Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-looking statements

Certain information and statements included in this quarterly report on Form 10-Q, including, without limitation, statements

containing the words “forecast,” “guidance,” “goals,” “projects,” “estimates,” “anticipates,” “believes,” “expects,” “intends,” “may,” “plans,”

“seeks,” “should,” “targets,” or “will,” or the negative of those words or similar words, constitute “forward-looking statements” within the

meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as

amended. Forward-looking statements involve inherent risks and uncertainties regarding events, conditions, and financial trends that

may affect our future plans of operations, business strategy, results of operations, and financial position. A number of important factors

could cause actual results to differ materially from those included within or contemplated by the forward-looking statements, including,

but not limited to, the following:

  • Operating factors, such as a failure to operate our business successfully in comparison to market expectations or in

comparison to our competitors, our inability to obtain capital when desired or refinance debt maturities when desired, and/

or a failure to maintain our status as a REIT for federal tax purposes;

  • Market and industry factors, such as adverse developments concerning the life science industry and/or our tenants;

  • Government factors, such as any unfavorable effects resulting from federal, state, local, and/or foreign government

policies, laws, and/or funding levels;

  • Global factors, such as negative economic, social, political, financial, credit market, banking conditions, and/or regional

armed hostilities; and

  • Other factors, such as climate change, cyber intrusions, and/or changes in laws, regulations, and financial accounting

standards.

Global Trade Policies

We have been monitoring and will continue to monitor macroeconomic trends and uncertainties. In particular, we are

assessing how recent fluctuations in international trade relations and trade policies could adversely affect our business or the

businesses of our tenants.

In early March 2025, the U.S. government imposed or indicated that it would impose a series of tariffs on certain goods from

Canada and Mexico as well as raise tariffs on Chinese imports. President Trump has also indicated his intent to impose a “major”

pharmaceutical-specific tariff, which could adversely affect our business and/or the business of our tenants. As a result of these

developments, the global securities and trade markets have reacted with volatility, and trade tensions remain high.

The imposition of tariffs or the potential future imposition of additional or modified tariffs in the current geopolitical climate could

have material adverse effects on the net profitability, revenues, or operations of Alexandria and many other companies. While we are

evaluating the potential impacts of such tariffs, as well as our ability to mitigate such impacts, these recent trends may in the meantime

interrupt supply chains, fragment international business relationships, and create unknown risks that would thereby affect our or our

tenants’ business operations.

This list of risks and uncertainties is not exhaustive. Additional information regarding risk factors that may affect us is included

under Part I; “Item 1A. Risk factors”; and “Item 7. Management’s discussion and analysis of financial condition and results of

operations” in our annual report on Form 10-K for the year ended December 31, 2024 and under respective sections in this quarterly

report on Form 10-Q. Readers of this quarterly report on Form 10-Q should also read our other documents filed publicly with the SEC

for further discussion regarding such factors.

Overview

We are a Maryland corporation formed in October 1994 that has elected to be taxed as a REIT for federal income tax

purposes. Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science

REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate

niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus™ ecosystems in

AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland,

Research Triangle, and New York City. As of June 30, 2025, Alexandria has a total market capitalization of $25.7 billion and an asset

base in North America that includes 39.7 million RSF of operating properties and 4.4 million RSF of Class A/A+ properties undergoing

construction and one 100% pre-leased committed near-term project expected to commence construction in the next year.

We develop dynamic Megacampus ecosystems that enable and inspire some of the world’s most brilliant minds and innovative

companies to create life-changing scientific and technological innovations. We believe in the utmost professionalism, humility, and

teamwork. 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. Alexandria has a long-

standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus

environments that enhance our tenants’ ability to successfully recruit and retain world-class talent and inspire productivity, efficiency,

creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital

platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in

higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

As of June 30, 2025:

  • Investment-grade or publicly traded large cap tenants represented 53% of our 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 91% 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.

A key element of our business strategy is our unique focus on Class A/A+ properties primarily located in collaborative

Megacampus ecosystems in AAA life science innovation clusters. Our Megacampus ecosystems are designed for optionality and

scalability, offering our tenants a clear path to address their growth requirements, including through our future developments and

redevelopments. Strategically located near top academic and medical research institutions and equipped with curated amenities and

services, and convenient access to transit, our Megacampus ecosystems are designed to support our tenants in attracting and retaining

top talent and in meeting our tenants’ growth needs, which we believe is a key driver of tenant demand for our properties. 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.

Executive summary

Operating results

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net (loss) income attributable to Alexandria’s common stockholders – diluted:
In millions$(109.6)$42.9$(121.2)$209.8
Per share$(0.64)$0.25$(0.71)$1.22
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted:
In millions$396.4$405.5$788.4$809.4
Per share$2.33$2.36$4.63$4.71

For additional information, refer to “Funds from operations and funds from operations, as adjusted, attributable to Alexandria

Real Estate Equities, Inc.’s common stockholders” under “Definitions and reconciliations” and to the tabular presentation of these items

in “Results of operations” in Item 2.

A sector-leading REIT with a high-quality, diverse tenant base and strong margins

(As of June 30, 2025*, unless stated otherwise)*
Occupancy of operating properties in North America90.8%(1)
Percentage of total annual rental revenue in effect from Megacampus platform75%
Percentage of total annual rental revenue in effect from investment-grade or publicly traded large cap tenants53%
Adjusted EBITDA margin for the three months ended June 30, 202571%
Percentage of leases containing annual rent escalations97%
Weighted-average remaining lease term:
Top 20 tenants9.4years
All tenants7.4years
Sustained strength in tenant collections:
July 2025 tenant rents and receivables collected as of the date of this report99.4%
Tenant rents and receivables for the three months ended June 30, 2025 collected as of the date of this report99.9%

(1)Reflects temporary vacancies aggregating 668,795 RSF, or 1.7%, which are now leased and expected to be occupied upon completion of building and/or tenant

improvements. The weighted-average expected delivery date is January 2, 2026. Refer to “Summary of occupancy percentages in North America” in Item 2 for additional

details.

Strong and flexible balance sheet with significant liquidity; top 10% credit rating ranking among all publicly traded U.S. REITs

As of June 30, 2025, unless stated otherwise:

*•*Net debt and preferred stock to Adjusted EBITDA of 5.9x and fixed-charge coverage ratio of 4.1x for the three months ended

June 30, 2025 annualized, with targets for the three months ended December 31, 2025 annualized of less than or equal to

5.2x and 4.0x to 4.5x, respectively.

  • Significant liquidity of $4.6 billion.

  • Only 9% of our total debt matures through 2027.

  • 12.0 years weighted-average remaining term of debt, longest among S&P 500 REITs.

  • Since 2021, our quarter-end fixed-rate debt averaged 97.2%.

  • Total debt and preferred stock to gross assets of 30%.

  • $297.3 million of capital contribution commitments from existing consolidated real estate joint venture partners to fund

construction from July 1, 2025 through 2027 and beyond, including $116.7 million from July 1, 2025 to December 31, 2025.

Leasing volume and rental rate increases

  • Leasing volume of 769,815 RSF during the three months ended June 30, 2025.

  • In July 2025, we executed the largest life science lease in company history with a long-standing multinational pharmaceutical

tenant for a 16-year expansion build-to-suit lease, aggregating 466,598 RSF, located on the Campus Point by Alexandria

Megacampus in our University Town Center submarket. If this were included in the leasing volume for the three months ended

June 30, 2025, the total leased RSF would have increased to 1.2 million RSF for the three months ended June 30, 2025 from

769,815 RSF. Refer to “New Class A/A+ development and redevelopment properties: current projects” in Item 2 for additional

information.

  • Rental rate increases on lease renewals and re-leasing of space of 5.5% and 6.1% (cash basis) for the three months ended

June 30, 2025 and 13.2% and 6.9% (cash basis) for the six months ended June 30, 2025.

  • 84% of our leasing activity during the last twelve months was generated from our existing tenant base.
June 30, 2025
Three Months EndedSix Months Ended
Total leasing activity – RSF769,8151,800,368
Lease renewals and re-leasing of space:
RSF (included in total leasing activity above)483,4091,367,817
Rental rate increase5.5%13.2%
Rental rate increase (cash basis)6.1%6.9%
Leasing of development and redevelopment space – RSF131,768138,198

Key operating metrics

  • Total revenues

  • $762.0 million, down 0.6%, for the three months ended June 30, 2025, compared to $766.7 million for the three months

ended June 30, 2024. Excluding dispositions completed after January 1, 2024, total revenues would have increased by

5.1% for the three months ended June 30, 2025.

  • $1.52 billion, down 1.0%, for the six months ended June 30, 2025, compared to $1.54 billion for the six months ended

June 30, 2024. Excluding dispositions completed after January 1, 2024, total revenues would have increased by 4.6% for

the six months ended June 30, 2025.

  • Net operating income (cash basis) of $2.0 billion for the three months ended June 30, 2025 annualized increased by

$111.4 million, or 5.8%, compared to the three months ended June 30, 2024 annualized. Refer to “Net operating income, net

operating income (cash basis), and operating margin” under “Definitions and reconciliations” in Item 2 for a reconciliation of our

net income to net operating income (cash basis).

  • Same property net operating income changes

  • (5.4)% and 2.0% (cash basis) for the three months ended June 30, 2025, compared to the three months ended June 30,

2024, which include lease expirations that became vacant during the three months ended March 31, 2025, aggregating

768,080 RSF across six properties and four submarkets, with a weighted-average lease expiration date of January 21,

  1. Excluding the impact of these lease expirations, same property net operating income changes for the three months

ended June 30, 2025 would have been (2.1)% and 6.5% (cash basis). As of June 30, 2025, 153,658 RSF was leased with

a weighted-average lease commencement date of April 30, 2026, and we expect to favorably resolve the remaining

614,422 RSF over the next several quarters. Refer to the “Summary of occupancy percentages in North America” in Item

2 for additional details.

  • (4.3)% and 3.4% (cash basis) for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

  • General and administrative expenses

  • $59.8 million for the six months ended June 30, 2025, representing cost savings of $31.9 million, or 35%, compared to the

six months ended June 30, 2024, primarily the result of cost-control and efficiency initiatives on reducing personnel-

related costs and streamlining business processes.

  • As a percentage of net operating income, our general and administrative expenses for the trailing twelve months ended

June 30, 2025 were 6.3%, representing the lowest level in the past ten years, compared to 9.2% for the trailing twelve

months ended June 30, 2024.

Dividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment

  • Common stock dividend declared for the three months ended June 30, 2025 of $1.32 per share aggregating $5.26 per

common share for the twelve months ended June 30, 2025, up 18 cents, or 3.5%, over the twelve months ended June 30,

  • By maintaining our recent dividend at $1.32 per share, over $40 million of additional liquidity and equity capital can be

reinvested annually.

  • Dividend yield of 7.3% as of June 30, 2025.

  • Dividend payout ratio of 57% for the three months ended June 30, 2025.

  • Significant net cash flows provided by operating activities after dividends retained for reinvestment aggregating $2.3 billion for

the years ended December 31, 2021 through 2024 and the midpoint of our 2025 guidance range.

Ongoing execution of Alexandria’s 2025 capital recycling strategy

We expect to fund a significant portion of our capital requirements for the year ending December 31, 2025 through dispositions

of non-core assets, land, partial interest sales, and sales to owner/users. We expect dispositions of land to represent 20%–30% of our

total dispositions and sales of partial interests in 2025 (in millions):

Completed dispositions$261
Our share of pending transactions subject to non-refundable deposits, signed letters of intent, and/or purchase and sale agreement negotiations525
Our share of completed and pending 2025 dispositions78640%
Additional targeted dispositions1,16460
2025 guidance midpoint for dispositions and sales of partial interests$1,950100%

Significant leasing progress on temporary vacancy

Occupancy as of June 30, 202590.8%(1)
Temporary vacancies now leased with future delivery1.7(2)
Occupancy as of June 30, 2025, including leased, but not yet delivered space92.5%

(1)Refer to “Summary of properties and occupancy” in Item 2 for additional details.

(2)Represents temporary vacancies as of June 30, 2025 aggregating 668,795 RSF, primarily in the Greater Boston, San Francisco Bay Area, and San Diego markets,

which are now leased and expected to be occupied upon completion of building and/or tenant improvements. The weighted-average expected delivery date is January 2,

Key capital metrics as of or for the three months ended June 30, 2025

  • $25.7 billion in total market capitalization.

  • $12.4 billion in total equity capitalization.

  • Non-real estate investments aggregating $1.5 billion:

  • Unrealized gains presented in our consolidated balance sheet were $7.7 million, comprising gross unrealized gains and

losses aggregating $180.2 million and $172.5 million, respectively.

  • Investment loss of $30.6 million for the three months ended June 30, 2025 presented in our consolidated statement of

operations consisted of $30.5 million of realized gains, $21.9 million of unrealized losses, and $39.2 million of impairment

charges.

Key capital events

  • Upon maturity on April 30, 2025, we repaid our 3.45% unsecured senior notes payable aggregating $600.0 million, using

proceeds from our February 2025 unsecured senior notes payable offering.

  • Under our common stock repurchase program authorized in December 2024, we may repurchase up to $500.0 million of our

common stock through December 31, 2025.

  • During the three months ended June 30, 2025, we did not repurchase any shares.

  • As of the date of this report, the approximate value of shares authorized and remaining under this program was

$241.8 million.

  • In August 2025, we expect to repay a secured construction loan held by our consolidated real estate joint venture at 99

Coolidge Avenue, a development project where we have a 76.9% interest. The project is currently 76% leased/negotiating and

is expected to deliver in 2026. We expect to repay the loan aggregating $153.5 million which matures in 2026 and bears an

interest rate of 7.16% as of June 30, 2025. As a result, we expect to recognize a loss on early extinguishment of debt of

$99 thousand for the write-off of unamortized deferred financing costs during the three months ending September 30, 2025.

External growth and investments in real estate

Alexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $15 million*, commencing*

during the three months ended June 30, 2025*, with an additional* $139 million of incremental annual net operating income anticipated to

deliver by the fourth quarter of 2026 primarily from projects 84% leased/negotiating.

  • During the three months ended June 30, 2025, we placed into service development and redevelopment projects aggregating

217,774 RSF that are 90% occupied across three submarkets and delivered incremental annual net operating income of

$15 million.

  • A significant delivery during the three months ended June 30, 2025 was 119,202 RSF at 10935, 10945, and 10955

Alexandria Way located in this asset at the One Alexandria Square Megacampus in our Torrey Pines submarket.

  • Improvements of 100 bps and 110 bps in initial stabilized yield and initial stabilized yield (cash basis), respectively,

were primarily driven by leasing space at higher rental rates than previously underwritten and a $23 million reduction

in total investment due to construction cost savings from overall project efficiencies.

  • Annual net operating income (cash basis) from recently delivered projects is expected to increase by $57 million upon the

burn-off of initial free rent, which has a weighted-average burn-off period of approximately three months.

  • During 2025-2026, we expect to deliver annual net operating income representing nearly 9% of the total net operating income

for 2024.

  • 74% of RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.
(dollars in millions)Incremental Annual Net Operating IncomeRSFOccupied/ Leased/ Negotiating Percentage
Placed into service:
Three months ended March 31, 2025$37309,494100%
Three months ended June 30, 202515(1)217,77490
Total placed into service during six months ended June 30, 2025$52(1)527,26896%
Expected to be placed into service:
Third quarter of 2025 through fourth quarter of 2026$139(2)1,155,041(3)84%(4)
2027 through 2028(5)2613,270,23828%
$400

(1)Excludes incremental annual net operating income from recently delivered spaces aggregating 22,005 RSF that are vacant and/or unleased as of June 30, 2025.

(2)Includes expected partial deliveries through the fourth quarter of 2026 from projects expected to stabilize in 2027 and beyond, including speculative future leasing

that is not yet fully committed. Refer to the initial and stabilized occupancy years under “New Class A/A+ development and redevelopment properties: current

projects” in Item 2 for additional information.

(3)Represents the RSF related to projects expected to stabilize by the fourth quarter of 2026. Does not include RSF for partial deliveries through the fourth quarter of

2026 from projects expected to stabilize in 2027 and beyond.

(4)Represents the leased/negotiating percentage of development and redevelopment projects that are expected to stabilize during the second half of 2025 and 2026.

(5)Includes one 100% pre-leased committed near-term project expected to commence construction in the next year.

Trends that may affect our future results

Current identified key market trends and uncertainties that had or may have a negative effect on our business are discussed

below. Although we seek to minimize the risks posed by these trends and uncertainties as discussed in the mitigating factors section

below, there can be no assurance that these measures will be successful in preventing material impacts on our future results of

operations, financial position, and cash flows. Refer to “Item 1A. Risk factors” within “Part II – Other information” of this quarterly report

on Form 10-Q and “Item 1A. Risk factors” within Part I in our annual report on Form 10-K for the year ended December 31, 2024 for

discussion of additional risks we face.

  • New competitive supply may exert pressure on our rental rates and adversely affect our operating results.** During and

after the COVID-19 pandemic, the shift toward hybrid and remote work arrangements has led certain office and other real

estate companies to repurpose their underutilized office spaces into laboratory facilities. Our success and the success of other

laboratory operators have prompted and may continue to prompt new and existing life science developers to commence

speculative redevelopment and/or development projects in anticipation of demand for laboratory facilities. These conversion

and speculative development projects have contributed to a significant influx of new laboratory properties in key markets such

as Boston, San Diego, and the San Francisco Bay Area, heightening competitive pressures and diluting landlords’ pricing

power in certain submarkets.

The increase in the supply of laboratory properties may persist in the near future, potentially intensifying competition and

continuing to exert downward pressure on rental and occupancy rates. To remain competitive, retain existing tenants, or attract

new tenants, we may need to reduce our future rental rates and/or offer more tenant improvement allowances or additional

tenant concessions, including free rent. The table below reflects a trend of increasing tenant improvement and leasing

commissions per RSF, free rent, rental rate increases related to our renewed/re-leased space, and occupancy:

Tenant Improvements/ Leasing Commissions per RSFFree Rent Concessions per Annum (leases executed in trailing 12 months)Rental Rate IncreasesOccupancy (as of each period end)
Fiscal year 2023$26.090.6 months29.4%94.6%
Fiscal year 2024$46.890.7 months16.9%94.6%
Six months ended June 30, 2025$80.680.9 months13.2%90.8%
Midpoint of 2025 guidanceN/A13.0%91.7%

As of June 30, 2025, we anticipate that 4.4 million RSF of our projects undergoing construction and one 100% pre-leased

committed near-term project expected to commence construction in the next year will be placed into service from 2025 through

2028 and will generate $400 million in future incremental annual net operating income. These projects are 49% leased or

under lease negotiations as of June 30, 2025. Realization of the aforementioned risks could hinder our ability to secure tenants

for the remaining unleased RSF related to these projects at the expected rates, or at all, potentially leading to a shortfall in, or

delays in the commencement of, the projected incremental annual net operating income.

  • Unfavorable capital markets and overall macroeconomic environment negatively impacting the value of our real**

estate and non-real estate portfolios may limit our ability to raise capital to further our business objectives.

The effective execution of our development and redevelopment activities is contingent upon our access to the required capital.

In 2025, we expect to incur $1.75 billion in construction spending at the midpoint of our 2025 guidance range.

*•*Lower property valuations and increased capitalization rates. A portion of our projected construction and acquisition and

other opportunistic uses of capital spending is expected to be funded through dispositions and sales of partial interests in

core and non-core real estate assets. Real estate investments are generally less liquid than many other investment types,

which can present challenges in selling our properties timely or at desirable prices, especially in an environment of

oversupply.

Real estate sales can be particularly challenging given the demand for real estate is impacted by an economic climate

marked by ongoing uncertainties around tenant demand for space and elevated interest rates, in addition to those related

to oversupply. Although the U.S. Federal Reserve lowered the federal funds target range during 2024 to 4.25%–4.50%

from 5.25%–5.50% at the end of 2023, interest rates remain elevated. This could continue to limit access to debt and/or

equity financing for prospective buyers of our real estate assets, potentially eliminating their participation in the market or

forcing them to seek more expensive alternative funding options. All other aspects being equal, such challenges for

buyers lead to an excess of properties available for sale, which exert downward pressure on property valuations and

elevate capitalization rates, adversely impacting the sales proceeds we expect from our real estate asset sales.

The new supply, discussed above, combined with high interest rates and reduced market liquidity, may result in a

prolonged period of lower property valuations and higher capitalization rates, potentially leading to significant additional

real estate impairments and making it more challenging to execute asset sales within expected timelines. For additional

information about our sales of real estate, refer to “Sales of real estate assets and impairment of real estate” in Note 3 –

“Investments in real estate” to our unaudited consolidated financial statements in Item 1 for additional information. In

2025, we expect to complete dispositions and sales of partial interests of approximately $1.95 billion at the midpoint of our

2025 guidance range. However, we may not be able to achieve this and/or other targets disclosed in our 2025 guidance

as a result of the uncertainties discussed in this section as well as in “Item 1A. Risk factors” within “Part II – Other

information” of this quarterly report on Form 10-Q and “Item 1A. Risk factors” within Part I in our annual report on Form

10-K for the year ended December 31, 2024.

The table below presents total dispositions and a trend of increasing capitalization rates associated with dispositions and

sales of partial interests in our real estate assets (dollars in thousands), which is partly attributable to the quality of core

and non-core assets we sold during each period. There is no assurance that this upward trend will stabilize or reverse in

the future.

Total Dispositions and Sales of Partial InterestsImpairment of Real EstateCapitalization Rates(1)Capitalization Rates (Cash Basis)(1)
2023$1,314,414$461,1146.7%5.9%
2024$1,382,453$223,0687.7%6.5%
Six months ended June 30, 2025$260,640$161,760N/A
Midpoint of 2025 guidance$1,950,000N/A

(1)Capitalization rates are calculated only for stabilized operating assets sold. Refer to “Capitalization rates” under “Definitions and reconciliations” in item

2 for additional information.

*•*Increased cost and limited availability of capital. In February 2025, we issued $550.0 million of unsecured senior notes

payable, primarily to refinance our $600.0 million unsecured senior notes payable that matured in April 2025. Currently, we

do not expect to issue any additional new debt in 2025. However, should we encounter difficulties in selling our real estate

assets at our targeted prices, we may need to increase our reliance on debt financing to fund our construction projects,

which are projected to aggregate approximately $1.75 billion in construction spending based on the midpoint of our 2025

guidance. If the current high interest rate environment persists or worsens, the debt funding option could become costlier,

less accessible, or even unavailable, potentially limiting our ability to complete our development and redevelopment

projects on schedule and thereby delaying our expected incremental annual net operating income generation and

negatively affecting our business.

The table below reflects interest rates related to our unsecured senior notes payable issued in 2023, 2024, and in

February 2025 (dollars in thousands). There is no assurance that high debt costs will not continue into the future.

Unsecured Senior Notes Payable IssuedInterest Rate(1)
2023$1,000,0005.07%
2024$1,000,0005.57%
February 2025 issuance and midpoint of our 2025 guidance$550,0005.66%

(1)Includes amortization of loan fees, amortization of debt premiums (discounts), and other bank fees.

Furthermore, our active development and redevelopment projects under construction, primarily related to our

Megacampus ecosystems, have an estimated $2.9 billion of remaining costs to complete, of which $1.8 billion is not under

contract as of June 30, 2025. We estimate that 30%–40% of these $1.8 billion costs represent costs of materials that may

be subject to inflationary pressure and/or potential tariffs. Therefore, we estimate that each 10% increase in these costs of

materials may result in a decline in initial stabilized yields of approximately 3.5–4.5 basis points for our existing active

development and redevelopment projects. This estimate does not account for the cost of potential delays that may occur

in receiving or replacing materials subject to tariffs.

*•*Capitalized Interest. In 2025, our capitalized interest and interest expenses are expected to be $335 million and

$200 million, respectively, each at the midpoints of our 2025 guidance ranges. Our strategic focus is on prioritizing the

completion of our highly leased projects under construction. Additionally, we invest in our future pipeline with the goals of

enhancing value and reducing the timeline to allow for vertical construction. This is in response to our expectation of

increased future demand for these projects and is reflected in our expectation for capitalized interest. Refer to “Capitalized

interest” under “Definitions and reconciliations” in Item 2 for additional information.

The challenging macroeconomic environment, including the elevated supply of laboratory space, high costs or

unavailability of debt, and challenges in obtaining sufficient proceeds from real estate dispositions, as discussed above,

have, however, necessitated and may continue to necessitate a reevaluation of our current plans and lead to a temporary

suspension of our construction projects or delay of future projects. This could result in a decline in our capitalized interest

for 2025 and beyond below our current projections and a further increase in interest expense recognized in our

consolidated statement of operations.

The table below presents gross interest expense, capitalized interest, and interest expense in 2023 and 2024 and

projections for 2025 based on the midpoint of our 2025 guidance (in thousands):

Gross Interest ExpenseCapitalized InterestInterest Expense
2023$438,182$(363,978)$74,204
2024$516,799$(330,961)$185,838
Midpoint of our 2025 guidance$535,000$(335,000)$200,000

During the six months ended June 30, 2025, our average real estate basis capitalized aggregated $8.1 billion. This

includes

  • $2.9 billion related to development and redevelopment projects under construction and one 100% pre-leased

committed near-term project expected to commence construction in the next year;

  • $1.0 billion related to smaller redevelopments and repositioning capital projects;

  • $1.2 billion related to key future Megacampus expansion pre-construction work; and

  • $3.0 billion related to future pipeline projects expected to reach key milestones in the second half of 2025 and 2026,

including various phases of entitlement, design, site work, and other activities necessary to begin aboveground

vertical construction, on April 3, 2026, on a weighted-average real estate investment basis. At that time, we may

evaluate whether to proceed with future pre-construction and/or construction activities based on leasing demand and

market conditions.

  • Volatility in non-real estate investments. We hold strategic investments in publicly traded companies and privately held

entities primarily involved in the life science industry. These investments are subject to market and sector-specific risks

that can substantially affect their valuation. Like many other industries, the life science industry is susceptible to

macroeconomic challenges, such as ongoing economic uncertainty and a tighter capital environment. These factors may

lead to increased volatility in the valuation of our non-real estate investments.

In such a challenging environment, distributions from our investments — which we may receive as dividends, as

liquidation distributions from our investments in limited partnerships, or as a result of mergers and acquisitions that lead to

our privately held investees being acquired by other entities — may be limited and could result in lower realized gains.

Moreover, should market conditions worsen, we may face challenges in selling these securities at optimal prices,

potentially disrupting our capital strategy.

Due to the volatility in non-real estate investments, there is no assurance that we will be able to realize all of these gains

or sustain our historical level of annual realized gains in the future. The table below presents realized gains, impairments,

and unrealized losses on our non-real estate investments (in thousands):

Non-Real Estate Investments
Realized Gains(1)ImpairmentsUnrealized Losses
2023$80,628$74,550$201,475
2024$117,214$58,090$112,246
Six months ended June 30, 2025$59,865$50,396$90,083
Midpoint of our 2025 guidance$115,000N/A

(1)Excludes impairment charges.

Gross unrealized gains related to non-real estate investments as of June 30, 2025, December 31, 2024, and

December 31, 2023 aggregated to $180.2 million, $228.1 million, and $320.4 million, respectively.

Unfavorable market conditions could also indicate potential impairment of our investments in privately held entities that do

not report NAV per share and lead to the recognition of additional significant non-real estate impairments.

  • Government policy and regulatory disruption. Recent and ongoing policy actions by the U.S. government have introduced

significant volatility and uncertainty into the life science ecosystem, with direct implications for our tenants, non-real estate

investments, and our overall business. Material developments include National Institutes of Health (“NIH”) and U.S. Food

and Drug Administration (“FDA”) workforce reductions, The Centers for Medicare & Medicaid Services (“CMS”)

reimbursement cuts, a cap on NIH grant cost recovery, and defunding of research at certain U.S. research institutions.

These changes have led to the suspension of many research projects, delays in regulatory reviews and approvals of

drugs and other medical products, and increased barriers to clinical and regulatory progress, including for early-stage life

science companies. Moreover, foreign markets, especially China, are rapidly gaining ground as global biotech leaders due

to centralized funding, and faster regulatory timelines. The U.S. life science industry risks losing its competitive advantage

as companies increasingly look abroad to conduct research. Combined with new immigration restrictions that affect

international research talent, these actions threaten the long-term viability of the U.S. biomedical industry. The cumulative

effect of these developments may significantly reduce tenant demand for U.S. life science real estate. At the same time,

trade tensions and widespread tariffs may increase the cost of capital and and key materials, which could delay or reduce

our development pipeline. Refer to “Item 1A. Risk factors” within “Part II – Other information” of this quarterly report on

Form 10-Q for more information.

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

income from rentals, net operating income, results of operations, funds from operations, operating margins, initial stabilized yields

(unlevered) on new or existing construction projects, occupancy, EPS, FFO per share, our overall business, and the market value of

our common stock.

  • Mitigating factors:

  • Megacampus strategy: focus on premier Class A/A+ assets in AAA life science innovation cluster locations.**

Alexandria has established a high-quality Labspace® asset base predominantly concentrated in markets with high barriers

to entry. Despite a recent increase in the availability of laboratory space, we expect to continue to benefit from our focus

on Class A/A+ assets strategically clustered in Megacampus ecosystems in AAA life science innovation cluster locations

in close proximity to top academic and medical research institutions. This proximity is a key driver of tenant demand.

These campuses are used in two distinct ways: (i) to house the research operations of our tenants and (ii) to recruit and

retain the best talent available from a limited pool, which underscores why their scale, strategic design, and location are

critical.

Chief executive officers of life science companies typically anticipate rapid and exponential growth upon their companies’

achievement of scientific milestones. Our Megacampus ecosystems, which offer both high visibility and a clear path for

growth, are designed for scalability to accommodate our tenants’ growth. Our future developments and redevelopments

aggregate 27.5 million RSF as of June 30, 2025, of which 74% is concentrated within our Megacampus ecosystems. Their

strategic locations and path for growth serve as powerful incentives for tenants to lease space from us.

Moreover, our tenants recognize that their success is directly linked to their ability to attract and retain personnel to

advance their science. With our Megacampus ecosystems, we aim to provide a superior set of amenities, services, and

access to transit that offer valuable optionality. With inspiring design and people-centric amenities, we believe these

campuses enhance our tenants’ confidence in using these spaces as effective recruiting tools. In contrast, a significant

amount of the competitive supply in the market today consists of isolated, one-off buildings. These facilities may provide

operational space, but we believe they may fall short in offering the scale and strategic design that our Megacampus

ecosystems deliver.

Consequently, we believe an external growth strategy that focuses on the development of new Megacampus ecosystems,

and the enhancement of existing ones, serves as our most effective defense against competitive supply. Over the past

three decades, we have established a significant market presence in AAA innovation cluster locations, where our

Megacampus properties have been providing our life science tenants with a comprehensive solution, one that is

challenging to replicate due to the significant time and capital required to build this model. We believe our focus on our

Megacampus strategy will continue to position us favorably over the supply of new competitive laboratory spaces. This

strategy is partially responsible for our 2025 performance metrics listed below, which have been achieved despite the

current challenging macroeconomic environment:

  • Occupancy of 90.8% as of June 30, 2025.

  • Rental rate increases of 13.2% and 6.9% (cash basis) for the six months ended June 30, 2025.

  • Leasing volume aggregating 1.8 million RSF for the six months ended June 30, 2025.

  • In July 2025, we executed the largest life science lease in company history with a long-standing multinational

pharmaceutical tenant for a 16-year expansion build-to-suit lease, aggregating 466,598 RSF, located on the

Campus Point by Alexandria Megacampus in our University Town Center submarket.

  • The weighted-average lease term for leases executed during six months ended June 30, 2025 was 10.2 years.

  • Projects expected to stabilize in 2025 and 2026 are 84% leased/negotiating.

  • Operational excellence of our team.** Alexandria focuses on operational excellence in direct asset management and

operations of our Labspace® asset base. Our team is composed of highly experienced, educated, and professionally

credentialed facilities specialists. This expertise is essential in ensuring a secure and efficient environment for

groundbreaking scientific research and has been cultivated and maintained over many years. The demanding nature of

laboratory-based scientific research requires strict adherence to safety standards set by local, state, and federal

regulatory bodies. Key compliance aspects include good manufacturing practice and Clinical Laboratory Improvement

Amendments (CLIA) certifications, adherence to national biosafety level guidelines, proper permitting and handling of

hazardous waste generation and chemical storage, maintenance of safety stations, effective management of ultra-low

temperature freezers, and careful licensing and management of radioactive materials.

  • Strength of our brand.** As a recognized leader in the life science and real estate sectors, Alexandria has successfully

built a diverse and high-quality tenant base. Over the past three decades, we have fostered long-standing relationships

and strategic partnerships with our tenants, which have enabled us to maintain strong occupancy, leasing, and growth in

net operating income and cash flows and to effectively navigate through various economic cycles. Key indicators of our

brand strength include the following:

  • As of June 30, 2025, 84% of our leasing activity during the last twelve months was generated from our existing tenant

base.

  • As of June 30, 2025, 89% of our top 20 tenant annual rental revenue is derived from investment-grade or publicly

traded large cap companies.

  • As of June 30, 2025, our occupancy is 90.8%.

  • Our tenant collections have remained consistently high over the last four years, averaging 99.8% since the beginning

of 2021 through June 30, 2025.

  • Life science fundamentals.** We monitor market demand trends, particularly in the life science industry, to optimally align

our property offerings with tenant requirements. The life science industry has shown strong long-term growth, fueled by

multifaceted sources of funding, including private venture capital, biopharma R&D spend, government funding, and

philanthropic support for biomedical innovation. We believe our focus on high-quality Labspace® assets in prime locations

positions us to effectively capitalize on these ongoing trends:

  • The R&D expenditures by U.S. publicly traded life science companies nearly doubled in 2023 compared to 2014. As

of December 31, 2024, 17 of the top 20 pharma R&D spenders (for the year 2023) are Alexandria tenants.

  • The sector’s growth is further supported by substantial funding of life science companies by private-venture capital,

which aggregated over $40 billion in 2024, or over 2.5x the capital deployed in 2014.

  • Prudent financial management.** Our strong and flexible balance sheet and prudent balance sheet management are key

factors in our ability to navigate economic uncertainties and capitalize on new opportunities. The strength of our financial

position is highlighted by several key indicators:

  • Our significant liquidity of $4.6 billion as of June 30, 2025 provides us the flexibility to address our operational needs

and to pursue strategic opportunities.

  • We expect to have the ability to self-fund a large portion of our capital requirements through the following sources in

2025:

  • $475 million in net cash provided by operating activities after dividends, at the midpoint of our 2025 guidance

range.

  • $297.3 million in capital contributions to fund construction expected from our existing consolidated real estate

joint venture partners from July 1, 2025 through December 31, 2027 and beyond, including $116.7 million from

July 1, 2025 to December 31, 2025.

  • $1.95 billion from dispositions and sales of partial interests in real estate assets at the midpoint of our 2025

guidance range.

  • As of June 30, 2025, our credit ratings from S&P Global Ratings and Moody’s Ratings were BBB+ and Baa1,

respectively, which continued to rank in the top 10% among all publicly traded U.S. REITs.

  • Our net debt and preferred stock to Adjusted EBITDA ratio was 5.9x for the three months ended June 30, 2025

annualized, with a target of less than or equal to 5.2x for the fourth quarter of 2025 annualized.

  • As of June 30, 2025, our fixed-rate debt represents 90.6% of our total debt, which provides predictability in debt

servicing costs. Since 2021, our quarter-end fixed-rate debt averaged 97.2%.

  • Our debt maturity schedule is well laddered, which provides us with financial flexibility and reduces short-term

refinancing risks. As of June 30, 2025, only 9% of our debt matures through 2027.

  • As of June 30, 2025, the weighted-average remaining term of our debt is 12.0 years, longest among S&P 500 REITs,

demonstrating our strategic approach to debt management and our focus on maintaining manageable annual debt

maturities.

  • Other mitigating factors

  • Improvement in office market. The increase in demand for premium office space since 2024, primarily driven by the

technology sector, particularly companies focused on artificial intelligence, absorbed some of the market’s supply

previously anticipated for life science use, which is now being repositioned back into offices. High ceilings, improved

ventilation systems, and abundant natural light have become highly desirable features, appealing to office and

advanced technology tenants. We expect this trend may lead to the exit from the life science sector of inexperienced

life science real estate developers and expedite the resolution of the oversupply impacting the sector.

  • Projected decrease in general and administrative expenses. Over the past two years, we have implemented

comprehensive measures to reduce our expenditures across our organization, including our general and

administrative expenses, which provided savings during the year ended December 31, 2024, compared to the year

ended December 31, 2023, and are expected to provide significant savings in 2025 and beyond. With these

initiatives, we anticipate a reduction in general and administrative expenses of approximately $49 million, or 29%,

during the year ending December 31, 2025, based on the midpoint of our 2025 guidance range, compared to the year

ended December 31, 2024. These savings are expected to stem from a variety of implemented cost-control and

efficiency initiatives, including, but not limited to, the following:

(i)Personnel-related matters, including:

  • Reduction in headcount over the last two years.

  • Restructuring of various compensation plans.

(ii)Streamlining of business processes:

  • Implementation of systems upgrades, process improvements, and smarter technology.

  • Renegotiation of contracts related to legal, technology, and operational support services, and

elimination of redundancies through better alignment and consolidation of roles.

A significant portion, but not all, of the cost reductions expected to be achieved in 2025 is anticipated to continue

beyond 2025.

Operating summary

Same Property Net Operating Income PerformanceRental Rate Growth: Renewed/Re-Leased Space
Margins**(2)**Favorable Lease Structure**(3)**
OperatingAdjusted EBITDAStrategic Lease Structure by Owner and Operator of Collaborative Megacampus Ecosystems
71%71%Increasing cash flows
Percentage of leases containing annual rent escalations97%
Stable cash flows
Long-Duration Lease Terms**(4)**Percentage of triple net leases91%
9.4 Years7.4 YearsLower capex burden
Percentage of leases providing for the recapture of capital expenditures92%
Top 20 TenantsAll Tenants
Net Debt and Preferred Stock to Adjusted EBITDA**(5)**Fixed-Charge Coverage Ratio**(5)**

1

13

25

37

49

61

4.0x to 4.5x

(1)

(4.3)%

2024YTD 6/30/25

Refer to “Same properties” and “Definitions and reconciliations” in Item 2 for additional details. “Definitions and reconciliations” contains the definitions of “Fixed-charge

coverage ratio,” “Net debt and preferred stock to Adjusted EBITDA,” and “Net operating income” and their respective reconciliations from the most directly comparable

financial measures presented in accordance with GAAP.

(1)Refer to footnote 1 in “Same properties” in Item 2 for additional details.

(2)For the three months ended June 30, 2025.

(3)Percentages calculated based on our annual rental revenue in effect as of June 30, 2025.

(4)Represents the weighted-average remaining term based on annual rental revenue in effect as of June 30, 2025.

(5)Quarter annualized.

Stable Cash Flows From Our High-Quality and Diverse Mix of Approximately 750 Tenants
Investment-Grade or Publicly Traded Large Cap Tenants
89%
of ARE’s Top 20 Tenant Annual Rental Revenue
53%
of ARE’s Total Annual Rental Revenue
Percentage of ARE’s Annual Rental Revenue

25

Life Science

Product,

Service, and

Device

Multinational

Pharmaceutical

Public

Biotechnology –

Approved or

Marketed

Product

Public

Biotechnology –

Preclinical or

Clinical Stage

Private

Biotechnology

Other(3)

Biomedical

Institutions(1)

Government

Institutions

Advanced Technologies(2)

As of June 30, 2025. Annual rental revenue represents amounts in effect as of June 30, 2025. Refer to “Definitions and reconciliations” in Item 2 for additional information.

(1)79% of our annual rental revenue from biomedical institutions is from investment-grade or publicly traded large cap tenants.

(2)63% of our annual rental revenue from advanced technology tenants is from investment-grade or publicly traded large cap tenants.

(3)Represents the percentage of our annual rental revenue generated by professional services, finance, telecommunications, construction/real estate companies, and

retail-related tenants.

Strong, Broad, and Diverse Life Science Tenant Base Drives Solid Leasing and Long-Term Remaining Lease Terms
Long-Duration Life Science Lease Terms
Remaining Lease Term (in years)(1)
Multinational Pharmaceutical7.1
Life Science Product, Service, and Device6.6
Government Institutions5.1
Biomedical Institutions7.8
Private Biotechnology7.2
Public Biotechnology7.1
Percentage of Life Science Leasing Activity by RSF(2)

1649267441989

Multinational

Pharmaceutical

Public

Biotechnology

Life Science

Product,

Service, and

Device

Biomedical

Institutions

Private

Biotechnology

Other

Advanced

Technologies

(1)Average remaining lease term based on annual rental revenue in effect as of June 30, 2025.

(2)Represents the percentage of RSF for leases executed during the three months ended June 30, 2025 for each respective business type.

Sustained Operational Excellence and Strength in Tenant Collections
Tenant Rents And Receivables Collected**(1)**99.9% 2Q25
99.4% July 2025
99.8% Average Tenant Collections **1Q21–**2Q25

1649267441895

(1)Represents tenant collections for each quarter-end as of each respective quarterly or annual report filing date.

Leasing Activity

The following table summarizes our leasing activity at our properties:

Three Months EndedSix Months EndedYear Ended
June 30, 2025June 30, 2025December 31, 2024
(Dollars per RSF)Including Straight-Line RentCash BasisIncluding Straight-Line RentCash BasisIncluding Straight-Line RentCash Basis
Leasing activity:
Renewed/re-leased space(1)
Rental rate changes5.5%6.1%13.2%6.9%16.9%7.2%
New rates$64.78$68.27$60.11$59.72$65.48$64.18
Expiring rates$61.38$64.36$53.10$55.84$56.01$59.85
RSF483,4091,367,8173,888,139
Tenant improvements/ leasing commissions$49.59$80.68(2)$46.89
Weighted-average lease term9.4 years9.8 years8.5 years
Developed/redeveloped/ previously vacant space leased(3)
New rates$58.12$58.73$55.31$55.61$59.44$57.34
RSF286,406432,5511,165,815
Weighted-average lease term12.3 years11.5 years10.0 years
Leasing activity summary (totals):
New rates$62.30$64.72$58.96$58.73$64.16$62.68
RSF769,815(4)1,800,3685,053,954
Weighted-average lease term10.5 years10.2 years8.9 years
Lease expirations*(1)*
Expiring rates$63.31$63.62$53.95$55.17$53.82$57.24
RSF825,5832,748,6315,005,638

Leasing activity includes 100% of results for properties in North America in which we have an investment.

(1)Excludes month-to-month leases aggregating 163,493 RSF and 136,131 RSF as of June 30, 2025 and December 31, 2024, respectively. During the trailing twelve

months ended June 30, 2025, we granted free rent concessions averaging 0.9 months per annum.

(2)Includes tenant improvements and leasing commissions for one 11.4-year lease, executed during the three months ended March 31, 2025, at the Alexandria Technology

Square® Megacampus in our Cambridge submarket aggregating 119,280 RSF. Excluding this lease, tenant improvements and leasing commissions per RSF for the six

months ended June 30, 2025 was $47.01.

(3)Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 for additional information, including total project costs.

(4)In July 2025, we executed the largest life science lease in company history with a long-standing multinational pharmaceutical tenant for a 16-year expansion build-to-suit

lease, aggregating 466,598 RSF, located on the Campus Point by Alexandria Megacampus in our University Town Center submarket. If this were included in the leasing

volume for the three months ended June 30, 2025, the total leased RSF would have increased to 1.2 million RSF for the three months ended June 30, 2025 from 769,815

RSF.

Summary of contractual lease expirations

The following table summarizes the contractual lease expirations at our properties as of June 30, 2025:

YearRSFPercentage of Occupied RSFAnnual Rental Revenue (per RSF)(1)Percentage of Annual Rental Revenue
2025(2)1,320,6923.7%$51.733.3%
20263,137,6478.9%$57.298.8%
20273,393,5619.6%$50.888.4%
20284,015,75911.4%$50.8310.0%
20292,286,4916.5%$48.025.4%
20303,078,3138.7%$43.506.5%
20313,585,20810.2%$54.359.5%
2032993,0422.8%$57.502.8%
20332,592,3037.3%$47.596.0%
20343,063,4088.7%$68.5610.2%
Thereafter7,838,95722.2%$76.1929.1%

Contractual lease expirations for properties classified as held for sale as of June 30, 2025 are excluded from the information on this page.

(1)Represents amounts in effect as of June 30, 2025.

(2)Excludes month-to-month leases aggregating 163,493 RSF as of June 30, 2025.

The following tables present our lease expirations by market for the remainder of 2025 and for 2026 as of June 30, 2025:

2025 Contractual Lease Expirations (in RSF)
MarketLeasedNegotiating/ AnticipatingTargeted for Future Development/ Redevelopment(1)Remaining Expiring Leases(2)Total(3)Annual Rental Revenue (per RSF)(4)
Greater Boston214,399——145,329359,728$35.89
San Francisco Bay Area134,42310,208—279,182423,81395.48
San Diego23,327——68,08191,40855.21
Seattle1,868——54,78156,64932.64
Maryland41,283——23,46964,75222.61
Research Triangle10,4788,368—34,46153,30743.56
New York City———30,38430,38496.62
Texas——198,972—198,972N/A
Canada———40,67940,67910.65
Non-cluster/other markets———1,0001,000N/A
Total425,77818,576198,972677,3661,320,692$51.73
Percentage of expiring leases32%1%15%52%100%
2026 Contractual Lease Expirations (in RSF)
MarketLeasedNegotiating/ AnticipatingTargeted for Future Development/ RedevelopmentRemaining Expiring Leases(2)TotalAnnual Rental Revenue (per RSF)(4)
Greater Boston60,41811,897—514,566586,881$89.16
San Francisco Bay Area28,454——686,304714,75872.57
San Diego———846,084846,08448.90
Seattle29,60450,552—111,720191,87630.42
Maryland———255,147255,14718.85
Research Triangle19,753——159,362179,11539.19
New York City———73,36373,363103.16
Texas——————
Canada—247,743—1,755249,49821.57
Non-cluster/other markets—9,266—31,65940,92585.36
Total138,229319,458—2,679,9603,137,647$57.29
Percentage of expiring leases4%10%0%86%100%

Contractual lease expirations for properties classified as held for sale as of June 30, 2025 are excluded from the information on this page.

(1)Primarily represents assets that were recently acquired for future development or redevelopment opportunities, for which we expect, 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. As of June 30, 2025, the

weighted-average annual rental revenue and expiration date of these leases expiring in 2025 is $895 thousand and July 1, 2025, respectively. Refer to “Investments in

real estate” under “Definitions and reconciliations” in Item 2 for additional details, including development and redevelopment square feet currently included in rental

properties.

(2)Includes 12 properties primarily located in Greater Boston, the San Francisco Bay Area, and San Diego markets aggregating 868,289 RSF with a weighted-average

lease expiration date of February 9, 2026 and annual rental revenue aggregating $70 million and are expected to be re-leased to new tenants, including the following:

(i)Three recently acquired properties in our Greater Stanford submarket aggregating 213,705 RSF for which we are evaluating options to reposition the campus for

advanced technology use;

(ii)One property aggregating 118,225 RSF in our Torrey Pines submarket for which we are evaluating options to re-lease or reposition the space from single tenancy

to multi-tenancy; and

(iii)One lease expiration aggregating 34,714 RSF at our Alexandria Technology Square Megacampus in our Cambridge submarket for which we are in the process of

repositioning the building for multi-tenant use.

We continue to evaluate the business plans and re-leasing strategies for these projects.

(3)Excludes month-to-month leases aggregating 163,493 RSF as of June 30, 2025.

(4)Represents amounts in effect as of June 30, 2025.

Top 20 tenants

89% 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

5.5% of our annual rental revenue in effect as of June 30, 2025. 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 June 30, 2025 (dollars in thousands, except average

market cap amounts):

Remaining Lease Term(1) (in Years)Aggregate RSFAnnual Rental Revenue(1)Percentage of Annual Rental Revenue(1)Investment-Grade Credit RatingsAverage Market Cap (in billions)
TenantMoody’sS&P
1Bristol-Myers Squibb Company(2)5.81,312,184$113,5425.5%A2A$106.0
2Eli Lilly and Company9.31,086,16591,2334.4Aa3A+$791.0
3Moderna, Inc.10.9496,81488,7294.3——$19.5
4Takeda Pharmaceutical Company Limited9.9549,75947,8992.3Baa1BBB+$45.0
5AstraZeneca PLC6.4450,84839,6371.9A1A+$227.0
6Eikon Therapeutics, Inc.(3)13.5311,80638,9131.9——$—
7Roche7.7647,06936,3731.7Aa2AA$255.0
8Illumina, Inc.5.4857,96735,9241.7Baa3BBB$18.1
9Alphabet Inc.2.3625,01534,8991.7Aa2AA+$2,120.0
10United States Government5.1429,35929,502(4)1.4AaaAA+$—
11Uber Technologies, Inc.57.3(5)1,009,18827,8091.3Baa1BBB$155.0
12Novartis AG3.1387,56327,7091.3Aa3AA-$238.0
13Cloud Software Group, Inc.1.0(6)292,01326,4461.3——$—
14Boston Children's Hospital11.7309,23126,2941.3Aa2AA$—
15The Regents of the University of California9.9363,97425,3091.2Aa2AA$—
16Sanofi5.5267,27821,8511.0Aa3AA$132.0
17New York University7.1218,98321,1101.0Aa2AA-$—
18Merck & Co., Inc.8.2333,12421,0011.0Aa3A+$250.0
19Charles River Laboratories, Inc.10.0250,90520,5351.0——$8.9
20Massachusetts Institute of Technology4.5242,42820,5291.0AaaAAA$—
Total/weighted-average9.4(5)10,441,673$795,24438.2%

Annual rental revenue and RSF include 100% of each property managed by us in North America. Refer to “Annual rental revenue” and “Investment-grade or publicly traded large

cap tenants” under “Definitions and reconciliations” in Item 2 for additional details, including our methodologies of calculating annual rental revenue from unconsolidated real

estate joint ventures and average market capitalization, respectively.

(1)Based on total annual rental revenue in effect as of June 30, 2025.

(2)During the three months ended June 30, 2025, Bristol-Myers Squibb Company acquired 2seventy bio, Inc., which was a Top 20 tenant as of March 31, 2025.

(3)Eikon Therapeutics, Inc. is a private biotechnology company led by renowned biopharma executive Roger Perlmutter, formerly an executive vice president at Merck & Co.,

Inc. As of February 25, 2025, the company has raised over $1.2 billion in private venture capital funding.

(4)Includes leases, which are not subject to annual appropriations, with governmental entities such as the National Institutes of Health and the General Services

Administration. Approximately 3% of the annual rental revenue derived from our leases with the United States Government is cancellable prior to the lease expiration date.

(5)Includes (i) ground leases for land at 1455 and 1515 Third Street (two buildings aggregating 422,980 RSF) and (ii) leases at 1655 and 1725 Third Street (two buildings

aggregating 586,208 RSF) in our Mission Bay submarket owned by our unconsolidated real estate joint venture in which we have an ownership interest of 10%. 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 7.6 years as of June 30, 2025.

(6)Represents one lease encompassing four properties acquired in 2022 that we expect to reposition upon lease expiration. This lease with Cloud Software Group, Inc.

(formerly known as TIBCO Software, Inc.) was in place when we acquired the properties. Refer to footnote 2 in “Summary of contractual lease expirations” in Item 2 for

additional details.

Locations of properties

Our properties are strategically located in AAA life science innovation cluster markets. The following table sets forth the total

RSF, number of properties, and annual rental revenue in effect as of June 30, 2025 in each of our markets in North America (dollars in

thousands, except per RSF amounts):

RSFNumber of PropertiesAnnual Rental Revenue
MarketOperatingDevelopmentRedevelopmentTotal% of TotalTotal% of TotalPer RSF
Greater Boston9,270,787632,8501,626,32211,529,95926%65$731,51035%$87.55
San Francisco Bay Area7,991,106212,796344,9348,548,8362064459,2692269.82
San Diego6,851,449784,590—7,636,0391774324,2361649.91
Seattle3,178,090227,577—3,405,667845130,470645.45
Maryland3,848,923——3,848,923950155,975743.70
Research Triangle3,825,870——3,825,870938107,155530.19
New York City921,800——921,8002475,006491.48
Texas1,845,159—73,2981,918,45741537,761224.93
Canada979,575—56,3141,035,88921120,208122.74
Non-cluster/other markets349,099——349,09911014,577157.54
Properties held for sale679,383——679,3832825,063143.66
North America39,741,2411,857,8132,100,86843,699,922100%384$2,081,230100%$58.68
3,958,681

Summary of occupancy percentages in North America

Solid Historical Occupancy of 95% Over Past 10 Years**(1)** From Historically Strong Demand for Our

Class A/A+ Properties in AAA Locations

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 PropertiesOperating and Redevelopment Properties
Market6/30/253/31/256/30/246/30/253/31/256/30/24
Greater Boston90.1%(2)91.8%94.2%76.7%78.4%81.7%
San Francisco Bay Area88.9(2)90.394.085.286.390.7
San Diego94.894.395.194.894.395.1
Seattle90.391.594.790.391.593.7
Maryland93.994.196.593.994.196.5
Research Triangle92.8(2)93.497.492.893.497.4
New York City88.9(3)87.685.188.987.685.1
Texas82.1(2)82.195.578.978.991.8
Subtotal91.091.894.786.387.190.2
Canada90.794.694.985.882.482.5
Non-cluster/other markets72.673.075.672.673.075.6
North America90.8%(2)(4)91.7%94.6%86.2%86.9%89.9%

(1)Represents the average occupancy percentage of operating properties as of each December 31 from 2016 through 2024 and as of June 30, 2025.

(2)Includes previously disclosed lease expirations that became vacant during the three months ended March 31, 2025 aggregating 768,080 RSF across six properties and

four submarkets comprising the following: (i) 182,054 RSF at the Alexandria Technology Square® Megacampus in our Cambridge submarket, (ii) 234,249 RSF at

409 Illinois Street in our Mission Bay submarket, (iii) one property aggregating 104,531 RSF in our Research Triangle market, and (iv) two properties aggregating

247,246 RSF in our Austin submarket. As of June 30, 2025, 153,658 RSF was leased with a weighted-average lease commencement date of April 30, 2026, and we

expect to favorably resolve the remaining 614,422 RSF over the next several quarters.

(3)The Alexandria Center® for Life Science – New York City Megacampus is 97.8% occupied as of June 30, 2025. Occupancy percentage in our New York City market

reflects vacancy at the Alexandria Center® for Life Science – Long Island City property, which was 52.2% occupied as of June 30, 2025.

(4)Includes temporary vacancies as of June 30, 2025 aggregating 668,795 RSF, or 1.7%, primarily in the Greater Boston, San Francisco Bay Area, and San Diego markets,

which are leased and expected to be occupied upon completion of building and/or tenant improvements. The weighted-average expected delivery date is January 2,

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. These projects are focused on providing high-quality,

generic, and reusable spaces that meet the real estate requirements of a wide range of tenants. Upon completion, each development or

redevelopment project is expected to generate increases in rental income, net operating income, and cash flows. Our development and

redevelopment projects are generally in locations that are highly desirable to high-quality entities, which we believe results in higher

occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. Our pre-construction

activities are undertaken in order to prepare the property for its intended use and include entitlements, permitting, design, site work, and

other activities preceding commencement of construction of aboveground building improvements.

Our investments in real estate consisted of the following as of June 30, 2025 (dollars in thousands):

Development and Redevelopment
Under Construction100% Pre-leased Committed Near Term(1)
Operating2025 and 20262027 and BeyondFutureSubtotalTotal
Square footage
Operating39,061,858—————39,061,858
Future Class A/A+ development and redevelopment properties—1,155,0412,803,640466,59824,754,09029,179,36929,179,369
Future development and redevelopment square feet currently included in rental properties(2)———(52,620)(2,525,858)(2,578,478)(2,578,478)
Total square footage, excluding properties held for sale39,061,8581,155,0412,803,640413,97822,228,23226,600,89165,662,749
Properties held for sale679,383———878,205878,2051,557,588
Total square footage39,741,2411,155,0412,803,640413,97823,106,43727,479,09667,220,337
Investments in real estate
Gross book value as of June 30, 2025(3)$29,681,626$1,128,865$2,657,516$19,965$4,819,006$8,625,352$38,306,978

(1)Represents a single-tenant project that expands the existing Campus Point by Alexandria Megacampus, where we currently have a 55% interest. The project is fully

leased to a longtime multinational pharmaceutical tenant that currently occupies two buildings within the Megacampus, one building aggregating 52,620 RSF and

another building aggregating 52,853 RSF. At the end of 2025, the tenant will vacate the 52,620 RSF building to allow for the demolition and development of the new,

build-to-suit life science building at this site. Upon delivery of the new purpose-built property anticipated to occur in 2028, the tenant will vacate the 52,853 RSF building

to allow for the construction of an amenity which will service the entire Megacampus. We expect to fund the majority of future construction costs at the Megacampus until

our ownership interest increases from 55% to 75%, after which future capital would be contributed pro-rata with our joint venture partner.

(2)Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2 for additional details, including future development and redevelopment square feet

currently included in rental properties.

(3)Balances exclude accumulated depreciation and our share of the cost basis associated with our properties held by our unconsolidated real estate joint ventures, which is

classified as investments in unconsolidated real estate joint ventures in our consolidated balance sheet.

Dispositions and sales of partial interests

Our completed dispositions and sales of partial interests of real estate assets during the six months ended June 30, 2025 and pending as of the date of this report consisted of the

following (dollars in thousands):

Square FootageGain on Sales of Real Estate
PropertySubmarket/MarketDate of SaleInterest SoldOperatingFuture DevelopmentSales Price
Completed during the six months ended June 30, 2025:
Properties with vacancies
2425 Garcia Avenue and 2400/2450 Bayshore ParkwayGreater Stanford/San Francisco Bay Area6/30/25100%95,901—$11,000$—
Other18,35212,661
Land
Costa Verde by AlexandriaUniversity Town Center/San Diego1/31/25100%—537,000124,000(1)—
Land parcelTexas5/7/25100%—1,350,00073,287—
Other land parcels34,000504
260,639$13,165
Our share of pending dispositions and sales of partial interests subject to non-refundable deposits, signed letters of intent, and/or purchase and sale agreement negotiations524,745
Our share of completed and pending 2025 dispositions and sales of partial interests$785,384
2025 guidance range for dispositions and sales of partial interests$1,450,000 – $2,450,000
2025 guidance midpoint for dispositions and sales of partial interests$1,950,000

(1)As part of a completed transaction, we provided seller financing of $91.0 million. This note receivable is classified within “Other assets” in our consolidated balance sheet. Refer to Note 8 – “Other assets” to our consolidated financial

statements for additional information.

New Class A/A+ development and redevelopment properties

pipelinepagev2.jpg

ALEXANDRIA’S DEVELOPMENT AND REDEVELOPMENT

DELIVERIES ARE EXPECTED TO PROVIDE INCREMENTAL

GROWTH IN ANNUAL NET OPERATING INCOME

Placed Into ServiceNear-Term DeliveriesIntermediate-Term Deliveries
1H253Q25**–**4Q262027**–**2028
$52M$139M$261M
96% Occupied84% Leased/Negotiating28% Leased/Negotiating
527,268 RSF1.2 million RSF3.3 million RSF

(2)

(5)

(4)

(1)

(3)

For the definition of “Net operating income” and a reconciliation from the most directly comparable GAAP measure, refer to the “Definitions and reconciliations” in Item 2.

(1)Excludes incremental annual net operating income from recently delivered spaces aggregating 22,005 RSF that are vacant and/or unleased as of June 30, 2025.

(2)Includes expected partial deliveries through the fourth quarter of 2026 from projects expected to stabilize in 2027 and beyond, including speculative future leasing that is not yet fully committed. Our share of incremental annual net

operating income from development and redevelopment projects expected to be placed into service primarily commencing from the third quarter of 2025 through the fourth quarter of 2026 is projected to be $103 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.

(3)Our share of incremental annual net operating income from development and redevelopment projects expected to be placed into service primarily commencing from 2027 through 2028 is projected to be $236 million.

(4)Represents the leased/negotiating percentage of development and redevelopment projects that are expected to stabilize during the second half of 2025 and 2026.

(5)Represents the RSF related to projects expected to stabilize by the fourth quarter of 2026. Does not include RSF for partial deliveries through the fourth quarter of 2026 from projects expected to stabilize in 2027 and beyond.

New Class A/A+ development and redevelopment properties: recent deliveries

Incremental Annual Net Operating Income Generated From 1H25 Deliveries

Aggregated $52 Million, Including $15 Million(1) in 2Q25

230 Harriet Tubman Way10935, 10945, and 10955 Alexandria Way**(2)**10075 Barnes Canyon Road
San Francisco Bay Area/ South San FranciscoSan Diego/Torrey PinesSan Diego/Sorrento Mesa
285,346 RSF212,694 RSF17,718 RSF
100% Occupancy100% Occupancy100% Occupancy
harriettubman.jpgalexandriawayOAS.jpgbarnescanyon10075 v2.jpg

The following table presents development and redevelopment of new Class A/A+ projects placed into service during the six months ended June 30, 2025 (dollars in thousands):

Property/Market/Submarket2Q25 Delivery Date**(3)**Our Ownership InterestRSF Placed in ServiceOccupancy Percentage**(4)**Total ProjectUnlevered Yields
Prior to 1/1/251Q252Q25TotalInitial StabilizedInitial Stabilized (Cash Basis)
RSFInvestment
Development projects
230 Harriet Tubman Way/San Francisco Bay Area/South San FranciscoN/A48.5%—285,346—285,346100%285,346476,0007.5%6.2%
10935, 10945, and 10955 Alexandria Way/San Diego/ Torrey Pines5/11/25100%93,492—119,202212,694100%334,996480,000(5)7.2(5)6.9(5)
10075 Barnes Canyon Road/San Diego/Sorrento MesaN/A50.0%—17,718—17,718100%253,079321,0005.55.7
Redevelopment projects
651 Gateway Boulevard/San Francisco Bay Area/South San FranciscoN/A(6)50.0%67,017—22,005(6)89,02275%(6)326,706487,0005.05.1
Canada5/29/25100%78,4876,43076,567161,484100%250,790115,0006.06.0
Weighted average/total5/14/25238,996309,494217,774766,2641,450,917$1,879,0006.3%6.0%

(1)Excludes incremental annual net operating income from recently delivered spaces aggregating 22,005 RSF that are vacant and/or unleased as of June 30, 2025. Refer to footnote 6 below.

(2)Image represents 10955 Alexandria Way on the One Alexandria Square Megacampus.

(3)Represents the average delivery date for deliveries that occurred during the three months ended June 30, 2025, weighted by annual rental revenue.

(4)Occupancy relates to total operating RSF placed in service as of the most recent delivery.

(5)Improvements of 100 bps and 110 bps in initial stabilized yield and initial stabilized yield (cash basis), respectively, were primarily driven by leasing space at higher rental rates than previously underwritten and a $23 million reduction in total

investment due to construction cost savings from overall project efficiencies.

(6)Represents a turnkey space delivered vacant and unleased that did not generate incremental annual net operating income as of June 30, 2025.

New Class A/A+ development and redevelopment properties: 2025 and 2026 stabilization (“near-term deliveries”)

99 Coolidge Avenue500 North Beacon Street and 4 Kingsbury Avenue**(1)**10935, 10945, and 10955 Alexandria Way**(2)**
Greater Boston/ Cambridge/Inner SuburbsGreater Boston/ Cambridge/Inner SuburbsSan Diego/Torrey Pines
204,395 RSF36,444 RSF122,302 RSF
76% Leased/Negotiating92% Leased/Negotiating100% Leased
99Coolidge.jpgarsenalphaseii v2.jpgalexandriawayOAS.jpg
4135 Campus Point Court10075 Barnes Canyon Road8800 Technology Forest Place
San Diego/ University Town CenterSan Diego/Sorrento MesaTexas/Greater Houston
426,927 RSF235,361 RSF73,298 RSF
100% Leased68% Leased/Negotiating41% Leased/Negotiating
Campuspoint4135.jpgbarnescanyon10075 v2.jpgTechforest8800.jpg

(1)Image represents 500 North Beacon Street on The Arsenal on the Charles Megacampus.

(2)Image represents 10955 Alexandria Way on the One Alexandria Square Megacampus.

New Class A/A+ development and redevelopment properties: 2027 and beyond stabilization (“intermediate-term deliveries”)

311 Arsenal Street421 Park Drive401 Park Drive40, 50, and 60 Sylvan Road**(1)**
Greater Boston/ Cambridge/Inner SuburbsGreater Boston/FenwayGreater Boston/FenwayGreater Boston/Route 128
333,758 RSF392,011 RSF137,675 RSF596,064 RSF
arsenal311.jpgparkdrive421.jpgparkdrive401v2.jpg60 Sylvan.jpg
1450 Owens Street651 Gateway Boulevard269 East Grand Avenue701 Dexter Avenue North
San Francisco Bay Area/ Mission BaySan Francisco Bay Area/ South San FranciscoSan Francisco Bay Area/ South San FranciscoSeattle/Lake Union
212,796 RSF(2)237,684 RSF107,250 RSF227,577 RSF
owens1450.jpggateway651.jpg269EGrand.jpg701Dexter.jpg

(1)Image represents 60 Sylvan Road on the Alexandria Center® for Life Science – Waltham Megacampus. The project is expected to capture demand in our Route 128 submarket.

(2)Image represents a multi-tenant project expanding the Alexandria Center® for Science and Technology – Mission Bay Megacampus, where we have a 25% interest. During the three months ended December 31, 2024, we

executed a letter of intent with a biomedical institution for the sale of a condominium interest aggregating 103,361 RSF, or approximately 49% of the development project. During the three months ended June 30, 2025, the

institution decided to pursue a long-term lease at the project instead of a condominium sale. As a result, we added back the 103,361 RSF to our presentation of the development project.

New Class A/A+ development and redevelopment properties: current projects

The following tables set forth a summary of our new Class A/A+ development and redevelopment properties under construction as of June 30, 2025 (dollars in thousands):

Property/Market/SubmarketSquare FootagePercentageOccupancy**(1)**
Dev/RedevIn ServiceCIPTotalLeasedLeased/ NegotiatingInitialStabilized
Under construction
2025 and 2026 stabilization
99 Coolidge Avenue/Greater Boston/Cambridge/Inner SuburbsDev116,414204,395320,80952%76%4Q232026
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner SuburbsDev211,57436,444248,01892921Q242025
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey PinesDev212,694122,302334,9961001004Q242025
4135 Campus Point Court/San Diego/University Town CenterDev—426,927426,92710010020262026
10075 Barnes Canyon Road/San Diego/Sorrento MesaDev17,718235,361253,07968681Q252026
8800 Technology Forest Place/Texas/Greater HoustonRedev50,09473,298123,39241412Q232026
CanadaRedev194,47656,314250,79078803Q232025
802,9701,155,0411,958,0118084
2027 and beyond stabilization
One Hampshire Street/Greater Boston/CambridgeRedev—104,956104,956——20272028
311 Arsenal Street/Greater Boston/Cambridge/Inner SuburbsRedev56,904333,758390,6627720272027
421 Park Drive/Greater Boston/FenwayDev—392,011392,011131320272028
401 Park Drive/Greater Boston/FenwayRedev—137,675137,675——20262027
40, 50, and 60 Sylvan Road/Greater Boston/Route 128Redev—596,064596,064333320262027
Other/Greater BostonRedev—453,869453,869——20272027
1450 Owens Street/San Francisco Bay Area/Mission Bay(2)Dev—212,796212,796—49(2)20262027
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco(3)Redev89,022237,684326,70621211Q242027
269 East Grand Avenue/San Francisco Bay Area/South San FranciscoRedev—107,250107,250——20262027
701 Dexter Avenue North/Seattle/Lake UnionDev—227,577227,577232320262027
145,9262,803,6402,949,566
100% Pre-leased committed near-term project expected to commence construction in the next year
Campus Point by Alexandria/San Diego/University Town Center(4)Dev—466,598466,59810010020282028
Total 2027 and beyond stabilization and committed near-term project145,9263,270,2383,416,1642528
948,8964,425,2795,374,17545%49%
(1)Initial occupancy dates are subject to leasing and/or market conditions. Stabilized occupancy may vary depending on single tenancy versus multi-tenancy. Multi-tenant projects may increase in occupancy over a period of time. (2)Represents a multi-tenant project expanding the Alexandria Center® for Science and Technology – Mission Bay Megacampus, where we have a 25% interest. During the three months ended December 31, 2024, we executed a letter of intent with a biomedical institution for the sale of a condominium interest aggregating 103,361 RSF, or approximately 49% of the development project. During the three months ended June 30, 2025, the institution decided to pursue a long-term lease at the project instead of a condominium sale. As a result, we added back the 103,361 RSF and the related book basis to our presentation of the development project. (3)We continue to build out this project on a floor-by-floor basis. As of June 30, 2025, the remaining cost to complete is $138 million, or 28% of the total cost at completion. (4)Represents a single-tenant project that expands the existing Campus Point by Alexandria Megacampus, where we currently have a 55% interest. The project is fully leased to a longtime multinational pharmaceutical tenant that currently occupies two buildings within the Megacampus, one building aggregating 52,620 RSF and another building aggregating 52,853 RSF. At the end of 2025, the tenant will vacate the 52,620 RSF building to allow for the demolition and development of the new, build-to-suit life science building at this site. Upon delivery of the new purpose-built property anticipated to occur in 2028, the tenant will vacate the 52,853 RSF building to allow for the construction of an amenity which will service the entire Megacampus. We expect to fund the majority of future construction costs at the Megacampus until our ownership interest increases from 55% to 75%, after which future capital would be contributed pro-rata with our joint venture partner.

New Class A/A+ development and redevelopment properties: current projects (continued)

Our Ownership InterestAt 100%Unlevered Yields
Property/Market/SubmarketIn ServiceCIPCost to CompleteTotal at CompletionInitial StabilizedInitial Stabilized (Cash Basis)
Under construction
2025 and 2026 stabilization with 84% leased/negotiating
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs76.9%$136,692$217,195$90,113$444,0006.0%6.8%
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs100%376,92845,5654,507427,0006.2%5.5%
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines100%258,106218,7123,182480,0007.2%6.9%
4135 Campus Point Court/San Diego/University Town Center55.0%—380,816143,184524,0007.3%6.2%
10075 Barnes Canyon Road/San Diego/Sorrento Mesa50.0%16,646205,11699,238321,0005.5%5.7%
8800 Technology Forest Place/Texas/Greater Houston100%60,36046,3735,267112,0006.3%6.0%
Canada100%96,89515,0883,017115,0006.0%6.0%
945,6271,128,865
2027 and beyond stabilization**(1)**
One Hampshire Street/Greater Boston/Cambridge100%—170,821TBD
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs100%21,613291,434
421 Park Drive/Greater Boston/Fenway100%—533,157
401 Park Drive/Greater Boston/Fenway100%—170,697
40, 50, and 60 Sylvan Road/Greater Boston/Route 128100%—480,940
Other/Greater Boston100%—157,989
1450 Owens Street/San Francisco Bay Area/Mission Bay25.0%—242,946
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco50.0%116,544232,366138,090487,0005.0%5.1%
269 East Grand Avenue/San Francisco Bay Area/South San Francisco100%—93,905TBD
701 Dexter Avenue North/Seattle/Lake Union100%—283,261
138,1572,657,516
1,083,7843,786,381
100% Pre-leased committed near-term project expected to commence construction in the next year
Campus Point by Alexandria/San Diego/University Town Center55.0%—19,965640,035660,0007.3%6.5%
Total$1,083,784$3,806,346$2,880,000(2)$7,780,000(2)
Our share of investment(2)(3)$990,000$3,180,000$2,440,000$6,610,000
Refer to “Initial stabilized yield (unlevered)” under “Definitions and reconciliations” in Item 2 for additional information. (1)We expect to provide total estimated costs and related yields for each project with estimated stabilization in 2027 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. Total cost to complete for our development and redevelopment projects under construction have not been adjusted for the potential impact related to higher materials costs associated with potential tariffs. We are still evaluating the potential impact on costs and returns that can be significantly impacted by tariffs, the amount of foreign materials required, and/or the higher cost on domestic materials. (3)Represents our share of investment based on our ownership percentage upon completion of development or redevelopment projects.

New Class A/A+ development and redevelopment properties: summary of pipeline

74% 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 June 30, 2025 (dollars in thousands):

Market Property/SubmarketOur Ownership InterestBook ValueSquare Footage
Development and RedevelopmentTotal**(1)**
Under ConstructionCommitted Near TermFuture
Greater Boston
Megacampus: Alexandria Center**®** at One Kendall Square/Cambridge100%$170,821104,956——104,956
One Hampshire Street
Megacampus: The Arsenal on the Charles/Cambridge/Inner Suburbs100%348,966370,202—34,157404,359
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)308,792204,395—902,0001,106,395
446, 458, 500, and 550 Arsenal Street, and 99 Coolidge Avenue
Megacampus: Alexandria Center**®** for Life Science – Fenway/Fenway100%703,854529,686——529,686
401 and 421 Park Drive
Megacampus: Alexandria Center**®** for Life Science – Waltham/Route 128100%544,558596,064—515,0001,111,064
40, 50, and 60 Sylvan Road, and 35 Gatehouse Drive
Megacampus: Alexandria Center**®** at Kendall Square/Cambridge100%209,528——174,500174,500
100 Edwin H. Land Boulevard
Megacampus: Alexandria Technology Square**®****/Cambridge**100%8,239——100,000100,000
Megacampus: 285, 299, 307, and 345 Dorchester Avenue/Seaport Innovation District60.0%293,055——1,040,0001,040,000
10 Necco Street/Seaport Innovation District100%105,734——175,000175,000
215 Presidential Way/Route 128100%6,816——112,000112,000
Other development and redevelopment projects100%373,732453,869—1,348,5411,802,410
$3,074,0952,259,172—4,401,1986,660,370
Refer to “Megacampus” under “Definitions and reconciliations” in Item 2 for additional information. (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 2 for additional information, including development and redevelopment square feet currently included in rental properties. (2)We have a 76.9% interest in 99 Coolidge Avenue aggregating 204,395 RSF and a 100% interest in 446, 458, 500, and 550 Arsenal Street aggregating 902,000 RSF.

New Class A/A+ development and redevelopment properties: summary of pipeline (continued)

Market Property/SubmarketOur Ownership InterestBook ValueSquare Footage
Development and RedevelopmentTotal**(1)**
Under ConstructionCommitted Near TermFuture
San Francisco Bay Area
Megacampus: Alexandria Center**®** for Science and Technology – Mission Bay/Mission Bay25.0%$242,946(2)212,796(2)——212,796
1450 Owens Street
Megacampus: Alexandria Technology Center**®** – Gateway/South San Francisco50.0%258,932237,684—291,000528,684
651 Gateway Boulevard
Megacampus: Alexandria Center**®** for Advanced Technologies – South San Francisco/South San Francisco100%100,560107,250—90,000197,250
211*(3)* and 269 East Grand Avenue
Megacampus: Alexandria Center**®** for Advanced Technologies – Tanforan/South San Francisco100%420,858——1,930,0001,930,000
1122, 1150, and 1178 El Camino Real
Alexandria Center® for Life Science – Millbrae/South San Francisco48.5%157,008——348,401348,401
201 and 231 Adrian Road and 30 Rollins Road
Megacampus: Alexandria Center**®** for Life Science – San Carlos/Greater Stanford100%471,861——1,497,8301,497,830
960 Industrial Road, 987 and 1075 Commercial Street, and 888 Bransten Road
3825 and 3875 Fabian Way/Greater Stanford100%161,492——478,000478,000
2100, 2200, 2300, and 2400 Geng Road/Greater Stanford100%38,761——240,000240,000
Megacampus: 88 Bluxome Street/SoMa100%408,649——1,070,9251,070,925
$2,261,067557,730—5,946,1566,503,886
Refer to “Megacampus” under “Definitions and reconciliations” in Item 2 for additional information. (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 2 for additional information, including development and redevelopment square feet currently included in rental properties. (2)During the three months ended December 31, 2024, we executed a letter of intent with a biomedical institution for the sale of a condominium interest aggregating 103,361 RSF, or approximately 49% of the development project. During the three months ended June 30, 2025, the institution decided to pursue a long-term lease at the project instead of a condominium sale. As a result, we added back the 103,361 RSF and the related book basis to our presentation of the development project. (3)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 unaudited consolidated financial statements in Item 1 for additional details.

New Class A/A+ development and redevelopment properties: summary of pipeline (continued)

Market Property/SubmarketOur Ownership InterestBook ValueSquare Footage
Development and RedevelopmentTotal**(1)**
Under ConstructionCommitted Near TermFuture
San Diego
Megacampus: One Alexandria Square/Torrey Pines100%$281,632122,302—125,280247,582
10945 Alexandria Way and 10975 and 10995 Torreyana Road
Megacampus: Campus Point by Alexandria/University Town Center55.0%(3)540,207426,927466,598500,8591,394,384
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 Mesa50.0%391,642235,361—493,845729,206
9805 Scranton Road and 10075 Barnes Canyon Road
11255 and 11355 North Torrey Pines Road/Torrey Pines100%156,121——215,000215,000
Megacampus: 5200 Illumina Way/University Town Center51.0%17,458——451,832451,832
9625 Towne Centre Drive/University Town Center30.0%837——100,000100,000
Megacampus: Sequence District by Alexandria/Sorrento Mesa100%47,565——1,661,9151,661,915
6290, 6310, 6340, 6350, and 6450 Sequence Drive
Scripps Science Park by Alexandria/Sorrento Mesa100%42,700——154,308154,308
10256 and 10260 Meanley Drive
4075 Sorrento Valley Boulevard/Sorrento Valley100%28,174——144,000144,000
Other development and redevelopment projects(4)78,002——475,000475,000
$1,584,338784,590466,5984,322,0395,573,227
Refer to “Megacampus” under “Definitions and reconciliations” in Item 2 for additional information. (1)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2 for additional information, including development and redevelopment square feet currently included in rental properties. (2)We have a 100% interest in this property. (3)The noncontrolling interest share of our joint venture partner is anticipated to decrease to 25%, as we expect to fund the majority of future construction costs at the campus until our ownership interest increases from 55% to 75%, after which future capital would be contributed pro-rata with our partner. (4)Includes a property in which we own a partial interest through a real estate joint venture.

New Class A/A+ development and redevelopment properties: summary of pipeline (continued)

Market Property/SubmarketOur Ownership InterestBook ValueSquare Footage
Development and RedevelopmentTotal**(1)**
Under ConstructionCommitted Near TermFuture
Seattle
Megacampus: Alexandria Center**®** for Advanced Technologies – South Lake Union/ Lake Union(2)$571,319227,577—1,057,4001,284,977
601 and 701 Dexter Avenue North and 800 Mercer Street
1010 4th Avenue South/SoDo100%61,490——544,825544,825
410 West Harrison Street/Elliott Bay100%———91,00091,000
Megacampus: Alexandria Center**®** for Advanced Technologies – Canyon Park/Bothell100%19,248——230,000230,000
21660 20th Avenue Southeast
Other development and redevelopment projects100%149,289——706,087706,087
801,346227,577—2,629,3122,856,889
Maryland
Megacampus: Alexandria Center**®** for Life Science – Shady Grove/Rockville100%24,020——296,000296,000
9830 Darnestown Road
24,020——296,000296,000
Research Triangle
Megacampus: Alexandria Center**®** for Life Science – Durham/Research Triangle100%162,011——2,060,0002,060,000
Megacampus: Alexandria Center**®** for Advanced Technologies and AgTech – Research Triangle/Research Triangle100%109,661——1,170,0001,170,000
4 and 12 Davis Drive
Megacampus: Alexandria Center**®** for NextGen Medicines/Research Triangle100%112,142——1,055,0001,055,000
3029 East Cornwallis Road
Megacampus: Alexandria Center**®** for Sustainable Technologies/Research Triangle100%55,122——750,000750,000
120 TW Alexander Drive, 2752 East NC Highway 54, and 10 South Triangle Drive
100 Capitola Drive/Research Triangle100%———65,96565,965
Other development and redevelopment projects100%4,185——76,26276,262
$443,121——5,177,2275,177,227
Refer to “Megacampus” under “Definitions and reconciliations” in Item 2 for additional information. (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 inherent future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property. Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2 for additional information, including development and redevelopment square feet currently included in rental properties. (2)We have a 100% interest in 601 and 701 Dexter Avenue North aggregating 415,977 RSF and a 60% interest in the future development project at 800 Mercer Street aggregating 869,000 RSF.

New Class A/A+ development and redevelopment properties: summary of pipeline (continued)

Market Property/SubmarketOur Ownership InterestBook ValueSquare Footage
Development and RedevelopmentTotal**(1)**
Under ConstructionCommitted Near TermFuture
New York City
Megacampus: Alexandria Center**®** for Life Science – New York City/New York City100%$173,815——550,000(2)550,000
173,815——550,000550,000
Texas
Alexandria Center® for Advanced Technologies at The Woodlands/Greater Houston100%49,28073,298—116,405189,703
8800 Technology Forest Place
1001 Trinity Street and 1020 Red River Street/Austin100%10,858——250,010250,010
Other development and redevelopment projects100%58,577——344,000344,000
118,71573,298—710,415783,713
Canada100%15,08856,314—371,743428,057
Other development and redevelopment projects100%47,478——350,000350,000
Total pipeline as of June 30, 2025, excluding properties held for sale8,543,0833,958,681466,59824,754,09029,179,369
Properties held for sale82,269——878,205878,205
Total pipeline as of June 30, 2025$8,625,352(3)3,958,681466,59825,632,29530,057,574

Refer to “Megacampus” under “Definitions and reconciliations” in Item 2 for additional information.

(1)Total square footage includes 2,578,478 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 2 for additional information, including development and redevelopment square feet currently included in rental properties.

(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. Refer to “Legal proceedings” in Item 1 under Part II – Other Information

for additional details.

(3)Includes $3.8 billion of projects that are currently under construction and one 100% pre-leased committed near-term project expected to commence construction in the next year.

Results of operations

We present a tabular comparison of items, whether gain or loss, that may facilitate a high-level understanding of our results

and provide context for the disclosures included in our annual report on Form 10-K for the year ended December 31, 2024 and our

subsequent quarterly reports on Form 10-Q. We believe that such tabular presentation promotes a better understanding for investors of

the corporate-level decisions made and activities performed that significantly affect comparison of our operating results from period to

period. We also believe that this tabular presentation will supplement for investors an understanding of our disclosures and real estate

operating results. Gains or losses on sales of real estate and impairments of real estate are related to corporate-level decisions to

dispose of real estate. Gains or losses on early extinguishment of debt are related to corporate-level financing decisions focused on our

capital structure strategy. Significant realized and unrealized gains or losses on non-real estate investments, impairments of real estate

and non-real estate investments, and acceleration of stock compensation expense due to the resignations of executive officers are not

related to the operating performance of our real estate assets as they result from strategic, corporate-level non-real estate investment

decisions and external market conditions. Impairments of non-real estate investments and changes in provision for expected credit

losses on financial instruments are not related to the operating performance of our real estate as they represent the write-down of non-

real estate investments when their fair values decrease below their respective carrying values due to changes in general market or

other conditions outside of our control. Significant items, whether a gain or loss, included in the tabular disclosure for current periods

are described in further detail in Item 2. Key items included in net income attributable to Alexandria’s common stockholders for the three

and six months ended June 30, 2025 and 2024 and the related per share amounts were as follows (in millions, except per share

amounts):

Three Months Ended June 30,Six Months Ended June 30,
20252024202520242025202420252024
AmountPer Share – DilutedAmountPer Share – Diluted
Unrealized losses on non-real estate investments$(21.9)$(64.2)$(0.13)$(0.37)$(90.1)$(35.1)$(0.53)$(0.20)
Gain on sales of real estate————13.20.40.08—
Impairment of non-real estate investments(39.2)(12.8)(0.23)(0.08)(50.4)(27.5)(0.30)(0.16)
Impairment of real estate(129.6)(30.8)(0.76)(0.18)(161.8)(30.8)(0.95)(0.18)
Increase in provision for expected credit losses on financial instruments————(0.3)———
Total$(190.7)$(107.8)$(1.12)$(0.63)$(289.4)$(93.0)$(1.70)$(0.54)

Refer to Note 3 – “Investments in real estate,” Note 5 – “Leases,” Note 7 – “Investments,” and Note 8 – “Other assets” to our

unaudited consolidated financial statements in Item 1 for additional information.

Same properties

We supplement an evaluation of our results of operations with an evaluation of operating performance of certain of our

properties, referred to as “Same Properties.” For additional information on the determination of our Same Properties portfolio, refer to

“Same property comparisons” under “Definitions and reconciliations” in Item 2. The following table presents information regarding our

Same Properties for the three and six months ended June 30, 2025:

June 30, 2025
Three Months EndedSix Months Ended
Percentage change in net operating income over comparable period from prior year(1)(5.4)%(4.3)%
Percentage change in net operating income (cash basis) over comparable period from prior year(1)(2)2.0%3.4%
Operating margin68%68%
Number of Same Properties330329
RSF33,904,94133,709,506
Occupancy – current-period average91.3%92.5%
Occupancy – same-period prior-year average94.5%94.4%

(1)Includes leases expirations during the three months ended March 31, 2025 aggregating 768,080 RSF, that are vacant as of June 30, 2025, across six properties and

four submarkets. Excluding the impact of the properties with these leases, same property net operating income changes for the three and six months ended June 30,

2025 would have been (2.1)% and 6.5% (cash basis) and (1.1)% and 7.6% (cash basis), respectively. Refer to “Summary of occupancy percentages in North America” in

Item 2 for additional details.

(2)Includes the impact of expiring initial free rent concessions that burned off after January 1, 2024 in connection with the development and redevelopment projects that

were placed into service in 2023 and, accordingly are part of our same property pool for the three and six months ended June 30, 2025, including at 325 Binney Street in

our Cambridge submarket, 15 Necco Street in our Seaport Innovation District submarket, and 751 Gateway Boulevard in our South San Francisco submarket. Excluding

the impact of these expiring initial free rent concessions, same property net operating income changes (cash basis) for the three and six months ended June 30, 2025

would have been (1.8)% and (0.8)%, respectively.

The following table reconciles the number of Same Properties to total properties for the six months ended June 30, 2025:

Development – under constructionProperties
99 Coolidge Avenue1
500 North Beacon Street and 4 Kingsbury Avenue2
1450 Owens Street1
10935, 10945, and 10955 Alexandria Way3
10075 Barnes Canyon Road1
421 Park Drive1
4135 Campus Point Court1
701 Dexter Avenue North1
11
Development – placed into service after January 1, 2024Properties
9810 Darnestown Road1
9820 Darnestown Road1
1150 Eastlake Avenue East1
4155 Campus Point Court1
201 Brookline Avenue1
9808 Medical Center Drive1
230 Harriet Tubman Way1
7
Redevelopment – under constructionProperties
40, 50, and 60 Sylvan Road3
269 East Grand Avenue1
651 Gateway Boulevard1
401 Park Drive1
8800 Technology Forest Place1
311 Arsenal Street1
One Hampshire Street1
Canada4
Other2
15
Redevelopment – placed into service after January 1, 2024Properties
840 Winter Street1
Alexandria Center® for Advanced Technologies – Monte Villa Parkway6
7
Acquisitions after January 1, 2024Properties
Other3
3
Unconsolidated real estate JVs4
Properties held for sale8
Total properties excluded from Same Properties55
Same Properties329
Total properties in North America as of June 30, 2025384

Comparison of results for the three months ended June 30, 2025 to the three months ended June 30, 2024

The following table presents a comparison of the components of net operating income for our Same Properties and Non-Same

Properties for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 (dollars in thousands). Refer

to “Definitions and reconciliations” in Item 2 for definitions of “Tenant recoveries” and “Net operating income” and their reconciliations

from the most directly comparable financial measures presented in accordance with GAAP, income from rentals and net income,

respectively.

Three Months Ended June 30,
20252024$ Change% Change
Income from rentals:
Same Properties$462,622$480,547$(17,925)(3.7)%
Non-Same Properties90,75596,288(5,533)(5.7)
Rental revenues553,377576,835(23,458)(4.1)
Same Properties166,465155,15711,3087.3
Non-Same Properties17,43723,170(5,733)(24.7)
Tenant recoveries183,902178,3275,5753.1
Income from rentals737,279755,162(17,883)(2.4)
Same Properties4293795013.2
Non-Same Properties24,33211,19313,139117.4
Other income24,76111,57213,189114.0
Same Properties629,516636,083(6,567)(1.0)
Non-Same Properties132,524130,6511,8731.4
Total revenues762,040766,734(4,694)(0.6)
Same Properties201,305183,58217,7239.7
Non-Same Properties23,12833,672(10,544)(31.3)
Rental operations224,433217,2547,1793.3
Same Properties428,211452,501(24,290)(5.4)
Non-Same Properties109,39696,97912,41712.8
Net operating income$537,607$549,480$(11,873)(2.2)%(1)
Net operating income – Same Properties$428,211$452,501$(24,290)(5.4)%
Straight-line rent revenue(8,463)(38,585)30,122(78.1)
Amortization of acquired below-market leases(9,199)(11,349)2,150(18.9)
Net operating income – Same Properties (cash basis)$410,549$402,567$7,9822.0%

(1)Decrease in total net operating income includes the impact of operating properties disposed of after January 1, 2024. Excluding these dispositions, net operating income

for the three months ended June 30, 2025 would have increased by 4.0% over the corresponding period in 2024.

Income from rentals

Total income from rentals for the three months ended June 30, 2025 decreased by $17.9 million, or 2.4%, to $737.3 million,

compared to $755.2 million for the three months ended June 30, 2024, due to a decrease in rental revenues, as discussed below.

Rental revenues

Total rental revenues for the three months ended June 30, 2025 decreased by $23.5 million, or 4.1%, to $553.4 million,

compared to $576.8 million for the three months ended June 30, 2024. The decrease was partially related to our Non-Same Properties

resulting from the dispositions of real estate assets since April 1, 2024.

Same Properties’ rental revenues for the three months ended June 30, 2025 decreased by $17.9 million, or 3.7%, to

$462.6 million, compared to $480.5 million for the three months ended June 30, 2024, primarily due to a decrease in Same Properties’

average occupancy to 91.3% for the three months ended June 30, 2025 from 94.5% for the three months ended June 30, 2024, mainly

resulting from the lease expirations during the three months ended March 31, 2025 aggregating 768,080 RSF, comprising the following:

(i) 182,054 RSF at the Alexandria Technology Square® Megacampus in our Cambridge submarket, (ii) 234,249 RSF at 409 Illinois

Street in our Mission Bay submarket, (iii) one property aggregating 104,531 RSF in our Research Triangle market, and (iv) two

properties aggregating 247,246 RSF in our Austin submarket.

Tenant recoveries

Tenant recoveries for the three months ended June 30, 2025 increased by $5.6 million, or 3.1%, to $183.9 million, compared to

$178.3 million for the three months ended June 30, 2024, primarily in connection with Same Properties.

Same Properties’ tenant recoveries for the three months ended June 30, 2025 increased by $11.3 million, or 7.3%, to

$166.5 million, compared to $155.2 million for the three months ended June 30, 2024, primarily due to higher operating expenses

during the three months ended June 30, 2025, as discussed under “Rental operations” below. As of June 30, 2025, 91% 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.

Other income

Other income for the three months ended June 30, 2025 increased by $13.2 million, or 114.0%, to $24.8 million, compared to

$11.6 million for the three months ended June 30, 2024, primarily related to an increase in interest income earned on our notes

receivable and fee income.

Rental operations

Total rental operating expenses for the three months ended June 30, 2025 increased by $7.2 million, or 3.3%, to

$224.4 million, compared to $217.3 million for the three months ended June 30, 2024. The increase was primarily due to higher rental

operating expenses related to our Same Properties, as discussed below, partially offset by the decrease in Non-Same Properties’ rental

operating expenses of $10.5 million primarily as a result of real estate dispositions since April 1, 2024.

Same Properties’ rental operating expenses increased by $17.7 million, or 9.7%, to $201.3 million during the three months

ended June 30, 2025, compared to $183.6 million for the three months ended June 30, 2024, primarily as the result of increases in

(i) contractual costs aggregating $4.4 million, primarily due to increased tenant operations at certain properties delivered in 2023,

(ii) repairs and maintenance expenses aggregating $4.2 million, primarily due to an increase in services related to building maintenance

in our Greater Boston, San Diego, and Research Triangle markets, and (iii) property taxes aggregating $3.6 million, primarily due to

new developments in our Greater Boston and San Francisco Bay Area markets delivered in 2023, with property taxes based on these

properties’ higher assessed values becoming effective subsequent to July 1, 2024.

Depreciation and amortization

Depreciation and amortization expense for the three months ended June 30, 2025 increased by $55.4 million, or 19.1%, to

$346.1 million, compared to $290.7 million for the three months ended June 30, 2024. The increase primarily reflects the change in

useful lives related to certain buildings expected to be demolished prior to the end of their previous useful lives. In addition, the increase

relates to 1.7 million RSF of development and redevelopment projects placed into service subsequent to April 1, 2024 and three

operating properties aggregating 401,560 RSF acquired subsequent to April 1, 2024, partially offset by the decrease in depreciation and

amortization related to properties that were sold or classified as held for sale subsequent to April 1, 2024.

Impairment of real estate

During the three months ended June 30, 2025, we recognized impairment charges aggregating $129.6 million, which primarily

included the following:

  • In April 2025, an office property aggregating 182,276 RSF, located in Carlsbad, San Diego, met the criteria for classification as

held for sale based on our decision to dispose of this property. We expect to complete the sale within 12 months. Upon our

decision to commit to sell this property, we recognized an impairment charge of $35.4 million to reduce the carrying amount of

this asset to its estimated fair value less costs to sell of approximately $68.8 million.

  • In June 2025, two operating properties aggregating 210,481 RSF located in our Sorrento Mesa submarket met the criteria for

classification as held for sale based on current negotiations with prospective buyers and our decision to dispose of these

properties. We expect to complete these sales within 12 months. Upon our decision to commit to sell these properties, we

recognized impairment charges aggregating $18.1 million to reduce the carrying amounts of these assets to their estimated

fair values less costs to sell of approximately $112.7 million.

  • In June 2025, land parcels aggregating 374,349 SF in our non-cluster/other submarket met the criteria for classification as held

for sale based on current negotiations with a prospective buyer and our decision to dispose of this asset. We expect to

complete this sale within 12 months. Upon our decision to sell this land parcel, we recognized an impairment charge of $47.5

million to reduce the carrying amount of the asset to its estimated fair value less costs to sell of approximately $28.5 million.

During the three months ended June 30, 2024, we recognized impairment charges aggregating $30.8 million, primarily

consisting of pre-acquisition costs related to two potential acquisitions in our Greater Boston market, which we decided to no longer

proceed with these acquisitions as a result of the current macroeconomic environment that negatively impacted the financial outlooks

for these projects.

General and administrative expenses

General and administrative expenses for the three months ended June 30, 2025 decreased by $15.5 million, or 34.7%, to

$29.1 million, compared to $44.6 million for the three months ended June 30, 2024, primarily due to cost-control and efficiency

initiatives implemented since 2024, including reduction in headcount, restructuring of compensation plans, systems upgrades, and

process improvements. As a percentage of net operating income, our general and administrative expenses for the trailing twelve

months ended June 30, 2025 and 2024 were 6.3% and 9.2%, respectively.

Interest expense

Interest expense for the three months ended June 30, 2025 and 2024 consisted of the following (dollars in thousands):

Three Months Ended June 30,
Component20252024Change
Gross interest$137,719$126,828$10,891
Capitalized interest(82,423)(81,039)(1,384)
Interest expense$55,296$45,789$9,507
Average debt balance outstanding(1)$13,269,046$12,454,474$814,572
Weighted-average annual interest rate(2)4.2%4.1%0.1%

(1)Represents the average debt balance outstanding during the respective periods.

(2)Represents annualized total interest incurred divided by the average debt balance outstanding during the respective periods.

The net change in interest expense during the three months ended June 30, 2025, compared to the three months ended June

30, 2024, resulted from the following (dollars in thousands):

ComponentInterest Rate(1)Effective DateChange
Increases in interest incurred due to:
Issuances of debt:
$550 million of unsecured senior notes payable due 20355.66%February 2025$7,590
Higher average outstanding balances under commercial paper program and/or unsecured senior line of credit6,316
Other increase in interest517
Total increases14,423
Decreases in interest incurred due to:
Repayments of debt:
$600 million of unsecured senior notes payable due 20253.62%April 2025(3,532)
Total decreases(3,532)
Change in gross interest10,891
Increase in capitalized interest(1,384)
Total change in interest expense$9,507

(1)Represents the weighted-average interest rate as of the end of the applicable period, including amortization of loan fees, amortization of debt premiums (discounts), and

other bank fees.

Investment loss

During the three months ended June 30, 2025, we recognized investment loss aggregating $30.6 million, which consisted of

$30.5 million of realized gains, $21.9 million of unrealized losses, and $39.2 million of impairment charges.

During the three months ended June 30, 2024, we recognized investment loss aggregating $43.7 million, which consisted of

$33.4 million of realized gains, $64.2 million of unrealized losses, and $12.8 million of impairment charges.

For additional information about our investments, refer to Note 7 – “Investments” to our unaudited consolidated financial

statements. For our impairments accounting policy, refer to “Investments” in Note 2 – “Summary of significant accounting policies” to

our unaudited consolidated financial statements in Item 1.

Other comprehensive income (loss)

Total other comprehensive income for the three months ended June 30, 2025 aggregated $18.8 million, compared to total

other comprehensive loss of $3.9 million for the three months ended June 30, 2024. The difference is primarily due to unrealized foreign

currency translation gains related to our operations in Canada.

Comparison of results for the six months ended June 30, 2025 to the six months ended June 30, 2024

The following table presents a comparison of the components of net operating income for our Same Properties and Non-Same

Properties for the six months ended June 30, 2025, compared to the six months ended June 30, 2024 (dollars in thousands). Refer to

“Definitions and reconciliations” in Item 2 for definitions of “Tenant recoveries” and “Net operating income” and their reconciliations from

the most directly comparable financial measures presented in accordance with GAAP, income from rentals and net income,

respectively.

Six Months Ended June 30,
20252024$ Change% Change
Income from rentals:
Same Properties$925,636$950,433$(24,797)(2.6%)
Non-Same Properties179,853207,802(27,949)(13.4)
Rental revenues1,105,4891,158,235(52,746)(4.6)
Same Properties335,349308,55326,7968.7
Non-Same Properties39,61643,925(4,309)(9.8)
Tenant recoveries374,965352,47822,4876.4
Income from rentals1,480,4541,510,713(30,259)(2.0)
Same Properties774719557.6
Non-Same Properties38,97024,41014,56059.6
Other income39,74425,12914,61558.2
Same Properties1,261,7591,259,7052,0540.2
Non-Same Properties258,439276,137(17,698)(6.4)
Total revenues1,520,1981,535,842(15,644)(1.0)
Same Properties403,337362,40740,93011.3
Non-Same Properties47,49173,161(25,670)(35.1)
Rental operations450,828435,56815,2603.5
Same Properties858,422897,298(38,876)(4.3)
Non-Same Properties210,948202,9767,9723.9
Net operating income$1,069,370$1,100,274$(30,904)(2.8%)(1)
Net operating income – Same Properties$858,422$897,298$(38,876)(4.3%)
Straight-line rent revenue(13,930)(76,294)62,364(81.7)
Amortization of acquired below-market leases(19,097)(22,772)3,675(16.1)
Net operating income – Same Properties (cash basis)$825,395$798,232$27,1633.4%

(1)Decrease in total net operating income includes the impact of operating properties disposed of after January 1, 2024. Excluding these dispositions, net operating income

for the six months ended June 30, 2025 would have increased by 3.2% over the corresponding period in 2024.

Income from rentals

Total income from rentals for the six months ended June 30, 2025 decreased by $30.3 million, or (2.0)%, to $1.48 billion,

compared to $1.51 billion for the six months ended June 30, 2024, due to a decrease in rental revenues, partially offset by an increase

in tenant recoveries, as discussed below.

Rental revenues

Total rental revenues for the six months ended June 30, 2025 decreased by $52.7 million, or (4.6)%, to $1.1 billion, compared

to $1.2 billion for the six months ended June 30, 2024. The decrease was primarily related to our Non-Same Properties resulting from

the dispositions of real estate assets since January 1, 2024.

Same Properties’ rental revenues for the six months ended June 30, 2025 decreased by $24.8 million, or (2.6)%, to

$925.6 million, compared to $950.4 million for the six months ended June 30, 2024, primarily due to a decrease in Same Properties’

average occupancy to 92.5% for the six months ended June 30, 2025 from 94.4% for the six months ended June 30, 2024, mainly

resulting from lease expirations during the three months ended March 31, 2025 aggregating 768,080 RSF, comprising the following:

(i) 182,054 RSF at the Alexandria Technology Square® Megacampus in our Cambridge submarket, (ii) 234,249 RSF at 409 Illinois

Street in our Mission Bay submarket, (iii) one property aggregating 104,531 RSF in our Research Triangle market, and (iv) two

properties aggregating 247,246 RSF in our Austin submarket.

Tenant recoveries

Tenant recoveries for the six months ended June 30, 2025 increased by $22.5 million, or 6.4%, to $375.0 million, compared to

$352.5 million for the six months ended June 30, 2024, primarily in connection with Same Properties.

Same Properties’ tenant recoveries for the six months ended June 30, 2025 increased by $26.8 million, or 8.7%, to

$335.3 million, compared to $308.6 million for the six months ended June 30, 2024, primarily due to higher operating expenses during

the six months ended June 30, 2025, as discussed under “Rental operations” below. As of June 30, 2025, 91% 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.

Other Income

Other income for the six months ended June 30, 2025 increased by $14.6 million, or 58.2%, to $39.7 million, compared to

$25.1 million for the six months ended June 30, 2024, primarily related to an increase in interest income earned on our notes receivable

and fee income.

Rental operations

Total rental operating expenses for the six months ended June 30, 2025 increased by $15.3 million, or 3.5%, to $450.8 million,

compared to $435.6 million for the six months ended June 30, 2024.The increase was primarily due to incremental expenses related to

our Same Properties’ rental operating expenses as discussed below, partially offset by the decrease in Non-Same Properties’ rental

operating expenses of $25.7 million primarily as a result of dispositions of real estate assets since January 1, 2024.

Same Properties’ rental operating expenses increased by $40.9 million, or 11.3%, to $403.3 million during the six months

ended June 30, 2025, compared to $362.4 million for the six months ended June 30, 2024, primarily as the result of the increase in

(i) utilities expenses and contractual costs aggregating $16.2 million, primarily due to higher consumption related to certain tenants’

increased operations; (ii) property taxes aggregating $8.0 million, primarily due to new developments in our Greater Boston and San

Francisco Bay Area markets delivered in 2023, with property taxes based on these properties’ higher assessed values becoming

effective subsequent to July 1, 2024; and (iii) repair and maintenance expenses aggregating $7.9 million, primarily due to a more

severe winter in 2025 compared to that in 2024 in our Greater Boston market.

Depreciation and amortization

Depreciation and amortization expense for the six months ended June 30, 2025 increased by $109.9 million, or 19.0%, to

$688.2 million, compared to $578.3 million for the six months ended June 30, 2024. The increase primarily reflects the change in useful

lives related to certain buildings expected to be demolished prior to the end of their previous useful lives. In addition, the increase

relates to 3.0 million RSF of development and redevelopment projects placed into service subsequent to January 1, 2024 and three

operating properties aggregating 401,560 RSF acquired subsequent to January 1, 2024, partially offset by the decrease in depreciation

and amortization related to properties that were sold or classified as held for sale subsequent to January 1, 2024.

Impairment of real estate

During the six months ended June 30, 2025, we recognized impairment of real estate aggregating $161.8 million, which

primarily included the following:

  • During the three months ended March 31, 2025, we recognized an impairment charge of $32.2 million related to a ground

lease entered into in 2021 for a future development site in our San Francisco Bay Area market. Refer to “Lessee operating

costs” in Note 5 – “Leases” to our unaudited consolidated financial statements for additional information.

  • In April 2025, an office property aggregating 182,276 RSF, located in Carlsbad, San Diego, met the criteria for classification as

held for sale based on our decision to dispose of this property. We expect to complete the sale within 12 months. Upon our

decision to commit to sell this property, we recognized an impairment charge of $35.4 million to reduce the carrying amount of

this asset to its estimated fair value less costs to sell of approximately $68.8 million.

  • In June 2025, two operating properties aggregating 210,481 RSF located in our Sorrento Mesa submarket met the criteria for

classification as held for sale based on current negotiations with prospective buyers and our decision to dispose of these

properties. We expect to complete these sales within 12 months. Upon our decision to commit to sell these properties, we

recognized impairment charges aggregating $18.1 million to reduce the carrying amounts of these assets to their estimated

fair values less costs to sell of approximately $112.7 million.

  • In June 2025, land parcels aggregating 374,349 SF in our non-cluster/other submarket met the criteria for classification as held

for sale based on current negotiations with a prospective buyer and our decision to dispose of this asset. We expect to

complete this sale within 12 months. Upon our decision to sell this land parcel, we recognized an impairment charge of $47.5

million to reduce the carrying amount of the asset to its estimated fair value less costs to sell of approximately $28.5 million.

During the six months ended June 30, 2024, we recognized real estate impairment charges aggregating $30.8 million, which

primarily consisted of pre-acquisition costs related to two potential acquisitions in our Greater Boston market that we decided to no

longer proceed with as a result of the macroeconomic environment that negatively impacted the financial outlooks of these acquisitions.

General and administrative expenses

General and administrative expenses for the six months ended June 30, 2025 decreased by $31.9 million, or 34.8%, to

$59.8 million, compared to $91.7 million for the six months ended June 30, 2024, primarily due to cost-control and efficiency initiatives

implemented in since 2024, including reduction in headcount, restructuring of compensation plans, systems upgrades, and process

improvements. As a percentage of net operating income, our general and administrative expenses for the trailing twelve months ended

June 30, 2025 and 2024 were 6.3% and 9.2%, respectively.

Interest expense

Interest expense for the six months ended June 30, 2025 and 2024 consisted of the following (dollars in thousands):

Six Months Ended June 30,
Component20252024Change
Gross interest$268,660$249,508$19,152
Capitalized interest(162,488)(162,879)391
Interest expense$106,172$86,629$19,543
Average debt balance outstanding(1)$13,035,595$12,260,781$774,814
Weighted-average annual interest rate(2)4.1%4.1%—%

(1)Represents the average debt balance outstanding during the respective periods.

(2)Represents annualized total interest incurred divided by the average debt balance outstanding during the respective periods.

The net change in interest expense during the six months ended June 30, 2025, compared to the six months ended June 30,

2024, resulted from the following (dollars in thousands):

ComponentInterest Rate(1)Effective DateChange
Increases in interest incurred due to:
Issuances of debt:
$550 million of unsecured senior notes payable due 20355.66%February 2025$11,637
$600 million of unsecured senior notes payable due 20545.71%February 20244,127
$400 million of unsecured senior notes payable due 20365.38%February 20242,575
Increases in construction borrowings and interest rates under secured note payable7.16%126
Higher average outstanding balances under commercial paper program and/ or unsecured senior line of credit3,097
Other increase in interest1,121
Total increases22,683
Decreases in interest incurred due to:
Repayments of debt:
$600 million of unsecured senior notes payable due 20253.62%April 2025(3,531)
Total decreases(3,531)
Change in gross interest19,152
Decrease in capitalized interest391
Total change in interest expense$19,543

(1)Represents the weighted-average interest rate as of the end of the applicable period, including amortization of loan fees, amortization of debt premiums (discounts), and

other bank fees.

Investment loss

During the six months ended June 30, 2025, we recognized investment loss aggregating $80.6 million, which consisted of

$59.9 million of realized gains, $90.1 million of unrealized losses, and $50.4 million of impairment charges.

During the six months ended June 30, 2024, we recognized investment loss aggregating $376 thousand, which consisted of

$62.2 million of realized gains and $35.1 million of unrealized losses, and $27.5 million of impairment charges.

For additional information about our investments, refer to Note 7 – “Investments” to our unaudited consolidated financial

statements in Item 1. For our impairments accounting policy, refer to “Investments” in Note 2 – “Summary of significant accounting

policies” to our unaudited consolidated financial statements in Item 1.

Other comprehensive income

Total other comprehensive income for the six months ended June 30, 2025 aggregated $18.8 million, compared to total other

comprehensive loss of $11.8 million for the six months ended June 30, 2024. The difference is primarily due to unrealized foreign

currency translation gains related to our operations in Canada.

Summary of capital expenditures

Our construction spending for the six months ended June 30, 2025 and projected spending for the year ending December 31,

2025 consist of the following (in thousands):

Six Months Ended June 30, 2025Projected Guidance Midpoint for Year Ending December 31, 2025
Construction of Class A/A+ properties:
Active construction projects
Under construction$612,341$1,240,000
Future pipeline pre-construction
Primarily Megacampus expansion pre-construction work (entitlement, design, and site work)226,587500,000
Revenue- and non-revenue-enhancing capital expenditures127,772415,000(1)
Construction spending (before contributions from noncontrolling interests or tenants):966,7002,155,000
Contributions from noncontrolling interests (consolidated real estate joint ventures)(113,268)(230,000)(2)
Tenant-funded and -built landlord improvements(171,153)(175,000)
Total construction spending$682,279$1,750,000
2025 guidance range for construction spending$1,450,000 – $2,050,000

(1)Represents revenue-enhancing and non-revenue-enhancing capital expenditures before contributions from noncontrolling interests and tenant-funded and tenant-built

landlord improvements for the year ending December 31, 2025. Our share of the 2025 revenue-enhancing and non-revenue-enhancing capital expenditures is projected

to be $340 million at the midpoint of our guidance for 2025 construction spending.

(2)Represents contractual capital commitments from existing consolidated real estate joint venture partners to fund construction.

Projected capital contributions from partners in consolidated real estate joint ventures to fund construction

The following table summarizes projected capital contributions from partners in our existing consolidated joint ventures to fund

construction through 2027 and beyond (in thousands):

Projected timingAmount(1)
July 1, 2025 through December 31, 2026$203,691
2027 and beyond93,585
Total$297,276

(1)Amounts represent reductions to our consolidated construction spending.

Average real estate basis used for capitalization of interest

Our construction spending includes capitalized interest. The table below provides key categories of interest capitalized during

the six months ended June 30, 2025 (in thousands):

Average Real Estate Basis Capitalized
AmountPercentage
Construction of Class A/A+ properties:
Development and redevelopment of projects under construction and one 100% pre-leased committed near-term project expected to commence construction in the next year
2025 and 2026 stabilization$767,45310%
2027 and beyond stabilization2,102,72326
Smaller redevelopments and repositioning capital projects1,007,166(1)12
Key future Megacampus expansion pre-construction work1,209,540(2)15
Future pipeline projects with key pre-construction milestones during 2H25 and 20262,979,991(3)37
$8,066,873100%

(1)Includes 668,795 RSF that is leased, but not yet delivered. The weighted-average expected delivery date is January 2, 2026.

(2)Represents four key active and future Megacampus development projects at Alexandria Center® for Advanced Technologies – Tanforan, Alexandria Center® for Life

Science – San Carlos, Campus Point by Alexandria, and Alexandria Center® for Advanced Technologies – South Lake Union.

(3)Includes future pipeline projects that are expected to reach anticipated pre-construction milestones, including various phases of entitlement, design, site work and other

activities necessary to begin aboveground vertical construction, on April 3, 2026, on a weighted-average real estate investment basis. We will evaluate whether to

proceed with future pre-construction and/or construction activities based on leasing demand and market conditions.

Projected results

We present updated guidance for EPS attributable to Alexandria’s common stockholders – diluted, funds from operations per

share attributable to Alexandria’s common stockholders – diluted, funds from operations per share attributable to Alexandria’s common

stockholders – diluted, as adjusted, key assumptions, and key credit metric targets based on our current view of existing market

conditions and other assumptions for the year ending December 31, 2025, as set forth in the tables below. The tables below also

provide a reconciliation of EPS attributable to Alexandria’s common stockholders – diluted, the most directly comparable financial

measure presented in accordance with GAAP, to funds from operations per share and funds from operations per share, as adjusted,

non-GAAP measures, and other key assumptions included in our updated guidance for the year ending December 31, 2025. There can

be no assurance that actual amounts will not be materially higher or lower than these expectations. Refer to our discussion of “Forward-

looking statements” and “Trends that may affect our future results” included in the beginning of this Item 2.

Projected 2025 Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – DilutedAs of 7/21/25As of 4/28/25
Earnings per share(1)$0.40 to $0.60$1.36 to $1.56
Depreciation and amortization of real estate assets7.057.05
Gain on sales of real estate(0.08)(0.08)
Impairment of real estate – rental properties and land(2)0.770.21
Allocation of unvested restricted stock awards(0.03)(0.03)
Funds from operations per share(3)$8.11 to $8.31$8.51 to $8.71
Unrealized losses on non-real estate investments0.530.40
Impairment of non-real estate investments0.300.07
Impairment of real estate0.230.19
Allocation to unvested restricted stock awards(0.01)(0.01)
Funds from operations per share, as adjusted(3)$9.16 to $9.36$9.16 to $9.36
Midpoint$9.26$9.26

(1)Excludes unrealized gains or losses on non-real estate investments after June 30, 2025 that are required to be recognized in earnings and are excluded from funds from

operations per share, as adjusted.

(2)Refer to Note 3 – “Investments in real estate” to our unaudited consolidated financial statements in Item 1 for additional information.

(3)Refer to “Funds from operations and funds from operations, as adjusted, attributable to Alexandria Real Estate Equities, Inc.’s common stockholders” under “Definitions

and reconciliations” in Item 2 for additional information.

Key Assumptions**(1)** (Dollars in millions)As of 7/21/25
LowHigh
Occupancy percentage in North America as of December 31, 202590.9%92.5%
Lease renewals and re-leasing of space:
Rental rate changes9.0%17.0%
Rental rate changes (cash basis)0.5%8.5%
Same property performance:
Net operating income(3.7)%(1.7)%
Net operating income (cash basis)(1.2)%0.8%
Straight-line rent revenue$96$116
General and administrative expenses$112$127
Capitalization of interest$320$350
Interest expense$185$215
Realized gains on non-real estate investments(2)$100$130

(1)Our assumptions presented in the table above are subject to a number of variables and uncertainties, including those discussed as “Forward-looking statements” under

Part I; “Item 1A. Risk factors”; and “Item 7. Management’s discussion and analysis of financial condition and results of operations” in our annual report on Form 10-K for

the year ended December 31, 2024, as well as in “Item 1A. Risk factors”; and “Item 2. Trends that may affect our future results” within “Part II – Other information” of this

quarterly report on Form 10-Q. To the extent our full-year earnings guidance is updated during the year, we will provide additional disclosure supporting reasons for any

significant changes to such guidance.

(2)Represents realized gains and losses included in funds from operations per share – diluted, as adjusted, and excludes significant impairments realized on non-real

estate investments, if any. Refer to Note 7 – “Investments” to our unaudited consolidated financial statements in Item 1 for additional details.

Key Credit Metric Targets**(1)**As of 7/21/25
Net debt and preferred stock to Adjusted EBITDA – fourth quarter of 2025 annualizedLess than or equal to 5.2x
Fixed-charge coverage ratio – fourth quarter of 2025 annualized4.0x to 4.5x

(1)Refer to “Definitions and reconciliations” in Item 2 for additional information.

Consolidated and unconsolidated real estate joint ventures

We present components of balance sheet and operating results information for the noncontrolling interest share of our

consolidated real estate joint ventures and for our share of investments in unconsolidated real estate joint ventures to help investors

estimate balance sheet and operating results information related to our partially owned entities. These amounts are estimated by

computing, for each joint venture that we consolidate in our financial statements, the noncontrolling interest percentage of each financial

item to arrive at the cumulative noncontrolling interest share of each component presented. In addition, for our real estate joint ventures

that we do not control and do not consolidate, we apply our economic ownership percentage to the unconsolidated real estate joint

ventures to arrive at our proportionate share of each component presented. Refer to Note 4 – “Consolidated and unconsolidated real

estate joint ventures” to our unaudited consolidated financial statements in Item 1 for further discussion.

Consolidated Real Estate Joint Ventures
Property/Market/SubmarketNoncontrolling Interest ShareOperating RSF at 100%
50 and 60 Binney Street/Greater Boston/Cambridge/Inner Suburbs66.0%532,395
75/125 Binney Street/Greater Boston/Cambridge/Inner Suburbs60.0%388,270
100 and 225 Binney Street and 300 Third Street/Greater Boston/Cambridge/Inner Suburbs70.0%870,641
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs(1)23.1%116,414
15 Necco Street/Greater Boston/Seaport Innovation District43.3%345,996
285, 299, 307, and 345 Dorchester Avenue/Greater Boston/Seaport Innovation District40.0%—(1)
Alexandria Center® for Science and Technology – Mission Bay/San Francisco Bay Area/ Mission Bay(2)75.0%1,013,997
601, 611, 651(1), 681, 685, and 701 Gateway Boulevard/San Francisco Bay Area/ South San Francisco50.0%874,234
751 Gateway Boulevard/San Francisco Bay Area/South San Francisco49.0%230,592
211 and 213 East Grand Avenue/San Francisco Bay Area/South San Francisco70.0%300,930
500 Forbes Boulevard/San Francisco Bay Area/South San Francisco90.0%155,685
Alexandria Center® for Life Science – Millbrae/San Francisco Bay Area/South San Francisco51.5%285,346
3215 Merryfield Row/San Diego/Torrey Pines70.0%170,523
Campus Point by Alexandria/San Diego/University Town Center(1)(3)45.0%(4)1,212,414
5200 Illumina Way/San Diego/University Town Center49.0%792,687
9625 Towne Centre Drive/San Diego/University Town Center70.0%163,648
SD Tech by Alexandria/San Diego/Sorrento Mesa(1)(5)50.0%816,048
Pacific Technology Park/San Diego/Sorrento Mesa50.0%544,352
Summers Ridge Science Park/San Diego/Sorrento Mesa(6)70.0%316,531
1201 and 1208 Eastlake Avenue East/Seattle/Lake Union70.0%206,134
199 East Blaine Street/Seattle/Lake Union70.0%115,084
400 Dexter Avenue North/Seattle/Lake Union70.0%290,754
800 Mercer Street/Seattle/Lake Union40.0%—(1)
Unconsolidated Real Estate Joint Ventures
Property/Market/SubmarketOur Ownership Share(7)Operating RSF at 100%
1655 and 1725 Third Street/San Francisco Bay Area/Mission Bay10.0%586,208
1450 Research Boulevard/Maryland/Rockville73.2%(8)42,012
101 West Dickman Street/Maryland/Beltsville58.4%(8)135,949

Refer to “Joint venture financial information” under “Definitions and reconciliations” in Item 2 for additional details.

(1)Represents a property currently under construction or in our future development and redevelopment pipeline. Refer to “New Class A/A+ development and redevelopment

properties” in Item 2 for additional details.

(2)Includes 409 and 499 Illinois Street, 1450, 1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South.

(3)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4135, 4155, 4161, 4165, 4224, and 4242 Campus Point Court.

(4)The noncontrolling interest share of our joint venture partner is anticipated to decrease to 25%, as we expect to fund the majority of future construction costs at the

campus until our ownership interest increases from 55% to 75%, after which future capital would be contributed pro-rata with our partner. Refer to “New Class A/A+

development and redevelopment properties: current projects” in Item 2 for additional details.

(5)Includes 9605, 9645, 9675, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road.

(6)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.

(7)In addition to the real estate joint ventures listed, we hold an interest in one insignificant unconsolidated real estate joint venture.

(8)Represents a joint venture with a local real estate operator in which our joint venture partner manages the day-to-day activities that significantly affect the economic

performance of the joint venture.

The following table presents key terms related to our unconsolidated real estate joint ventures’ secured loans as of June 30,

2025 (dollars in thousands):

Maturity DateStated RateInterest Rate(1)At 100%Our Share
Unconsolidated Joint VentureAggregate CommitmentDebt Balance(2)
101 West Dickman Street11/10/26SOFR+1.95%(3)6.34%$26,750$19,08158.4%
1450 Research Boulevard12/10/26SOFR+1.95%(3)6.40%13,0008,96573.2%
1655 and 1725 Third Street(4)2/10/356.37%6.44%500,000496,70910.0%
$539,750$524,755

(1)Includes interest expense and amortization of loan fees.

(2)Represents outstanding principal, net of unamortized deferred financing costs, as of June 30, 2025.

(3)This loan is subject to a fixed SOFR floor of 0.75%.

(4)During the three months ended March 31, 2025, the unconsolidated real estate joint venture refinanced $500 million of its $600 million existing fixed-rate debt with a new

secured note payable maturing in 2035. The remaining debt balance of approximately $100 million was repaid through contributions from the unconsolidated joint

venture partners, including our share of $10.8 million.

The following tables present information related to the operating results and financial positions of our consolidated and

unconsolidated real estate joint ventures as of and for the three and six months ended June 30, 2025 (in thousands):

Noncontrolling Interest Share of Consolidated Real Estate Joint VenturesOur Share of Unconsolidated Real Estate Joint Ventures
June 30, 2025June 30, 2025
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
Total revenues$117,958$234,595$2,688$5,263
Rental operations(36,039)(70,808)(935)(1,983)
81,919163,7871,7533,280
General and administrative(930)(1,563)(62)(81)
Interest(330)(754)(1,097)(2,058)
Depreciation and amortization of real estate assets(36,047)(69,458)(942)(1,996)
Impairment of real estate——(8,673)(8,673)
Fixed returns allocated to redeemable noncontrolling interests(1)201402——
$44,813$92,414$(9,021)$(9,528)
Straight-line rent and below-market lease revenue$6,542$10,194$176$334
Funds from operations(1)$80,860$161,872$594$1,141

Refer to “Joint venture financial information” under “Definitions and reconciliations” in Item 2 for additional details.

(1)Refer to “Funds from operations and funds from operations, as adjusted, attributable to Alexandria Real Estate Equities, Inc.’s common stockholders” under “Definitions

and reconciliations” in Item 2 for the definition and its reconciliation from the most directly comparable financial measure presented in accordance with GAAP.

As of June 30, 2025
Noncontrolling Interest Share of Consolidated Real Estate Joint VenturesOur Share of Unconsolidated Real Estate Joint Ventures
Investments in real estate$4,250,023$99,775
Cash, cash equivalents, and restricted cash144,7702,917
Other assets457,40210,156
Secured notes payable(35,448)(67,378)
Other liabilities(252,979)(5,236)
Redeemable noncontrolling interests(9,612)—
$4,554,156$40,234

During the six months ended June 30, 2025 and 2024, our consolidated real estate joint ventures distributed an aggregate of

$123.6 million and $119.9 million, respectively, to our joint venture partners. Refer to our consolidated statements of cash flows and

Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial statements in Item 1 for

additional information.

Investments

We hold investments in publicly traded companies and privately held entities primarily involved in the life science industry. The

tables below summarize components of our investment income (loss) and non-real estate investments (in thousands). Refer to Note 7 –

“Investments” to our unaudited consolidated financial statements in Item 1 for additional information.

June 30, 2025Year Ended December 31, 2024
Three Months EndedSix Months Ended
Realized (losses) gains$(8,684)(1)$9,469(1)$59,124(2)
Unrealized losses(21,938)(3)(90,083)(4)(112,246)(5)
Investment loss$(30,622)$(80,614)$(53,122)
June 30, 2025December 31, 2024
InvestmentsCostUnrealized GainsUnrealized LossesCarrying AmountCarrying Amount
Publicly traded companies$183,859$18,365$(120,299)$81,925$105,667
Entities that report NAV497,97597,201(43,013)552,163609,866
Entities that do not report NAV:
Entities with observable price changes78,10564,585(9,156)133,534174,737
Entities without observable price changes432,299——432,299400,487
Investments accounted for under the equity methodN/AN/AN/A276,775186,228
June 30, 2025$1,192,238(6)$180,151$(172,468)$1,476,696$1,476,985
December 31, 2024$1,207,146$228,100$(144,489)$1,476,985
Public/Private Mix (Cost)Tenant/Non-Tenant Mix (Cost)

1

13

88%

Private

12%

Public

22%

Tenant

78%

Non-Tenant

(1)Consists of realized gains of $30.5 million and $59.9 million, partially offset by impairment charges of $39.2 million and $50.4 million during the three and six months

ended June 30, 2025, respectively.

(2)Consists of realized gains of $117.2 million, partially offset by impairment charges aggregating $58.1 million during the year ended December 31, 2024.

(3)Consists of unrealized gains of $12.5 million primarily resulting from the increase in fair values of our investments in publicly traded entities and investments in privately

held entities that report NAV and $34.4 million resulting from accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our

realization of investments during the three months ended June 30, 2025.

(4)Primarily relates to the accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our realization of investments during the six

months ended June 30, 2025.

(5)Primarily relates to the accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our realization of investments during the year

ended December 31, 2024.

(6)Represents 2.7% of gross assets as of June 30, 2025. Refer to “Gross assets” under “Definitions and reconciliations” in Item 2 for additional details.

Liquidity

LiquidityMinimal Outstanding Borrowings and Significant Availability on Unsecured Senior Line of Credit
$4.6B(in millions)
q225lineofcredit v2.jpg
(In millions)
Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program$3,900
Cash, cash equivalents, and restricted cash528
Availability under our secured construction loan42
Investments in publicly traded companies82
Liquidity as of June 30, 2025$4,552

We expect to meet certain long-term liquidity requirements, such as requirements for development, redevelopment, other

construction projects, capital improvements, tenant improvements, property acquisitions, equity repurchases, leasing costs, non-

revenue-enhancing capital expenditures, scheduled debt maturities, distributions to noncontrolling interests, and payment of dividends

through net cash provided by operating activities, periodic asset dispositions, strategic real estate joint ventures, long-term secured and

unsecured indebtedness, borrowings under our unsecured senior line of credit, issuances under our commercial paper program, and

issuances of additional debt and/or equity securities.

We also expect to continue meeting our short-term liquidity and capital requirements, as further detailed in this section,

generally through our working capital and net cash provided by operating activities. We believe that the net cash provided by operating

activities will continue to be sufficient to enable us to make the distributions necessary to continue qualifying as a REIT.

For additional information on our liquidity requirements related to our contractual obligations and commitments, refer to

Note 5 – “Leases” and Note 10 – “Secured and unsecured senior debt” to our unaudited consolidated financial statements in Item 1.

Over the next several years, our balance sheet, capital structure, and liquidity objectives are as follows:

  • Retain net cash flows from operating activities after payment of dividends and distributions to noncontrolling interests for

investment in development and redevelopment projects and/or acquisitions;

  • Maintain significant balance sheet liquidity;

  • Maintain credit profile and relative long-term cost of capital;

  • Maintain diverse sources of capital, including sources from net cash provided by operating activities, unsecured debt,

secured debt, selective real estate asset sales, strategic real estate joint ventures, non-real estate investment sales, and

common stock;

  • Maintain commitment to long-term capital to fund growth;

  • Maintain prudent laddering of debt maturities;

  • Maintain solid credit metrics;

  • Prudently manage variable-rate debt exposure;

  • Maintain a large, unencumbered asset pool to provide financial flexibility;

  • Fund common stock dividends and distributions to noncontrolling interests from net cash provided by operating activities;

  • Manage a disciplined level of development and redevelopment projects as a percentage of our gross real estate assets;

and

  • Maintain high levels of pre-leasing and percentage leased in development and redevelopment projects.

The following table presents the availability under our unsecured senior line of credit, net of amounts outstanding under our

commercial paper program; cash, cash equivalents, and restricted cash; availability under our secured construction loan; and

investments in publicly traded companies as of June 30, 2025 (in thousands):

DescriptionStated RateAggregate CommitmentsOutstanding Balance(1)Remaining Commitments/ Liquidity
Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper programSOFR+0.855%$5,000,000$1,097,993$3,900,000
Cash, cash equivalents, and restricted cash527,948
Secured construction loan(2)SOFR+2.70%$195,300$153,50041,676
Investments in publicly traded companies81,925
Liquidity as of June 30, 2025$4,551,549

(1)Represents outstanding principal, net of unamortized deferred financing costs, as of June 30, 2025.

(2)In August 2025, we expect to repay a secured construction loan held by our consolidated real estate joint venture for 99 Coolidge Avenue, a development project where

we have a 76.9% interest. We expect to repay the loan aggregating $153.5 million which matures in 2026 and bears an interest rate of 7.16% as of June 30, 2025. As a

result, we expect to recognize a loss on early extinguishment of debt of $99 thousand for the write-off of unamortized deferred financing costs during the three months

ending September 30, 2025.

Cash, cash equivalents, and restricted cash

As of June 30, 2025 and December 31, 2024, we had $527.9 million and $559.8 million, respectively, of cash, cash

equivalents, and restricted cash. We expect existing cash, cash equivalents, and restricted cash, net cash provided by operating

activities, proceeds from real estate asset sales, sales of partial interests, strategic real estate joint ventures, non-real estate investment

sales, borrowings under our unsecured senior line of credit, issuances under our commercial paper program, issuances of unsecured

senior notes payable, borrowings under our secured construction loans, and issuances of common stock to continue to be sufficient to

fund our operating activities and cash commitments for investing and financing activities, such as regular quarterly dividends,

distributions to noncontrolling interests, scheduled debt repayments, acquisitions, and certain capital expenditures, including

expenditures related to construction activities and any common stock repurchases.

Cash flows

We report and analyze our cash flows based on operating activities, investing activities, and financing activities. The following

table summarizes changes in our cash flows for the six months ended June 30, 2025 and 2024 (in thousands):

Six Months Ended June 30,
20252024Change
Net cash provided by operating activities$668,190$752,954$(84,764)
Net cash used in investing activities$(1,029,653)$(1,468,479)$438,826
Net cash provided by financing activities$330,099$620,460$(290,361)

Operating activities

Cash flows provided by operating activities are primarily dependent upon the occupancy level of our asset base, the rental

rates of our leases, the collectibility of rent and recovery of operating expenses from our tenants, the timing of completion of

development and redevelopment projects, and the timing of acquisitions and dispositions of operating properties. Net cash provided by

operating activities for the six months ended June 30, 2025 decreased by $84.8 million to $668.2 million, compared to $753.0 million for

the six months ended June 30, 2024. The decrease was primarily due to the ground lease prepayment of $135.0 million made in

January 2025 for a 24-year lease term extension to our existing ground lease agreement at the Alexandria Technology Square®

Megacampus in our Cambridge submarket.

Investing activities

Cash used in investing activities for the six months ended June 30, 2025 and 2024 consisted of the following (in thousands):

Six Months Ended June 30,Change
20252024
Sources of cash from investing activities:
Proceeds from sales of real estate$149,027$16,670$132,357
Sales of and distributions from non-real estate investments42,13486,008(43,874)
191,161102,67888,483
Uses of cash for investing activities:
Purchases of real estate—201,049(201,049)
Additions to real estate1,081,0061,241,214(160,208)
Change in escrow deposits8,1082,4735,635
Investments in unconsolidated real estate joint ventures11,0553,7137,342
Additions to non-real estate investments120,645122,708(2,063)
1,220,8141,571,157(350,343)
Net cash used in investing activities$1,029,653$1,468,479$(438,826)

The decrease in net cash used in investing activities for the six months ended June 30, 2025, compared to the six months

ended June 30, 2024, was primarily due to a decreased use of cash for purchases of and additions to real estate. Refer to Note 3 –

“Investments in real estate” to our unaudited consolidated financial statements in Item 1 for additional information.

Financing activities

Cash flows provided by financing activities for the six months ended June 30, 2025 and 2024 consisted of the following

(in thousands):

Six Months Ended June 30,
20252024Change
Borrowings under secured note payable$4,029$14,974$(10,945)
Proceeds from issuance of unsecured senior notes payable548,532998,806(450,274)
Repayment of unsecured senior note payable(600,000)—(600,000)
Proceeds from issuances under commercial paper program8,468,0155,006,9503,461,065
Repayments of borrowings under commercial paper program(7,368,015)(4,906,950)(2,461,065)
Payments of loan fees(5,406)(10,118)4,712
Changes related to debt1,047,1551,103,662(56,507)
Contributions from and sales of noncontrolling interests96,055159,644(63,589)
Distributions to and purchases of noncontrolling interests(141,436)(171,871)30,435
Repurchase of common stock(208,187)—(208,187)
Dividends on common stock(457,217)(443,958)(13,259)
Taxes paid related to net settlement of equity awards(6,271)(27,017)20,746
Net cash provided by financing activities$330,099$620,460$(290,361)

Capital resources

We expect that our principal liquidity needs for the year ending December 31, 2025 will be satisfied by the following multiple

sources of capital, as shown in the table below. There can be no assurance that our sources and uses of capital will not be materially

higher or lower than these expectations.

Key Sources and Uses of Capital (In millions)2025 GuidanceCertain Completed Items
RangeMidpoint
Sources of capital:
Net reduction in debt$(290)$(290)$(290)See below
Net cash provided by operating activities after dividends425525475
Dispositions and sales of partial interests1,4502,4501,950(1)
Total sources of capital$1,585$2,685$2,135
Uses of capital:
Construction$1,450$2,050$1,750
Acquisitions and other opportunistic uses of capital(2)—500250$208(2)
Ground lease prepayment135135135$135
Total uses of capital$1,585$2,685$2,135
Net reduction in debt (included above):
Issuance of unsecured senior notes payable$550$550$550$550
Repayment of unsecured notes payable(600)(600)(600)$(600)
Repayment of secured note payable(3)(154)(154)(154)
Unsecured senior line of credit, commercial paper program, and other(86)(86)(86)
Net reduction in debt$(290)$(290)$(290)

(1)As of the date of this report, completed dispositions aggregated $260.6 million and our share of pending transactions subject to non-refundable deposits, signed letters

of intent, or purchase and sale agreement negotiations aggregated $524.7 million. We expect to achieve a weighted-average capitalization rate on our projected 2025

dispositions and partial interest sales (excluding land and including stabilized and non-stabilized operating properties) in the 7.5% – 8.5% range. We expect dispositions

of land to represent 20%–30% of our total dispositions and sales of partial interest sales for the year ending December 31, 2025. Refer to “Dispositions and sales of

partial interests” in Item 2 for additional information on our real estate dispositions.

(2)Under our common stock repurchase program authorized in December 2024, we may repurchase up to $500.0 million of our common stock through December 31,

  1. During the three months ended June 30, 2025, we did not repurchase any shares of common stock. As of the date of this report, the approximate value of shares

authorized and remaining under this program was $241.8 million. Subject to market conditions, we may consider repurchasing additional shares of our common stock.

(3)In August 2025, we expect to repay a secured construction loan held by our consolidated real estate joint venture for 99 Coolidge Avenue, a development project where

we have a 76.9% interest. We expect to repay the loan aggregating $153.5 million which matures in 2026 and bears an interest rate of 7.16% as of June 30, 2025. As a

result, we expect to recognize a loss on early extinguishment of debt of $99 thousand for the write-off of unamortized deferred financing costs during the three months

ending September 30, 2025.

The key assumptions behind the sources and uses of capital in the table above include a favorable real estate transaction and

capital market environments, performance of our core operating properties, lease-up and delivery of current and future development

and redevelopment projects, and leasing activity. Our expected sources and uses of capital are subject to a number of variables and

uncertainties, including those discussed as “Forward-looking statements” under Part I; “Item 1A. Risk factors”; and “Item 7.

Management’s discussion and analysis of financial condition and results of operations” in our annual report on Form 10-K for the year

ended December 31, 2024; as well as in “Item 1A. Risk factors”; and “Item 2. Trends that may affect our future results” within “Part II –

Other information” of this quarterly report on Form 10-Q. We expect to update our forecast for key sources and uses of capital on a

quarterly basis.

Sources of capital

Net cash provided by operating activities after dividends

We expect to retain $425 million to $525 million of net cash flows from operating activities after payment of common stock

dividends, and distributions to noncontrolling interests for the year ending December 31, 2025, excluding the payment of our final

installment of $135.0 million made in January 2025 for the ground lease at the Alexandria Technology Square® Megacampus. For

purposes of this calculation, changes in operating assets and liabilities representing timing differences are excluded. For the year

ending December 31, 2025, we expect our recently delivered projects, our development and redevelopment projects expected to be

delivered, and contributions from Same Properties to contribute to income from rentals, net operating income, and cash flows. We

anticipate contractual near-term growth in annual net operating income (cash basis) of $57 million related to the commencement of

contractual rents on the projects recently placed into service that are near the end of their initial free rent period. Refer to “Cash flows”

in Item 2 for a discussion of cash flows provided by operating activities for the six months ended June 30, 2025.

Debt

We expect to fund a portion of our capital needs for 2025 from issuances under our commercial paper program, issuances of

unsecured senior notes payable, and/or borrowings under our unsecured senior line of credit.

As of June 30, 2025, our unsecured senior line of credit, which matures in 2030, including extension options under our control,

had aggregate commitments of $5.0 billion and bore an interest rate of SOFR plus 0.855%. In addition to the cost of borrowing, the

unsecured senior line of credit is subject to an annual facility fee of 0.145% based on the aggregate commitments outstanding. Based

upon our ability to achieve certain annual sustainability targets, the interest rate and facility fee rate are also subject to upward or

downward adjustments of up to four basis points with respect to the interest rate and up to one basis point with respect to the facility fee

rate.

Based on certain sustainability metrics achieved in accordance with the terms of our unsecured senior line of credit

agreement, the borrowing rate was reduced by two basis points to SOFR plus 0.855%, from SOFR plus 0.875%, and the facility fee

was reduced by 0.5 basis point to 0.145% from 0.15%. As of June 30, 2025, we had no outstanding balance on our unsecured line of

credit.

Our commercial paper program provides us with the ability to issue up to $2.5 billion of commercial paper notes with a maturity

of generally 30 days or less and with a maximum maturity of 397 days from the date of issuance. Our commercial paper program is

backed by our unsecured senior line of credit, and at all times we expect to retain a minimum undrawn amount of borrowing capacity

under our unsecured senior line of credit equal to any outstanding balance under our commercial paper program. We use borrowings

under the program to fund short-term capital needs. The notes issued under our commercial paper program are sold under customary

terms in the commercial paper market. They are typically issued at a discount to par, representing a yield to maturity dictated by market

conditions at the time of issuance. In the event we are unable to issue commercial paper notes or refinance outstanding commercial

paper notes under terms equal to or more favorable than those under the unsecured senior line of credit, we expect to borrow under the

unsecured senior line of credit. The commercial paper notes sold during the six months ended June 30, 2025 were issued at a

weighted-average yield to maturity of 4.67%. As of June 30, 2025, we had $1.1 billion of commercial paper notes outstanding.

In February 2025, we issued $550.0 million of unsecured senior notes payable, due 2035, with an interest rate of 5.50%.

The following table presents our average debt outstanding and weighted-average interest rates during the three and six

months ended June 30, 2025 (dollars in thousands):

Average Debt OutstandingWeighted-Average Interest Rate
June 30, 2025June 30, 2025
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
Long-term fixed-rate debt$12,314,715$12,374,6953.88%3.85%
Short-term variable-rate unsecured senior line of credit and commercial paper program debt926,720651,3024.704.65
Blended average interest rate13,241,43513,025,9973.943.89
Loan fee amortization and annual facility fee related to unsecured senior line of creditN/AN/A0.130.14
Total/weighted average$13,241,435$13,025,9974.07%4.03%

Real estate dispositions and sales of partial interests

We expect to continue to focus on the disciplined execution of select sales of real estate. Future sales will provide an important

source of capital to fund our development and redevelopment projects and opportunistic share repurchases and also provide significant

capital for growth. We may also consider additional sales of partial interests in core Class A/A+ properties, development projects, and/or

land. For the year ending December 31, 2025, we expect real estate dispositions and sales of partial interests in real estate assets to

range from $1.45 billion to $2.45 billion. The amount of asset sales necessary to meet our forecasted sources of capital will vary

depending upon the amount of EBITDA associated with the assets sold.

Refer to Note 3 – “Investments in real estate,” Note 4 – “Consolidated and unconsolidated real estate joint ventures,” and

Note 13 – “Stockholders’ equity” to our unaudited consolidated financial statements in Item 1 and to “Dispositions and sales of partial

interests” in Item 2 for additional information on our real estate dispositions.

As a REIT, we are generally subject to a 100% tax on the net income from real estate asset sales that the IRS characterizes as

“prohibited transactions.” We do not expect our sales will be categorized as prohibited transactions. However, unless we meet certain

“safe harbor” requirements, whether a real estate asset sale is a “prohibited transaction” will be based on the facts and circumstances

of the sale. Our real estate asset sales may not always meet such “safe harbor” requirements. Refer to “Item 1A. Risk factors” in our

annual report on Form 10-K for the year ended December 31, 2024 for additional information about the “prohibited transaction” tax.

Common equity transactions

During the three and six months ended June 30, 2025, we have not issued any common stock under our ATM program. As of

June 30, 2025, the remaining aggregate amount available under our ATM program for future sales of common stock was $1.47 billion.

Other sources

As a well-known seasoned issuer, we may, from time to time, issue securities at our discretion based on our needs and market

conditions, including, as necessary, to balance our use of incremental debt capital.

Additionally, we, together with joint venture partners, hold interests in real estate joint ventures that we consolidate in our

financial statements. 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. From July 1, 2025 through

December 31, 2027 and beyond, we expect to receive capital contributions aggregating $297.3 million from existing consolidated real

estate joint venture partners to fund construction. During the year ending December 31, 2025, contributions from noncontrolling

interests from existing joint venture partners are expected to aggregate $230.0 million.

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.

We currently have projects in our development and redevelopment pipeline aggregating 4.4 million RSF of Class A/A+ properties

undergoing construction and one 100% pre-leased committed near-term project expected to commence construction in the next year.

We incur capitalized construction costs related to development, redevelopment, pre-construction, and other construction activities. We

also incur additional capitalized project costs, including interest, property taxes, insurance, and other costs directly related and essential

to the development, redevelopment, pre-construction, or construction of a project, during periods when activities necessary to prepare

an asset for its intended use are in progress. Refer to “New Class A/A+ development and redevelopment properties: current projects”

and “Summary of capital expenditures” in Item 2 for additional information on our capital expenditures.

We capitalize interest cost as a cost of the project only during the period in which activities necessary to prepare an asset for

its intended use are ongoing, provided that expenditures for the asset have been made and interest cost has been incurred. Capitalized

interest, classified in investments in real estate in our consolidated balance sheets, aggregated $162.5 million for the six months ended

June 30, 2025, consistent with $162.9 million capitalized during six months ended June 30, 2024. This reflects a consistent weighted-

average capitalized cost basis of $8.1 billion for the six months ended June 30, 2025, as compared to $8.0 billion for the six months

ended June 30, 2024.

Property taxes, insurance on real estate, and indirect project costs, such as construction, administration, legal fees, and office

costs that clearly relate to projects under development or construction, are capitalized as incurred during the period an asset is

undergoing activities to prepare it for its intended use. We capitalized payroll and other indirect costs related to development,

redevelopment, pre-construction, and construction projects aggregating $47.8 million and $52.1 million, and property taxes, insurance

on real estate, and indirect project costs aggregating $73.1 million and $63.0 million during the six months ended June 30, 2025 and

2024, respectively.

Pre-construction activities include entitlements, permitting, design, site work, and other activities preceding commencement of

construction of aboveground building improvements. 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. Should we cease activities necessary to prepare an asset for its intended use, the

interest, taxes, insurance, and certain other direct and indirect project costs related to the asset would be expensed as incurred.

Expenditures for repairs and maintenance are expensed as incurred.

Fluctuations in our development, redevelopment, and construction activities could result in significant changes to total

expenses and net income. 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 $28.3 million for the six months ended June 30, 2025.

We use third-party brokers to assist in our leasing activity, who are paid on a contingent basis upon successful leasing. We are

required to capitalize initial direct costs related to successful leasing transactions that result directly from and are essential to the lease

transaction and would not have been incurred had that lease transaction not been successfully executed. During the six months ended

June 30, 2025, we capitalized total initial direct leasing costs of $52.2 million. Costs that we incur to negotiate or arrange a lease

regardless of its outcome, such as fixed employee compensation, tax, or legal advice to negotiate lease terms, and other costs, are

expensed as incurred.

Real estate acquisitions and common stock repurchase program

Under our common stock repurchase program authorized in December 2024, we may repurchase up to $500.0 million of our

common stock in the open market, in privately negotiated transactions, or otherwise through December 31, 2025.

  • During the three months ended June 30, 2025, we did not repurchase any shares of common stock.

  • During the six months ended June 30, 2025, we repurchased 2.2 million shares of common stock for an aggregate value of

$208 million at an average price per share of $96.71.

  • As of the date of this report, the approximate value of shares authorized and remaining under this program was $241.8 million.

We have not made any real estate acquisitions during the six months ended June 30, 2025.

For the year ending December 31, 2025, we expect real estate acquisitions and common stock repurchases to aggregate up

to $500 million.

Dividends

During the six months ended June 30, 2025 and 2024, we paid common stock dividends of $457.2 million and $444.0 million,

respectively. The increase of $13.3 million in dividends paid on our common stock for the six months ended June 30, 2025, compared to

the six months ended June 30, 2024, was primarily due to an increase in the related dividends to $2.64 per common share paid for the

six months ended June 30, 2025 from $2.54 per common share paid for the six months ended June 30, 2024. We fund the payment of

our common stock dividends using net cash provided by operating activities. We expect to continue funding future quarterly common

stock dividends from net cash provided by operating activities, which may be supplemented by proceeds from periodic asset

dispositions, issuances of additional debt and/or equity securities, and borrowings under our unsecured senior line of credit and/or our

commercial paper program.

Secured note payable

Secured note payable as of June 30, 2025 consisted of one note secured by one property. Our secured note payable typically

requires monthly payments of principal and interest and had a weighted-average interest rate of approximately 7.16%. As of June 30,

2025, the total book value of our investments in real estate securing debt was approximately $337.2 million. As of June 30, 2025, our

secured note payable, including unamortized discounts and deferred financing costs, is approximately $153.5 million of unhedged

variable-rate debt. We expect to repay the entire $153.5 million balance in August 2025.

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 June 30, 2025 were as follows:

Covenant Ratios(1)RequirementJune 30, 2025
Total Debt to Total AssetsLess than or equal to 60%31%
Secured Debt to Total AssetsLess than or equal to 40%0.4%
Consolidated EBITDA(2) to Interest ExpenseGreater than or equal to 1.5x10.6x
Unencumbered Total Asset Value to Unsecured DebtGreater than or equal to 150%309%

(1)All covenant ratio titles utilize terms as defined in the respective debt agreements.

(2)The calculation of consolidated EBITDA is based on the definitions contained in our loan agreements and is not directly comparable to the computation of EBITDA as

described in Exchange Act Release No. 47226.

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.

The requirements of, and our actual performance with respect to, the key financial covenants under our unsecured senior line

of credit as of June 30, 2025 were as follows:

Covenant Ratios(1)RequirementJune 30, 2025
Leverage RatioLess than or equal to 60.0%32.2%
Secured Debt RatioLess than or equal to 45.0%0.3%
Fixed-Charge Coverage RatioGreater than or equal to 1.50x3.71x
Unsecured Interest Coverage RatioGreater than or equal to 1.75x9.30x

(1)All covenant ratio titles utilize terms as defined in the credit agreement.

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 June 30, 2025, 90.6% of our debt was fixed-rate debt. For additional information

regarding our debt, refer to Note 10 – “Secured and unsecured senior debt” to our unaudited consolidated financial statements in

Item 1.

Ground lease obligations

Ground lease obligations as of June 30, 2025 included leases for 31 of our properties and accounted for approximately 8% of

our total number of properties. Among these 31 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 single

lessor in our Greater Stanford submarket with whom we have extended three ground leases over the past 10 years.

Our remaining 14 properties subject to ground leases are located across multiple submarkets and have remaining lease terms

ranging from approximately 46 to 81 years. The weighted-average remaining lease term of these ground leases is 74 years, including

extension options that we are reasonably certain to exercise.

In many cases, we seek to extend our ground leases well ahead of their scheduled contractual expirations. If we are

successful in extending ground leases, we could see significant up-front or increased recurring future payments to the ground lessor

and/or increased ground lease expense, which may require us to increase our capital funding needs.

Operating lease agreements

As of June 30, 2025, the remaining contractual payments under ground and office lease agreements in which we are the

lessee aggregated $762.5 million and $21.7 million, respectively. As of June 30, 2025, our operating lease liability, calculated as the

present value of the remaining payments aggregating $784.2 million under our operating lease agreements, including our extension

options that we are reasonably certain to exercise, was $363.4 million, which was classified in accounts payable, accrued expenses,

and other liabilities in our consolidated balance sheet. As of June 30, 2025, the weighted-average remaining lease term of operating

leases in which we are the lessee was approximately 54 years, including extension options that we are reasonably certain to exercise,

and the weighted-average discount rate was 4.7%. 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 $717.1 million.

We classify the right-of-use asset in other assets in our consolidated balance sheets. Refer to “Lease accounting” in Note 2 –

“Summary of significant accounting policies” to our unaudited consolidated financial statements in Item 1 for additional information.

Commitments

As of June 30, 2025, remaining aggregate costs under contract for the construction of properties undergoing development,

redevelopment, and improvements under the terms of leases approximated $924.3 million. We expect payments for these obligations to

occur over one to three years, subject to capital planning adjustments from time to time. We may have the ability to cease the

construction of certain projects, which would result in the reduction of our commitments. In addition, we have letters of credit and

performance obligations aggregating $5.3 million.

We are committed to funding approximately $380.3 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 8.0 years as of June 30, 2025.

Our former joint venture partner in our Greater Boston market has an option, subject to certain conditions, to obtain a

$50 million secured loan from us, which, if the option is exercised, will bear interest at SOFR plus 6.5%, with a floor of 9.0% and a term

not to exceed five years. As of June 30, 2025, the option has not been exercised.

Exposure to environmental liabilities

In connection with the acquisition of all of our properties, we have obtained Phase I environmental assessments to ascertain

the existence of any environmental liabilities or other issues. The Phase I environmental assessments of our properties have not

revealed any environmental liabilities that we believe would have a material adverse effect on our financial condition or results of

operations taken as a whole, nor are we aware of any material environmental liabilities that have occurred since the Phase I

environmental assessments were completed. In addition, we carry a policy of pollution legal liability insurance covering exposure to

certain environmental losses at substantially all of our properties.

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 six months ended June 30, 2025 primarily due to the changes in the foreign exchange rates for

our real estate investments in Canada (in thousands). We reclassify unrealized foreign currency translation gains and losses into net

income as we dispose of these holdings.

Total
Balance as of December 31, 2024$(46,252)
Other comprehensive income before reclassifications18,837
Net other comprehensive income18,837
Balance as of June 30, 2025$(27,415)

Inflation

As of June 30, 2025, approximately 91% 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 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. 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.

Issuer and guarantor subsidiary summarized financial information

Alexandria Real Estate Equities, Inc. (the “Issuer”) has sold certain debt securities registered under the Securities Act of 1933,

as amended, that are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P. (the “LP” or the “Guarantor

Subsidiary”), an indirectly 100% owned subsidiary of the Issuer. The Issuer’s other subsidiaries, including, but not limited to, the

subsidiaries that own substantially all of its real estate (collectively, the “Combined Non-Guarantor Subsidiaries”), will not provide a

guarantee of such securities, including the subsidiaries that are partially or 100% owned by the LP. The following summarized financial

information presents, on a combined basis, balance sheet information as of June 30, 2025 and December 31, 2024, and results of

operations and comprehensive income for the six months ended June 30, 2025 and year ended December 31, 2024 for the Issuer and

the Guarantor Subsidiary. The information presented below excludes eliminations necessary to arrive at the information on a

consolidated basis. In presenting the summarized financial statements, the equity method of accounting has been applied to (i) the

Issuer’s interests in the Guarantor Subsidiary, (ii) the Guarantor Subsidiary’s interests in the Combined Non-Guarantor Subsidiaries,

and (iii) the Combined Non-Guarantor Subsidiaries’ interests in the Guarantor Subsidiary, where applicable, even though all such

subsidiaries meet the requirements to be consolidated under GAAP. 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 June 30, 2025 and December 31, 2024 and for

the six months ended June 30, 2025 and year ended December 31, 2024 for the Issuer and Guarantor Subsidiary. Amounts provided

do not represent our total consolidated amounts (in thousands):

June 30, 2025December 31, 2024
Assets:
Cash, cash equivalents, and restricted cash$146,076$103,993
Other assets170,720153,913
Total assets$316,796$257,906
Liabilities:
Unsecured senior notes payable$12,042,607$12,094,465
Unsecured senior line of credit and commercial paper1,097,993—
Other liabilities518,737542,322
Total liabilities$13,659,337$12,636,787
Six Months Ended June 30, 2025Year Ended December 31, 2024
Total revenues$24,052$59,023
Total expenses(164,818)(349,437)
Net loss(140,766)(290,414)
Net income attributable to unvested restricted stock awards(5,269)(13,394)
Net loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders$(146,035)$(303,808)

As of June 30, 2025, 368 of our 384 properties were held indirectly by the REIT’s wholly owned consolidated subsidiary,

Alexandria Real Estate Equities, L.P.

Critical accounting estimates

Refer to our annual report on Form 10-K for the year ended December 31, 2024 for a discussion of our critical accounting

estimates related to recognition of real estate acquired, impairment of long-lived assets, impairment of non-real estate investments, and

monitoring of tenant credit quality.

Definitions and reconciliations

This section contains additional information on certain non-GAAP financial measures, including reconciliations from 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 report.

Funds from operations and funds from operations, as adjusted, attributable to Alexandria Real Estate Equities, Inc.’s common

stockholders

GAAP-basis accounting for real estate assets utilizes historical cost accounting and assumes that real estate values diminish

over time. In an effort to overcome the difference between real estate values and historical cost accounting for real estate assets, the

Nareit Board of Governors established funds from operations as an improved measurement tool. Since its introduction, funds from

operations has become a widely used non-GAAP financial measure among equity REITs. We believe that funds from operations is

helpful to investors as an additional measure of the performance of an equity REIT. Moreover, we believe that funds from operations, as

adjusted, allows investors to compare our performance to the performance of other real estate companies on a consistent basis, without

having to account for differences recognized because of real estate acquisition and disposition decisions, financing decisions, capital

structure, capital market transactions, variances resulting from the volatility of market conditions outside of our control, or other

corporate activities that may not be representative of the operating performance of our properties.

The 2018 White Paper published by the Nareit Board of Governors (the “Nareit White Paper”) defines funds from operations as

net income (computed in accordance with GAAP), excluding gains or losses on sales of real estate, and impairments of real estate, plus

depreciation and amortization of operating real estate assets, and after adjustments for our share of consolidated and unconsolidated

partnerships and real estate joint ventures. Impairments represent the write-down of assets when fair value over the recoverability

period is less than the carrying value due to changes in general market conditions and do not necessarily reflect the operating

performance of the properties during the corresponding period.

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. 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. This may result in a difference of the

summation of the quarter-to-date and year-to-date amounts. Neither funds from operations nor funds from operations, as adjusted,

should be considered as alternatives to net income (determined in accordance with GAAP) as indications of financial performance, or to

cash flows from operating activities (determined in accordance with GAAP) as measures of liquidity, nor are they indicative of the

availability of funds for our cash needs, including our ability to make distributions.

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 for the three and six months

ended June 30, 2025 (in thousands):

Noncontrolling Interest Share of Consolidated Real Estate Joint VenturesOur Share of Unconsolidated Real Estate Joint Ventures
June 30, 2025June 30, 2025
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
Net income (loss)$44,813$92,414$(9,021)$(9,528)
Depreciation and amortization of real estate assets36,04769,4589421,996
Impairment of real estate——8,6738,673
Funds from operations$80,860$161,872$594$1,141

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 three and six months ended June 30, 2025 and 2024 (in

thousands, except per share amounts). Per share amounts may not add due to rounding.

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted$(109,611)$42,917$(121,210)$209,803
Depreciation and amortization of real estate assets343,729288,118683,110573,068
Noncontrolling share of depreciation and amortization from consolidated real estate JVs(36,047)(31,364)(69,458)(62,268)
Our share of depreciation and amortization from unconsolidated real estate JVs9421,0681,9962,102
Gain on sales of real estate——(13,165)(392)
Impairment of real estate – rental properties and land131,090(1)2,182131,090(1)2,182
Allocation to unvested restricted stock awards(1,222)(1,305)(1,916)(4,736)
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted(2)328,881301,616610,447719,759
Unrealized losses on non-real estate investments21,93864,23890,08335,080
Impairment of non-real estate investments39,216(3)12,78850,39627,486
Impairment of real estate7,18928,58139,34328,581
Increase in provision for expected credit losses on financial instruments——285—
Allocation to unvested restricted stock awards(794)(1,738)(2,116)(1,528)
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted$396,430$405,485$788,438$809,378

(1)Refer to Note 3 – “Investments in real estate” to our unaudited consolidated financial statements for additional information. Includes an impairment charge of $8.7 million

related to an unconsolidated real estate joint venture, which is classified in equity in earnings of unconsolidated real estate joint ventures in our consolidated statement

of operations.

(2)Calculated in accordance with standards established by the Nareit Board of Governors.

(3)Primarily related to one non-real estate investment in a privately held entity that does not report NAV.

Three Months Ended June 30,Six Months Ended June 30,
(Per share)2025202420252024
Net (loss) income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted$(0.64)$0.25$(0.71)$1.22
Depreciation and amortization of real estate assets1.811.503.612.98
Gain on sales of real estate——(0.08)—
Impairment of real estate – rental properties and land0.770.010.770.01
Allocation to unvested restricted stock awards(0.01)(0.01)(0.01)(0.02)
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted1.931.753.584.19
Unrealized losses on non-real estate investments0.130.370.530.20
Impairment of non-real estate investments0.230.080.300.16
Impairment of real estate0.040.170.230.17
Allocation to unvested restricted stock awards—(0.01)(0.01)(0.01)
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted$2.33$2.36$4.63$4.71
Weighted-average shares of common stock outstanding – diluted(1)
Earnings per share – diluted170,135172,013170,328171,981
Funds from operations – diluted, per share170,192172,013170,390171,981
Funds from operations – diluted, as adjusted, per share170,192172,013170,390171,981

(1)Refer to “Weighted-average shares of common stock outstanding – diluted” in this section for additional information.

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. 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. Adjusted EBITDA also excludes unrealized gains or losses and

significant realized gains or losses and impairments that result from our non-real estate investments. These non-real estate investment

amounts are classified in our consolidated statements of operations outside of total revenues.

We believe Adjusted EBITDA provides investors with relevant and useful information as it allows investors to evaluate the

operating performance of our business activities without having to account for differences recognized because of investing and

financing decisions related to our real estate and non-real estate investments, our capital structure, capital market transactions, and

variances resulting from the volatility of market conditions outside of our control. For example, we exclude gains or losses on the early

extinguishment of debt to allow investors to measure our performance independent of our indebtedness and capital structure. 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.

In addition, we believe that excluding charges related to stock compensation and unrealized gains or losses facilitates for

investors a comparison of our business activities across periods without the volatility resulting from market forces outside of our control.

Adjusted EBITDA has limitations as a measure of our performance. Adjusted EBITDA does not reflect our historical expenditures or

future requirements for capital expenditures or contractual commitments. 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.

In order to calculate the Adjusted EBITDA margin, we divide Adjusted EBITDA by total revenues as presented in our

consolidated statements of operations. We believe that this supplemental performance measure provides investors with additional

useful information regarding the profitability of our operating activities.

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. 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. Our attempt to predict these amounts may produce significant but inaccurate estimates, which would be

potentially misleading for our investors.

The following table reconciles net income, the most directly comparable financial measure calculated and presented in

accordance with GAAP, to Adjusted EBITDA and calculates the Adjusted EBITDA margin for the three and six months ended June 30,

2025 and 2024 (dollars in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net (loss) income$(62,189)$94,049$(23,527)$313,225
Interest expense55,29645,789106,17286,629
Income taxes1,0201,1822,1652,946
Depreciation and amortization346,123290,720688,185578,274
Stock compensation expense12,53014,50722,59431,632
Gain on sales of real estate——(13,165)(392)
Unrealized losses on non-real estate investments21,93864,23890,08335,080
Impairment of real estate129,60630,763161,76030,763
Impairment of non-real estate investments39,21612,78850,39627,486
Increase in provision for expected credit losses on financial instruments——285—
Adjusted EBITDA$543,540$554,036$1,084,948$1,105,643
Total revenues$762,040$766,734$1,520,198$1,535,842
Adjusted EBITDA margin71%72%71%72%

Annual rental revenue

Annual rental revenue represents the annualized fixed base rental obligations, calculated in accordance with GAAP, including

the amortization of deferred revenue related to tenant-funded and tenant-built landlord improvements, for leases in effect as of the end

of the period, related to our operating RSF. Annual rental revenue is presented using 100% of the annual rental revenue from our

consolidated properties and our share of annual rental revenue for our unconsolidated real estate joint ventures. Annual rental revenue

per RSF is computed by dividing annual rental revenue by the sum of 100% of the RSF of our consolidated properties and our share of

the RSF of properties held in unconsolidated real estate joint ventures. As of June 30, 2025, approximately 91% 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.

Annual rental revenue excludes these operating expenses recovered from our tenants. 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.

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.

Capitalized interest

We capitalize interest cost as a cost of a project during periods for which activities necessary to develop, redevelop, or

reposition a project for its intended use are ongoing, provided that expenditures for the asset have been made and interest cost has

been incurred. Activities necessary to develop, redevelop, or reposition a project include pre-construction activities such as

entitlements, permitting, design, site work, and other activities preceding commencement of construction of aboveground building

improvements. 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. If we cease activities necessary to prepare a project for its intended use, interest costs related to such project are expensed

as incurred.

Cash interest

Cash interest is equal to interest expense calculated in accordance with GAAP plus capitalized interest, less amortization of

loan fees and debt premiums (discounts). Refer to “Fixed-charge coverage ratio” in this section for a reconciliation of interest expense,

the most directly comparable financial measure calculated and presented in accordance with GAAP, to cash interest.

Class A/A+ properties and AAA locations

Class A/A+ properties are properties clustered in AAA locations that provide innovative tenants with highly dynamic and

collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity,

efficiency, creativity, and success. These properties are typically well-located, professionally managed, and well-maintained, offering a

wide range of amenities and featuring premium construction materials and finishes. Class A/A+ properties are generally newer or have

undergone substantial redevelopment and are generally expected to command higher annual rental rates compared to other classes of

similar properties. 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 June 30, 2025. A credit rating is not a

recommendation to buy, sell, or hold securities and may be subject to revision or withdrawal at any time.

Development, redevelopment, and pre-construction

A key component of our business model is our disciplined allocation of capital to the development and redevelopment of new

Class A/A+ properties, as well as property enhancements identified during the underwriting of certain acquired properties. These efforts

are primarily concentrated in collaborative Megacampus™ ecosystems within AAA life science innovation clusters, as well as other

strategic locations that support innovation and growth. These projects are generally focused on providing high-quality, generic, and

reusable spaces that meet the real estate requirements of a wide range of tenants. Upon completion, each development or

redevelopment project is expected to generate increases in rental income, net operating income, and cash flows. Our development and

redevelopment projects are generally in locations that are highly desirable to high-quality entities, which we believe results in higher

occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

Development projects generally consist of the ground-up development of generic and reusable laboratory facilities.

Redevelopment projects consist of the permanent change in use of acquired office, warehouse, or shell space into laboratory space.

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. 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.

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.

Revenue-enhancing and repositioning capital expenditures represent spending to reposition or significantly change the use of

a property, including through improvement in the asset quality from Class B to Class A/A+.

Non-revenue-enhancing capital expenditures represent costs required to maintain the current revenues of a stabilized

property, including the associated costs for renewed and re-leased space.

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.

Dividend yield

Dividend yield for the quarter represents the annualized quarter dividend divided by the closing common stock price at the end

of the quarter.

Fixed-charge coverage ratio

Fixed-charge coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to cash interest and

fixed charges. 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).

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 and six months ended June 30, 2025

and 2024 (dollars in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Adjusted EBITDA$543,540$554,036$1,084,948$1,105,643
Interest expense$55,296$45,789$106,172$86,629
Capitalized interest82,42381,039162,488162,879
Amortization of loan fees(4,615)(4,146)(9,306)(8,288)
Amortization of debt discounts(335)(328)(684)(646)
Cash interest and fixed charges$132,769$122,354$258,670$240,574
Fixed-charge coverage ratio:
– quarter annualized4.1x4.5x4.2x4.6x
– trailing 12 months4.3x4.6x4.3x4.6x

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. 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, impairments of non-real estate investments, and changes in provision for expected credit losses

on financial instruments. Our attempt to predict these amounts may produce significant but inaccurate estimates, which would be

potentially misleading for our investors.

Gross assets

Gross assets are calculated as total assets plus accumulated depreciation as of June 30, 2025 and December 31, 2024 (in

thousands):

June 30, 2025December 31, 2024
Total assets$37,623,629$37,527,449
Accumulated depreciation6,146,3785,625,179
Gross assets$43,770,007$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. Incremental annual net operating income is calculated

as the initial stabilized yield multiplied by the project’s total cost at completion.

Initial stabilized yield (unlevered)

Initial stabilized yield is calculated as the estimated amounts of net operating income at stabilization divided by our investment

in the property. For this calculation, we exclude any tenant-funded and tenant-built landlord improvements from our investment in the

property. Our initial stabilized yield excludes the benefit of leverage. Our cash rents related to our development and redevelopment

projects are generally expected to increase over time due to contractual annual rent escalations. Our estimates for initial stabilized

yields, initial stabilized yields (cash basis), and total costs at completion represent our initial estimates at the commencement of the

project. We expect to update this information upon completion of the project, or sooner if there are significant changes to the expected

project yields or costs.

  • Initial stabilized yield reflects rental income, including contractual rent escalations and any rent concessions over the

term(s) of the lease(s), calculated on a straight-line basis, and any amortization of deferred revenue related to tenant-

funded and tenant-built landlord improvements.

  • Initial stabilized yield (cash basis) reflects cash rents at the stabilization date after initial rental concessions, if any, have

elapsed and our total cash investment in the property.

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 June 30, 2025, as reported

by Bloomberg Professional Services. Credit ratings from Moody’s Ratings and S&P Global Ratings reflect credit ratings of the tenant’s

parent entity, and there can be no assurance that a tenant’s parent entity will satisfy the tenant’s lease obligation upon such tenant’s

default. We monitor the credit quality and related material changes of our tenants. Material changes that cause a tenant’s market

capitalization to decrease below $10 billion, which are not immediately reflected in the twelve-month average, may result in their

exclusion from this measure.

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 June 30, 2025 (dollars in thousands):

Percentage of
Book ValueGross AssetsAnnual Rental Revenue
Under construction and committed near-term projects$3,806,3469%—%
Income-producing/potential cash flows/covered land play(1)3,183,09271
Land1,553,6454—
$8,543,08320%1%

(1)Includes projects with existing buildings that are generating or can generate operating cash flows. Also includes development rights associated with existing operating

campuses.

The square footage presented in the table below is classified as operating as of June 30, 2025. 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/RedevRSF of Lease Expirations Targeted for Development and Redevelopment
Property/Submarket20252026Thereafter(1)Total
Committed near-term project:
Campus Point by Alexandria/University Town CenterDev——52,62052,620
Future projects:
446, 458, 500, and 550 Arsenal Street/Cambridge/Inner SuburbsDev——365,898365,898
Other/Greater BostonRedev——167,549167,549
1122 and 1150 El Camino Real/South San FranciscoDev——375,232375,232
3875 Fabian Way/Greater StanfordDev——228,000228,000
2100 and 2200 Geng Road/Greater StanfordDev——62,52662,526
960 Industrial Road/Greater StanfordDev——112,590112,590
Campus Point by Alexandria/University Town CenterDev——96,80596,805
Sequence District by Alexandria/Sorrento MesaDev/Redev——555,754555,754
410 West Harrison Street/Elliott BayDev——17,20517,205
Other/SeattleDev——63,05763,057
100 Capitola Drive/Research TriangleDev——34,52734,527
1001 Trinity Street and 1020 Red River Street/AustinDev/Redev198,972——198,972
CanadaRedev——247,743247,743
198,972—2,326,8862,525,858
Total198,972—2,379,5062,578,478

(1)Includes vacant square footage as of June 30, 2025.

Joint venture financial information

We present components of balance sheet and operating results information related to our real estate joint ventures, which are

not presented, or intended to be presented, in accordance with GAAP. 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.

The components of balance sheet and operating results information related to our real estate joint ventures do not represent

our legal claim to those items. For each entity that we do not wholly own, the joint venture agreement generally determines what equity

holders can receive upon capital events, such as sales or refinancing, or in the event of a liquidation. Equity holders are normally

entitled to their respective legal ownership of any residual cash from a joint venture only after all liabilities, priority distributions, and

claims have been repaid or satisfied.

We believe that this information can help investors estimate the balance sheet and operating results information related to our

partially owned entities. 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.

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. In addition, joint venture financial information may include financial information related to the

unconsolidated real estate joint ventures that we do not control. We believe that in order to facilitate for investors a clear understanding

of our operating results and our total assets and liabilities, joint venture financial information should be examined in conjunction with our

consolidated statements of operations and balance sheets. 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 greater, including operating,

active development/redevelopment, and land RSF less operating RSF expected to be demolished. The following table reconciles our

annual rental revenue and development and redevelopment pipeline RSF as of June 30, 2025 (dollars in thousands):

Annual Rental RevenueDevelopment and Redevelopment Pipeline RSF
Megacampus$1,570,87720,370,529
Core and non-core510,3537,108,567
Total$2,081,23027,479,096
Megacampus as a percentage of annual rental revenue and of total development and redevelopment pipeline RSF75%74%

Net cash provided by operating activities after dividends

Net cash provided by operating activities after dividends is reduced by distributions to noncontrolling interests and excludes

changes in operating assets and liabilities 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 is equal to the sum of total consolidated

debt less cash, cash equivalents, and restricted cash, plus preferred stock outstanding as of the end of the period. Refer to “Adjusted

EBITDA and Adjusted EBITDA margin” in this section for further information on the calculation of Adjusted EBITDA.

We are not able to forecast the net income of future periods without unreasonable effort and therefore do not provide a

reconciliation for net debt and preferred stock to Adjusted EBITDA on a forward-looking basis. 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. Our attempt to predict these amounts may produce significant but inaccurate estimates,

which would be potentially misleading for our investors.

The following table reconciles debt to net debt and preferred stock and computes the ratio to Adjusted EBITDA as of June 30,

2025 and December 31, 2024 (dollars in thousands):

June 30, 2025December 31, 2024
Secured notes payable$153,500$149,909
Unsecured senior notes payable12,042,60712,094,465
Unsecured senior line of credit and commercial paper1,097,993—
Unamortized deferred financing costs78,57477,649
Cash and cash equivalents(520,545)(552,146)
Restricted cash(7,403)(7,701)
Preferred stock——
Net debt and preferred stock$12,844,726$11,762,176
Adjusted EBITDA:
– quarter annualized$2,174,160$2,273,480
– trailing 12 months$2,208,226$2,228,921
Net debt and preferred stock to Adjusted EBITDA:
– quarter annualized5.9x5.2x
– trailing 12 months5.8x5.3x

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 three and six months ended June 30, 2025 and 2024 (dollars in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net (loss) income$(62,189)$94,049$(23,527)$313,225
Equity in losses (earnings) of unconsolidated real estate joint ventures9,021(130)9,528(285)
General and administrative expenses29,12844,62959,80391,684
Interest expense55,29645,789106,17286,629
Depreciation and amortization346,123290,720688,185578,274
Impairment of real estate129,60630,763161,76030,763
Gain on sales of real estate——(13,165)(392)
Investment loss30,62243,66080,614376
Net operating income537,607549,4801,069,3701,100,274
Straight-line rent revenue(18,536)(48,338)(40,559)(96,589)
Amortization of deferred revenue related to tenant-funded and -built landlord improvements(2,401)—(4,052)—
Amortization of acquired below-market leases(10,196)(22,515)(25,418)(52,855)
Provision for expected credit losses on financial instruments——285—
Net operating income (cash basis)$506,474$478,627$999,626$950,830
Net operating income (cash basis) – annualized$2,025,896$1,914,508$1,999,252$1,901,660
Net operating income (from above)$537,607$549,480$1,069,370$1,100,274
Total revenues$762,040$766,734$1,520,198$1,535,842
Operating margin71%72%70%72%

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. We believe net operating

income provides useful information to investors regarding our financial condition and results of operations because it primarily reflects

those income and expense items that are incurred at the property level. Therefore, we believe net operating income is a useful measure

for investors to evaluate the operating performance of our consolidated real estate assets. 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. We believe that net operating income on a cash basis is helpful to

investors as an additional measure of operating performance because it eliminates straight-line rent revenue and the amortization of

acquired above- and below-market leases and tenant-funded and tenant-built landlord improvements.

Furthermore, we believe net operating income is useful to investors as a performance measure of our consolidated properties

because, when compared across periods, net operating income reflects trends in occupancy rates, rental rates, and operating costs,

which provide a perspective not immediately apparent from net income or loss. Net operating income can be used to measure the initial

stabilized yields of our properties by calculating net operating income generated by a property divided by our investment in the property.

Net operating income excludes certain components from net income in order to provide results that are more closely related to the

results of operations of our properties. For example, interest expense is not necessarily linked to the operating performance of a real

estate asset and is often incurred at the corporate level rather than at the property level. In addition, depreciation and amortization,

because of historical cost accounting and useful life estimates, may distort comparability of operating performance at the property level.

Impairments of real estate have been excluded in deriving net operating income because we do not consider impairments of real estate

to be property-level operating expenses. Impairments of real estate relate to changes in the values of our assets and do not reflect the

current operating performance with respect to related revenues or expenses. Our impairments of real estate represent the write-down in

the value of the assets to the estimated fair value less cost to sell. These impairments result from investing decisions or a deterioration

in market conditions. We also exclude realized and unrealized investment gain or loss, which results from investment decisions that

occur at the corporate level related to non-real estate investments in publicly traded companies and certain privately held entities.

Therefore, we do not consider these activities to be an indication of operating performance of our real estate assets at the property

level. 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. Property operating expenses included in determining net operating income primarily consist of costs

that are related to our operating properties, such as utilities, repairs, and maintenance; rental expense related to ground leases;

contracted services, such as janitorial, engineering, and landscaping; property taxes and insurance; and property-level salaries.

General and administrative expenses consist primarily of accounting and corporate compensation, corporate insurance, professional

fees, rent, and supplies that are incurred as part of corporate office management. We calculate operating margin as net operating

income divided by total revenues.

We believe that in order to facilitate for investors a clear understanding of our operating results, net operating income should

be examined in conjunction with net income or loss as presented in our consolidated statements of operations. Net operating income

should not be considered as an alternative to net income or loss as an indication of our performance, nor as an alternative to cash flows

as a measure of our liquidity or our ability to make distributions.

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. We compute the number of properties, RSF, occupancy

percentage, leasing activity, and contractual lease expirations at 100%, excluding RSF at properties classified as held for sale, for all

properties in which we have an investment, including properties owned by our consolidated and unconsolidated real estate joint

ventures. For operating metrics based on annual rental revenue, refer to “Annual rental revenue” in this section.

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. In order to supplement an evaluation of our results of operations over a given quarterly or

annual period, we analyze the operating performance for all consolidated properties that were fully operating for the entirety of the

comparative periods presented, referred to as same properties. We separately present quarterly and year-to-date same property results

to align with the interim financial information required by the SEC in our management’s discussion and analysis of our financial

condition and results of operations. These same properties are analyzed separately from properties acquired subsequent to the first day

in the earliest comparable quarterly or year-to-date period presented, properties that underwent development or redevelopment at any

time during the comparative periods, unconsolidated real estate joint ventures, properties classified as held for sale, and corporate

entities (legal entities performing general and administrative functions), which are excluded from same property results. Additionally,

termination fees, if any, are excluded from the results of same properties. Refer to “Same properties” in Item 2 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.

Tenant recoveries

Tenant recoveries represent revenues comprising reimbursement of real estate taxes, insurance, utilities, repairs and

maintenance, common area expenses, and other operating expenses and earned in the period during which the applicable expenses

are incurred and the tenant’s obligation to reimburse us arises.

We classify rental revenues and tenant recoveries generated through the leasing of real estate assets within revenues in

income from rentals in our consolidated statements of operations. We provide investors with a separate presentation of rental revenues

and tenant recoveries in “Results of operations” in Item 2 because we believe it promotes investors’ understanding of our operating

results. We believe that the presentation of tenant recoveries is useful to investors as a supplemental measure of our ability to recover

operating expenses under our triple net leases, including recoveries of utilities, repairs and maintenance, insurance, property taxes,

common area expenses, and other operating expenses, and of our ability to mitigate the effect to net income for any significant

variability to components of our operating expenses.

The following table reconciles income from rentals to tenant recoveries for the three and six months ended June 30, 2025 and

2024 (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Income from rentals$737,279$755,162$1,480,454$1,510,713
Rental revenues(553,377)(576,835)(1,105,489)(1,158,235)
Tenant recoveries$183,902$178,327$374,965$352,478

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.

Total market capitalization

Total market capitalization is equal to the sum of total equity capitalization and total debt.

Unencumbered net operating income as a percentage of total net operating income

Unencumbered net operating income as a percentage of total net operating income is a non-GAAP financial measure that we

believe is useful to investors as a performance measure of the results of operations of our unencumbered real estate assets as it

reflects those income and expense items that are incurred at the unencumbered property level. 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.

The following table summarizes unencumbered net operating income as a percentage of total net operating income for the

three and six months ended June 30, 2025 and 2024 (dollars in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Unencumbered net operating income$535,766$544,268$1,066,457$1,091,098
Encumbered net operating income1,8415,2122,9139,176
Total net operating income$537,607$549,480$1,069,370$1,100,274
Unencumbered net operating income as a percentage of total net operating income99.7%99.1%99.7%99.2%

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. 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. Refer to Note 12 – “Earnings per share” and Note 13 –

“Stockholders’ equity” to our unaudited consolidated financial statements in Item 1 for additional information.

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 three and six months ended June 30, 2025 and 2024

are calculated as follows. Also shown are the weighted-average unvested RSAs with nonforfeitable 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):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Basic shares for earnings per share170,135172,013170,328171,981
Unvested RSAs with forfeitable dividends————
Diluted shares for earnings per share170,135172,013170,328171,981
Basic shares for funds from operations per share and funds from operations per share, as adjusted170,135172,013170,328171,981
Unvested RSAs with forfeitable dividends57—62—
Diluted shares for funds from operations per share and funds from operations per share, as adjusted170,192172,013170,390171,981
Weighted-average unvested RSAs with nonforfeitable dividends used in the allocations of net income, funds from operations, and funds from operations, as adjusted1,9982,8782,0252,933

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