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 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.

In recent years, some life science companies have augmented their traditional laboratory-based R&D efforts by

integrating AI, cloud computing, quantum computing and other advanced computational technologies into their R&D programs.

It is expected that such technologies will accelerate and streamline a number of R&D functions, including, for example, through

the targeted design and evaluation of clinical trials and the efficient identification of the most promising drug development

candidates from among multiple possible drugs. In addition, life science companies, like companies in many other industries,

are increasingly integrating new technologies, such as robotics and advanced automation of recurring tasks, into their

businesses, including their R&D activities. It is widely thought that the life science and healthcare industries, like most

industries, are in only the early stages of an advanced technology revolution that may have profound, and largely currently

unknown, impacts on their businesses, including the processes and strategies underlying R&D and commercialization of new

products.

We have always strived to provide our tenants with state-of-the-art laboratory facilities incorporating cutting-edge

infrastructure features (including energy delivery, environmental, sustainability, security, and waste disposal features) to enable

our tenants to perform at the highest levels. It is currently unknown how the ongoing adoption of advanced technologies and

automation in the life science industry will impact the optimal space configurations and infrastructure features of the “laboratory

of the future,” and we may face new tenant requirements and requests that will require significant expenditures that may not be

entirely recoverable through increased rents. 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.

If technological developments result in a reduction or reconfiguration in space requirements by our tenants, demand by

individual tenants and prospective tenants for space may decrease over time. 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.