Item 3. LEGAL PROCEEDINGS

In 2006, ARE-East River Science Park, LLC, a subsidiary of Alexandria Real Estate Equities, Inc., was granted an option to

incorporate a land parcel adjacent to and north of the Alexandria Center® for Life Science – New York City (“ACLS-NYC”) campus

(“Option Parcel”) into the existing ground lease of that campus. The Option Parcel will allow ARE-East River Science Park, LLC to

develop a future world-class life science building within the ACLS-NYC campus. ARE-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. District Court for the Southern District of New

York against its landlord, New York City Health + Hospitals Corporation (“H+H”), and the New York City Economic Development

Corporation (“EDC”). On January 24, 2025, ARE-East River Science Park, LLC filed a first amended complaint. 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. As alleged in the complaint, ARE-East River Science Park, LLC’s claims arise from H+H’s and

EDC’s misrepresentations and concealment of material facts in connection with a floodwall, which H+H and EDC are seeking to require

ARE-East River Science Park, LLC to integrate into the development of the Option Parcel. ARE-East River Science Park, LLC alleges

that H+H’s and EDC’s misconduct have prevented it from commencing the development of the Option Parcel. In light of the pending

litigation, the closing date for our option and thus the commencement date for construction of the third tower at the campus are

presently indeterminate. Among other things, ARE-East River Science Park, LLC is seeking significant damages and equitable relief

from the court to confirm our understanding that the option is in full force and effect.

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. 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.