Item 1A. RISK FACTORS

In addition to the information set forth in this quarterly report on Form 10-Q, one should also carefully review and consider the

information contained in the other reports and periodic filings that we make with the SEC, including, without limitation, the information

contained under the caption “Item 1A. Risk factors” in our annual report on Form 10-K for the year ended December 31, 2023. Those

risk factors could materially affect our business, financial condition, and results of operations. The risks that we describe in our public

filings are not the only risks that we face. Additional risks and uncertainties not currently known to us, or that we presently deem to be

immaterial, also may materially adversely affect our business, financial condition, and results of operations.

There have been no material changes in our risk factors from those disclosed under the caption “Item 1A. Risk factors” in our

annual report on Form 10-K for the year ended December 31, 2023, except for the following updates:

The use of artificial intelligence presents risks and challenges that may adversely impact our business and

operating results or that of our tenants and vendors or may adversely impact the requirements and demand for life

science laboratory space as a whole.

We may adopt and integrate generative artificial intelligence and machine learning (collectively, “AI”) tools into our

operations to enhance efficiencies and streamline existing systems. However, the deployment and maintenance of AI tools

may entail substantial risks. While these tools hold promise in optimizing processes and driving efficiencies, as with many

technological innovations, they also pose inherent risks. These include, but are not limited to, the potential for inaccuracy, bias,

intellectual property infringement, or misappropriation, as well as concerns regarding data privacy and cybersecurity.

Moreover, the use of AI may introduce errors or inadequacies that are not easily detectable. Deficiencies,

inaccuracies, or biases in the data used for AI training, or in the content, analyses, or recommendations generated by AI

applications, may adversely affect our business, financial condition, and results of operations. The legal landscape surrounding

AI is evolving and remains uncertain. It is unknown how the development of laws in this area could impact our business and

our ability to enforce our proprietary rights or protect against infringement of those rights.

Potential risks from the use of AI by our tenants

The integration of AI technologies in the life science industry presents both significant opportunities and inherent

risks. AI predictive models have the potential to enhance the accuracy and usefulness of simulation models and be utilized

broadly across various stages of drug development. However, the adoption of AI also introduces a complex risk landscape

similar to those described above that must be navigated with caution.

Moreover, 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.

Potential risks from the use of AI by our investors, analysts, and other market participants

The increasing use of AI by investors, analysts, and other market participants for processing, summarizing, and

interpreting financial and other information, including that in our annual reports on Form 10-K, quarterly reports on Form 10-Q,

and other public disclosures, poses potential risks. While AI could improve efficiencies in data analysis, AI could also

inaccurately interpret or summarize information due to algorithmic limitations or misinterpretation of complex financial

concepts. These misinterpretations could be further exacerbated by the potential for AI to overlook additional disclosures in

various report sections, such as the Management's Discussion and Analysis of Financial Condition and Results of Operations

or Risk Factors section within our annual reports on Form 10-K and/or quarterly reports on Form 10-Q.

Our status as a REIT introduces unique financial metrics, such as funds from operations and fund from operations, as

adjusted, which represent widely used non-GAAP financial performance measures of equity REITs. Inadequate AI training on

the aspects unique to our industry could lead to inaccurate interpretations of these financial measures, particularly when

comparing our performance against non-REIT entities. Furthermore, rules and regulations requiring REITs to distribute at least

90% of REIT taxable income to stockholders result in a substantial reliance on debt and equity financing by REITs. Without

adequate training, these unique aspects might not be properly accounted for by AI and could lead to misinterpretations of our

financial metrics, such as net debt and preferred stock to Adjusted EBITDA, resulting in inaccurate conclusions and misleading

investment recommendations.

Additionally, current inconsistencies in the use, calculation, and presentation of non-GAAP measures among public

companies may lead to AI’s inaccurate interpretations and comparisons of these measures. Without appropriate adjustments

for these divergences, AI may generate erroneous comparisons with peer companies, distorting the view of our operational

performance and profitability, which could lead to misguided investor conclusions about our competitive position among other

companies.

Other challenges associated with AI use may include:

• Inadequate interpretation of real estate market nuances, including geographic and property-type differences, and

property quality.

• Overemphasis on quantitative data, which overlooks qualitative factors like management’s expertise, background,

and tenure; and company strategy, credit rating, track record, and market reputation.

• Reliance on historical data, which may not reliably predict future performance in the dynamic real estate sector.

• Current limited capability of AI in making nuanced judgments, particularly in understanding market trends,

uncertainties, and investor sentiment.

We are committed to the highest levels of transparency, integrity, and accountability in our public disclosures.

However, we have no control over the processing or interpretation of this information by third-party AI tools. Incorrect AI

interpretations could significantly impact investment decisions, which may adversely affect our stock price, investor confidence,

and our reputation. Additionally, the time and resources needed to address and remediate public misconceptions could distract

from our business activities, which may further exacerbate the potential negative impact.

Potential risks of use of AI by vendors

Our vendors may incorporate AI tools into their products or services without our knowledge, and the providers of

these tools may not meet existing or rapidly evolving regulatory or industry standards with respect to privacy and data

protection. Consequently, this may inhibit our or our vendors’ ability to uphold an appropriate level of service, data privacy, and

overall experience. Bad actors around the world use increasingly sophisticated methods, including the use of AI, to engage in

illegal activities involving the theft and misuse of personal information, confidential information, and intellectual property. If we,

our vendors, or other third parties with which we conduct business experience an actual or perceived breach of privacy or

security incident due to the use of AI, we may be adversely impacted, lose valuable intellectual property or confidential

information, and incur harm to our reputation and the public perception of the effectiveness of our security measures.

Potential risk of use of AI by cybercriminals

As AI technologies become more advanced, cybercriminals may develop more sophisticated attack methods. Such

methods may include the use of AI to automate and enhance phishing schemes, advance malware, and carry out more

effective cyberattacks. The AI-driven cyber threats could be harder to detect and counteract, which may pose significant risks

to our data security and the integrity of our systems. If such AI-enhanced cyberattacks are successful, they could lead to

substantial data breaches, loss of sensitive information, and significant financial and reputational damage.

The realization of any of the aforementioned risks could have a material adverse impact on our revenues, net operating

income; our results of operations, funds from operations, operating margins, occupancy, EPS, FFO per share; our overall business; and

the market value of our common stock. Any of the outcomes described above could cause damage to us, our tenants, and vendors and

adversely impact our business or that of our tenants and vendors. Furthermore, these risks, combined with an uncertain regulatory

environment, may result in reputational harm, legal liability, governmental or regulatory scrutiny, or other adverse consequences to our

business operations.