Technology Square Megacampus: The Arsenal on the Charles 776,781 36,444 308,446 1,121,671 13 47,730 99.4 71.2 311, 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 Megacampus: 480 Arsenal Way, 446, 458, 500, 550 Arsenal Street, and 99 Coolidge Avenue (1) 633,056 204,395 — 837,451 6 28,173 98.4 98.4 Cambridge/Inner Suburbs 6,075,637 240,839 413,402 6,729,878 45 560,510 98.2 91.9 Fenway Megacampus: Alexandria Center ® for Life Science – Fenway 1,291,019 392,011 137,675 1,820,705 3.0 100,587 89.7 81.1 401 and 421 (1) Park Drive and 201 Brookline Avenue (1) Seaport Innovation District 5 and 15 (1) Necco Street 441,396 — — 441,396 2 44,143 81.8 81.8 Seaport Innovation District 441,396 — — 441,396 2 44,143 81.8 81.8 Route 128 Megacampus: Alexandria Center ® for Life Science – Waltham 466,094 — 596,064 1,062,158 5 36,659 100.0 43.9 40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street 19, 225, and 235 Presidential Way 585,226 — — 585,226 3 13,937 100.0 100.0 Route 128 1,051,320 — 596,064 1,647,384 8 50,596 100.0 63.8 Other 400,863 — 453,869 854,732 6 4,728 59.7 28.0 Greater Boston 9,260,235 632,850 1,601,010 11,494,095 64 $ 760,564 94.8% 80.8% Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
(3) 82% of our annual rental revenue from biomedical institutions is from investment-grade or publicly traded large cap tenants. 60 Property listing Our Megacampus ™ Properties Account for 78% of Our Annual Rental Revenue The following table provides certain information about our properties as of December 31, 2025 (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 Megacampus: Alexandria Center ® at Kendall Square 2,213,866 — — 2,213,866 8 $ 212,458 93.7% 93.7% 50 (1) , 60 (1) , 75/125 (1) , 90, 100 (1) , and 225 (1) Binney Street, 140 First Street, and 300 Third Street (1) Megacampus: Alexandria Center ® at One Kendall Square 1,294,598 — — 1,294,598 11 136,034 91.2 91.2 One Kendall Square (Buildings 100, 200, 300, 400, 500, 600/700, 1400, 1800, and 2000), and 325 and 399 Binney Street Megacampus: Alexandria Technology Square ® 1,192,075 — — 1,192,075 7 79,341 73.9 73.9 100, 200, 300, 400, 500, 600, and 700 Technology Square Megacampus: The Arsenal on the Charles 787,760 — 333,758 1,121,518 13 46,020 78.0 54.8 311, 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 Megacampus: 480 Arsenal Way, 446, 458, and 500 Arsenal Street, and 99 Coolidge Avenue (1) 386,780 191,396 — 578,176 5 26,298 91.4 91.4 Cambridge/Inner Suburbs 5,875,079 191,396 333,758 6,400,233 44 500,151 86.9 82.2 Fenway Megacampus: Alexandria Center ® for Life Science – Fenway 1,452,183 392,011 — 1,844,194 3 104,651 79.2 79.2 401 and 421 Park Drive and 201 Brookline Avenue Seaport Innovation District 5 and 15 (1) Necco Street 459,395 — — 459,395 2 47,019 97.0 97.0 Route 128 Megacampus: Alexandria Center ® for Life Science – Waltham 465,981 — 596,064 1,062,045 5 38,566 97.8 42.9 40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street 19, 225, and 235 Presidential Way 585,226 — — 585,226 3 14,194 97.0 97.0 Route 128 1,051,207 — 596,064 1,647,271 8 52,760 97.4 62.1 Other Megacampus: 30, 200, and 3000 Minuteman Road 382,663 — 453,869 836,532 5 4,766 62.5 28.6 Greater Boston 9,220,527 583,407 1,383,691 11,187,625 62 $ 709,347 86.4% 75.1% Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties.
Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing.
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.
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. Excluding these ground leases, the weighted-average remaining lease term for our top 20 tenants was 7.9 years as of December 31, 2025 .
As of December 31, 2024 , 23,522 RSF was leased, 112,831 R SF was under signed letters of intent to re-lease, 527,196 RSF was involved in ongoing discussions for re-lease, and we expect to favorably resolve the remaining 104,531 RSF over the next several quarters. 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, primarily located in collaborative Megacampus ecosystems in AAA life science innovation clusters.
(6) Approximately 69% of the 519,851 RSF expiring leases are located on a Megacampus . 69 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, primarily located in collaborative Megacampus ecosystems in AAA life science innovation clusters.
Excluding these ground leases, the weighted-average remaining lease term for our top 20 tenants was 7.5 years as of December 31, 2024 . 55 Stable Cash Flows From Our High-Quality and Diverse Mix of Approximately 800 Tenants Investment-Grade or Publicly Traded Large Cap Tenants 92% of ARE’s Top 20 Tenant Annual Rental Revenue 52% Percentage of ARE’s Annual Rental Revenue of ARE’s Annual Rental Revenue Solid Historical Occupancy of 96% Over Past 10 Years (2) From Historically Strong Demand for Our Class A/A+ Properties in AAA Locations Annual Rental Revenue Occupancy Across Key Locations Percentage of ARE’s Annual Rental Revenue Multinational Pharmaceutical Life Science Product, Service, and Device Public Biotechnology - Approved or Marketed Product Public Biotechnology - Preclinical or Clinical Stage Private Biotechnology Other (1) Other Investment-Grade or Large Cap Tech Biomedical and Government Institutions Megacampus ™ Core and Non-Core (3) As of December 31, 2024 .
Altos Labs is backed by a group of prominent long-term investors and has raised $3.0 billion in private funding. 59 Stable Cash Flows From Our High-Quality and Diverse Mix of Tenants Investment-Grade or Publicly Traded Large Cap Tenants 84% of ARE’s Top 20 Tenant Annual Rental Revenue 53% of ARE’s Total Annual Rental Revenue Life Science Product, Service, and Device Multinational Pharmaceutical Public Biotechnology - Approved or Marketed Product Other (1) Advanced Technologies (2) Public Biotechnology - Preclinical or Clinical Stage Government Institutions Biomedical Institutions (3) Private Biotechnology Percentage of ARE’s Annual Rental Revenue As of December 31, 2025 .
Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details. 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 (continued) Research Triangle (continued) Alexandria Technology Center ® – Alston 155,731 — — 155,731 3 $ 4,126 94.7% 94.7% 100, 800, and 801 Capitola Drive Alexandria Innovation Center ® – Research Triangle 136,722 — — 136,722 3 4,235 99.2 99.2 7010, 7020, and 7030 Kit Creek Road 2525 East NC Highway 54 82,996 — — 82,996 1 3,651 100.0 100.0 407 Davis Drive 81,956 — — 81,956 1 3,323 100.0 100.0 601 Keystone Park Drive 77,595 — — 77,595 1 2,313 100.0 100.0 Research Triangle 3,802,204 — — 3,802,204 38 116,808 97.4 97.4 New York City New York City Megacampus: Alexandria Center ® for Life Science – New York City 742,586 — — 742,586 3 67,864 98.7 98.7 430 and 450 East 29th Street Alexandria Center ® for Life Science – Long Island City 179,188 — — 179,188 1 5,670 45.7 45.7 30-02 48th Avenue New York City 921,774 — — 921,774 4 73,534 88.4 88.4 Texas Austin Megacampus: Intersection Campus 1,525,359 — — 1,525,359 12 39,955 99.2 99.2 507 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 2 895 100.0 100.0 Austin 1,724,331 — — 1,724,331 14 40,850 99.3 99.3 Greater Houston Alexandria Center ® for Advanced Technologies at The Woodlands 120,828 — 73,298 194,126 1 3,172 41.5 25.8 8800 Technology Forest Place Texas 1,845,159 — 73,298 1,918,457 15 44,022 95.5 91.8 Canada 888,189 — 139,311 1,027,500 11 19,661 95.9 82.9 Non-cluster/other markets 349,099 — — 349,099 10 15,027 72.5 72.5 North America, excluding properties held for sale 39,165,855 2,176,718 2,180,558 43,523,131 381 2,079,932 94.6% 89.7% Properties held for sale 600,870 — — 600,870 10 13,056 39.6% 39.6% Total – North America 39,766,725 2,176,718 2,180,558 44,124,001 391 $ 2,092,988 Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details. 63 Leasing activity During the year ended December 31, 2024 , strong demand for our high-quality Class A/A+ properties translated into solid leasing activity and rental rate growth in 2024 for our overall portfolio and our development and redevelopment pipeline. • Executed a total o f 209 leases, with a weighted-average lease term of 8.9 years , for 5.1 million RSF ; • 84% of our leasing activity during the last twelve months was generated from our existing tenant base; • Annual leasing activity of 3.9 million RSF for renewed and re-leased spaces; and • Annual rental rate increases of 16.9% and 7.2% (cash ba sis) on renewed and re-leased space.
Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details. 65 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total New York City New York City Megacampus: Alexandria Center ® for Life Science – New York City 729,461 — — 729,461 2 $ 66,085 96.4% 96.4% 430 and 450 East 29th Street New York City 729,461 — — 729,461 2 66,085 96.4 96.4 Texas Austin Megacampus: Intersection Campus 1,525,359 — — 1,525,359 12 33,694 83.0 83.0 507 East Howard Lane, 13011 McCallen Pass, 13813 and 13929 Center Lake Drive, and 12535, 12545, 12555, and 12565 Riata Vista Circle Austin 1,525,359 — — 1,525,359 12 33,694 83.0 83.0 Greater Houston Alexandria Center ® for Advanced Technologies at The Woodlands 120,828 — 73,298 194,126 1 3,172 41.5 25.8 8800 Technology Forest Place Texas 1,646,187 — 73,298 1,719,485 13 36,866 79.9 76.5 Non-cluster/other markets 414,216 — — 414,216 7 12,379 91.2 91.2 North America, excluding properties held for sale 34,330,841 1,998,915 1,564,239 37,893,995 320 1,862,056 90.9% 86.9% Properties held for sale 1,555,377 — — 1,555,377 20 37,697 66.5% 66.5% Total – North America 35,886,218 1,998,915 1,564,239 39,449,372 340 $ 1,899,753 Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details. 66 Leasing activity During the year ended December 31, 2025 , solid demand for our high-quality Class A/A+ properties translated into leasing activity and rental rate changes in 2025 for our overall portfolio and our development and redevelopment pipeline. • Executed a total of 205 leases, with a weighted-average lease term of 11.9 years , for 4.2 million RSF; • 82% of our leasing activity during the last twelve months was generated from our existing tenant base ; • Annual leasing activity of 2.5 million RSF for renewed and re-leased spaces; and • Annual rental rates increased by 7.0% and 3.5% (cash basis) on renewed and re-leased space.
(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 151,406 — — 151,406 6 $ 3,970 54.0% 54.0% 11045 and 11055 Roselle Street 43,233 — — 43,233 2 2,203 100.0 100.0 Sorrento Valley 194,639 — — 194,639 8 6,173 64.2 64.2 Other 311,021 — — 311,021 2 10,225 100.0 100.0 San Diego 7,382,450 921,510 — 8,303,960 79 326,925 96.3 96.3 Seattle Lake Union Megacampus: Alexandria Center ® for Life Science – Eastlake 1,152,644 — — 1,152,644 9 77,461 95.6 95.6 1150, 1201 (1) , 1208 (1) , 1551, 1600, and 1616 Eastlake Avenue East, 188 and 199 (1) East Blaine Street, and 1600 Fairview Avenue East Megacampus: Alexandria Center ® for Life Science – South Lake Union 381,380 227,577 — 608,957 3 21,890 99.6 99.6 400 (1) and 701 Dexter Avenue North and 428 Westlake Avenue North 219 Terry Avenue North 31,797 — — 31,797 1 1,339 56.9 56.9 Lake Union 1,565,821 227,577 — 1,793,398 13 100,690 95.8 95.8 Elliott Bay 410 West Harrison Street and 410 Elliott Avenue West 20,101 — — 20,101 2 710 100.0 100.0 Bothell Megacampus: Alexandria Center ® for Advanced Technologies – Canyon Park 1,061,778 — — 1,061,778 22 21,482 87.7 87.7 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 463,449 — — 463,449 6 12,290 90.3 90.3 3301, 3303, 3305, 3307, 3555, and 3755 Monte Villa Parkway Bothell 1,525,227 — — 1,525,227 28 33,772 88.5 88.5 Other 75,663 — — 75,663 2 842 98.5 98.5 Seattle 3,186,812 227,577 — 3,414,389 45 $ 136,014 92.4% 92.4% Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
(2) We own 100% of this property. 63 Property listing (continued) Occupancy Percentage RSF Number of Properties Annual Rental Revenue Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Seattle Lake Union Megacampus: Alexandria Center ® for Life Science – Eastlake 1,151,975 — — 1,151,975 9 $ 68,694 91.3 % 91.3 % 1150, 1201 (1) , 1208 (1) , 1551, 1600, and 1616 Eastlake Avenue East, 188 and 199 East Blaine Street, and 1600 Fairview Avenue East Megacampus: Alexandria Center ® for Advanced Technologies – South Lake Union 413,178 227,577 — 640,755 4 23,372 98.8 98.8 400 (1) and 701 Dexter Avenue North, 428 Westlake Avenue North, and 219 Terry Avenue North Lake Union 1,565,153 227,577 — 1,792,730 13 92,066 93.3 93.3 Elliott Bay 410 West Harrison Street and 410 Elliott Avenue West 20,101 — — 20,101 2 459 72.5 72.5 Bothell Megacampus: Alexandria Center ® for Advanced Technologies – Canyon Park 815,000 — — 815,000 19 15,674 84.2 84.2 22121 and 22125 17th Avenue Southeast, 22021, 22025, 22026, 22030, 22118, and 22122 20th Avenue Southeast, 22333, 22422, 22515, and 22522 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 463,243 — — 463,243 6 12,834 79.7 79.7 3301, 3303, 3305, 3307, 3555, and 3755 Monte Villa Parkway Bothell 1,278,243 — — 1,278,243 25 28,508 82.6 82.6 Other 63,057 — — 63,057 2 481 91.7 91.7 Seattle 2,926,554 227,577 — 3,154,131 42 121,514 88.4 88.4 Maryland Rockville Megacampus: Alexandria Center ® for Life Science – Shady Grove 1,691,960 — — 1,691,960 20 93,315 94.7 94.7 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 and 9820 Darnestown Road 1330 Piccard Drive 131,507 — — 131,507 1 3,813 87.6 87.6 1405 Research Boulevard 72,170 — — 72,170 1 2,501 94.7 94.7 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 3,125 100.0 100.0 5 Research Court 51,520 — — 51,520 1 1,976 100.0 100.0 12301 Parklawn Drive 49,185 — — 49,185 1 1,853 100.0 100.0 Rockville 2,151,553 — — 2,151,553 27 $ 108,427 94.9% 94.9% Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.
(3) Represents our share of investment based on our ownership percentage upon completion of development or redevelopment projects. 77 New Class A/A+ development and redevelopment properties: summary of pipeline 68% of Our Total Development and Redevelopment Pipeline RSF Is Within Our Megacampus ™ Ecosystems The following table summarizes the key information for all our development and redevelopment projects in North America as of December 31, 2024 (dollars in thousands): Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Future Opportunities Subject to Market Conditions and Leasing Under Construction Priority Anticipated Future Greater Boston Megacampus: Alexandria Center ® at One Kendall Square/Cambridge 100% $ 164,957 104,956 — — 104,956 One Hampshire Street Megacampus: The Arsenal on the Charles/Cambridge/Inner Suburbs 100% 288,993 344,890 25,312 34,157 404,359 311 Arsenal Street, 500 North Beacon Street, and 4 Kingsbury Avenue Megacampus: 480 Arsenal Way and 446, 458, 500, and 550 Arsenal Street, and 99 Coolidge Avenue/Cambridge/Inner Suburbs (2) 285,870 204,395 — 902,000 1,106,395 446, 458, 500, and 550 Arsenal Street, and 99 Coolidge Avenue Megacampus: Alexandria Center ® for Life Science – Fenway/Fenway (3) 614,380 529,686 — — 529,686 401 and 421 Park Drive Megacampus: Alexandria Center ® for Life Science – Waltham/Route 128 100% 512,996 596,064 — 515,000 1,111,064 40, 50, and 60 Sylvan Road, and 35 Gatehouse Drive Megacampus: Alexandria Center ® at Kendall Square/Cambridge 100% 204,128 — — 174,500 174,500 100 Edwin H.
Our share of investment will be adjusted as our ownership percentage increases at the Campus Point project. 79 New Class A/A+ development and redevelopment properties: summary of pipeline 77% of Our Total Development and Redevelopment Pipeline RSF Is Within Our Megacampus ™ Ecosystems The following table summarizes the key information for all our development and redevelopment projects in North America as of December 31, 2025 (dollars in thousands): Market Property/Submarket Our Ownership Interest Book Value Square Footage Development and Redevelopment Total (1) Under Construction Future Greater Boston Megacampus: The Arsenal on the Charles/Cambridge/Inner Suburbs 100% $ 318,404 333,758 34,157 367,915 311 Arsenal Street Megacampus: 480 Arsenal Way and 446, 458, and 500 Arsenal Street, and 99 Coolidge Avenue/Cambridge/ Inner Suburbs 100% 234,388 191,396 560,000 751,396 446, 458, and 500 Arsenal Street, and 99 Coolidge Avenue Megacampus: Alexandria Center ® for Life Science – Fenway/Fenway 100% 584,009 392,011 — 392,011 421 Park Drive Megacampus: Alexandria Center ® for Life Science – Waltham/Route 128 100% 635,997 596,064 515,000 1,111,064 40, 50, and 60 Sylvan Road, and 35 Gatehouse Drive Megacampus: 30, 200, and 3000 Minuteman Road/Other 100% 222,659 453,869 608,541 1,062,410 3000 Minuteman Road Megacampus: Alexandria Technology Square ® /Cambridge 100% 8,631 — 100,000 100,000 10 Necco Street/Seaport Innovation District 100% 107,099 — 175,000 175,000 215 Presidential Way/Route 128 100% 6,816 — 112,000 112,000 Other development and redevelopment projects 100% 162,935 — 740,000 740,000 $ 2,280,938 1,967,098 2,844,698 4,811,796 Refer to “Megacampus™” under “ Definitions and reconciliations ” in Item 7 for additional information.
(3) Excludes month-to-month leases aggregating 136,131 RSF as of December 31, 2024 . Refer to “Leasing activity” in Item 2 for additional details. (4) Represents amounts in effect as of December 31, 2024 .
(1) Excludes month-to-month leases aggregating 58,516 RSF as of December 31, 2025 . Refer to “Leasing activity” in Item 2 for additional details. (2) Represents amounts in effect as of December 31, 2025 . (3) Relates to a single-tenant, 100% pre-leased development project aggregating 466,598 RSF that expands the existing Campus Point by Alexandria Megacampus.
(2) We have a 100% interest in 601 and 701 Dexter Avenue North aggregating 415,977 RSF and a 60% interest in the priority anticipated development project at 800 Mercer Street aggregating 869,000 RSF. 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) Future Opportunities Subject to Market Conditions and Leasing Under Construction Priority Anticipated Future New York City Megacampus: Alexandria Center ® for Life Science – New York City/New York City 100% $ 168,423 — — 550,000 (2) 550,000 168,423 — — 550,000 550,000 Texas Alexandria Center ® for Advanced Technologies at The Woodlands/Greater Houston 100% 49,118 73,298 — 116,405 189,703 8800 Technology Forest Place 1001 Trinity Street and 1020 Red River Street/Austin 100% 10,533 — 126,034 123,976 250,010 Other development and redevelopment projects 100% 56,798 — — 344,000 344,000 116,449 73,298 126,034 584,381 783,713 Canada 100% 51,596 139,311 — 371,743 511,054 Other development and redevelopment projects 100% 121,396 — — 724,349 724,349 Total pipeline as of December 31, 2024 , excluding properties held for sale 8,618,727 4,357,276 2,134,948 23,696,280 30,188,504 Properties held for sale 237,739 — — 2,390,856 2,390,856 Total pipeline as of December 31, 2024 $ 8,856,466 (3) 4,357,276 2,134,948 26,087,136 32,579,360 Refer to “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional information.
Refer to “Legal proceedings” in Item 3 for additional details. 82 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) Under Construction Future Texas Alexandria Center ® for Advanced Technologies at The Woodlands/Greater Houston 100% $ 49,691 73,298 116,405 189,703 8800 Technology Forest Place 1001 Trinity Street and 1020 Red River Street/Austin 100% 135,868 — 250,010 250,010 Other development and redevelopment projects 100% 60,241 — 344,000 344,000 245,800 73,298 710,415 783,713 Other development and redevelopment projects 100% 47,504 — 597,743 597,743 Total pipeline as of December 31, 2025 , excluding properties held for sale 6,788,464 3,563,154 19,907,130 23,470,284 Properties held for sale 261,208 — 1,893,281 1,893,281 Total pipeline as of December 31, 2025 $ 7,049,672 (2) 3,563,154 21,800,411 25,363,565 Refer to “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional information.
Leases in our multi-tenant buildings typically have initial terms o f 3 to 9 year s, while leases in our single-tenant buildings typically have initial terms o f 5 to 15 ye ars.
As of December 31, 2025 , we had approximately 850 leases and 142 , or 42% , of our 340 properties were single-tenant properties. Leases in our multi-tenant buildings typically have initial terms of 3 to 9 years , while leases in our single-tenant buildings typically have initial terms of 5 to 15 years .
(3) Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 for additional information, including total project costs. 65 Summary of contractual lease expirations The following table summarizes the contractual lease expirations at our properties as of December 31, 2024 : Year RSF Percentage of Occupied RSF Annual Rental Revenue (per RSF) (1) Percentage of Annual Rental Revenue 2025 (2) 3,708,195 10.0% $ 45.91 8.2% 2026 2,826,993 7.7% $ 50.73 6.9% 2027 3,302,598 8.9% $ 53.80 8.6% 2028 3,944,440 10.7% $ 49.78 9.5% 2029 2,385,914 6.5% $ 51.30 5.9% 2030 3,144,561 8.5% $ 43.11 6.5% 2031 3,433,958 9.3% $ 54.76 9.1% 2032 1,005,689 2.7% $ 58.96 2.9% 2033 2,585,813 7.0% $ 47.77 5.9% 2034 3,304,105 8.9% $ 66.90 10.6% Thereafter 7,291,855 19.8% $ 73.85 25.9% Contractual lease expirations for properties classified as held for sale as of December 31, 2024 are excluded from the information on this page.
Summary of contractual lease expirations The following table summarizes the contractual lease expirations at our properties as of December 31, 2025 : Year RSF Percentage of Occupied RSF Annual Rental Revenue (per RSF) (1) Percentage of Annual Rental Revenue 2026 (2) 2,900,665 9.3% $ 52.73 8.2% 2027 3,220,834 10.3% $ 54.52 9.4% 2028 3,848,085 12.4% $ 51.80 10.7% 2029 1,741,417 5.6% $ 46.91 4.4% 2030 2,482,633 8.0% $ 43.28 5.7% 2031 3,550,982 11.4% $ 54.17 10.3% 2032 864,810 2.8% $ 58.02 2.7% 2033 2,164,696 6.9% $ 50.94 5.9% 2034 2,733,787 8.8% $ 67.66 9.9% 2035 1,042,126 3.3% $ 57.39 3.2% Thereafter 6,601,764 21.2% $ 84.09 29.6% Contractual lease expirations for properties classified as held for sale as of December 31, 2025 are excluded from the information on this page.
Refer to “Legal proceedings” in Item 3 for additional details . (3) Includes $3.9 billion of projects that are currently under construction . 82
(2) Includes $3.18 billion of projects that are currently under construction. 83
(2) Image represents 10955 Alexandria Way on the One Alexandria Square Megacampus. 72 New Class A/A+ development and redevelopment properties: recent deliveries (continued) The following table presents development and redevelopment of new Class A/A+ projects placed into service during the year ended December 31, 2024 (dollars in thousands): Incremental Annual Net Operating Income Generated From 2024 Deliveries Aggregated $118 Million , Including $55 Million in 4Q24 Property/Market/Submarket 4Q24 Delivery Date (1) Our Ownership Interest RSF Placed in Service Occupancy Percentage (2) Total Project Unlevered Yields Prior to 1/1/24 1Q24 2Q24 3Q24 4Q24 Total Initial Stabilized Initial Stabilized (Cash Basis) RSF Investment Development projects 99 Coolidge Avenue/Greater Boston/ Cambridge/Inner Suburbs N/A 75.0% 43,568 72,846 — — — 116,414 100% 320,809 $ 468,000 7.1% 7.0% 500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/Cambridge/Inner Suburbs 11/1/24 100% — 100,624 37,913 — 73,037 211,574 100% 248,018 427,000 6.2 5.5 201 Brookline Avenue/Greater Boston/ Fenway 10/30/24 99.0% 451,967 — — — 60,782 512,749 98% 512,749 787,000 7.3 6.6 10935, 10945, and 10955 Alexandria Way/ San Diego/Torrey Pines 11/1/24 100% — — — — 93,492 93,492 100% 334,996 503,000 6.2 5.8 4155 Campus Point Court/San Diego/ University Town Center 11/7/24 55.0% — — — — 171,102 171,102 100% 171,102 184,000 8.0 6.4 1150 Eastlake Avenue East/Seattle/Lake Union N/A 100% 278,282 — 2,079 31,270 — 311,631 100% 311,631 442,000 6.6 6.7 9810 Darnestown Road/Maryland/Rockville N/A 100% — — 195,435 — — 195,435 100% 195,435 135,000 7.1 6.2 9820 Darnestown Road/Maryland/Rockville N/A 100% — — — 250,000 — 250,000 100% 250,000 177,000 8.7 5.6 9808 Medical Center Drive/Maryland/ Rockville 12/31/24 100% 26,460 — 25,655 13,056 29,890 95,061 69% 95,061 114,000 5.4 5.4 Redevelopment projects 840 Winter Street/Greater Boston/Route 128 11/22/24 100% — — — — 139,984 139,984 100% 168,214 224,000 7.9 (3) 6.7 (3) 651 Gateway Boulevard/San Francisco Bay Area/South San Francisco N/A 50.0% — 44,652 — 22,365 — 67,017 100% 326,706 487,000 5.0 5.1 Alexandria Center ® for Advanced Technologies – Monte Villa Parkway/ Seattle/Bothell 12/31/24 100% 65,086 115,598 — — 34,306 214,990 90% 460,934 216,000 6.3 6.2 Canada N/A 100% 44,862 9,725 23,900 — — 78,487 100% 250,790 113,000 6.4 6.3 Weighted average/total 11/7/24 910,225 343,445 284,982 316,691 602,593 2,457,936 3,646,445 $ 4,277,000 6.7% 6.2% (1) Represents the average delivery date for deliveries that occurred during the three months ended December 31, 2024 , weighted by annual rental revenue.
(2) Image represents 10955 Alexandria Way on the One Alexandria Square Megacampus. 74 New Class A/A+ development and redevelopment properties: recent deliveries (continued) Incremental Annual Net Operating Income Generated From 2025 Deliveries Aggregated $78 Million (1) , Including $10 Million in 4Q25 The following table presents development and redevelopment of new Class A/A+ projects placed into service during the year ended December 31, 2025 (dollars in thousands): Property/Market/Submarket 4Q25 Delivery Date (2) Our Ownership Interest RSF Placed in Service Occupancy Percentage (3) Total Project Unlevered Yields Prior to 1/1/25 1Q25 2Q25 3Q25 4Q25 Total Initial Stabilized Initial Stabilized (Cash Basis) RSF Investment Development projects 99 Coolidge Avenue/Greater Boston/ Cambridge/Inner Suburbs N/A 100% 116,414 — — 12,999 — 129,413 100% 320,809 $ 444,000 6.0% 6.8% 500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/Cambridge/Inner Suburbs N/A 100% 211,574 — — 36,444 — 248,018 92% 248,018 429,000 6.5 5.9 230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco N/A 48.6% — 285,346 — — — 285,346 100% 285,346 476,000 7.5 6.2 10935, 10945, and 10955 Alexandria Way/ San Diego/Torrey Pines N/A 100% 93,492 — 119,202 122,302 — 334,996 100% 334,996 480,000 7.2 6.9 10075 Barnes Canyon Road/San Diego/ Sorrento Mesa 12/18/25 50.0% — 17,718 — 13,772 139,979 171,469 100% 253,079 321,000 5.5 5.7 Weighted average/total 12/18/25 421,480 303,064 119,202 185,517 139,979 1,169,242 1,442,248 $ 2,150,000 6.6% 6.3% Assets sold in 2025 or designated as held for sale in 4Q25: 651 Gateway Boulevard/San Francisco Bay Area/South San Francisco (4) N/A N/A 67,017 — 22,005 — — 89,022 N/A Canada (5) N/A N/A 78,487 6,430 76,567 — — 161,484 N/A (1) Excludes future incremental annual net operating income from recently delivered spaces aggregating 20,444 RSF that were vacant and/or unleased at delivery.
Accordingly, we adjusted the development project RSF and its related book value to reflect 109,435 RSF, with our ownership share expected to be 25% at completion of the project. 76 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 2025 stabilization 500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs 100% $ 378,021 $ 37,026 $ 11,953 $ 427,000 6.2% 5.5% 230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco 48.2% — 404,591 105,409 510,000 7.4% 6.4% Canada 100% 50,235 51,596 11,169 113,000 6.4% 6.3% 428,256 493,213 2026 and beyond stabilization (1) One Hampshire Street/Greater Boston/Cambridge 100% — 164,957 TBD 311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs 100% 60,649 240,342 99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs 75.0% 136,635 196,917 134,448 468,000 7.1% 7.0% 401 Park Drive/Greater Boston/Fenway 100% — 151,301 TBD 421 Park Drive/Greater Boston/Fenway 99.8% — 463,079 40, 50, and 60 Sylvan Road/Greater Boston/Route 128 100% — 449,484 Other/Greater Boston 100% — 151,464 1450 Owens Street/San Francisco Bay Area/Mission Bay 25.1% — 121,957 651 Gateway Boulevard/San Francisco Bay Area/South San Francisco 50.0% 87,376 258,708 140,916 487,000 5.0% 5.1% 269 East Grand Avenue/San Francisco Bay Area/South San Francisco 100% — 66,184 TBD 10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines 100% 100,944 323,993 78,063 503,000 6.2% 5.8% 4135 Campus Point Court/San Diego/University Town Center 55.0% — 347,039 176,961 524,000 6.6% 6.2% 10075 Barnes Canyon Road/San Diego/Sorrento Mesa 50.0% — 183,733 137,267 321,000 5.5% 5.7% 701 Dexter Avenue North/Seattle/Lake Union 100% — 234,908 TBD 8800 Technology Forest Place/Texas/Greater Houston 100% 59,794 46,278 5,928 112,000 6.3% 6.0% 445,398 3,400,344 $ 873,654 $ 3,893,557 $ 2,740,000 (2) $ 7,510,000 (2) Our share of investment (2)(3) $ 800,000 $ 3,180,000 $ 2,400,000 $ 6,380,000 Refer to “ Initial stabilized yield (unlevered) ” under “ Definitions and reconciliations ” in Item 7 for additional information.
We expect to fund the majority of future construction costs at the Megacampus until our ownership interest increases to 75% , after which future capital would be contributed pro rata with our joint venture partner. 78 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 2026 stabilization with 86% leased/negotiating 99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs 100% $ 162,887 $ 210,603 $ 70,510 $ 444,000 6.0% 6.8% 4135 Campus Point Court/San Diego/University Town Center 56.4% — 434,465 89,535 524,000 9.4% 6.2% 10075 Barnes Canyon Road/San Diego/Sorrento Mesa 50.0% 123,133 132,793 65,074 321,000 5.5% 5.7% 286,020 777,861 2027-2028 stabilization with 51% leased/negotiating (1) 311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs 100% 21,854 306,028 TBD 50 and 60 Sylvan Road/Greater Boston/Route 128 100% — 345,046 1450 Owens Street/San Francisco Bay Area/Mission Bay 25.0% — 247,271 269 East Grand Avenue/San Francisco Bay Area/South San Francisco 100% — 119,546 Campus Point by Alexandria/San Diego/University Town Center (2) 56.4% — 62,790 597,210 660,000 7.3% 6.5% 701 Dexter Avenue North/Seattle/Lake Union 100% — 302,126 TBD 21,854 1,382,807 Evaluating business strategy with 8% leased/negotiating 8800 Technology Forest Place/Texas/Greater Houston 100% 60,938 46,578 4,484 112,000 6.3% 6.0% 3000 Minuteman Road/Greater Boston/Other 100% — 163,966 TBD 40 Sylvan Road/Greater Boston/Route 128 100% — 225,791 421 Park Drive/Greater Boston/Fenway 100% — 584,009 60,938 1,020,344 Total under construction $ 368,812 $ 3,181,012 $ 2,110,000 (3) $ 5,660,000 (3) Our share of investment (3)(4) $ 310,000 $ 2,710,000 $ 1,710,000 $ 4,730,000 Refer to “ Initial stabilized yield (unlevered) ” under “ Definitions and reconciliations ” in Item 7 for additional information.
Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements in Item 15 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) Future Opportunities Subject to Market Conditions and Leasing Under Construction Priority Anticipated Future San Diego Megacampus: One Alexandria Square/Torrey Pines 100% $ 382,913 241,504 — 125,280 366,784 10935 and 10945 Alexandria Way and 10975 and 10995 Torreyana Road Megacampus: Campus Point by Alexandria/University Town Center 55.0% 492,221 426,927 333,414 634,043 1,394,384 10010 (2) , 10140 (2) , 10210, and 10260 Campus Point Drive and 4135, 4161, 4165, and 4224 Campus Point Court Megacampus: SD Tech by Alexandria/Sorrento Mesa 50.0% 346,929 253,079 250,000 243,845 746,924 9805 Scranton Road and 10075 Barnes Canyon Road 11255 and 11355 North Torrey Pines Road/Torrey Pines 100% 153,104 — 153,000 62,000 215,000 Megacampus: 5200 Illumina Way/University Town Center 51.0% 17,443 — — 451,832 451,832 9625 Towne Centre Drive/University Town Center 30.0% 837 — — 100,000 100,000 Megacampus: Sequence District by Alexandria/Sorrento Mesa 100% 46,323 — — 1,798,915 1,798,915 6260, 6290, 6310, 6340, 6350, and 6450 Sequence Drive Scripps Science Park by Alexandria/Sorrento Mesa 100% 42,417 — — 154,308 154,308 10256 and 10260 Meanley Drive 4075 Sorrento Valley Boulevard/Sorrento Valley 100% 19,130 — — 144,000 144,000 Other development and redevelopment projects (3) 76,843 — — 475,000 475,000 $ 1,578,160 921,510 736,414 4,189,223 5,847,147 Refer to “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional information.
Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties. 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) Under Construction Future San Francisco Bay Area Megacampus: Alexandria Center ® for Science and Technology – Mission Bay/Mission Bay 25.0% $ 247,271 212,796 — 212,796 1450 Owens Street Megacampus: Alexandria Center ® for Advanced Technologies – South San Francisco/South San Francisco 100% 126,201 107,250 90,000 197,250 211 (2) and 269 East Grand Avenue Megacampus: Alexandria Center ® for Advanced Technologies – Tanforan/South San Francisco 100% 436,956 — 1,930,000 1,930,000 1122, 1150, and 1178 El Camino Real Alexandria Center ® for Life Science – Millbrae/South San Francisco 48.6% 160,822 — 348,401 348,401 201 and 231 Adrian Road and 30 Rollins Road Megacampus: Alexandria Center ® for Life Science – San Carlos/Greater Stanford 100% 486,468 — 1,497,830 1,497,830 960 Industrial Road, 987 and 1075 Commercial Street, and 888 Bransten Road 2100, 2200, 2300, and 2400 Geng Road/Greater Stanford 100% 83,082 — 240,000 240,000 1,540,800 320,046 4,106,231 4,426,277 San Diego Megacampus: Campus Point by Alexandria/University Town Center 56.4% (3) 643,229 893,525 500,859 1,394,384 10010 (4) , 10140 (4) , 10210, and 10260 Campus Point Drive and 4135, 4161, 4165, and 4224 Campus Point Court Megacampus: SD Tech by Alexandria/Sorrento Mesa 50.0% 249,021 81,610 493,845 575,455 9805 Scranton Road and 10075 Barnes Canyon Road 11255 and 11355 North Torrey Pines Road/Torrey Pines 100% 161,539 — 215,000 215,000 Megacampus: One Alexandria Square/Torrey Pines 100% 65,706 — 125,280 125,280 10975 and 10995 Torreyana Road Megacampus: 5200 Illumina Way/University Town Center 51.0% 17,982 — 451,832 451,832 9625 Towne Centre Drive/University Town Center 30.0% 837 — 100,000 100,000 Megacampus: Sequence District by Alexandria/Sorrento Mesa 100% 48,992 — 1,661,915 1,661,915 6290, 6310, 6340, 6350, and 6450 Sequence Drive 4075 Sorrento Valley Boulevard/Sorrento Valley 100% 29,224 — 144,000 144,000 Other development and redevelopment projects (2) 78,036 — 475,000 475,000 $ 1,294,566 975,135 4,167,731 5,142,866 Refer to “Megacampus™” under “ Definitions and reconciliations ” in Item 7 for additional information.
(2) Refer to “Sales of real estate assets and impairment charges” in Note 3 – “Investments in real estate” to our consolidated financial statements in Item 15 for additional information.
As a result, we sold the consolidated joint ventures for a gross price of $600.0 million ( $560.4 million net of seller credits and sales costs), of which our share of the price (after seller credits) was $283.2 million . Refer to Note 3 – “Investments in real estate” to our consolidated financial statements in Item 15 for additional information.
The following table sets forth the total RSF, number of properties, and annual rental revenue in effect as of December 31, 2024 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 9,260,235 632,850 1,601,010 11,494,095 26% 64 $ 760,564 36% $ 86.67 San Francisco Bay Area 7,680,005 394,781 366,939 8,441,725 19 65 443,345 21 66.78 San Diego 7,382,450 921,510 — 8,303,960 19 79 326,925 16 45.97 Seattle 3,186,812 227,577 — 3,414,389 8 45 136,014 5 46.19 Maryland 3,849,928 — — 3,849,928 9 50 144,032 7 39.53 Research Triangle 3,802,204 — — 3,802,204 9 38 116,808 6 31.53 New York City 921,774 — — 921,774 2 4 73,534 4 90.26 Texas 1,845,159 — 73,298 1,918,457 4 15 44,022 2 24.99 Canada 888,189 — 139,311 1,027,500 2 11 19,661 1 23.08 Non-cluster/other markets 349,099 — — 349,099 1 10 15,027 1 59.35 Properties held for sale 600,870 — — 600,870 1 10 13,056 1 N/A North America 39,766,725 2,176,718 2,180,558 44,124,001 100% 391 $ 2,092,988 100% $ 56.98 4,357,276 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 12/31/24 12/31/23 12/31/22 12/31/24 12/31/23 12/31/22 Greater Boston 94.8% 94.9% 94.5% 80.8% 84.7% 85.5% San Francisco Bay Area 93.3 94.8 96.7 89.1 91.4 93.3 San Diego 96.3 94.1 95.4 96.3 94.1 95.4 Seattle 92.4 95.2 97.0 92.4 90.7 90.1 Maryland 95.7 95.6 95.8 95.7 95.6 93.3 Research Triangle 97.4 97.8 94.0 97.4 97.8 85.0 New York City 88.4 (1) 85.3 92.3 88.4 85.3 92.3 Texas 95.5 95.1 91.2 91.8 91.5 81.6 Subtotal 94.8 94.9 95.1 90.0 90.7 89.9 Canada 95.9 87.1 80.8 82.9 73.0 68.2 Non-cluster/other markets 72.5 78.5 75.0 72.5 78.5 75.0 North America 94.6% (2) 94.6% 94.8% 89.7% 90.2% 89.4% (1) The Ale xandria Center ® for Life Science – New York City Megacampus is 98.7% occupied as of December 31, 2024 .
The following table sets forth the total RSF, number of properties, and annual rental revenue in effect as of December 31, 2025 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 9,220,527 583,407 1,383,691 11,187,625 28% 62 $ 709,347 37% $ 89.07 San Francisco Bay Area 6,131,550 212,796 107,250 6,451,596 16 53 347,448 18 68.83 San Diego 6,093,824 975,135 — 7,068,959 19 59 320,581 18 54.14 Seattle 2,926,554 227,577 — 3,154,131 8 42 121,514 6 46.95 Maryland 3,732,888 — — 3,732,888 9 48 153,169 8 44.35 Research Triangle 3,435,634 — — 3,435,634 9 34 94,667 5 28.94 New York City 729,461 — — 729,461 2 2 66,085 3 93.96 Texas 1,646,187 — 73,298 1,719,485 4 13 36,866 2 28.02 Non-cluster/other markets (1) 414,216 — — 414,216 1 7 12,379 1 32.75 Properties held for sale 1,555,377 — — 1,555,377 4 20 37,697 2 36.46 North America 35,886,218 1,998,915 1,564,239 39,449,372 100% 340 $ 1,899,753 100% $ 59.97 3,563,154 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 12/31/25 12/31/24 12/31/23 12/31/25 12/31/24 12/31/23 Greater Boston 86.4% 94.8% 94.9% 75.1% 80.8% 84.7% San Francisco Bay Area 90.9 93.3 94.8 89.4 89.1 91.4 San Diego 97.2 96.3 94.1 97.2 96.3 94.1 Seattle 88.4 (2) 92.4 95.2 88.4 92.4 90.7 Maryland 93.6 95.7 95.6 93.6 95.7 95.6 Research Triangle 95.2 97.4 97.8 95.2 97.4 97.8 New York City 96.4 88.4 85.3 96.4 88.4 85.3 Texas 79.9 95.5 95.1 76.5 91.8 91.5 Subtotal 90.9 94.8 94.9 86.9 90.0 90.7 Canada N/A (3) 95.9 87.1 N/A 82.9 73.0 Non-cluster/other markets 91.2 (1) 72.5 78.5 91.2 72.5 78.5 North America 90.9% (4) 94.6% 94.6% 86.9% 89.7% 90.2% (1) Includes one property aggregating 247,743 RSF previously included in our Canada market.
(2) Includes temporary vacancy as of December 31, 2024 aggregating 278,528 RSF that is leased and expected to be occupied upon completion of the tenant improvement to the spaces.
(4) Includes temporary vacancies as of December 31, 2025 aggregating 899,259 RSF, or 2.5% of total operating RSF, primarily in the Greater Boston, San Francisco Bay Area, and Seattle markets, which are leased and expected to be occupied upon completion of building and/or tenant improvements.
We expect downtime on the 768,080 RSF to range from 12 to 24 months on a weighted-average basis. Our guidance assumes these properties remain operating properties and are included in our same property pool for the year ending December 31, 2025.
We expect downtime for 2026 key lease expirations to be approximately 6 to 24 months on a weighted-average basis, and we expect these properties to remain operating properties.
(3) Represents the leased/negotiating percentage of development and redevelopment projects that are expected to stabilize during 2025. 71 New Class A/A+ development and redevelopment properties: recent deliveries 500 North Beacon Street and 4 Kingsbury Avenue (1) 201 Brookline Avenue 840 Winter Street Greater Boston/ Cambridge/Inner Suburbs Greater Boston/Fenway Greater Boston/Route 128 211,574 RSF 512,749 RSF 139,984 RSF 100% Occupancy 98% Occupancy 100% Occupancy 10935, 10945, and 10955 Alexandria Way (2) 4155 Campus Point Court 9808 Medical Center Drive San Diego/Torrey Pines San Diego/ University Town Center Maryland/Rockville 93,492 RSF 171,102 RSF 95,061 RSF 100% Occupancy 100% Occupancy 69% Occupancy (1) Image represents 500 North Beacon Street on The Arsenal on the Charles Megacampus.
Does not include RSF for partial deliveries through 2026 from projects expected to stabilize in 2027 - 2028 . 73 New Class A/A+ development and redevelopment properties: recent deliveries 99 Coolidge Avenue 500 North Beacon Street and 4 Kingsbury Avenue (1) Greater Boston/ Cambridge/Inner Suburbs Greater Boston/ Cambridge/Inner Suburbs 129,413 RSF 248,018 RSF 100% Occupancy 92% Occupancy 230 Harriet Tubman Way 10935, 10945, and 10955 Alexandria Way (2) 10075 Barnes Canyon Road San Francisco Bay Area/ South San Francisco San Diego/Torrey Pines San Diego/Sorrento Mesa 285,346 RSF 334,996 RSF 171,469 RSF 100% Occupancy 100% Occupancy 100% Occupancy (1) Image represents 500 North Beacon Street on The Arsenal on the Charles Megacampus.
(2) 8.7 312,805 33,543 1.6 — — $ 0.2 9 United States Government 5.6 429,359 28,861 1.4 Aaa AA+ $ — 10 Cloud Software Group, Inc. 2.2 (3) 292,013 28,537 1.4 — — $ — 11 Novartis AG 3.5 448,690 27,958 1.3 Aa3 AA- $ 235.1 12 Uber Technologies, Inc. 57.8 (4) 1,009,188 27,787 1.3 Baa2 BBB- $ 147.7 13 AstraZeneca PLC 4.8 450,848 27,226 1.3 A2 A+ $ 226.6 14 Boston Children's Hospital 12.2 309,231 26,154 1.2 Aa2 AA $ — 15 The Regents of the University of California 6.4 372,647 23,515 1.1 Aa2 AA $ — 16 Sanofi 6.0 267,278 21,444 1.0 A1 AA $ 127.9 17 Merck & Co., Inc. 8.5 337,703 21,401 1.0 A1 A+ $ 300.0 18 New York University 7.1 218,983 21,056 1.0 Aa2 AA- $ — 19 Charles River Laboratories, Inc. 10.3 255,635 20,578 1.0 — — $ 11.1 20 Massachusetts Institute of Technology 5.0 237,849 20,228 1.0 Aaa AAA $ — Total/weighted-average 9.3 (4) 10,378,240 $ 741,965 35.4% Annual rental revenue and RSF include 100% of each property managed by us in North America.
(2) 13.1 311,806 40,005 2.1 — — $ — 6 AstraZeneca PLC 6.1 440,087 39,413 2.1 A1 A+ $ 237.13 7 Illumina, Inc. 5.8 792,687 29,977 1.6 Baa3 BBB $ 15.91 8 Novartis AG 2.1 377,095 29,463 1.6 Aa3 AA- $ 251.26 9 United States Government 4.6 414,499 29,243 (3) 1.5 Aaa AA+ $ — 10 Uber Technologies, Inc. 56.8 (4) 1,009,188 27,831 1.5 Baa1 BBB $ 176.44 11 Boston Children's Hospital 11.2 309,231 26,294 1.4 Aa2 AA $ — 12 Sanofi 5.0 267,278 21,851 1.2 Aa3 AA $ 125.29 13 Alphabet Inc. 2.4 418,600 21,837 1.1 Aa2 AA+ $ 2,562.42 14 New York University 6.6 218,983 21,110 1.1 Aa2 AA- $ — 15 Cloud Software Group Holdings, Inc. 0.7 216,278 20,553 1.1 — — $ — 16 Massachusetts Institute of Technology 4.0 242,428 20,529 1.1 Aaa AAA $ — 17 Charles River Laboratories, Inc. 9.7 242,693 20,207 1.1 — — $ 7.97 18 Merck & Co., Inc. 8.0 (5) 308,356 19,610 1.0 Aa3 A+ $ 219.09 19 Vaxcyte, Inc. 9.0 230,755 18,692 1.0 — — $ 6.09 20 Altos Labs, Inc.
(2) Occupancy relates to total operating RSF placed in service as of the most recent delivery. (3) Represents initial stabilized yields upon completion and delivery of the project during the three months ended December 31, 2024.
(2) Represents the average delivery date for deliveries that occurred during the three months ended December 31, 2025 , weighted by annual rental revenue. (3) Occupancy reflects total operating RSF placed in service as of each respective delivery date when the space was placed into service. Subsequent occupancy changes are not reflected.
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We rely on a multidisciplinary team, including our information security function, legal department, management, and third-party service providers, as described further below, to identify, assess, and manage cybersecurity threats and risks.
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(2) Decline in occupancy primarily related to temporary vacancy from one lease expiration aggregating 50,552 RSF in our Bothell submarket. This space is already re- leased, with occupancy expected to commence in 1Q26. (3) 10 properties in Canada were designated as held for sale in 4Q25 and the one remaining pro perty was reclassified into our non-cluster market.
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As of December 31, 2024 , we had over 1,000 le ases with a total of approximately 800 tena nts, and 171 , or 44% , of our 391 properties were single-tenant properties.
Added
(6) 15.3 158,990 18,406 1.0 — — $ — Total/weighted-average 9.7 (4) 9,316,391 $ 725,559 38.4% Annual rental revenue and RSF include 100% of each property managed by us in North America.
Removed
Occupancy percentage in our New York City market reflects vacancy at the Alexandria Center ® fo r Life Science – Long Island City property, which was 45.7% occupied as of December 31, 2024 .
Added
(1) Based on total annual rental revenue in effect as of December 31, 2025 . (2) Eikon Therapeutics, Inc. is a private biotechnology company led by renowned biopharmaceutical executive Roger Perlmutter, formerly an executive vice president at Merck & Co., Inc. As of February 25, 2025, the company has raised over $1.16 billion in private venture capital funding.
Removed
(1) Based on total annual rental revenue in effect as of December 31, 2024 . (2) Includes approximately 195,000 RSF, or 62.8% of the annual rental revenue generated from 2seventy bio as of December 31, 2024 , that is subleased to Regeneron Pharmaceuticals, Inc., an investment-grade publicly traded biotechnology company.
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(3) Includes leases, which are not subject to annual appropriations, with governmental entities such as the NIH and the General Services Administration. Approximately 2% of the annual rental revenue derived from our leases with the United States Government is cancellable prior to the lease expiration date.
Removed
As of September 30, 2024 , 2seventy bio, Inc. held $192.4 million of cash, cash equivalents, and marketable securities. Additionally, 90.2% of the annual rental revenue generated by 2seventy bio is guaranteed by another related public biotechnology company. (3) Consists of one lease at a property acquired in 2022 with future development and redevelopment opportunities.
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(5) Represents one lease encompassing three properties located on the Alexandria Stanford Life Science District campus, which w e acquired in 2022 and for which we are evaluating business strategy based on market conditions. This lease with Cloud Software Group, Inc.
Removed
This lease with Cloud Software Group, Inc. (formerly known as TIBCO Software, Inc.) was in place when we acquired the property.
Added
(formerly known as TIBCO Software, Inc.) was in place when we acquired the properties, of which 137,970 RSF has lease expirations through 2026 . Refer to “Summary of contractual lease expirations” in Item 2 for additional details. (6) Altos Labs, Inc. is a private biotechnology company led by Hal Barron, M.D., former Chief Scientific Officer of GlaxoSmithKline.
Removed
(1) Represents the percentage of our annual rental revenue generated by technology, professional services, finance, telecommunications, and construction/real estate companies, as well as retail-related tenants, which generate less than 1.0% of our annual rental revenue. (2) Represents the average occupancy percentage of operating properties as of each December 31 from 2015 through 2024.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe market price per share of our common stock may fluctuate significantly in response to a variety of factors, many of which are beyond our control, including, but not limited to: • The availability and cost of debt and/or equity capital; • The condition of our balance sheet; • Actual or anticipated capital requirements; • The condition of the financial and banking industries; • Actual or anticipated variations in our quarterly operating results or dividends; • The amount and timing of debt maturities and other contractual obligations; • Changes in our net income, funds from operations, or guidance; • The publication of research reports and articles (or false or misleading information) about us, our tenants, the real estate industry, or the life science industry; • The general reputation of REITs and the attractiveness of their equity securities in comparison to other debt or equity securities (including securities issued by other real estate-based companies); • General stock and bond market conditions, including changes in interest rates on fixed-income securities, that may lead prospective stockholders to demand a higher annual yield from future dividends; • Changes in our analyst ratings; • Changes in our corporate credit ratings or credit ratings of our debt or other securities; • Changes in market valuations of similar companies; • Adverse market reaction to any additional debt we incur or equity we raise in the future; • Additions, departures, or other announcements regarding our key management personnel and/or the Board of Directors; 18 • Actions by institutional stockholders; • Speculation in the press or investment community; • Short selling of our common stock or related derivative securities; • The publication or dissemination of opinions, characterizations, or disinformation that are intended to create negative market momentum, including through the use of social media; • Risks associated with generative artificial intelligence tools and large language models and the conclusions that these tools and models may draw about our business and prospects in connection with the dissemination of negative opinions, characterizations, or disinformation; • Terrorist activity adversely affecting the markets in which our securities trade, possibly increasing market volatility and causing the further erosion of business and consumer confidence and spending; • Government regulatory action and changes in tax laws; • Fiscal policies or inaction at the U.S. federal government level that may lead to federal government shutdowns or negative impacts on the U.S. economy; • Fluctuations due to general market volatility; • Disruptions in the banking sector or failures of financial institutions that we or our tenants may or may not have business relationships with; • Global market factors adversely affecting the U.S. economic and political environment; • General market and economic conditions; and • The realization of any of the other risk factors included in this annual report on Form 10-K.
Biggest changeFailure to meet market expectations, including with respect to earnings estimates, funds from operations per share, operating cash flows, and revenues, or the occurrence of a wide range of operational and external factors beyond our control, including, but not limited to, those provided below, has adversely affected, and may in the future adversely affect the market price and volatility of our common stock: • The status of the economy; • Fluctuations due to general market volatility; • The condition of the financial and banking industries, disruptions in the banking sector, or failures of financial institutions that we or our tenants may or may not have business relationships with; • The availability and cost of debt and/or equity capital and changes in financing terms available to us; • Our ability to execute planned asset dispositions at our targeted pricing levels and to effectively reinvest the resulting proceeds in a manner that supports our strategic and financial objectives; • Adverse market reaction to any additional debt we incur or equity we raise in the future; • General stock and bond market conditions, including changes in interest rates on fixed-income securities, that may lead prospective stockholders to demand a higher annual yield from future dividends; • Actual or anticipated capital requirements; • The amount and timing of debt maturities and other contractual obligations; • The condition of our balance sheet; • Actual or anticipated variations in our quarterly or annual operating results, dividends, net income, funds from operations, or guidance; • Actual or anticipated changes in rental rates, leasing activity, occupancy levels, or real estate valuations; • Our ability to re‑lease space at similar rates as leases expire; • Our ability to successfully complete developments or redevelopments of properties for lease on time and/or within budget; • Our ability to procure third‑party suppliers or providers of necessary construction materials for our developments and redevelopments of properties; • Unanticipated difficulties and/or expenditures relating to future acquisitions; • Changes in our analyst ratings; • Changes in our corporate credit ratings or credit ratings of our debt or other securities; • Additions, departures, or other announcements regarding our key management personnel and/or the Board of Directors; • Changes in market valuations of similar companies; • The publication of research reports and articles (or false or misleading information) about us, our tenants, the real estate industry, or the life science industry; • The general reputation of REITs and the attractiveness of their equity securities in comparison to other debt or equity securities (including securities issued by other real estate-based companies); • Actions by institutional stockholders; • Speculation in the press or investment community; • Short selling of our common stock or related derivative securities; • The publication or dissemination of opinions, characterizations, or disinformation that are intended to create negative market momentum, including through the use of social media; • Risks associated with generative artificial intelligence tools and large language models and the conclusions that these tools and models may draw about our business and prospects in connection with the dissemination of negative opinions, characterizations, or disinformation; • Government regulatory action and changes in tax laws; • Fiscal policies or inaction at the U.S. federal government level that may lead to federal government shutdowns or negative impacts on the U.S. economy; • Negative developments in the operating results or financial condition of tenants, including, but not limited to, their ability to pay rent; • Regulatory approval and market acceptance of the products and technologies of tenants; 18 • Liability or contract claims by or against tenants; • Environmental laws affecting our properties; • Changes in rules or practices governing our financial reporting; • Other legal and operational matters, including REIT qualification and key management personnel recruitment and retention; • Global market factors adversely affecting the U.S. economic and political environment; • Terrorist activity adversely affecting the markets in which our securities trade, possibly increasing market volatility and causing the further erosion of business and consumer confidence and spending; and • The realization of any of the other risk factors included in this annual report on Form 10-K.
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.
Risks related to general and other factors • Social, political, and economic instability, unrest, significant changes, and other circumstances beyond our control, including circumstances related to changes in the U.S. political landscape, could adversely affect our business operations. • Seasonal weather conditions, climate change and severe weather, changes in the availability of transportation or labor, and other related factors may affect our ability to conduct business, the products and services of our tenants, or the availability of such products and services of our tenants and the companies in which we invest. • We may be unable to meet our sustainability goals. • Changes in privacy and information security laws, regulations, policies, and contractual obligations related to data privacy and security, or our failure to comply with such requirements, could subject us to fines or penalties or increase our cost of doing business, compliance risks, and potential liability and otherwise adversely affect our business or results of operations. • System failures or security incidents through cyberattacks, intrusions, or other methods could disrupt our information technology networks, enterprise applications, and related systems, cause a loss of assets or data, give rise to remediation or other expenses, expose us to liability under federal and state laws, and subject us to litigation and investigations, which could result in substantial reputational damage and adversely affect our business and financial condition. • The enactment of legislation, including the Inflation Reduction Act of 2022, may adversely impact our financial condition and results of operations.
Risks related to general and other factors • Social, political, and economic instability, unrest, significant changes, and other circumstances beyond our control, including circumstances related to changes in the U.S. political landscape, could adversely affect our business operations. • Seasonal weather conditions, climate change and severe weather, changes in the availability of transportation or labor, and other related factors may affect our ability to conduct business, the products and services of our tenants, or the availability of such products and services of our tenants and the companies in which we invest. • We may be unable to meet our sustainability goals. • Changes in privacy and information security laws, regulations, policies, and contractual obligations related to data privacy and security, or our failure to comply with such requirements, could subject us to fines or penalties or increase our cost of doing business, compliance risks, and potential liability and otherwise adversely affect our business or results of operations. • System failures or security incidents through cyberattacks, intrusions, or other methods could disrupt our information technology networks, enterprise applications, and related systems, cause a loss of assets or data, give rise to remediation or other expenses, expose us to liability under federal and state laws, and subject us to litigation and investigations, which could result in substantial reputational damage and adversely affect our business and financial condition. • The enactment of legislation, including the Inflation Reduction Act of 2022 (“IRA”), may adversely impact our financial condition and results of operations.
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.
Annually, our employee compensation is adjusted to reflect merit increases; however, to maintain our ability to successfully retain and 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.
However, noncompliance with the ADA could result in the imposition of fines or an award of damages to private litigants. The obligation to make readily achievable accommodations is an ongoing one, and we will continue to assess our properties and make alterations as appropriate in this respect.
However, noncompliance with the ADA could result in the imposition of fines or an award of damages to private litigants. The obligation to make readily achievable accommodations is an ongoing one, and we continue to assess our properties and make alterations as appropriate in this respect.
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 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 Megacampus™ ecosystems in AAA life science innovation clusters; • Maintaining geographic diversity in intellectual centers of innovation; • Selectively acquiring high-quality life science 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. 4 Competition In general, other 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; • Focusing on opportunities 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 operating assets, and sales of partial interests, and reinvesting the proceeds into our development and redevelopment projects; • Allocating capital to Class A/A+ properties located in collaborative Megacampus ecosystems in AAA life science innovation clusters; • Maintaining geographic diversity in intellectual centers of innovation; • Selectively acquiring high-quality life science 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. 4 Competition In general, other laboratory and technology properties are located in close proximity to our properties.
The amount of rentable space available in any market could have a material effect on our ability to rent space and on the rental rates we can attain for our properties. In addition, we compete for investment opportunities with other REITs, insurance companies, pension and investment funds, private equity entities, partnerships, developers, investment companies, owners/occupants, and foreign investors.
The amount of rentable space available in any market could have a material effect on our ability to rent space and on the rental rates we can achieve for our properties. In addition, we compete for investment opportunities with other REITs, insurance companies, pension and investment funds, private equity entities, partnerships, developers, investment companies, owners/occupants, and foreign investors.
As of December 31, 2024 , approximately 92% 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, 2025 , approximately 92% 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.
Investing in professional development and training We provide meaningful opportunities for growth and development through a variety of learning opportunities, including development programs that leverage social learning, instructor-led trainings, on-demand trainings and resources, and a highly utilized mentoring program.
Investing in professional development and training We provide meaningful opportunities for growth and development through a variety of learning opportunities, including development programs that leverage one-on-one support, social learning, instructor-led trainings, on-demand trainings and resources, and a highly utilized mentoring program.
We recognize that the fundamental strength of Alexandria is driven by the contributions of each and every team member and that our future growth relies on their continued success. We make substantial effort to hire, develop, and retain talented employees, and we have an exceptional track record of promoting highly qualified candidates from within the Company.
We recognize that the fundamental strength of Alexandria is driven by the contributions of each team member and that our future growth relies on their continued success. We make substantial efforts to hire, develop, and retain talented employees, and we have an exceptional track record of promoting highly qualified candidates from within the Company.
Alexandria’s executive and senior management teams have unique experience and expertise in creating, owning, and operating highly dynamic and collaborative Megacampus ecosystems in key life science cluster locations. These teams include regional market directors with leading reputations and longstanding relationships within the life science community in their respective markets.
Alexandria’s executive and senior management teams have unique experience and expertise in creating, owning, and operating highly dynamic and collaborative Megacampus ecosystems in key life science cluster locations. These teams include regional market directors with leading reputations and long-standing relationships within the life science community in their respective markets.
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. 6 Human capital As of December 31, 2024 , we had 552 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. 6 Human capital As of December 31, 2025 , we had 514 employees .
As of December 31, 2024 , approximately 97% of our leases (on an annual rental revenue basis) contained effective annual rent escalations approximating 3% that were either fixed or indexed based on the CPI or another index. We have long-term lease agreements with our tenants, of which 3% – 11% (based on occupied RSF) expire each year.
As of December 31, 2025 , approximately 97% of our leases (on an annual rental revenue basis) contained effective annual rent escalations approximating 3% that were either fixed or indexed based on the CPI or another index. We have long-term lease agreements with our tenants, of which 3% – 12% (based on occupied RSF) expire each year.
As of December 31, 2024 , approximately 92% of our existing leases (on an annual rental revenue basis) were triple net leases, which allow us to recover operating expenses, and approximately 92% o f our existing leases (on an annual rental revenue basis) also provided for the recapture of capital expenditures.
As of December 31, 2025 , approximately 92% of our existing leases (on an annual rental revenue basis) were triple net leases, which allow us to recover operating expenses, and approximately 92% of our existing leases (on an annual rental revenue basis) also provided for the recapture of capital expenditures.
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 outbreak of any highly infectious or contagious disease could adversely impact our financial condition and results of operations, and/or that of our tenants and non-real estate investments.
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 NIH, the SEC, and other agencies), support of early stage research, FDA effectiveness, tariffs, 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 (“R&D”), or delays surrounding approval of budget proposals. • The outbreak of any highly infectious or contagious disease could adversely impact our financial condition and results of operations, and/or that of our tenants and non-real estate investments.
Our unsecured senior line of credit restricts our ability to engage in some business activities.
Our unsecured senior line of credit restricts our ability to engage in certain business activities.
We may be limited in our ability to diversify our investments.
We may be limited in our ability to diversify or monetize our investments.
Our executive and senior management teams, represented by 62 individuals at senior vice president level and above, have an average of 24 years of real estate experience, including 13 years with Alexandria. Moreover, our executive management team alone averages 19 years of experience with the Company.
Our executive and senior management teams, represente d by 59 individuals at the senior vice president level and above, have an average of 24 years of real estate experience, including 13 years with Alexandria. Moreover, our executive management team alone averages 15 years of experience with the Company.
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 “
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 “
Federal Reserve will be reducing the federal funds rate in 2025, these expectations might not materialize. Interest rates at elevated levels could increase our financing costs over time, either through near-term borrowings on our variable-rate unsecured senior line of credit and commercial paper program, refinancing of our existing borrowings, or the issuance of new debt.
Interest rates at elevated levels could increase our financing costs over time, either through near-term borrowings on our variable-rate unsecured senior line of credit and commercial paper program, refinancing of our existing borrowings, or the issuance of new debt.
We generally will not commence new development projects for aboveground construction of new Class A/A+ laboratory space without first securing significant pre-leasing for such space, except when there is solid market demand for high-quality Class A/A+ properties.
We generally will not commence new development projects for aboveground construction of new Class A/A+ laboratory 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.
For instance, to control the rate of inflation, the Board of Governors of the Federal Reserve System (the “U.S. Federal Reserve”) raised its benchmark federal funds rate from nearly zero in March 2022 to a range between 4.25% and 4.50% a s of December 31, 2024. Although there are expectations that the U.S.
For instance, to control the rate of inflation, the Board of Governors of the Federal Reserve System (the “U.S. Federal Reserve”) raised its benchmark federal funds rate from nearly zero in March 2022 to a range between 3.50% and 3.75% as of December 31, 2025.
From 2020 to 2024 , our voluntary and total turnover rates averaged 4.0% and 8.5% , respectively, which are below the REIT industry averages of 11.0% and 15.0% , respectively, as reported in the 2024 Nareit Compensation & Benefits Survey (data for 2023 ).
From 2021 to 2025 , our voluntary and total turnover rates average d 4.6% and 9.3% , respectively, which are below the REIT industry averages of 12.0% and 17.0% , respectively, as reported in the 2025 Nareit Compensation & Benefits Survey (data for 2024 ).
We place a significant focus on building loyalty and trusted relationships with our employees. 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 monitors employee satisfaction, actively seeks employee feedback, and enhances our employee benefit offerings.
We place a significant focus on building loyalty and trusted relationships across our workforce. We maintain a Business Integrity Policy that applies to all employees, and its receipt and review by each employee is documented and verified annually.
Refer to Note 18 – “Segment information” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information. Regulation General Properties in our markets are subject to various laws, ordinances, and regulations, including regulations relating to common areas. We believe we have the necessary permits and approvals to operate each of our properties.
Regulation General Properties in our markets are subject to various laws, ordinances, and regulations, including regulations relating to common areas. We believe we have the necessary permits and approvals to operate each of our properties.
Segment information As of December 31, 2024 , our operating segments consist of the following geographic markets: Greater Boston, San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, New York City, Texas, and Canada .
Segment information As of December 31, 2025 , our operating segments consist of the following geographic markets: Greater Boston, San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, New York City, and Texas. Refer to Note 18 – “Segment information” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information.
Higher leverage could also increase the risk of default on our debt obligations or may result in downgrades to our credit ratings. Failure to meet market expectations for our financial performance would likely adversely affect the market price and volatility of our stock. Our actual financial results may differ materially from expectations and/or the guidance we provide.
Higher leverage could also increase the risk of default on our debt obligations or may result in downgrades to our credit ratings. The market price and volatility of our common stock may be adversely affected by our financial performance, our ability to meet market expectations, and a wide range of external factors outside of our control.
These factors may cause the market price of shares of our common stock to decline, regardless of our financial condition, results of operations, business, or prospects. Possible future sales of shares of our common stock could adversely affect its market price.
Any of these factors may adversely affect the market price and volatility of our common stock. Possible future sales of shares of our common stock could adversely affect its market price. We cannot predict the effect, if any, of future sales of shares of our common stock or the market price of our common stock.
We conduct annual performance reviews with our employees, administer formal employee surveys, and our talent management team holds regular meetings with employees to gather insights and drive ongoing improvements to the overall employee experience.
To promote an exceptional corporate culture, Alexandria monitors employee satisfaction, actively seeks feedback, and strives to enhance our benefit offerings to meet the needs of our employees. We conduct annual performance reviews and hold regular meetings through our talent management team to gather insights and drive continuous improvements to the overall employee experience.
Removed
Priority anticipated projects are those most likely to commence future ground-up development or first-time conversion from non-laboratory space to laboratory space prior to our other future projects, pending market conditions and leasing negotiations. Pre-construction activities include entitlements, permitting, design, site work, and other activities preceding commencement of construction of aboveground building improvements.
Added
These pressures are expected to intensify in 2026 due to tariff‑driven material‑cost volatility.
Removed
This may be a result of various factors, including, but not limited to: • The status of the economy; • The status of capital markets, including availability and cost of capital; • Changes in financing terms available to us; • Negative developments in the operating results or financial condition of tenants, including, but not limited to, their ability to pay rent; • Our ability to re-lease space at similar rates as leases expire; • Our ability to reinvest sale proceeds in a timely manner at rates similar to the rate at which assets are sold; • Our ability to successfully complete developments or redevelopments of properties for lease on time and/or within budget; • Our ability to procure third-party suppliers or providers of necessary construction materials for our developments and redevelopments of properties; • Regulatory approval and market acceptance of the products and technologies of tenants; • Liability or contract claims by or against tenants; • Unanticipated difficulties and/or expenditures relating to future acquisitions; • Environmental laws affecting our properties; • Changes in rules or practices governing our financial reporting; and • Other legal and operational matters, including REIT qualification and key management personnel recruitment and retention.
Added
Our actual financial results may differ materially from expectations and/or the guidance we provide.
Removed
Failure to meet market expectations, particularly with respect to earnings estimates, funds from operations per share, operating cash flows, and revenues, would likely result in a decline and/or increased volatility in the market price of our common stock or other outstanding securities. The price per share of our stock may fluctuate significantly.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

4 edited+0 added−0 removed6 unchanged
Biggest changeARE-East River Science Park, LLC’s investment in pre- construction costs related to the development of the Option Parcel, including costs related to design, engineering, environmental, survey/title, and permitting and legal costs, aggrega ted $168.4 million as of December 31, 2024 . On August 6, 2024, ARE-East River Science Park, LLC filed a lawsuit in the U.S.
Biggest changeARE-East River Science Park, LLC’s investment in pre- construction costs related to the development of the Option Parcel, including costs related to design, engineering, environmental, survey/title, and permitting and legal costs, aggregated $178.1 million as of December 31, 2025 . On August 6, 2024, ARE-East River Science Park, LLC filed a lawsuit in the U.S.
T he lawsuit alleges two principal claims against H+H and EDC: fraud in the inducement, and, in the alternative, breach of contract in violation of the implied covenant of good faith and fair dealing.
The lawsuit alleges two principal claims against H+H and EDC: fraud in the inducement, and, in the alternative, breach of contract in violation of the implied covenant of good faith and fair dealing.
We performed a probability-weighted recoverability analysis based on initial estimates of various possible outcomes and determined no impairment was present as of December 31, 2024 . ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 83 PART II
We performed a probability-weighted recoverability analysis based on initial estimates of various possible outcomes and determined no impairment was present as of December 31, 2025 . ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 84 PART II
This matter exposes us to potential losses ranging from zero to the full amount of the investment in the project aggregating $168.4 million as of December 31, 2024 , depending on any collection of damages and/or the ability to develop the project.
This matter exposes us to potential losses ranging from zero to the full amount of the investment in the project aggregating $178.1 million as of December 31, 2025 , depending on any collection of damages and/or the ability to develop the project.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

2 edited+0 added−0 removed4 unchanged
Biggest changeMARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is traded on the NYSE under the symbol “ARE.” On January 15, 2025 , the last reported sales price per share of our common stock was $98.43 , and there were 562 holders of record of our common stock (excluding beneficial owners whose shares are held in the name of Cede & Co.).
Biggest changeMARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is traded on the NYSE under the symbol “ARE.” On January 15, 2026 , the last reported sales price per share of our common stock was $57.26 , and there were 512 holders of record of our common stock (excluding beneficial owners whose shares are held in the name of Cede & Co.).
No dividends can be paid on our common stock unless we have paid full cumulative dividends on our preferred stock. As of December 31, 2024 , we had no outstanding shares of preferred stock.
No dividends can be paid on our common stock unless we have paid full cumulative dividends on our preferred stock. As of December 31, 2025 , we had no outstanding shares of preferred stock.

Item 7. Management's Discussion & Analysis

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

113 edited+118 added−55 removed335 unchanged
Biggest changeThe negative effects of any highly infectious or contagious disease on our tenants in the agtech industry may include: • Reduction in productive capacity and profitability because of decreased labor availability due, for example, to government restrictions, the inability of employees to report to work, or collective bargaining efforts; • Potential contract cancellations, project reductions, and reduction in demand for our tenants’ products due to the adverse effect on business confidence and consumer sentiments and the general downturn in economic conditions; • Disruption of the logistics necessary to import, export, and deliver products to target companies and their customers due to ports and other channels of entry being closed or operating at only a portion of capacity; • Disruptions to manufacturing facilities and supply lines; 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. 37 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; • 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.
Biggest changeThe 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; • 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 economic and financial conditions and the volatility of the market.
Such funding may become unavailable or difficult to obtain.
Such funding may become unavailable or difficult to obtain.
If we (or a third party with whom we work) experience a security incident or are perceived to have experienced a security incident, we may experience material adverse consequences, such as government enforcement actions (for example, investigations, fines, penalties, audits, and inspections); additional reporting requirements and/or oversight; restrictions on processing sensitive information (including personal data); litigation (including class claims); indemnification obligations; negative publicity; reputational harm; monetary fund diversions; diversion of management attention; interruptions in our operations (including availability of data); financial loss; and other similar harms.
If we (or a third party with whom we work) experience a security incident or are perceived to have experienced a security incident, we may experience material adverse consequences, such as government enforcement actions (for example, investigations, fines, penalties, audits, and inspections); additional reporting requirements and/or oversight; restrictions on processing sensitive data (including personal information); litigation (including class claims); indemnification obligations; negative publicity; reputational harm; monetary fund diversions; diversion of management attention; interruptions in our operations (including availability of data); financial loss; and other similar harms.
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.
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; 41 • 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.
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/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.
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/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. 40 • Uncertainty related to whether the U.S.
We have taken actions to proactively enhance our handling of personal information, including, but not limited to: • Updating external and internal privacy notices and policies; • Implementing procedures to comply with the CCPA and CPRA, including procedures to effectively address potential requests from California residents, including our employees, regarding their personal information; • Revising our document retention policy to minimize the storage of information subject to the CCPA and CPRA; and • Amending contracts with our partners and vendors to incorporate data use restrictions, security measures, and other required provisions.
We have taken actions to proactively enhance our handling of personal information, including, but not limited to: • Updating external and internal privacy notices and policies; • Implementing procedures to comply with the CCPA, including procedures to effectively address potential requests from California residents, including our employees, regarding their personal information; • Revising our document retention policy to minimize the storage of information subject to the CCPA; and • Amending contracts with our partners and vendors to incorporate data use restrictions, security measures, and other required provisions.
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. 20 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. We are subject to risks and liabilities in connection with properties owned through partnerships, limited liability companies, and joint ventures.
Changes in accounting standards may have a significant effect on our financial results and on the results of our tenants, which would in turn have a secondary impact on us. Global financial stressors, high structural unemployment levels, and other events or circumstances beyond our control may adversely affect our industry, business, results of operations, contractual commitments, and access to capital.
Changes in accounting standards may have a significant effect on our financial results and on the results of our tenants, which would in turn have a secondary impact on us. 51 Global financial stressors, high structural unemployment levels, and other events or circumstances beyond our control may adversely affect our industry, business, results of operations, contractual commitments, and access to capital.
For example, we have been the target of phishing attempts in the past and expect such attempts will continue in the future. In particular, severe ransomware attacks are becoming increasingly prevalent and can lead to significant interruptions in our operations and properties; loss of confidential, proprietary, and sensitive data; reputational harm; loss of income; and diversion of funds.
For example, we have been the target of phishing attempts in the past and expect such attempts will continue in the future. 47 In particular, severe ransomware attacks are becoming increasingly prevalent and can lead to significant interruptions in our operations and properties; loss of confidential, proprietary, and sensitive data; reputational harm; loss of income; and diversion of funds.
Our business may be adversely affected by social, political, and economic instability, unrest, or disruption in a geographic region in which we operate, regardless of cause, including legal, regulatory, and policy changes by a new presidential administration in the U.S., protests, demonstrations, strikes, riots, civil disturbance, disobedience, insurrection, or social and other political unrest.
Our business may be adversely affected by social, political, and economic instability, unrest, or disruption in a geographic region in which we operate, regardless of cause, including legal, regulatory, and policy changes by a new U.S. presidential administration or protests, demonstrations, strikes, riots, civil disturbance, disobedience, insurrection, or social and other political unrest.
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 industry. 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 industry. 26 Improvements to our properties are significantly more costly than improvements to traditional office space.
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. 50 We maintain insurance coverage at levels that we believe are appropriate for our business.
Nevertheless, a major earthquake in any region could lead to substantial losses, potentially exceeding our insurance coverage and resulting in material aggregate deductible amounts. This could adversely affect our business, financial condition, results of operations, and cash flows. In addition, we carry environmental and title insurance policies for our properties.
Nevertheless, a major earthquake in any region could lead to substantial losses, potentially exceeding our insurance 21 coverage and resulting in material aggregate deductible amounts. This could adversely affect our business, financial condition, results of operations, and cash flows. In addition, we carry environmental and title insurance policies for our properties.
Additional investigations have included, as appropriate: • Asbestos surveys; • Radon surveys; • Lead-based paint surveys; • Mold surveys; • Additional public records review; • Subsurface sampling; and • Other testing. 40 Nevertheless, it is possible that the assessments on our current properties have not revealed, and that assessments on future acquisitions will not reveal, all environmental liabilities.
Additional investigations have included, as appropriate: • Asbestos surveys; • Radon surveys; • Lead-based paint surveys; • Mold surveys; • Additional public records review; • Subsurface sampling; and • Other testing. Nevertheless, it is possible that the assessments on our current properties have not revealed, and that assessments on future acquisitions will not reveal, all environmental liabilities.
In addition to experiencing a security incident, third parties may gather, collect, or infer sensitive information about us from public sources, data brokers, or other means that reveals competitively sensitive details about our organization and could be used to undermine our competitive advantage or market position.
In addition to experiencing a security incident, third parties may gather, collect, or infer sensitive data about us from public sources, data brokers, or other means that reveals competitively sensitive details about our organization and could be used to undermine our competitive advantage or market position.
To the extent that any future foreign or domestic terrorist attacks impact our tenants, their businesses similarly could be adversely affected, including their ability to continue to honor their lease obligations. Our business and operations would suffer in the event of information technology system failures.
To the extent that any future foreign or domestic terrorist attacks impact our tenants, their businesses similarly could be adversely affected, including their ability to continue to honor their lease obligations. 53 Our business and operations would suffer in the event of information technology system failures.
Accordingly, such tenants may be unable to pay us rent, or our venture investments may decline in value, which may negatively impact our financial results. 27 Some of our current or future tenants may also include technology companies in their startup or growth phases of their life cycle.
Accordingly, such tenants may be unable to pay us rent, or our venture investments may decline in value, which may negatively impact our financial results. Some of our current or future tenants may also include technology companies in their startup or growth phases of their life cycle.
Any highly infectious or contagious disease may directly or indirectly cause the realization of any of the other risk factors included in this annual report on Form 10-K. Other factors We may incur significant costs if we fail to comply with laws or if laws change.
Any highly infectious or contagious disease may directly or indirectly cause the realization of any of the other risk factors included in this annual report on Form 10-K. 42 Other factors We may incur significant costs if we fail to comply with laws or if laws change.
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.
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.
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.
These risks include, but are not limited to: • Adverse effects of changes in exchange rates for foreign currencies; 19 • Challenges and/or taxation with respect to the repatriation of foreign earnings or repatriation of proceeds from the sale 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.
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. 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. 27 Our results of operations depend on our tenants’ research and development efforts and their ability to obtain funding for these efforts.
Moreover, in California, where our headquarters and many of our properties are located, high state and local taxes and increased home prices contribute to the high cost of living, which may impair our ability to attract and retain employees locally in the future.
Moreover, in California, where our headquarters and many of our properties are located, high state and local taxes and increased home prices contribute to a high cost of living, which may impair our ability to attract and retain employees locally in the future.
As China was and is a major global exporter of steel, solar panels, and aluminum, the tariffs on these specific imports led to a trade war between not only the U.S. and China, but also 49 between the U.S. and the international community.
As China was and is a major global exporter of steel, solar panels, and aluminum, the tariffs on these specific imports led to a trade war between not only the U.S. and China, but also between the U.S. and the international community.
In addition, California introduced new climate-related reporting requirements under the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261), which were signed into law in October 2023.
In addition, California introduced climate-related reporting requirements under the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261), which were signed into law in October 2023.
Changes in the aforementioned laws may subject us to increased compliance risks and potential liability, and materially and adversely impact our business, financial condition, and results of operations.
Changes in the aforementioned laws and obligations may subject us to increased compliance risks and potential liability, and materially and adversely impact our business, financial condition, and results of operations.
In addition, we could continue to be obligated on any mortgage indebtedness or be responsible for other obligations related to the affected properties. All of our wholly owned properties, including properties partially owned through joint ventures that are managed by our joint venture partners, carry comprehensive liability, fire, extended coverage, and rental loss insurance.
In addition, we could continue to be obligated on any mortgage indebtedness or be responsible for other obligations related to the affected properties. All of our wholly owned properties, including properties partially owned through real estate joint ventures that are managed by our joint venture partners, carry comprehensive liability, fire, extended coverage, and rental loss insurance.
A significant reduction in federal government spending, particularly a sudden decrease due to tax reform or a sequestration process, which has occurred in recent years and may occur again in the coming years, could also adversely affect the ability of these tenants to fulfill lease obligations or decrease the likelihood that they will renew their leases with us.
A significant reduction in federal government spending, particularly a sudden decrease due to tax reform or a sequestration process, which has occurred in the past and may occur again in the coming years, could also adversely affect the ability of these tenants to fulfill lease obligations or decrease the likelihood that they will renew their leases with us.
Also, we rely on a limited number of vendors to provide key services, including, but not limited to, utilities and construction services, at certain of our properties.
We rely on a limited number of vendors to provide key services, including, but not limited to, utilities and construction services, at certain of our properties.
These operations rely on the secure collection, storage, transmission, and other processing of confidential and other sensitive information in our computer systems and networks and subject us, and the third parties with whom we work, to a variety of evolving threats, including, but not limited to, ransomware attacks, which could cause security incidents.
These operations rely on the secure collection, storage, transmission, and other processing of confidential and other sensitive data in our computer systems and networks and subject us, and the third parties with whom we work, to a variety of evolving threats, including, but not limited to, ransomware attacks, which could cause security incidents.
Our inability to take unilateral actions that we believe are in our best interests may result in missed opportunities and an ineffective allocation of resources and could have an adverse effect on the financial performance of our joint ventures and our operating results. We could incur significant costs due to the financial condition of our insurance carriers.
Our inability to take unilateral actions that we believe are in our best interests may result in missed opportunities and an ineffective allocation of resources and could have an adverse effect on the financial performance of our real estate joint ventures and our operating results. We could incur significant costs due to the financial condition of our insurance carriers.
Our failure to comply with applicable federal, state, and local privacy laws could lead to: • Damage to our reputation; • Increased remediation and compliance costs; • Government investigations and enforcement actions; • Fines, penalties, or litigation, including class actions; • Challenges in raising capital; and • Inability to execute on our business strategy, including our growth plans.
Our actual or perceived failure to comply with applicable federal, state, and local privacy laws could lead to: • Damage to our reputation; • Increased remediation and compliance costs; • Government investigations and enforcement actions; • Fines, penalties, or litigation, including class actions; • Challenges in raising capital; and • Inability to execute on our business strategy, including our growth plans.
Our properties are primarily located in the following markets: • Greater Boston • San Francisco Bay Area • San Diego • Seattle • Maryland • Research Triangle • New York City • Texas • Canada 26 As a result of our geographic concentration, we depend upon the local economic and real estate conditions in these markets.
Our properties are primarily located in the following markets: • Greater Boston • San Francisco Bay Area • San Diego • Seattle • Maryland • Research Triangle • New York City • Texas As a result of our geographic concentration, we depend upon the local economic and real estate conditions in these 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, 2024 , 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, 2025 , we had no interest rate hedge agreements outstanding.
Our Board of Directors will determine future distributions based on a number of factors, including, but not limited to: • The amount of net cash provided by operating activities available for distribution; • Our financial condition and capital requirements; • Any decision to reinvest funds rather than to distribute such funds; • Our capital expenditures; • The annual distribution requirements under the REIT provisions of the Internal Revenue Code; • Restrictions under Maryland law; and • Other factors our Board of Directors deems relevant.
Our Board of Directors determines future distributions based on a number of factors, including, but not limited to: • The amount of net cash provided by operating activities available for distribution; • Our financial condition and capital requirements; • Any decision to reinvest funds rather than to distribute such funds; • Our capital expenditures; • The annual distribution requirements under the REIT provisions of the Internal Revenue Code; • Restrictions under Maryland law; and • Other factors our Board of Directors deems relevant.
Such risks may also decrease the credit quality of our life science industry tenants and venture investment portfolio companies or cause us to expend more funds and resources on the space leased by these tenants than we originally anticipated.
Such risks may also decrease the credit quality of our life science industry tenants and venture investment portfolio companies or cause us to expend more funds and resources on the spaces leased by these tenants than we originally anticipated.
There is no guarantee that future debt ceiling or federal spending legislation will not fail and cause the U.S. to default on its obligations, which would likely cause the U.S. credit rating to degrade. S&P Global Ratings lowered its long-term sovereign credit rating of the U.S. from “AAA” to “AA+” in 2011, which it affirmed in 2024.
There is no guarantee that future debt ceiling or federal spending legislation will not fail and cause the U.S. to default on its obligations, which would likely cause the U.S. credit rating to degrade. S&P Global Ratings lowered its long-term sovereign credit rating of the U.S. from “AAA” to “AA+” in 2011, which it affirmed in August 2025.
For properties in California, coverage is $335 million , per occurrence and has an annual aggregate limit, subject to a 5% deductible of the property’s replacement value. For the Seattle region, the coverage is $200 million , per occurrence and has an annual aggregate limit, subject to a 2% deductible.
F or properties in California, coverage is $335 million per occurrence and has an annual aggregate limit, subject to a 5% deductible of the property’s replacement value. For the Seattle region, the coverage is $200 million per occurrence and has an annual aggregate limit, subject to a 2% deductible .
As a part of Alexandria’s risk management program, we maintain all-risk property insurance for our portfolio to mitigate risks posed by extreme weather events, natural disasters (including floods, wildfires, earthquakes, and wind events), and terrorism. Our all- risk property insurance currently provides a $2.0 billion per occurrence li mit for our operating portfolio.
As a part of Alexandria’s risk management program, we maintain all-risk property insurance for our portfolio to mitigate risks posed by extreme weather events, natural disasters (including floods, wildfires, earthquakes, and wind events), and terrorism. Our all- risk property insurance currently provides a $2.0 billion per-occurrence limit for our operating portfolio .
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.
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 spaces leased by these tenants.
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. 36 The rapid spread, development, and fluidity of a highly infectious or contagious disease may result in significant disruption of the global financial market and labor markets and may lead to a deterioration of economic conditions, an economic downturn, and/or a recession at a global scale, which could materially affect our (or our tenants’) performance, financial condition, results of operations, and cash flows.
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.
These risks may impact our overall liquidity, our borrowing costs, or the market price of our common stock. Changes to the U.S. tax laws and implementation of new tax policies could have a significant negative impact on the overall economy, our tenants, and our business.
These risks may impact our overall liquidity, our borrowing costs, or the market price of our common stock. Changes to the U.S. tax laws and implementation of new tax policies could have a significant negative impact on the overall economy, our tenants, and our business. On July 3, 2025, the U.S.
A reduction in distributions to stockholders may negatively impact our stock price. 19 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.
Any further reduction in distributions to stockholders may further negatively impact our stock price. 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.
In light of the recent proliferation of generative artificial intelligence tools and large language models, there is also a risk that the dissemination of such opinions, characterizations or disinformation may negatively impact the conclusions that these tools and models draw about our business and prospects.
In light of the recent proliferation of generative AI tools and large language models, there is also a risk that the dissemination of such opinions, characterizations or disinformation may negatively impact the conclusions that these tools and models draw about our business and prospects.
Similarly, Fitch Ratings downgraded the sovereign credit rating of the U.S. from “AAA” to “AA+” in 2023 and affirmed the “AA+” rating in 2024 . However, further fiscal impasses within the federal government may result in future downgrades.
Similarly, Fitch Ratings downgraded the sovereign credit rating of the U.S. from “AAA” to “AA+” in 2023 and affirmed the “AA+” rating in August 2025. However, further fiscal impasses within the federal government may result in future downgrades.
Generally, prohibited transactions are sales or other dispositions of property, other than foreclosures, characterized as held primarily for sale to customers in the ordinary course of business. However, a sale will not be considered a prohibited transaction if it meets certain safe harbor requirements.
Whether or not the transaction is characterized as a prohibited transaction is a factual matter. Generally, prohibited transactions are sales or other dispositions of property, other than foreclosures, characterized as held primarily for sale to customers in the ordinary course of business. However, a sale will not be considered a prohibited transaction if it meets certain safe harbor requirements.
In the ordinary course of business, we handle personal data and other sensitive information, including that of our tenants, vendors, and employees. As such, we are subject to numerous data privacy and security mandates, including laws, regulations, external and internal data privacy and security policies, and contractual requirements.
In the ordinary course of business, we process personal information and other sensitive data, including that of our tenants, vendors, and employees. As such, we are subject to numerous data privacy and security obligations, including laws, regulations, external and internal data privacy and security policies, and contractual requirements.
A security incident or other interruption involving our information systems or those of our tenants, vendors, software creators, cloud providers, cybersecurity service providers, or other third parties with whom we work could lead to, among other things: • Theft of our cash, cash equivalents, or other liquid assets, including publicly traded securities; • Unauthorized access to, and destruction, loss, theft, misappropriation, or release of, proprietary, confidential, sensitive, or otherwise valuable information of ours or our tenants, and other business partners, which could be used to compete against us or for disruptive, destructive, or otherwise harmful purposes and outcomes; • Our inability to produce financial and operational data necessary to comply with rules and regulations from the SEC, the IRS, or other state and federal regulatory agencies; • Our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT; • Violation of our lease agreements or other agreements; • Difficulties in employee retention and recruitment; 44 • Unauthorized access to, and destruction, disruption, loss, or denial of service to our buildings; • Increase in the cost of proactive defensive measures to prevent future cyber incidents, including hiring personnel and consultants or investing in additional technologies; and • Increase in our cybersecurity insurance premiums.
A security incident or other interruption involving our information systems or those of our tenants, vendors, software creators, cloud providers, cybersecurity service providers, or other third parties with whom we work could lead to, among other things: • Theft of our cash, cash equivalents, or other liquid assets, including publicly traded securities; • Unauthorized access to, and destruction, loss, theft, misappropriation, or release of, proprietary, confidential, sensitive, or otherwise valuable information of ours or our tenants, and other business partners, which could be used to compete against us or for disruptive, destructive, or otherwise harmful purposes and outcomes; • Our inability to produce financial and operational data necessary to comply with rules and regulations from the SEC, the IRS, or other state and federal regulatory agencies; • Our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT; • Violation of our lease agreements or other agreements; • Difficulties in employee retention and recruitment; • Unauthorized access to, and destruction, disruption, loss, or denial of service to our buildings; • Increase in the cost of proactive defensive measures to prevent future cyber incidents, including hiring personnel and consultants or investing in additional technologies; and • Increase in our cybersecurity insurance premiums. 48 Furthermore, the extent of a particular security incident and the steps that we may need to take to investigate the security incident may not be immediately clear.
Such changes in the availability and costs of renewable energy may impact our ability to procure renewable energy to reduce GHG emissions from purchased electricity. • 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.
Such changes in the availability, costs, regulatory environment, and market dynamics for renewable energy may impact our ability to procure renewable energy to reduce GHG emissions from purchased electricity. 45 • Our tenants may be unwilling or unable to accept potential incremental expenses associated with sustainability programs, including expenses to procure renewable electricity, and comply with requirements stipulated under building certification standards such as LEED, Fitwel, and WELL.
Near ly 40% o f the properties we own and operate are located in California, where climate change has been linked to the progressively warmer and drier weather associated with ideal conditions for highly destructive wildfires. 39 For example, most of our properties located in our San Francisco Bay Area market depend on PG&E for the delivery of electric and gas services.
Nearly 33% of the properties we own and operate are located in California, where climate change has been linked to the progressively warmer and drier weather associated with ideal conditions for highly destructive wildfires. For example, most of our properties located in our San Francisco Bay Area market depend on PG&E for the delivery of electric and gas services.
Additionally, proprietary, confidential, and/or sensitive information of the Company or our tenants could be leaked, disclosed, or revealed as a result of or in connection with our employees’, personnel’s, or vendors’ use of generative artificial intelligence technologies.
Additionally, proprietary, confidential, and/or sensitive data of the Company or our tenants could be leaked, disclosed, or revealed as a result of or in connection with our employees’, personnel’s, or vendors’ use of generative AI technologies.
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.
Congress enacted the Inflation Reduction Act of 2022, which directed nearly $400 billion of federal spending 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.
If we are not able to offset any reduction in demand from the foregoing developments through repurposing space, property dispositions, or other means, the realization of any of the aforementioned risks could have a material adverse impact on our revenues, net operating income, results of operations, funds from operations, operating margins, occupancy, earnings per share, FFO per share, our overall business, and the market value of our common stock.
If we are not able to offset any reduction in demand from the foregoing developments through repurposing space, property dispositions, or other means, the realization of any of the aforementioned risks could have a material adverse impact on our revenues, net operating income, results of operations, funds from operations, operating margins, occupancy, earnings per share, FFO per share, our overall business, and the market value of our common stock. 49 General risk factors We face risks associated with short-term liquid investments.
We have certain ownership interests outside the U.S. that may subject us to risks different from or greater than those associated with our domestic operations. We have a small portfolio of operating properties outside the U.S., primarily in Canada.
We have certain ownership interests outside the U.S. that may subject us to risks different from or greater than those associated with our domestic operations. We have a small portfolio of operating properties in Canada. Activities outside the U.S. involve risks that are different from those we face with respect to our domestic properties and operations.
If any of these entities were to fail to qualify as a REIT, then (i) the entity would become subject to federal and state income taxes, (ii) shares in such an entity would cease to be qualifying assets for purposes of asset tests applicable to REITs, and (iii) we may fail certain of the asset tests applicable to REITs, in which event we would fail to qualify as a REIT unless we qualify for certain relief provisions. 23 In addition, we currently own interests in certain taxable REIT subsidiaries and may continue to acquire such interests in the future.
If any of these entities were to fail to qualify as a REIT, then (i) the entity would become subject to federal and state income taxes, (ii) shares in such an entity would cease to be qualifying assets for purposes of asset tests applicable to REITs, and (iii) we may fail certain of the asset tests applicable to REITs, in which event we would fail to qualify as a REIT unless we qualify for certain relief provisions.
Partnership, limited liability company, or joint venture investments involve certain risks, including, but not limited to, the following: • Upon bankruptcy of non-wholly owned partnerships, limited liability companies, or joint venture entities, we may become liable for the liabilities of the partnership, limited liability company, or joint venture; • We may share certain approval rights over major decisions with third parties; • Our partners may file for bankruptcy protection or otherwise fail to fund their share of required capital contributions; • Our partners may have economic or other business interests or goals that are inconsistent with our business interests or goals and that could affect our ability to lease or re-lease the property, operate the property, or maintain our qualification as a REIT; • Our partners may have banking or financial relationships with institutions that become insolvent or otherwise fail, which could affect our access to capital; • Our ability to sell the interest on advantageous terms when we so desire may be limited or restricted under the terms of our agreements with our partners; and • We may not continue to own or operate the interests or assets underlying such relationships or may need to purchase such interests or assets at an above-market price to continue ownership.
Partnership, limited liability company, or joint venture investments involve certain risks, including, but not limited to, the following: • Upon bankruptcy of non-wholly owned partnerships, limited liability companies, or joint venture entities, we may become liable for the liabilities of the partnership, limited liability company, or joint venture; • We may share certain approval rights over major decisions with third parties; • Our partners may file for bankruptcy protection or otherwise fail to fund their share of required capital contributions; • Our partners may have economic or other business interests or goals that are inconsistent with our business interests or goals and that could affect our ability to lease or re-lease, develop or redevelop, and operate properties , o r maintain our qualification as a REIT; • Our partners may have banking or financial relationships with institutions that become insolvent or otherwise fail, which could affect our access to capital; • Our ability to sell the interest on advantageous terms when we so desire may be limited or restricted under the terms of our agreements with our partners; and • We may not continue to own or operate the interests or assets underlying such relationships or may need to purchase such interests or assets at an above-market price to continue ownership. 20 In addition, in some of our real estate joint ventures, predominantly consolidated, our partners hold contractual rights that allow them to sell their interests, initiate a buy/sell process, or force the sale of a property.
Affiliates will be able to sell shares of our common stock subject to restrictions under Rule 144. Our distributions to stockholders may decline at any time. We may not continue our current level of distributions to our stockholders.
Affiliates will be able to sell shares of our common stock subject to restrictions under Rule 144. Our distributions to stockholders may decline at any time.
During times of war and other major conflicts, we and the third parties with whom we work may be vulnerable to a heightened risk of these attacks, including retaliatory cyberattacks, that could materially disrupt our systems and operations, supply chain, and ability to produce, sell, and distribute our services. 43 We and the third parties with whom we work are subject to a variety of evolving threats, including, but not limited to, physical break-ins; disruptions due to power outages or catastrophic events, such as fires, floods, hurricanes, and earthquakes; breaches of our secure network by an unauthorized party (including those caused by supply chain breaches); software vulnerabilities or bugs; malware (including as a result of advanced persistent threat intrusions); malicious code (such as computer viruses and worms); attachments to emails; denial-of-service attacks; credential stuffing; credential harvesting; employee error, theft, or misuse; social engineering attacks (including through deep fakes, which may be increasingly more difficult to identify as fake, and phishing attacks); ransomware attacks; server malfunctions; software or hardware failures; loss of data or other information technology assets; adware; telecommunications failures; attacks enhanced or facilitated by AI; or other similar threats.
We and the third parties with whom we work are subject to a variety of evolving threats, including, but not limited to, physical break-ins; disruptions due to power outages or catastrophic events, such as fires, floods, hurricanes, and earthquakes; breaches of our secure network by an unauthorized party (including those caused by supply chain breaches); software vulnerabilities or bugs; malware (including as a result of advanced persistent threat intrusions); malicious code (such as computer viruses and worms); attachments to emails; denial-of-service attacks; credential stuffing; credential harvesting; employee error, theft, or misuse; social engineering attacks (including through deep fakes, which may be increasingly more difficult to identify as fake, and phishing attacks); ransomware attacks; server malfunctions; software or hardware failures; loss of data or other information technology assets; adware; telecommunications failures; attacks enhanced or facilitated by AI; or other similar threats.
The increased use of artificial intelligence (“AI”) and automation in life science research and development (“R&D”) activities may change the uses, space configurations, and tenant requirements for our laboratory properties in currently unforeseen ways.
The increased use of AI and automation in life science research and development activities may change the uses, space configurations, and tenant requirements for our laboratory properties in currently unforeseen ways.
General risk factors We face risks associated with short-term liquid investments. From time to time, we may have significant cash balances that we invested in a variety of short-term investments that are intended to preserve principal value and maintain a high degree of liquidity while providing current income.
From time to time, we may have significant cash balances that we invested in a variety of short-term investments that are intended to preserve principal value and maintain a high degree of liquidity while providing current income.
In March 2022, the SEC released a proposed standard that would require quantitative disclosures of certain climate-related metrics and greenhouse gas (“GHG”) emissions, including within the footnotes to our consolidated financial statements. On March 6, 2024, the SEC adopted the new standards, with the rules originally set to take effect as of May 28, 2024.
On March 6, 2024, the SEC adopted new standards that would require quantitative disclosures of certain climate-related metrics and greenhouse gas (“GHG”) emissions, including within the footnotes to our consolidated financial statements, which were originally set to take effect in May 28, 2024.
However, we may not be able to do so, and the occurrence of one or more of the events described above could adversely affect our financial condition, results of operations, and cash flows, our funds from operations per share, our ability to make distributions to our stockholders, and the market price of our common stock. 21 We may not be able to attain the expected return on our investments in real estate joint ventures.
However, we may not be able to do so, and the occurrence of one or more of the events described above could adversely affect our financial condition, results of operations, and cash flows, our funds from operations per share, our ability to make distributions to our stockholders, and the market price of our common stock.
It remains unclear what further actions President Trump may take with respect to domestic and international programs and initiatives, and what support the Trump administration would have for any potential changes to such legislative programs and initiatives in the U.N. or the U.S. Congress.
It remains unclear what further actions with respect to domestic and international programs and initiatives will be taken and what support U.S. policymakers would have for any potential changes to such legislative programs and initiatives in the U.N. or the U.S. Congress.
Some of our tenants may be subject to increasing government price controls and other healthcare cost-containment measures. Government healthcare cost-containment measures can significantly affect our tenants’ revenue and profitability. In many countries outside the U.S., government agencies strictly control, directly or indirectly, the prices at which our pharmaceutical industry tenants’ products are sold.
Government healthcare cost-containment measures can significantly affect our tenants’ revenue and profitability. In many countries outside the U.S., government agencies strictly control, directly or indirectly, the prices at which our pharmaceutical industry tenants’ products are sold.
A number of additional federal, state, and local laws and regulations exist regarding access to properties by disabled persons. These regulations may require modifications to our properties or may affect future renovations.
A number of additional federal, state, and local laws and regulations exist regarding access to properties by disabled persons. These regulations may require modifications to our properties or may affect future renovations. These expenditures may have an adverse impact on overall returns on our investments.
If a vendor encounters financial difficulty such as bankruptcy or other events beyond our control that cause it to fail to adequately provide utilities, security, construction, or other important services, we may experience significant interruptions in service and disruptions to business operations at our properties, incur remediation costs, and become subject to claims and damage to our reputation.
If a vendor encounters financial difficulty such as bankruptcy or otherwise becomes unable to provide critical utilities, security, construction, or other essential services, we may experience significant interruptions in service and disruptions to business operations at our properties, incur remediation costs, and become subject to claims and damage to our reputation.
Positioning of critical building mechanical equipment on roofs or significantly above projected potential flood elevations; storage of temporary flood barriers on site to be deployed at building entrances in the event of a flood; elevation of property entrances or the first floor above projected present-day and future flood elevations; installation of backflow preventors on storm/sewer utilities that discharge from the building; and waterproofing of the building envelope up to the projected flood elevation. 22 Our tenants are also required to maintain comprehensive insurance policies, including commercial general liability insurance typically obtained for similar properties.
Positioning of critical building mechanical equipment on roofs or significantly above projected potential flood elevations; storage of temporary flood barriers on site to be deployed at building entrances in the event of a flood; elevation of property entrances or the first floor above projected present-day and future flood elevations; installation of backflow preventors on storm/sewer utilities that discharge from the building; and waterproofing of the building envelope up to the projected flood elevation.
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, water consumption, and GHG emissions and that provide waste savings. • The quantity of investment-grade renewable energy projects that can be contracted and constructed by 2030 has decreased in recent years due to factors such as backlogs in regional transmission organizations’ interconnection queues and higher demand from large buyers.
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, water consumption, and GHG emissions and that provide waste savings. • Investment-grade renewable energy projects available for contracting by 2030 have declined due to interconnection delays, transmission constraints, and rising demand from large buyers.
To the extent that climate change impacts changes in weather patterns, our markets could experience severe weather, including hurricanes, severe winter storms, and coastal flooding due to increases in storm intensity and rising sea levels.
For example, most of our properties are located along the east and west coasts of the U.S. To the extent that climate change impacts changes in weather patterns, our markets could experience severe weather, including hurricanes, severe winter storms, and coastal flooding due to increases in storm intensity and rising sea levels.
For example, the adoption of AI by our tenants may lead to infrastructure requirements that our buildings currently do not accommodate, such as increased power needs due to high-performance computing.
For example, the adoption of AI by our tenants may lead to infrastructure requirements that our buildings currently do not accommodate, such as increased power needs due to high-performance computing. Infrastructure upgrades may necessitate substantial capital expenditures and could potentially impact the environmental footprint of our building operations.
Most of our properties located in our San Francisco Bay Area market depend on PG&E for the delivery of these essential services. PG&E initiated voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code in January 2019 in response to potential liabilities arising from a series of catastrophic wildfires that occurred in Northern California in 2017 and 2018.
PG&E initiated voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code in January 2019 in response to potential liabilities arising from a series of catastrophic wildfires that occurred in Northern California in 2017 and 2018.
These ownership limits could delay, defer, or prevent a transaction or a change in control that might involve a premium price for the holders of our common stock or that might otherwise be desired by such holders. 25 In addition to the ownership limit, certain provisions of our charter and bylaws may delay or prevent transactions that may be deemed to be desirable to our stockholders.
These ownership limits could delay, defer, or prevent a transaction or a change in control that might involve a premium price for the holders of our common stock or that might otherwise be desired by such holders.
Negative impacts of new policies could adversely affect our tenants’ and venture investment portfolio companies’ businesses, including life science companies, which may reduce the demand for life science/laboratory space and negatively impact our operating results and our business. 35 Global factors The outbreak of any highly infectious or contagious disease could adversely impact or cause disruption to our financial condition and results of operations.
Negative impacts of new policies could adversely affect our tenants’ and venture investment portfolio companies’ businesses, including life science companies, which may reduce the demand for life science/laboratory space and negatively impact our operating results and our business.
In California and certain other regions where we have operations, there is intense competition for individuals with skill sets needed for our business.
We cannot assure our stockholders that our executive and senior officers will remain employed with us. In California and certain other regions where we have operations, there is intense competition for individuals with skill sets needed for our business.
Other countries, including China, Canada, and the EU, implemented retaliatory tariffs in response to these policies on U.S. goods. During the 2024 presidential campaign, President Trump pledged to impose an additional 25% tariff on certain exports from Canada and Mexico, and up to an additional 60% tariff on certain exports from China.
Other countries, including China, Canada, and the EU, implemented retaliatory tariffs in response to these policies on U.S. goods. In early 2025, President Trump imposed additional tariffs on certain exports from Canada, Mexico, and China.
In six consolidated joint ventures with aggregate noncontrolling interests of approximately $1.0 billion , our partners currently have the ability to exercise these rights. In 23 other consolidated real estate joint ventures with aggregate noncontrolling interests of approximately $3.0 billion , these rights become exercisable upon the expiration of respective lockout provisions during 2025 through 2031 .
In 16 other consolidated real estate joint ventures with aggregate noncontrolling interests of approximately $1.91 billion , these rights become exercisable upon the expiration of respective lockout provisions during 2026 through 2031 .
It is also unknown what other changes will be implemented through the U.S. Congress or future executive orders and how these would impact our tenants. Government and other regulatory oversight and future regulatory and government interference with the healthcare systems may adversely impact our tenants’ businesses and our business.
It is unclear how any such healthcare reports or other policy changes, if implemented, will impact our business. It is also unknown what other changes will be implemented through the U.S. Congress or future executive orders and how these would impact our tenants.
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.
There is no guarantee that similar events of bankruptcy or distress would not cause unanticipated disruptions in service to any of our properties in affected areas. 24 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.
Furthermore, the extent of a particular security incident and the steps that we may need to take to investigate the security incident may not be immediately clear. Therefore, in the event of a security incident, it may take a significant amount of time before such an investigation can be completed.
Therefore, in the event of a security incident, it may take a significant amount of time before such an investigation can be completed.
As such, we may be required to devote significant resources and implement or significantly change existing technologies, systems, or practices in order to prepare for and comply with new regulations.
The data privacy and security landscape is becoming increasingly complex. Differing regulations may result in inconsistent applications and interpretations across multiple jurisdictions. As such, we may be required to devote significant resources and implement or significantly change existing technologies, systems, or practices in order to prepare for and comply with new regulations.
As a result 48 of the factors discussed above, we may be unable to operate our business as usual, which may adversely affect our cash flows, financial condition, and results of operations.
As a result of the factors discussed above, we may be unable to operate our business as usual, which may adversely affect our cash flows, financial condition, and results of operations. Adoption of the Basel III standards and other regulatory standards affecting financial institutions may negatively impact our access to financing or affect the terms of our future financing arrangements.

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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 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, 2024 and 2023 (in thousands): December 31, 2024 2023 Effect on potential future earnings due to foreign currency exchange rate: Rate increase of 10% $ 17 $ 311 Rate decrease of 10% $ (17) $ (311) Effect on the fair value of net investment in foreign subsidiaries due to foreign currency exchange rate: Rate increase of 10% $ 36,644 $ 37,346 Rate decrease of 10% $ (36,644) $ (37,346) 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.
Biggest changeThe following tables illustrate the effect that a 10% change in Canadian dollar exchange rates relative to the USD would have on our potential future earnings and on the fair value of our net investment in Canadian subsidiaries, based on our current operating assets outside the U.S. as of December 31, 2025 and 2024 (in thousands): December 31, 2025 2024 Effect on potential future earnings due to foreign currency exchange rate: Rate increase of 10% $ 182 $ 17 Rate decrease of 10% $ (182) $ (17) Effect on the fair value of net investment in foreign subsidiaries due to foreign currency exchange rate: Rate increase of 10% $ 35,306 $ 36,644 Rate decrease of 10% $ (35,306) $ (36,644) Change in the fair value of cross-currency swap agreements designated as a net investment hedge: (1) Rate increase of 10% (USD weakening) $ (24,600) N/A (1) Rate decrease of 10% (USD strengthening) $ 24,600 N/A (1) (1) Refer to Note 11 – “Hedge agreements” to our consolidated financial statements for additional information.
Changes in fair value of public investments, changes in NAV per share reported by privately held entities, and observable price changes of privately held entities that do not report NAV per share are classified as investment income in our consolidated statements of operations.
Changes in fair value of public investments, changes in NAV per share reported by privately held entities, and observable price changes of privately held entities that do not report NAV per share are classified as investment income (loss) in our consolidated statements of operations .
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, 2024 , 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, 2025 , we did not have any outstanding interest rate hedge agreements.
Our equity investments in privately held entities that do not report NAV per share are measured at cost less impairments, adjusted for observable price changes during the period.
Our equity investments in privately held entities that do not report NAV per shar e are measured at cost less impairments, adjusted for observable price changes during the period.
Our exposure to market risk elements for the year ended December 31, 2024 was consistent with the risk elements presented above, including the effects of changes in interest rates, equity prices, and foreign currency exchange rates. 143 ITEM 8.
Our exposure to market risk elements for the year ended December 31, 2025 was consistent with the risk elements presented above, including the effects of changes in interest rates, equity prices, and foreign currency exchange rates. 144 ITEM 8.
The 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, 2024 and 2023 (in thousands): December 31, 2024 2023 Annualized effect on future earnings due to variable-rate debt: Rate increase of 1% $ (350) $ (339) Rate decrease of 1% $ 350 $ 339 Effect on fair value of total consolidated debt: Rate increase of 1% $ (753,483) $ (742,460) Rate decrease of 1% $ 860,921 $ 847,335 These amounts are determined by considering the effect of the hypothetical interest rates on our borrowings as of December 31, 2024 and 2023 , respectively.
The 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, 2025 and 2024 (in thousands): December 31, 2025 2024 Annualized effect on future earnings due to variable-rate debt: Rate increase of 1% $ (1,259) $ (350) Rate decrease of 1% $ 1,259 $ 350 Effect on fair value of total consolidated debt: Rate increase of 1% $ (746,058) $ (753,483) Rate decrease of 1% $ 852,698 $ 860,921 These amounts are determined by considering the effect of the hypothetical interest rates on our borrowings as of December 31, 2025 and 2024 , respectively.
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, 2024 and 2023 (in thousands): December 31, 2024 2023 Equity price risk: Fair value increase of 10% $ 147,699 $ 144,952 Fair value decrease of 10% $ (147,699) $ (144,952) 142 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, 2025 and 2024 (in thousands): December 31, 2025 2024 Equity price risk: Fair value increase of 10% $ 114,387 $ 147,699 Fair value decrease of 10% $ (114,387) $ (147,699) 143 Foreign currency exchange rate risk We have exposure to foreign currency exchange rate risk related to our operations in Canada.
The functional currencies of our foreign subsidiaries are the local currencies in each respective country. Gains or losses resulting from the translation of our foreign subsidiaries’ balance sheets and statements of operations are classified in accumulated other comprehensive income (loss) as a separate component of total equity and are excluded from net income (loss).
The functional currency of our Canadian subsidiaries is the Canadian dollar. Gains or losses resulting from the translation of these subsidiaries’ balance sheets and statements of operations are classified in accumulated other comprehensive income (loss) as a separate component of total equity and are excluded from net income (loss).
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We did not have any outstanding hedge agreements as of and during the year ended December 31, 2024. 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.

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