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 September 30, 2025, Alexandria has a total market capitalization of $27.8 billion and an

asset base in North America that includes 39.1 million RSF of operating properties and 4.2 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; life science product, service, and device companies; public

and private biotechnology companies; advanced technologies companies; biomedical institutions; U.S. government institutions; and

others. 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.

As of September 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

  • 82% 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 September 30,Nine Months Ended September 30,
2025202420252024
Net (loss) income attributable to Alexandria’s common stockholders – diluted:
In millions$(234.9)$164.7$(356.1)$374.5
Per share$(1.38)$0.96$(2.09)$2.18
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted:
In millions$377.8$407.9$1,166.3$1,217.3
Per share$2.22$2.37$6.85$7.08

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, strong margins, and long lease terms

(As of September 30, 2025*, unless stated otherwise)*
Occupancy of operating properties in North America90.6%
Percentage of total annual rental revenue in effect from Megacampus platform77%
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 September 30, 202571%
Percentage of leases containing annual rent escalations97%
Weighted-average remaining lease term:
Top 20 tenants9.4years
All tenants7.5years
Strong tenant collections for the three months ended September 30, 2025:
Tenant rents and receivables for the three months ended September 30, 2025 collected as of the date of this report99.9%

Strong and flexible balance sheet with significant liquidity; top 15% credit rating ranking among all publicly traded U.S. REITs

As of September 30, 2025, unless stated otherwise:

*•*Net debt and preferred stock to Adjusted EBITDA of 6.1x and fixed-charge coverage ratio of 3.9x for the three months

ended September 30, 2025 annualized, with targets for the three months ended December 31, 2025 annualized of 5.5x to

6.0x and 3.6x to 4.1x, respectively.

  • Significant liquidity of $4.2 billion, or 4.2x our debt maturities through 2027.

  • Only 7% of our total debt matures through 2027.

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

  • Since 2021, our quarter-end fixed-rate debt has averaged 96.7%.

  • Total debt and preferred stock to gross assets of 31%.

  • $166.9 million of capital contribution commitments from existing consolidated real estate joint venture partners to fund

construction from October 1, 2025 through 2027 and beyond.

Solid leasing volume and rental rate increases

  • Leasing volume of 1,171,344 RSF during the three months ended September 30, 2025.

  • Includes the largest life science lease in company history with a long-standing multinational pharmaceutical tenant for

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

in our University Town Center submarket.

  • Leasing of previously vacant space aggregating 256,633 RSF, up 40%, over the quarterly average over the last five

quarters.

  • Rental rate increases on lease renewals and re-leasing of space of 15.2% and 6.1% (cash basis) for the three months

ended September 30, 2025 and 13.6% and 6.8% (cash basis) for the nine months ended September 30, 2025.

  • 82% of our leasing activity during the last twelve months was generated from our existing tenant base.
September 30, 2025
Three Months EndedNine Months Ended
Lease renewals and re-leasing of space:
Rental rate increase15.2%13.6%
Rental rate increase (cash basis)6.1%6.8%
RSF354,3671,722,184
Leasing of previously vacant space – RSF256,633550,986
Leasing of development and redevelopment space – RSF560,344698,542
Total leasing activity – RSF1,171,3442,971,712

Key operating metrics

  • Total revenues

  • $751.9 million, down 5.0%, for the three months ended September 30, 2025, compared to $791.6 million for the three

months ended September 30, 2024. Excluding dispositions completed after January 1, 2024, total revenues would

have been relatively flat compared to the three months ended September 30, 2025.

  • $2.3 billion, down 2.4%, for the nine months ended September 30, 2025, compared to $2.3 billion for the nine months

ended September 30, 2024. Excluding dispositions completed after January 1, 2024, total revenues would have

increased by 3.0% for the nine months ended September 30, 2025.

  • Net operating income (cash basis) of $1.9 billion for the three months ended September 30, 2025 annualized decreased

by $118.5 million, or 5.8%, compared to the three months ended September 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).

  • Decrease in net operating income (cash basis) includes the impact of operating properties disposed of after January

1, 2024. Excluding these dispositions, net operating income (cash basis) – annualized for the three months ended

September 30, 2025, would have decreased by 1.2%, and for the nine months ended September 30, 2025 would

have increased by 7.3%, compared to the corresponding periods in 2024.

  • Same property net operating income changes

  • (6.0)% and (3.1)% (cash basis) for the three months ended September 30, 2025, compared to the three months

ended September 30, 2024.

  • 91.4% same properties’ average occupancy for the three months ended September 30, 2025, compared to

94.8% average occupancy for the three months ended September 30, 2024.

  • (3.1)% and 3.0% (cash basis) for the nine months ended September 30, 2025, compared to the nine months ended

September 30, 2024.

  • 92.6% same properties’ average occupancy for the nine months ended September 30, 2025, compared to 94.6%

average occupancy for the nine months ended September 30, 2024.

  • General and administrative expenses

  • $89.0 million for the nine months ended September 30, 2025, representing cost reductions of $46.6 million or 34%,

compared to the nine months ended September 30, 2024, primarily the result of cost-control and efficiency initiatives

related to reducing personnel-related costs and streamlining business processes. Given that some of these cost

savings are expected to be temporary in nature, we anticipate approximately half of the cost reductions expected to

be achieved in 2025 will continue in 2026.

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

ended September 30, 2025 were 5.7% — the lowest level in the past ten years and approximately half the average of

other S&P 500 REITs.

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

  • Common stock dividend declared of $1.32 per share for the three months ended September 30, 2025, aggregating $5.28

per common share for the twelve months ended September 30, 2025, up 14 cents, or 2.7%, over the twelve months

ended September 30, 2024.

  • Dividend yield of 6.3% as of September 30, 2025 and dividend payout ratio of 60% for the three months ended

September 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.

  • In addition, as described in the “Summary of key items that may impact 2026 results” section of “Results of operations” in

this Item 2, in light of market and life science industry conditions and our continued focus on capital efficiency, our Board

of Directors expects to carefully evaluate our 2026 dividend strategy.

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 (dollars in millions):

Sales Price
Total dispositions completed as of October 27, 2025$508
Our share of pending transactions subject to non-refundable deposits, signed letters of intent, and/or purchase and sale agreement negotiations1,032
Our share of completed and pending 2025 dispositions and sales of partial interests$1,540(1)

(1)Excludes an exchange of partial interests of Pacific Technology Park and 199 East Blaine Street with nominal net cash proceeds. Refer to “Dispositions and sales of

partial interests” in Item 2 for additional details.

Leasing progress on temporary vacancy

Operating occupancy as of June 30, 202590.8%
Assets with vacancy designated as held for sale during the three months ended September 30, 2025, now excluded from operating occupancy and expected to be sold primarily during the fourth quarter of 20250.9
Reduction in occupancy, primarily from lease expirations during the three months ended September 30, 2025(1.1)(1)
Operating occupancy as of September 30, 202590.6
Key vacant space leased with future delivery1.6(2)
Operating occupancy as of September 30, 2025, including leased but not yet delivered space92.2%

(1)Comprises the following: (i) 0.3% related to lease expirations that became vacant during the three months ended September 30, 2025 and have been re-leased with a

future delivery upon completion of construction (and is included in item 2 below); (ii) 0.2% vacancy at one asset in our Greater Stanford submarket, which was recently

acquired with the intent to redevelop office to laboratory space but for which we are now evaluating options to reposition for advanced technologies use; and (iii) 0.6% of

other occupancy declines, primarily from space that became vacant during the three months ended September 30, 2025 which we are currently marketing. These lease

expirations resulting in the 1.1% decline in occupancy previously generated annual rental revenue aggregating approximately $29.0 million and had a weighted-average

lease expiration date at the end of July 2025.

(2)Represents temporary vacancies as of September 30, 2025 aggregating 617,458 RSF, primarily in the Greater Boston, San Francisco Bay Area, San Diego, and Seattle

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

approximately May 1, 2026 and the expected annual rental revenue is approximately $46 million.

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

  • $27.8 billion in total market capitalization.

  • $14.2 billion in total equity capitalization.

  • Non-real estate investments aggregating $1.5 billion:

  • Unrealized gains presented in our consolidated balance sheet were $28.3 million, comprising gross unrealized gains

and losses aggregating $180.4 million and $152.1 million, respectively.

  • Investment income of $28.2 million for the three months ended September 30, 2025 presented in our consolidated

statement of operations consisted of $34.8 million of realized gains, $18.5 million of unrealized gains, and $25.1 million of

impairment charges.

Key capital events

  • In August 2025, we repaid a secured construction loan aggregating $154.6 million with an interest rate of 7.18%, which

was secured by our development project at 99 Coolidge Avenue in our Cambridge/Inner Suburbs submarket. The project

is currently 81% leased/negotiating and is expected to be delivered in the fourth quarter of 2026. In connection with the

repayment, we recognized a loss on early extinguishment of debt of $107 thousand for the write-off of unamortized

deferred financing costs during the three and nine months ended September 30, 2025.

External growth and investments in real estate

A**lexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $16 million*, commencing*

during the three months ended September 30, 2025*, with an additional* $111 million of incremental annual net operating income

anticipated to deliver by the fourth quarter of 2026 primarily from projects that are 80% leased/negotiating*.*

  • During the three months ended September 30, 2025, we placed into service development projects aggregating 185,517

RSF that are 89% occupied across multiple submarkets and delivered incremental annual net operating income of

$16 million.

  • A significant delivery during the three months ended September 30, 2025 consisted of 122,302 RSF at 10935, 10945,

and 10955 Alexandria Way on the One Alexandria Square Megacampus in our Torrey Pines submarket.

  • Annual net operating income (cash basis) from recently delivered projects is expected to increase by $50 million upon the

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

  • During 2025–2026, we expect to deliver annual net operating income representing nearly 8% growth in total net operating

income from 2024 from projects that are 85% leased.

  • 76% of the 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:
Six months ended June 30, 2025$52527,26896%
Three months ended September 30, 202516185,51789
Total placed into service during nine months ended September 30, 2025$68(1)712,78594%
Expected to be placed into service:
Fourth quarter of 2025 through fourth quarter of 2026$111(2)969,524(3)80%(4)

(1)Excludes future incremental annual net operating income from recently delivered spaces aggregating 42,449 RSF that are vacant and/or unleased at delivery.

(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 current leased/negotiating percentage of development and redevelopment projects that are expected to stabilize during the fourth quarter of 2025

through the fourth quarter of 2026.

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 occupancy, 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.

  • To remain competitive with the influx of new laboratory properties, we may be required to reduce our rental rates and/or offer

more tenant improvement allowances or additional tenant concessions, including free rent, to retain existing tenants, or attract

new tenants. Furthermore, our existing operating properties may require additional revenue- and non-revenue-enhancing

capital investments earlier than typically expected. The table below reflects a trend of increasing revenue- and non-revenue-

enhancing capital expenditures, which include tenant improvement expenditures. The table also presents the trend, on a per

RSF basis, for our tenant improvements and leasing commissions, free rent concessions, decreasing growth in rental rates

related to our renewed/re-leased spaces, and decreases in our operating occupancy (dollars in thousands, except per RSF

amounts):

Revenue- and Non-Revenue- Enhancing Capital ExpendituresTenant Improvements/ Leasing Commissions per RSFFree Rent Concessions per Annum (leases executed in trailing 12 months)Rental Rate Increases (on renewed/ re-leased spaces)Operating Occupancy (as of each period end)
Fiscal year 2023$260,392$26.090.6 months29.4%94.6%
Fiscal year 2024$273,377$46.890.7 months16.9%94.6%
Nine months ended September 30, 2025$230,867$66.291.2 months13.6%90.6%
Midpoint of 2025 guidance range$415,000N/A11.0%90.8%(1)

(1)Our guidance assumes an approximate 1% benefit related to a range of assets with vacancy that could potentially qualify for held for sale designation during

the fourth quarter of 2025. These assets have not yet reached the criteria for held for sale designation as of September 30, 2025.

Additionally, we have leases at 20 properties, primarily located in the Greater Boston, San Francisco Bay Area, and San Diego

markets, aggregating 1.2 million RSF with a weighted-average lease expiration date of March 19, 2026. These spaces are

expected to become vacant at lease expiration and re-leased to new tenants. We currently expect downtime on the 1.2 million

RSF to range from 6 to 24 months on a weighted-average basis. However, given the elevated supply of new laboratory space

in these markets, there can be no assurance that we will be able to re-lease some or all of this space on acceptable terms or

within anticipated time frames, even at reduced rates.

As of September 30, 2025, we anticipate that 4.2 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 $390 million in future incremental annual net operating income. These projects are 43% leased

or under lease negotiations as of September 30, 2025. Additionally, landlord-funded tenant improvement allowances have

increased significantly for first-generation space, including development and redevelopment projects, with most space in shell

condition requiring landlords to fund the full build-out cost. This trend places additional pressure on projected returns and

overall economics. 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 macroeconomic environment, capital markets, and life science industry fundamentals may negatively**

impact the value of our real estate and non-real estate portfolios which could result in significant impairments, and

may limit our ability to raise capital efficiently to further our business objectives.

The effective execution of our development and redevelopment activities is contingent on access to capital required to fund

projects. The midpoint of our range for 2025 construction spend is $1.75 billion. This includes significant remaining

construction costs to complete our active pipeline, and anticipated increases in both revenue- and non-revenue-enhancing

capital expenditures in our operating portfolio. We expect funding for construction spending in 2026 to be similar or slightly

higher than the $1.75 billion midpoint of our guidance range for 2025 construction in order to complete our active construction

projects and significant revenue- and non-revenue-enhancing capital expenditures necessary to lease vacant space.

Additionally, given the factors previously described which could negatively impact EBITDA, we would require significant equity-

type capital to manage our leverage profile.

*•*Lower property valuations and increased capitalization rates. A portion of our projected construction spending 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 from 5.25%–5.50% at the end of

2023 to 4.25%–4.50% during 2024, and to 4.00%–4.25% in September 2025, 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, has resulted 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 and at favorable

pricing. For additional information about our dispositions, 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. Financial

statements” (“Item 1”) for additional information. In 2025, we expect to complete dispositions and sales of partial interests

of approximately $1.50 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 impairments of real estate and 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%
Nine months ended September 30, 2025$342,441$485,630N/A(2)
Midpoint of 2025 guidance range$1,500,000$828,500N/A

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

additional information.

(2)There were no significant stabilized laboratory dispositions completed during the nine months ended September 30, 2025.

The midpoint of our 2025 guidance range for dispositions of real estate assets is $1.5 billion. As of September 30, 2025,

we have completed dispositions aggregating $340.9 million, and expect to complete an additional $1.2 billion of

dispositions during the fourth quarter of 2025 to achieve the midpoint of our 2025 guidance range. We continue to

evaluate a significant number of disposition targets, including non-core operating properties, both stabilized and

unstabilized, and land parcels.

Under U.S. GAAP, existing real estate assets are evaluated for impairment upon indication of potential impairment.

Impairments of real estate assets held and used are recognized if future undiscounted cash flows, including estimated

proceeds from eventual sale of an asset, are less than the carrying amount of the asset. For real estate assets held for

sale, impairments are recognized if the expected sales price less costs to sell is less than the carrying amount. For

additional information on accounting for real estate impairments, refer to “Impairment of long-lived assets” in Note 2 –

“Summary of significant accounting policies” to our unaudited consolidated financial statements.

As of September 30, 2025, we have evaluated a large number of potential disposition targets under a probability-weighted

method, including under the held and used and held for sale models. In each case, no impairment charge was required. If

these specific assets meet the criteria to be designated as held for sale during the fourth quarter of 2025, we may incur

impairments ranging from $0 to $685 million.

Our revised 2025 guidance range for impairments of real estate is from $485.6 million to $1.17 billion (with a midpoint at

$828.5 million) consisting of $485.6 million recognized in our consolidated statements of operations during the nine

months ended September 30, 2025 and additional potential impairments ranging from $0 to $685 million during the fourth

quarter of 2025. If these impairments are recognized during the fourth quarter of 2025, they will have a material impact on

our net income and earnings per share for the year ending December 31, 2025. However, these impairments will not

impact our funds from operations (“FFO”) per share as Nareit requires the add-back of real estate impairment charges.

FFO and FFO per share, as adjusted represent non-GAAP measures. For their definitions and reconciliations from the

most directly comparable financial measure presented in accordance with GAAP, 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.

We expect a significant source of funding from the sale of non-core assets in 2026. We anticipate an end to our large-

scale non-core asset sales program in 2026 or early 2027. As of September 30, 2025, 77% of our annual rental revenue is

from our Megacampus™ platform and we expect this percentage to continue to grow over time.

*•*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 range. Elevated benchmark interest rates may result in debt funding options that are 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.

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

$210 million, respectively, each at the midpoints of our 2025 guidance ranges. Our strategic focus is on prioritizing the

completion of our projects under construction that are highly leased. 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, delay of future projects, or sale of non-income-producing property. 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 ranges (in thousands):

Gross Interest ExpenseCapitalized InterestInterest Expense
2023$438,182$(363,978)$74,204
2024$516,799$(330,961)$185,838
Midpoint of 2025 guidance range$545,000$(335,000)$210,000

In addition to capitalized interest, we incur capitalized projects costs, including property taxes, insurance, and other costs

directly related and essential to the construction of Class A/A+ properties. If we cease activities necessary to prepare a

project for its intended use, costs related to such project are expensed as incurred.

During the nine months ended September 30, 2025, our average real estate basis capitalized aggregated $8.2 billion. This

includes:

  • $2.8 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;

  • $1.1 billion related to smaller redevelopments and repositioning capital projects; and

  • $4.2 billion related to future pipeline projects expected to reach key milestones in the fourth quarter of 2025 and 2026,

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

vertical construction, on April 14, 2026, on a weighted-average real estate investment basis. At that time, we may

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

and/or market conditions, pause future investments, or consider the potential dispositions of real estate assets.

  • 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, we may face challenges in selling these securities at optimal prices, potentially disrupting our capital strategy.

There can be no assurance that we will be able to realize these gains or sustain our historical level of annual realized

gains in the future, and in periods with limited or no realized gains, our FFO per share, as adjusted, may be adversely

affected.

For the nine months ended September 30, 2025, we recognized $94.7 million, or an average of approximately $32 million

per quarter, in realized gains on non-real estate investments. The midpoint of our revised guidance range for realized

gains on non-real estate investments assumes approximately $15 million in the fourth quarter of 2025.

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
Nine months ended September 30, 2025$94,650$75,535$71,568
Midpoint of 2025 guidance range$110,000N/A

(1)Excludes impairment charges.

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

December 31, 2023 aggregated to $180.4 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 overall business. Material developments include workforce reductions at the National Institutes of Health

and U.S. Food and Drug Administration, reimbursement cuts at the Centers for Medicare & Medicaid Services, and

funding freezes affecting 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 biotechnology leaders due to their 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

policy 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 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 and operating

performance, including but not limited to 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, FFO

per share, as adjusted, and net cash provided by operating activities. These impacts could decrease Adjusted EBITDA, adversely

impacting our key metrics such as our Adjusted EBITDA margin and Net Debt and Preferred Stock to Adjusted EBITDA ratio, as well

as our credit ratings and credit rating outlooks. To preserve liquidity and mitigate an increase to our Net Debt and Preferred Stock to

Adjusted EBITDA ratio that may be caused by potential declines in Adjusted EBITDA, we may seek additional capital through equity

offerings, pursue additional sales of real and non-real estate assets, which could be dilutive to existing stockholders. A reduction in

earnings and/or net cash provided by operating activities could potentially necessitate or make advisable a reduction in our dividends

per share, as determined by our board of directors. Any of the foregoing could further negatively affect our business and the market

value of our common stock.

  • Mitigating factors:

  • Megacampus strategy: focusing 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 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

26.4 million RSF as of September 30, 2025, of which 76% 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. 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, we believe that a significant amount of the

competitive supply in the market today consists of isolated facilities that provide operational space but lack the scale and

strategic design of our Megacampus ecosystems.

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, which is

challenging to replicate due to the significant time and capital requirement. We believe the focus on our Megacampus

strategy will continue to position us favorably over the supply of new competitive laboratory spaces. The strength of this

strategy is reflected in the 2025 performance metrics below, achieved despite a challenging macroeconomic environment:

  • Leasing volume aggregating 3.0 million RSF for the nine months ended September 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 build-to-suit lease expansion aggregating 466,598 RSF on the Campus

Point by Alexandria Megacampus in our University Town Center submarket.

  • Weighted-average lease term of 12.6 years for leases executed during the nine months ended September 30, 2025.

  • Projects expected to stabilize in 2025 and 2026 are 80% leased/negotiating.

  • Rental rate increases of 13.6% and 6.8% (cash basis) for the nine months ended September 30, 2025.

  • Occupancy of 90.6% as of September 30, 2025.

  • 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 September 30, 2025, 82% of our leasing activity during the last twelve months was generated from our existing

tenant base.

  • As of September 30, 2025, 90% of our top 20 tenant annual rental revenue is derived from investment-grade or

publicly traded large cap companies.

  • Our tenant collections have remained consistently high, averaging 99.8% since the beginning of 2021 through

September 30, 2025.

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

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

financial position is highlighted by several key indicators:

  • Our significant liquidity of $4.2 billion as of September 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.

  • $166.9 million in capital contributions to fund construction expected from our existing consolidated real estate

joint venture partners from October 1, 2025 through December 31, 2027 and beyond.

  • $1.50 billion from dispositions and sales of partial interests in real estate assets at the midpoint of our 2025

guidance range.

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

respectively, which rank in the top 15% among all publicly traded U.S. REITs.

  • Our net debt and preferred stock to Adjusted EBITDA ratio target is 5.5x to 6.0x for the fourth quarter of 2025

annualized.

  • As of September 30, 2025, our fixed-rate debt represents 88.6% of our total debt, which provides predictability in debt

servicing costs. Since 2021, our quarter-end fixed-rate debt has averaged 96.7%.

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

refinancing risks. As of September 30, 2025, only 7% of our debt matures through 2027.

  • As of September 30, 2025, the weighted-average remaining term of our debt is 11.6 years, longest among S&P 500

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

debt maturities.

  • Operational excellence of our team.** Alexandria focuses on operational excellence in the 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 practices (GMP) 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.

  • 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, biopharmaceutical 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 long-term 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.

  • 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 technologies 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 several 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. These initiatives are expected to generate a reduction in general and administrative

expenses of approximately $49 million, or 29%, during the year ending December 31, 2025 (at 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.

We anticipate that approximately half of the cost reductions expected to be achieved in 2025 will continue in 2026.

Operating summary

Same Property Performance: Net Operating Income ChangesRental Rate Growth: Renewed/Re-Leased Space
Margins**(2)**Favorable Lease Structure**(3)**
OperatingAdjusted EBITDAStrategic Lease Structure by Owner and Operator of Collaborative Megacampus Ecosystems
68%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 Years7.5 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)**

25

13

37

1

(3.1)%

2024YTD 9/30/25

(1)

49

5.5x to 6.0x

61

3.6x to 4.1x

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 September 30, 2025.

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

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

(5)Quarter annualized.

Stable Cash Flows From Our High-Quality and Diverse Mix of Approximately 700 Tenants
Investment-Grade or Publicly Traded Large Cap Tenants
90%
of ARE’s Top 20 Tenant Annual Rental Revenue
53%
of ARE’s Total Annual Rental Revenue

25

Life Science

Product,

Service, and

Device

Multinational

Pharmaceutical

Public

Biotechnology

– Approved or

Marketed

Product

Other(1)

Advanced

Technologies(2)

Public

Biotechnology –

Preclinical or

Clinical Stage

Government

Institutions

Biomedical

Institutions(3)

Private

Biotechnology

Percentage of ARE’s

Annual Rental Revenue

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

information.

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

retail-related tenants.

(2)68% of our annual rental revenue from advanced technologies tenants is from investment-grade or publicly traded large cap tenants.

(3)80% of our annual rental revenue from biomedical institutions is from investment-grade or publicly traded large cap tenants.

Leasing Activity

The following table summarizes our leasing activity at our properties:

Three Months EndedNine Months EndedYear Ended
September 30, 2025September 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 changes15.2%6.1%13.6%6.8%16.9%7.2%
New rates$56.91$57.07$59.45$59.17$65.48$64.18
Expiring rates$49.42$53.77$52.34$55.41$56.01$59.85
RSF354,3671,722,1843,888,139
Tenant improvements/leasing commissions$47.15$66.29$46.89
Weighted-average lease term7.3 years9.5 years8.5 years
Previously vacant/developed/ redeveloped space leased(2)
New rates$85.31$76.33$74.93$69.16$59.44$57.34
Previously vacant RSF256,633550,986672,474
Developed/redeveloped RSF560,344(3)698,542493,341
Weighted-average lease term15.4 years14.7 years10.0 years
Leasing activity summary (totals):
New rates$76.72$70.51$65.96$63.37$64.16$62.68
RSF1,171,3442,971,7125,053,954
Weighted-average lease term14.6 years12.6 years8.9 years
Lease expirations*(1)*
Expiring rates$66.03$67.63$56.68$57.98$53.82$57.24
RSF800,421(4)3,549,0525,005,638

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

(1)Excludes month-to-month leases aggregating 85,652 RSF and 136,131 RSF as of September 30, 2025 and December 31, 2024, respectively. During the trailing twelve

months ended September 30, 2025, we granted free rent concessions averaging 1.2 months per annum.

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

(3)Includes the largest life science lease in company history, executed in July 2025 with a long-standing multinational pharmaceutical tenant. The 16-year expansion build-to-

suit lease aggregates 466,598 RSF on the Campus Point by Alexandria Megacampus in our University Town Center submarket. Refer to “New Class A/A+ development

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

(4)Includes 75,735 of vacant RSF at one recently acquired asset in our Greater Stanford submarket for which we are evaluating options to reposition for advanced

technologies use.

Summary of contractual lease expirations

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

YearRSFPercentage of Occupied RSFAnnual Rental Revenue (per RSF)(1)Percentage of Annual Rental Revenue
2025(2)434,3711.3%$50.711.1%
20263,084,6519.1%$54.438.5%
20273,177,0259.4%$55.068.9%
20283,954,06311.7%$50.6310.1%
20292,115,0706.3%$47.025.0%
20302,999,4538.9%$43.326.6%
20313,654,09910.8%$55.3610.2%
2032968,8482.9%$58.142.9%
20332,382,9217.1%$49.055.9%
20343,031,4609.0%$67.1610.3%
Thereafter7,915,52023.5%$76.0630.5%

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

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

(2)Excludes month-to-month leases aggregating 85,652 RSF as of September 30, 2025.

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

2025:

2025 Contractual Lease Expirations (in RSF)
MarketLeasedNegotiating/ AnticipatingTargeted for Future Development/ RedevelopmentRemaining Expiring LeasesTotal(1)Annual Rental Revenue (per RSF)(2)
Greater Boston21,892——12,11334,005$57.84
San Francisco Bay Area———55,76655,76664.75
San Diego23,3271,579—48,79473,70062.02
Seattle50,552——23,75674,30822.80
Maryland1,136——18,33819,47433.48
Research Triangle10,4783,951—4,84319,272N/A
New York City—11,798—7,82519,623105.22
Texas——————
Canada———40,67940,67910.72
Non-cluster/other markets——————
Subtotal107,38517,328—212,114336,82744.52
Key lease expirations(3)———97,54497,54472.08
Total107,38517,328—309,658434,371$50.71
Percentage of expiring leases25%4%0%71%100%
2026 Contractual Lease Expirations (in RSF)
MarketLeasedNegotiating/ AnticipatingTargeted for Future Development/ RedevelopmentRemaining Expiring LeasesTotalAnnual Rental Revenue (per RSF)(2)
Greater Boston119,97811,897—229,566361,441$57.14
San Francisco Bay Area28,609103,596—282,976415,18169.31
San Diego——52,620(4)275,029327,64953.34
Seattle34,719——137,715172,43424.17
Maryland—6,823—151,847158,67021.38
Research Triangle22,660——165,542188,20241.69
New York City12,168——62,24174,40972.35
Texas——————
Canada247,743——1,755249,49821.72
Non-cluster/other markets———31,65931,65964.43
Subtotal465,877122,31652,6201,338,3301,979,14348.10
Key lease expirations(3)———1,105,5081,105,50865.74
Total465,877122,31652,6202,443,8383,084,651$54.43
Percentage of expiring leases15%4%2%79%100%

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

(1)Excludes month-to-month leases aggregating 85,652 RSF as of September 30, 2025.

(2)Represents amounts in effect as of September 30, 2025.

(3)Includes lease expirations at 20 properties primarily located in the Greater Boston, San Francisco Bay Area, and San Diego markets aggregating 1.2 million RSF with a

weighted-average lease expiration date of March 19, 2026 and annual rental revenue aggregating $81 million, which are expected to become vacant at lease expiration

and re-leased to new tenants, including the following:

(i)Recently acquired properties comprising two properties aggregating 137,970 RSF in our Greater Stanford submarket for which we are evaluating options to

reposition for advanced technologies use;

(ii)Two properties comprising 163,648 RSF in our University Town Center submarket and 118,225 RSF in our Torrey Pines submarket for which we are evaluating

options to re-lease or reposition from single tenancy to multi-tenancy;

(iii)One property aggregating 83,354 RSF in our Sorrento Mesa submarket, where the in-place credit tenant will relocate and expand into our development project at

10075 Barnes Canyon Road, which is expected to be delivered during the second half of 2026; and

(iv)113,097 RSF at our Alexandria Center® at One Kendall Square Megacampus in our Cambridge submarket. We plan to upgrade most of these spaces, most of

which have not undergone major improvements since our acquisition in 2016.

We continue to evaluate the business plans and re-leasing strategies for these projects to maximize occupancy and rental revenue. We expect downtime on the 1.2

million RSF to range from 6 to 24 months on a weighted-average basis, and we expect these properties to remain operating properties.

(4)Relates to a single-tenant, 100% pre-leased development project aggregating 466,598 RSF that expands the existing Campus Point by Alexandria Megacampus. At the

beginning of 2026, the tenant will vacate 52,620 RSF, which generated annual rental revenue of $4.1 million as of September 30, 2025, from an existing building to

allow for the demolition and development of the new, build-to-suit life science building at this site. Refer to “New Class A/A+ development and redevelopment properties:

current projects” in Item 2 for additional details.

Top 20 tenants

90% 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 September 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 September 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 Company5.71,283,860$110,8655.5%A2A$106.5
2Eli Lilly and Company9.11,086,16590,8054.5Aa3A+$753.2
3Moderna, Inc.13.2462,10071,5713.5——$13.3
4Takeda Pharmaceutical Company Limited9.7549,75947,8992.4Baa1BBB+$45.6
5AstraZeneca PLC6.4440,08739,4131.9A1A+$223.0
6Eikon Therapeutics, Inc.(2)13.3311,80638,9131.9——$—
7Roche7.5647,06936,3831.8Aa2AA$256.8
8Illumina, Inc.5.1857,96735,9241.8Baa3BBB$17.1
9Alphabet Inc.2.2589,21833,2601.6Aa2AA+$2,231.6
10United States Government4.8429,35929,597(3)1.5AaaAA+$—
11Novartis AG2.3377,09529,4631.5Aa3AA-$240.2
12Uber Technologies, Inc.57.0(4)1,009,18827,8201.4Baa1BBB$167.1
13Boston Children's Hospital11.5309,23126,2941.3Aa2AA$—
14The Regents of the University of California9.7364,60624,3181.2Aa2AA$—
15Sanofi5.3267,27821,8511.1Aa3AA$127.1
16New York University6.8218,98321,1101.0Aa2AA-$—
17Merck & Co., Inc.7.9333,12421,0011.0Aa3A+$225.8
18Charles River Laboratories, Inc.9.8253,03620,9591.0——$8.2
19Cloud Software Group, Inc.1.0(5)216,27820,5531.0——$—
20Massachusetts Institute of Technology4.3242,42820,5291.0AaaAAA$—
Total/weighted-average9.4(4)10,248,637$768,52837.9%

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 September 30, 2025.

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

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

(3)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.

(4)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 7.7 years as of September 30, 2025.

(5)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, of which 137,970 RSF has lease expirations through 2026. Refer to footnote 1 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 September 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 Boston9,096,225583,4071,626,32211,305,95426%64$708,46435%$89.74
San Francisco Bay Area7,525,945212,796344,9348,083,6751962421,5182167.18
San Diego6,314,303648,516—6,962,8191668328,6381554.67
Seattle3,178,029227,577—3,405,606845126,834644.29
Maryland3,855,906——3,855,906950157,213844.00
Research Triangle3,648,703——3,648,70393694,255527.22
New York City742,700——742,7002369,317394.97
Texas1,646,187—73,2981,719,48541336,866228.02
Canada979,575—56,3141,035,88921120,186122.83
Non-cluster/other markets315,440——315,4401912,195155.52
Properties held for sale1,811,787——1,811,78741453,266344.62
North America39,114,8001,672,2962,100,86842,887,964100%375$2,028,752100%$58.94
3,773,164

Summary of occupancy percentages in North America

The following table sets forth the occupancy percentages for our operating properties and our operating and redevelopment

properties in each of our North America markets, excluding properties held for sale, as of the following dates:

Operating PropertiesOperating and Redevelopment Properties
Market9/30/256/30/259/30/249/30/256/30/259/30/24
Greater Boston86.8%(1)(2)90.1%94.6%73.6%76.7%80.9%
San Francisco Bay Area90.4(1)(3)88.994.186.485.291.1
San Diego95.294.896.095.294.896.0
Seattle90.190.392.390.190.391.3
Maryland93.993.996.293.993.996.2
Research Triangle94.9(1)92.897.594.992.897.5
New York City98.388.985.198.388.985.1
Texas79.9(1)82.195.576.578.991.8
Subtotal90.891.094.985.986.390.0
Canada90.390.795.585.485.882.6
Non-cluster/other markets69.672.672.869.672.672.8
North America90.6%(1)(4)90.8%94.7%85.8%86.2%89.7%

(1)Refer to the table below for a summary of our previously disclosed key lease expirations that became vacant during the three months ended March 31, 2025:

PropertySubmarketVacant RSF as of 3Q25Vacant RSF leased as of 3Q25 with future delivery%
Included in 3Q25 occupancy and same property results:
Alexandria Technology Square® MegacampusCambridge182,05489,22249%
507 East Howard Lane and 13813 Center Lake DriveAustin247,246102,93042
429,300192,15245%
Classified as held for sale as of 3Q25 (excluded from occupancy and same property results):
409 Illinois StreetMission Bay234,249N/A
7 Triangle DriveResearch Triangle104,531N/A
Total 1Q25 key lease expirations vacant at 3Q25768,080

(2)The decline in occupancy during the three months ended September 30, 2025, was primarily due to one lease expiration of 78,380 RSF in Cambridge which we are

marketing and a 72,846 RSF lease expiration located in Watertown which has been leased but was not occupied as of September 30, 2025.

(3)Increase in occupancy from the second quarter of 2025 is primarily due to the classification as held for sale of 409 and 499 Illinois Street on the Alexandria Center® for

Science and Technology – Mission Bay Megacampus as of September 30, 2025, partially offset by the new vacancy at 3301 Hillview Avenue in our Greater Stanford

submarket, which was previously occupied by an acquired software tenant, for which we are evaluating options to reposition as an advanced technologies campus.

(4)Includes temporary vacancies as of September 30, 2025 aggregating 617,458 RSF, or 1.6% of total operating RSF, primarily in the Greater Boston, San Francisco Bay

Area, San Diego, and Seattle markets, which are leased and expected to be occupied upon completion of building and/or tenant improvements. The weighted-average

expected delivery date is approximately May 1, 2026, and the expected annual rental revenue is approximately $46 million.

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 may result 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 September 30, 2025 (dollars in thousands):

Development and Redevelopment
Under Construction100% Pre-leased Committed Near Term(1)
Operating2025 and 20262027 and BeyondFutureSubtotalTotal
Square footage
Operating37,303,013—————37,303,013
Future Class A/A+ development and redevelopment properties—969,5242,803,640466,59824,257,78228,497,54428,497,544
Future development and redevelopment square feet currently included in rental properties(2)———(52,620)(2,082,454)(2,135,074)(2,135,074)
Total square footage, excluding properties held for sale37,303,013969,5242,803,640413,97822,175,32826,362,47063,665,483
Properties held for sale1,811,787———939,756939,7562,751,543
Total square footage39,114,800969,5242,803,640413,97823,115,08427,302,22666,417,026
Investments in real estate
Gross book value as of September 30, 2025(3)$29,451,717$901,674$2,762,729$60,398$4,984,144$8,708,945(4)$38,160,662
Properties held for sale883,455———112,681112,681996,136
Total gross investment in real estate, excluding properties held for sale$28,568,262$901,674$2,762,729$60,398$4,871,463$8,596,264$37,164,526

4398046511348

20%

Non-Income-

Producing Assets

Projects under active construction with

stabilization in 2025-2027 and beyond

and one 100% pre-leased committed

near-term project expected to commence

in the next year– $3.7 billion

Future development projects(5) and land parcels,

primarily located in Megacampuses with critical

milestones in 4Q25 and 2026 – $4.9 billion

Non-Income-Producing Assets as a Percentage of Gross Assets

(1)Represents a single-tenant project that expands the existing Campus Point by Alexandria Megacampus, where we currently have a 55% interest. Refer to “New Class A/

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

(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.

(4)Our share of investment in our development and redevelopment pipeline is $7.6 billion.

(5)As of September 30, 2025, annual rental revenue from future development parcels with existing income was approximately 1% of total annual rental revenue.

Dispositions and sales of partial interests

Our completed dispositions and sales of partial interests of real estate assets during the nine months ended September 30, 2025 and pending dispositions as of the date of this

report consisted of the following (dollars in thousands):

Interest Sold/ AcquiredSquare FootageGain on Sales of Real Estate
PropertySubmarket/MarketDate of TransactionOperatingFuture DevelopmentPrice
Dispositions
Completed during the nine months ended September 30, 2025:
Properties with vacancy and near-term lease expirations:
2425 Garcia Avenue and 2400/2450 Bayshore ParkwayGreater Stanford/San Francisco Bay Area6/30/25100%95,901—$11,000$—
5505 Morehouse DriveSorrento Mesa/San Diego8/26/25100%79,945—45,000—
Other23,33412,737
79,33412,737
Land:
Costa Verde by AlexandriaUniversity Town Center/San Diego1/31/25100%—537,000124,000(1)—
Land parcelTexas5/7/25100%—1,350,00073,287—
Land parcelOther9/12/25100%—374,34930,250—
Other land parcels34,000504
261,537504
Total completed during the nine months ended September 30, 2025340,87113,241(2)
Completed in October 2025:
550 Arsenal Street(3)Cambridge/Inner Suburbs/Greater Boston10/15/25100%249,275281,59299,250—
OtherVarious68,1294,362
Total dispositions as of October 27, 2025508,250$17,603
Our share of pending dispositions subject to non-refundable deposits, signed letters of intent, and/or purchase and sale agreement negotiations1,032,495
Completed and pending YTD 2025 dispositions, excluding exchange of partial interests (see below)$1,540,745
2025 guidance range for dispositions and sales of partial interests$1,100,000 – $1,900,000
2025 guidance midpoint for dispositions and sales of partial interests$1,500,000
Exchange of partial interests**(4)**
Disposition of Pacific Technology ParkSorrento Mesa/San Diego9/9/2550%544,352—$96,000$9,290
Acquisition of 199 East Blaine StreetLake Union/Seattle9/9/2570%115,084—(94,430)
Difference in sales price received in cash$1,570

(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 unaudited consolidated

financial statements for additional information.

(2)Excludes a gain on sale of interest related to an unconsolidated real estate joint venture of $458 thousand, which is classified as equity in earnings of unconsolidated real estate joint ventures in our consolidated statement of operations.

(3)Represents a retail shopping center with future development opportunity. We originally acquired the property in 2021 with the intent to demolish the retail center and develop it into laboratory space. However, due to the project’s financial

outlook and the substantial capital that development would have required, we decided to recycle the capital generated by the disposition into our development and redevelopment pipeline. The capitalization rates of the disposition were

6.1% and 5.4% (cash basis) based upon net operating income and net operating income (cash basis), respectively, for the three months ended September 30, 2025 annualized.

(4)In September 2025, we completed an exchange of partial interests in two consolidated joint ventures, Pacific Technology Park and 199 East Blaine Street, with one joint venture partner, resulting in a sales price received by cash of $1.6

million. Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial statements for additional information.

  • We sold our 50% controlling interest in Pacific Technology Park, a non-Megacampus comprising five non-laboratory properties that were 93% occupied, at capitalization rates of 4.9% and 5.0% (cash basis). The disposition had

consolidated annual net operating income of $9.4 million based on three months ended June 30, 2025 annualized (at 100%). As of September 30, 2025, we no longer have any ownership interest in Pacific Technology Park, and the

consolidated net operating income is no longer included in our statement of operations following the sale.

  • We acquired our partner’s 70% noncontrolling interest at 199 East Blaine Street, a fully occupied laboratory building located in our Alexandria Center® for Life Science – Eastlake Megacampus, with a weighted-average remaining lease

term of 1.3 years. The purchase price exceeded the book value of the noncontrolling interest by $66.3 million, which was recognized in additional paid-in capital. As of September 30, 2025, we own 100% of 199 East Blaine Street.

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 Deliveries
YTD 3Q254Q25**–**4Q26
$68M$111M
94% Occupied80% Leased/Negotiating
712,785 RSF969,524 RSF

(1)

(2)

(3)

(4)

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 future incremental annual net operating income from recently delivered spaces aggregating 42,449 RSF that were vacant and/or unleased at delivery.

(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 fourth quarter of 2025 through the fourth quarter of 2026 is projected to be $83 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)Represents the current leased/negotiating percentage of development and redevelopment projects that are expected to stabilize during the fourth quarter of 2025 through the end of 2026.

(4)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

99 Coolidge Avenue500 North Beacon Street and 4 Kingsbury Avenue**(1)**
Greater Boston/ Cambridge/Inner SuburbsGreater Boston/ Cambridge/Inner Suburbs
129,413 RSF248,018 RSF
100% Occupancy92% Occupancy
99Coolidge.jpgarsenalphaseii v2.jpg
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 RSF334,996 RSF31,490 RSF
100% Occupancy100% Occupancy100% Occupancy
harriettubmanv2.jpgalexandriawayOASv2.jpgbarnescanyon10075 v2.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: recent deliveries (continued)

Incremental Annual Net Operating Income Generated From YTD 3Q25 Deliveries

Aggregated $68 Million,(1) Including $16 Million in 3Q25

The following table presents development and redevelopment of new Class A/A+ projects placed into service during the nine months ended September 30, 2025 (dollars in

thousands):

Property/Market/Submarket3Q25 Delivery Date**(2)**Our Ownership InterestRSF Placed in ServiceOccupancy Percentage**(3)**Total ProjectUnlevered Yields
Prior to 1/1/251Q252Q253Q25TotalInitial StabilizedInitial Stabilized (Cash Basis)
RSFInvestment
Development projects
99 Coolidge Avenue/Greater Boston/Cambridge/ Inner Suburbs7/15/25100%116,414——12,999129,413100%320,809$444,0006.0%6.8%
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/Cambridge/Inner Suburbs8/23/25100%211,574——36,444248,01892%248,018429,0006.55.9
230 Harriet Tubman Way/San Francisco Bay Area/South San FranciscoN/A48.5%—285,346——285,346100%285,346476,0007.56.2
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines7/1/25100%93,492—119,202122,302334,996100%334,996480,0007.26.9
10075 Barnes Canyon Road/San Diego/Sorrento Mesa7/23/2550.0%—17,718—13,77231,490100%253,079321,0005.55.7
Redevelopment projects
651 Gateway Boulevard/San Francisco Bay Area/South San FranciscoN/A50.0%67,017—22,005—89,02275%326,706487,0005.05.1
CanadaN/A100%78,4876,43076,567—161,484100%250,790115,0006.06.0
Weighted average/total7/5/25566,984309,494217,774185,5171,279,7692,019,744$2,752,0006.3%6.1%

(1)Excludes future incremental annual net operating income from recently delivered spaces aggregating 42,449 RSF that were vacant and/or unleased at delivery.

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

(3)Occupancy reflects total operating RSF placed in service as of each respective delivery date when the space was placed into service. Subsequent occupancy changes are not reflected.

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

99 Coolidge Avenue4135 Campus Point Court
Greater Boston/ Cambridge/Inner SuburbsSan Diego/ University Town Center
191,396 RSF426,927 RSF
81% Leased/Negotiating100% Leased
99Coolidge.jpgCampuspoint4135.jpg
10075 Barnes Canyon Road8800 Technology Forest Place
San Diego/Sorrento MesaTexas/Greater Houston
221,589 RSF73,298 RSF
68% Leased/Negotiating41% Leased/Negotiating
barnescanyon10075 v2.jpgTechforest8800.jpg

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 RSF237,684 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.

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 September 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 SuburbsDev129,413191,396320,80981%81%4Q234Q26
4135 Campus Point Court/San Diego/University Town CenterDev—426,927426,9271001003Q263Q26
10075 Barnes Canyon Road/San Diego/Sorrento MesaDev31,490221,589253,07968681Q252H26
8800 Technology Forest Place/Texas/Greater HoustonRedev50,09473,298123,39241412Q234Q26
CanadaRedev194,47656,314250,79078783Q234Q25
405,473969,5241,374,9978080
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——20272027
40, 50, and 60 Sylvan Road/Greater Boston/Route 128Redev—596,064596,06433334Q262027
Other/Greater BostonRedev—453,869453,869——20272027
1450 Owens Street/San Francisco Bay Area/Mission BayDev—212,796212,796—4920272027
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco(2)Redev89,022237,684326,70621211Q242027
269 East Grand Avenue/San Francisco Bay Area/South San FranciscoRedev—107,250107,250——2H262027
701 Dexter Avenue North/Seattle/Lake UnionDev—227,577227,57723234Q262027
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(3)Dev—466,598466,59810010020282028
Total 2027 and beyond stabilization and committed near-term project145,9263,270,2383,416,1642528
551,3994,239,7624,791,16141%43%
(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 time. (2)We continue to build out this project on a floor-by-floor basis. As of September 30, 2025, the remaining cost to complete is $138 million, or 28% of the total cost at completion. (3)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 on the Megacampus: one building aggregating 52,620 RSF and another building aggregating 52,853 RSF. These buildings generated annual rental revenue of $7.5 million as of September 30, 2025. At the beginning of 2026, the tenant will vacate the 52,620 RSF building, and during 2028, the tenant will vacate the 52,853 RSF building. 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 80% leased/negotiating
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs100%$154,608$210,017$79,375$444,0006.0%6.8%
4135 Campus Point Court/San Diego/University Town Center55.0%—412,619111,381524,0009.0%6.2%
10075 Barnes Canyon Road/San Diego/Sorrento Mesa50.0%25,573217,84177,586321,0005.5%5.7%
8800 Technology Forest Place/Texas/Greater Houston100%60,48046,5264,994112,0006.3%6.0%
Canada100%95,75014,6714,579115,0006.0%6.0%
336,411901,674
2027 and beyond stabilization**(1)**
One Hampshire Street/Greater Boston/Cambridge100%—173,897TBD
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs100%21,756298,829
421 Park Drive/Greater Boston/Fenway100%—561,633
401 Park Drive/Greater Boston/Fenway100%—174,402
40, 50, and 60 Sylvan Road/Greater Boston/Route 128100%—511,925
Other/Greater Boston100%—160,950
1450 Owens Street/San Francisco Bay Area/Mission Bay25.0%—245,677
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco50.0%116,744232,429137,827487,0005.0%5.1%
269 East Grand Avenue/San Francisco Bay Area/South San Francisco100%—109,065TBD
701 Dexter Avenue North/Seattle/Lake Union100%—293,922
138,5002,762,729
474,9113,664,403
100% Pre-leased committed near-term project expected to commence construction in the next year
Campus Point by Alexandria/San Diego/University Town Center(2)55.0%—60,398599,602660,0007.3%6.5%
Total$474,911$3,724,801$2,670,000(3)$6,870,000(3)
Our share of investment(3)(4)$410,000$3,100,000$2,180,000$5,690,000
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)Refer to footnote 3 on the prior page for additional details. (3)Represents dollar amount rounded to the nearest $10 million and includes preliminary estimated amounts for projects listed as TBD. (4)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

76% 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 September 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%$173,897104,956——104,956
One Hampshire Street
Megacampus: The Arsenal on the Charles/Cambridge/Inner Suburbs100%311,016333,758—34,157367,915
311 Arsenal Street
Megacampus: 480 Arsenal Way and 446, 458, and 500 Arsenal Street, and 99 Coolidge Avenue/Cambridge/Inner Suburbs100%233,479191,396—560,000751,396
446, 458, and 500 Arsenal Street, and 99 Coolidge Avenue
Megacampus: Alexandria Center**®** for Life Science – Fenway/Fenway100%736,035529,686——529,686
401 and 421 Park Drive
Megacampus: Alexandria Center**®** for Life Science – Waltham/Route 128100%576,242596,064—515,0001,111,064
40, 50, and 60 Sylvan Road, and 35 Gatehouse Drive
Megacampus: Alexandria Center**®** at Kendall Square/Cambridge100%212,439——174,500174,500
100 Edwin H. Land Boulevard
Megacampus: Alexandria Technology Square**®****/Cambridge**100%8,449——100,000100,000
Megacampus: 285, 299, 307, and 345 Dorchester Avenue/Seaport Innovation District60.0%295,345——1,040,0001,040,000
10 Necco Street/Seaport Innovation District100%106,373——175,000175,000
215 Presidential Way/Route 128100%6,816——112,000112,000
Other development and redevelopment projects100%379,674453,869—1,348,5411,802,410
$3,039,7652,209,729—4,059,1986,268,927
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.

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%$245,677212,796——212,796
1450 Owens Street
Megacampus: Alexandria Technology Center**®** – Gateway/South San Francisco50.0%259,005237,684—291,000528,684
651 Gateway Boulevard
Megacampus: Alexandria Center**®** for Advanced Technologies – South San Francisco/South San Francisco100%115,720107,250—90,000197,250
211*(2)* and 269 East Grand Avenue
Megacampus: Alexandria Center**®** for Advanced Technologies – Tanforan/South San Francisco100%429,101——1,930,0001,930,000
1122, 1150, and 1178 El Camino Real
Alexandria Center® for Life Science – Millbrae/South San Francisco48.5%158,718——348,401348,401
201 and 231 Adrian Road and 30 Rollins Road
Megacampus: Alexandria Center**®** for Life Science – San Carlos/Greater Stanford100%479,347——1,497,8301,497,830
960 Industrial Road, 987 and 1075 Commercial Street, and 888 Bransten Road
3825 and 3875 Fabian Way/Greater Stanford100%164,226——478,000478,000
2100, 2200, 2300, and 2400 Geng Road/Greater Stanford100%81,552——240,000240,000
Megacampus: 88 Bluxome Street/SoMa100%418,909——1,070,9251,070,925
$2,352,255557,730—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)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: Campus Point by Alexandria/University Town Center55.0%(3)$620,470426,927466,598500,8591,394,384
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%414,636221,589—493,845715,434
9805 Scranton Road and 10075 Barnes Canyon Road
11255 and 11355 North Torrey Pines Road/Torrey Pines100%158,326——215,000215,000
Megacampus: One Alexandria Square/Torrey Pines100%64,545——125,280125,280
10975 and 10995 Torreyana Road
Megacampus: 5200 Illumina Way/University Town Center51.0%17,536——451,832451,832
9625 Towne Centre Drive/University Town Center30.0%837——100,000100,000
Megacampus: Sequence District by Alexandria/Sorrento Mesa100%48,303——1,661,9151,661,915
6290, 6310, 6340, 6350, and 6450 Sequence Drive
4075 Sorrento Valley Boulevard/Sorrento Valley100%28,167——144,000144,000
Other development and redevelopment projects(4)78,036——475,000475,000
1,430,856648,516466,5984,167,7315,282,845
Seattle
Megacampus: Alexandria Center**®** for Advanced Technologies – South Lake Union/ Lake Union(5)584,896227,577—1,057,4001,284,977
601 and 701 Dexter Avenue North and 800 Mercer Street
1010 4th Avenue South/SoDo100%62,116——544,825544,825
410 West Harrison Street/Elliott Bay100%———91,00091,000
Megacampus: Alexandria Center**®** for Advanced Technologies – Canyon Park/Bothell100%19,739——230,000230,000
21660 20th Avenue Southeast
Other development and redevelopment projects100%151,672——706,087706,087
$818,423227,577—2,629,3122,856,889
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 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. (5)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
Maryland
Megacampus: Alexandria Center**®** for Life Science – Shady Grove/Rockville100%$25,629——296,000296,000
9830 Darnestown Road
25,629——296,000296,000
Research Triangle
Megacampus: Alexandria Center**®** for Life Science – Durham/Research Triangle100%163,894——2,060,0002,060,000
Megacampus: Alexandria Center**®** for Advanced Technologies and AgTech – Research Triangle/Research Triangle100%111,537——1,170,0001,170,000
4 and 12 Davis Drive
Megacampus: Alexandria Center**®** for NextGen Medicines/Research Triangle100%113,456——1,055,0001,055,000
3029 East Cornwallis Road
Megacampus: Alexandria Center**®** for Sustainable Technologies/Research Triangle100%55,732——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
448,804——5,177,2275,177,227
New York City
Megacampus: Alexandria Center**®** for Life Science – New York City/New York City100%175,666——550,000(2)550,000
$175,666——550,000550,000
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” 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.

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
Texas
Alexandria Center® for Advanced Technologies at The Woodlands/Greater Houston100%$49,57573,298—116,405189,703
8800 Technology Forest Place
1001 Trinity Street and 1020 Red River Street/Austin100%133,684——250,010250,010
Other development and redevelopment projects100%59,432——344,000344,000
242,69173,298—710,415783,713
Canada100%14,67156,314—371,743428,057
Other development and redevelopment projects100%47,504——350,000350,000
Total pipeline as of September 30, 2025, excluding properties held for sale8,596,2643,773,164466,59824,257,78228,497,544
Properties held for sale112,681——939,756939,756
Total pipeline as of September 30, 2025$8,708,945(2)3,773,164466,59825,197,53829,437,300

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

(1)Total square footage includes 2,135,074 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)Includes $3.7 billion of projects that are currently under construction and one 100% pre-leased committed near-term project expected to commence vertical construction in 2026.

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

amounts):

Three Months Ended September 30,Nine Months Ended September 30,
20252024202520242025202420252024
AmountPer Share – DilutedAmountPer Share – Diluted
Unrealized gains (losses) on non-real estate investments$18.5$2.6$0.11$0.02$(71.6)$(32.5)$(0.42)$(0.19)
Gain on sales of real estate9.427.10.060.1622.527.50.130.16
Impairment of non-real estate investments(25.1)(10.3)(0.15)(0.06)(75.5)(37.8)(0.45)(0.22)
Impairment of real estate(323.9)(5.7)(1.90)(0.03)(485.6)(36.5)(2.85)(0.22)
Loss on early extinguishment of debt(0.1)———(0.1)———
Increase in provision for expected credit losses on financial instruments————(0.3)———
Total$(321.2)$13.7$(1.88)$0.09$(610.6)$(79.3)$(3.59)$(0.47)

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 reconciles the number of Same

Properties to total properties for the nine months ended September 30, 2025:

Development – under constructionProperties
99 Coolidge Avenue1
1450 Owens Street1
10075 Barnes Canyon Road1
421 Park Drive1
4135 Campus Point Court1
701 Dexter Avenue North1
6
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
500 North Beacon Street and 4 Kingsbury Avenue2
10935, 10945, and 10955 Alexandria Way3
12
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 sale14
Total properties excluded from Same Properties61
Same Properties314
Total properties in North America as of September 30, 2025375

The following table presents information regarding our Same Properties for the three and nine months ended September 30,

2025:

September 30, 2025
Three Months EndedNine Months Ended
Percentage change in net operating income over comparable period from prior year(1)(6.0)%(3.1)%
Percentage change in net operating income (cash basis) over comparable period from prior year(1)(3.1%)3.0%(2)
Operating margin67%68%
Number of Same Properties316314
RSF31,953,03231,739,397
Occupancy – current-period average91.4%92.6%
Occupancy – same-period prior-year average94.8%94.6%

(1)Reflects previously disclosed lease expirations aggregating 768,080 RSF that became vacant during the three months ended March 31, 2025, as presented under

“Summary of occupancy percentages in North America” in Item 2. As of September 30, 2025, 338,780 RSF of this vacant space met the criteria for classification as held

for sale and has been excluded from our same property results. The remaining 429,300 RSF is included in our same property results for the three and nine months

ended September 30, 2025. Excluding the impact of this vacant 429,300 RSF, same property net operating income changes for the three and nine months ended

September 30, 2025 would have been (4.2)% and (1.3)% (cash basis), and (1.9)% and 4.2% (cash basis), respectively.

(2)Includes the impact of initial free rent concessions that burned off after January 1, 2024 for development and redevelopment projects that were placed into service in

2023 and accordingly are part of our same property pool for the nine months ended September 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 initial free

rent concessions, same property net operating income changes (cash basis) for the nine months ended September 30, 2025 would have been (0.3)%.

The charts below present our reported same property results (“As reported”), which reflect the operating performance of all

consolidated properties that were fully operational throughout the comparative quarterly periods presented. To provide additional insight

and a retrospective view of the performance of our ongoing operating portfolio, the charts also present an alternative calculation of our

same property performance, using the 3Q25 same property pool (“3Q25 same properties”) for each period presented. We believe this

alternative presentation provides a useful operating trend primarily by removing properties expected to be sold.

Same Property – Net Operating Income

SS NOI chartv5.jpg

Percentage Change in Same Property Performance – Net Operating IncomeThree Months Ended
March 31, 2025June 30, 2025September 30, 2025
As reported(3.1)%(5.4)%(6.0)%
3Q25 same properties0.3%(2.5)%(6.0)%

Same Property – Net Operating Income (Cash Basis)

SS NOI chart cash basisv3.jpg

Percentage Change in Same Property Performance – Net Operating Income (Cash Basis)Three Months Ended
March 31, 2025June 30, 2025September 30, 2025
As reported5.1%2.0%(3.1)%
3Q25 same properties8.0%5.6%(3.1)%

Comparison of results for the three months ended September 30, 2025 to the three months ended September 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 September 30, 2025, compared to the three months ended September 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 September 30,
20252024$ Change% Change
Income from rentals:
Same Properties$430,646$451,763$(21,117)(4.7)%
Non-Same Properties110,424127,806(17,382)(13.6)
Rental revenues541,070579,569(38,499)(6.6)
Same Properties167,933165,5792,3541.4
Non-Same Properties26,84630,596(3,750)(12.3)
Tenant recoveries194,779196,175(1,396)(0.7)
Income from rentals735,849775,744(39,895)(5.1)
Same Properties352386(34)(8.8)
Non-Same Properties15,74315,4772661.7
Other income16,09515,8632321.5
Same Properties598,931617,728(18,797)(3.0)
Non-Same Properties153,013173,879(20,866)(12.0)
Total revenues751,944791,607(39,663)(5.0)
Same Properties199,051192,2296,8223.5
Non-Same Properties40,18341,036(853)(2.1)
Rental operations239,234233,2655,9692.6
Same Properties399,880425,499(25,619)(6.0)
Non-Same Properties112,830132,843(20,013)(15.1)
Net operating income$512,710$558,342$(45,632)(8.2)%(1)
Net operating income – Same Properties$399,880$425,499$(25,619)(6.0)%
Straight-line rent revenue(8,019)(21,594)13,575(62.9)
Amortization of acquired below-market leases and deferred revenue related to tenant-funded and -built landlord improvements(8,167)(7,739)(428)5.5
Net operating income – Same Properties (cash basis)$383,694$396,166$(12,472)(3.1%)

(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 September 30, 2025 would have decreased by 3.7% over the corresponding period in 2024.

Income from rentals

Total income from rentals for the three months ended September 30, 2025 decreased by $39.9 million, or 5.1%, to

$735.8 million, compared to $775.7 million for the three months ended September 30, 2024, due to a decrease in rental revenues, as

discussed below.

Rental revenues

Total rental revenues for the three months ended September 30, 2025 decreased by $38.5 million, or 6.6%, to $541.1 million,

compared to $579.6 million for the three months ended September 30, 2024. The decrease was partially related to dispositions of real

estate assets within our Non-Same Properties since July 1, 2024. The decrease also reflects a $4.4 million write-off of a deferred rent

balance related to one tenant at a non-same property in our Seattle market, recognized upon our determination during the three months

ended September 2025 that the collectibility of future payments was not probable.

Same Properties’ rental revenues for the three months ended September 30, 2025 decreased by $21.1 million, or 4.7%, to

$430.6 million, compared to $451.8 million for the three months ended September 30, 2024. This decrease is primarily attributable to a

decrease in Same Properties’ average occupancy to 91.4% for the three months ended September 30, 2025 from 94.8% for the three

months ended September 30, 2024, including the impact of the following lease expirations in the first quarter of 2025 that remained

vacant during the three months ended September 30, 2025: (i) 182,054 RSF at the Alexandria Technology Square® Megacampus in our

Cambridge submarket (of which 89,222 RSF had been leased as of September 30, 2025, with expected occupancy commencing after

September 30, 2025) and (ii) two properties aggregating 247,246 RSF in our Austin submarket (of which 102,930 RSF had been leased

as of September 30, 2025, with expected occupancy commencing after September 30, 2025).

Tenant recoveries

Tenant recoveries for the three months ended September 30, 2025 decreased by $1.4 million, or 0.7%, to $194.8 million,

compared to $196.2 million for the three months ended September 30, 2024, primarily in connection with dispositions of real estate

assets within our Non-Same Properties since July 1, 2024.

The decrease in Non-Same Properties tenant recoveries was partially offset by the increase of $2.4 million, or 1.4%, to

$167.9 million in Same Properties’ tenant recoveries for the three months ended September 30, 2025, compared to $165.6 million for

the three months ended September 30, 2024. This increase was primarily due to the $6.0 million increase in operating expenses during

the three months ended September 30, 2025, as discussed under “Rental operations” below. As of September 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. This increase was partially offset by a decrease in Same Properties’ tenant recoveries resulting from a decrease

in Same Properties’ average occupancy to 91.4% for the three months ended September 30, 2025 from 94.8% for the three months

ended September 30, 2024.

Rental operations

Total rental operating expenses for the three months ended September 30, 2025 increased by $6.0 million, or 2.6%, to

$239.2 million, compared to $233.3 million for the three months ended September 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 $0.9 million primarily as a result of real estate dispositions since July 1, 2024.

Same Properties’ rental operating expenses increased by $6.8 million, or 3.5%, to $199.1 million during the three months

ended September 30, 2025, compared to $192.2 million for the three months ended September 30, 2024, primarily as the result of

increases in (i) utilities expenses and engineering, security, janitorial, and other operating contractual costs aggregating $5.4 million,

primarily due to increased tenant operations at certain properties delivered in 2023, and (ii) property taxes aggregating $2.0 million,

primarily due to new developments in the 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 September 30, 2025 increased by $46.2 million, or 15.7%,

to $340.2 million, compared to $294.0 million for the three months ended September 30, 2024. The increase primarily relates to (i) the

change in useful lives of certain buildings, (ii) 1.6 million RSF of development and redevelopment projects placed into service

subsequent to July 1, 2024, and (iii) two operating properties aggregating 383,360 RSF acquired subsequent to July 1, 2024.

Impairment of real estate

During the three months ended September 30, 2025, we recognized impairment charges aggregating $323.9 million, which

primarily included the following:

  • Impairment charge of $206.2 million was recognized to reduce the carrying amount of a non-Megacampus property

aggregating 179,100 RSF in Long Island City, a non-core location within our New York City submarket, to its estimated fair

value less costs to sell of approximately $31.1 million upon meeting the criteria for classification as held for sale. This

property met the held for sale criteria in September 2025, when we committed to dispose of it following our reevaluation of

its alignment with our Megacampus strategy and decided to allocate sales proceeds toward other projects with higher

value-creation opportunities. As of September 30, 2025, the property is 52% occupied. We expect to complete the sale of

this property within the next 12 months.

  • Impairment charge of $43.4 million was recognized to reduce the carrying amount of a retail shopping center aggregating

249,275 RSF with a future development opportunity aggregating 281,592 SF in our Cambridge/Inner Suburbs submarket

of Greater Boston to its estimated fair value less costs to sell of approximately $96.3 million upon meeting the criteria for

classification as held for sale.This property met the held for sale criteria in September 2025 upon our commitment to

dispose of this asset and allocate sales proceeds toward other projects with higher value-creation opportunities and our

obtaining of all required approvals to sell. In October 2025, we completed the sale of this asset, with no gain or loss

recognized upon sale.

  • Impairment charge of $31.8 million was recognized to reduce the carrying amount of one vacant property aggregating

104,531 RSF in the Research Triangle market to its estimated fair value less costs to sell of approximately $1.2 million

upon meeting the criteria for classification as held for sale in September 2025. The held for sale criteria were met upon

our decision to sell this asset, due to its noncontiguous location relative to most other properties on the Alexandria Center®

for Sustainable Technologies Megacampus, and to allocate the sales proceeds, and other capital necessary to lease the

property, toward other projects with greater value-creation opportunities. We expect to complete the sale within the next

12 months.

  • Impairment charge of $27.8 million was recognized to reduce the carrying amounts of land parcels aggregating 154,308

SF on a non-Megacampus in our Sorrento Mesa submarket of San Diego to their estimated fair values less costs to sell of

approximately $13.9 million upon meeting the criteria for classification as held for sale in September 2025. These assets

met the criteria for classification as held for sale upon our reevaluation of their alignment with our Megacampus strategy

and our decision to reallocate capital toward our other projects with greater value-creation opportunities. We expect to

complete the sale of these assets within the next 12 months.

During the three months ended September 30, 2024, we recognized real estate impairment charges aggregating $5.7 million

to adjust the carrying amount of one property in Canada that continued to meet the held-for-sale classification to the sales price under

negotiation with a potential buyer less costs to sell.

General and administrative expenses

General and administrative expenses for the three months ended September 30, 2025 decreased by $14.7 million, or 33.5%,

to $29.2 million, compared to $43.9 million for the three months ended September 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 September 30, 2025 and 2024 were 5.7% and 8.9%, respectively.

Interest expense

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

Three Months Ended September 30,
Component20252024Change
Gross interest$140,943$130,046$10,897
Capitalized interest(86,091)(86,496)405
Interest expense$54,852$43,550$11,302
Average debt balance outstanding(1)$13,512,336$12,694,260$818,076
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 September 30, 2025, compared to the three months ended

September 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 credit10,100
Other increase in interest356
Total increases18,046
Decreases in interest incurred due to:
Repayments of debt:
$600 million of unsecured senior notes payable due 20253.62%April 2025(5,218)
Secured notes payable7.18%August 2025(1,931)
Total decreases(7,149)
Change in gross interest10,897
Decrease in capitalized interest405
Total change in interest expense$11,302

(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 income (loss)

During the three months ended September 30, 2025, we recognized investment income aggregating $28.2 million, which

consisted of $34.8 million of realized gains, $18.5 million of unrealized gains, and $25.1 million of impairment charges.

During the three months ended September 30, 2024, we recognized investment income aggregating $15.2 million, which

consisted of $23.0 million of realized gains, $2.6 million of unrealized gains, and $10.3 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.

Gain on sales of real estate

During the three months ended September 30, 2025, we recognized a $9.4 million gain related to the disposition of our

controlling interest in a consolidated joint venture that owns Pacific Technology Park in our Sorrento Mesa submarket. For additional

information, refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial

statements in Item 1.

During the three months ended September 30, 2024, we recognized $27.1 million of gains primarily related the disposition of

1165 Eastlake Avenue East in our Lake Union submarket.

The gains were classified in gain on sales of real estate within our consolidated statement of operations for the three months

ended September 30, 2025 and 2024, respectively.

Other comprehensive (loss) income

Other comprehensive income (loss) primarily comprised unrealized foreign currency translation gains or losses related to our

operations in Canada. Total other comprehensive loss for the three months ended September 30, 2025 aggregating $4.8 million

included $7.8 million of cumulative translation loss related to our operations in Canada, resulting from the CAD’s weakening against the

USD during this period. This loss was partially offset by $3.0 million of unrealized gains related to the change in the fair value of our

cross-currency swap agreements, resulting from the CAD’s weakening since the execution of these agreements on July 29, 2025

through September 30, 2025. Refer to Note 11 – “Hedge Agreements” to our unaudited consolidated financial statements in Item 1 for

additional information.

Total other comprehensive income of $5.2 million for the three months ended September 30, 2024 is primarily due to

unrealized foreign currency translation gains related to our operations in Canada.

Comparison of results for the nine months ended September 30, 2025 to the nine months ended September 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 nine months ended September 30, 2025, compared to the nine months ended September 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.

Nine Months Ended September 30,
20252024$ Change% Change
Income from rentals:
Same Properties$1,330,669$1,353,855$(23,186)(1.7%)
Non-Same Properties315,890383,949(68,059)(17.7)
Rental revenues1,646,5591,737,804(91,245)(5.3)
Same Properties492,718460,69032,0287.0
Non-Same Properties77,02687,963(10,937)(12.4)
Tenant recoveries569,744548,65321,0913.8
Income from rentals2,216,3032,286,457(70,154)(3.1)
Same Properties1,1271,058696.5
Non-Same Properties54,71239,93414,77837.0
Other income55,83940,99214,84736.2
Same Properties1,824,5141,815,6038,9110.5
Non-Same Properties447,628511,846(64,218)(12.5)
Total revenues2,272,1422,327,449(55,307)(2.4)
Same Properties587,333539,27148,0628.9
Non-Same Properties102,729129,562(26,833)(20.7)
Rental operations690,062668,83321,2293.2
Same Properties1,237,1811,276,332(39,151)(3.1)
Non-Same Properties344,899382,284(37,385)(9.8)
Net operating income$1,582,080$1,658,616$(76,536)(4.6%)(1)
Net operating income – Same Properties$1,237,181$1,276,332$(39,151)(3.1%)
Straight-line rent revenue(19,703)(96,437)76,734(79.6)
Amortization of acquired below-market leases and deferred revenue related to tenant-funded and -built landlord improvements(26,385)(24,055)(2,330)9.7
Net operating income – Same Properties (cash basis)$1,191,093$1,155,840$35,2533.0%

(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 nine months ended September 30, 2025 would have increased by 0.8% over the corresponding period in 2024.

Income from rentals

Total income from rentals for the nine months ended September 30, 2025 decreased by $70.2 million, or 3.1%, to $2.22 billion,

compared to $2.29 billion for the nine months ended September 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 nine months ended September 30, 2025 decreased by $91.2 million, or 5.3%, to $1.6 billion,

compared to $1.7 billion for the nine months ended September 30, 2024. The decrease was primarily related to dispositions of real

estate assets within our Non-Same Properties since January 1, 2024. The decrease also reflects a $4.4 million write-off of a deferred

rent balance related to one tenant at a non-same property in our Seattle market, recognized upon our determination during the three

months ended September 2025 that the collectibility of future payments was not probable.

Same Properties’ rental revenues for the nine months ended September 30, 2025 decreased by $23.2 million, or 1.7%, to

$1.3 billion, compared to $1.4 billion for the nine months ended September 30, 2024. This decrease was primarily attributable to a

decrease in Same Properties’ average occupancy to 92.6% for the nine months ended September 30, 2025 from 94.6% for the nine

months ended September 30, 2024, including the impact of the following lease expirations in the first quarter of 2025 that were vacant

during the nine months ended September 30, 2025: (i) 182,054 RSF at the Alexandria Technology Square® Megacampus in our

Cambridge submarket (of which 89,222 RSF had been leased as of September 30, 2025, with expected occupancy commencing after

September 30, 2025) and (ii) two properties aggregating 247,246 RSF in our Austin submarket (of which 102,930 RSF had been leased

as of September 30, 2025, with expected occupancy commencing after September 30, 2025).

Tenant recoveries

Tenant recoveries for the nine months ended September 30, 2025 increased by $21.1 million, or 3.8%, to $569.7 million,

compared to $548.7 million for the nine months ended September 30, 2024, primarily in connection with Same Properties.

Same Properties’ tenant recoveries for the nine months ended September 30, 2025 increased by $32.0 million, or 7.0%, to

$492.7 million, compared to $460.7 million for the nine months ended September 30, 2024, primarily due to the $48.1 million increase in

the operating expenses during the nine months ended September 30, 2025, as discussed under “Rental operations” below. As of

September 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. This increase was partially offset by a decrease in Same Properties’ tenant

recoveries resulting from a decrease in Same Properties’ average occupancy to 92.6% for the nine months ended September 30, 2025

from 94.6% for the nine months ended September 30, 2024.

Other income

Other income for the nine months ended September 30, 2025 increased by $14.8 million, or 36.2%, to $55.8 million, compared

to $41.0 million for the nine months ended September 30, 2024. Other income represented approximately 2.5% and 1.8% of total

revenues during each respective period and primarily consisted of interest income and management fee income during both periods.

Rental operations

Total rental operating expenses for the nine months ended September 30, 2025 increased by $21.2 million, or 3.2%, to

$690.1 million, compared to $668.8 million for the nine months ended September 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 $26.8 million primarily as a result of dispositions of real estate assets since January

1, 2024.

Same Properties’ rental operating expenses increased by $48.1 million, or 8.9%, to $587.3 million during the nine months

ended September 30, 2025, compared to $539.3 million for the nine months ended September 30, 2024, primarily as the result of the

increase in (i) utilities expenses and contractual costs aggregating $21.6 million primarily due to higher consumption related to certain

tenants’ increased operations, and higher electricity and HVAC contract services rates in our San Diego market; (ii) property taxes

aggregating $10.0 million primarily due to new developments in the 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 $8.3 million primarily due to a more severe winter in 2025 compared to 2024 in the

Greater Boston market.

Depreciation and amortization

Depreciation and amortization expense for the nine months ended September 30, 2025 increased by $156.1 million, or 17.9%,

to $1.03 billion, compared to $872.3 million for the nine months ended September 30, 2024, primarily as a result of (i) the change in

useful lives of certain buildings, (ii) 3.2 million RSF of development and redevelopment projects placed into service subsequent to

January 1, 2024, and (iii) three operating properties aggregating 401,560 RSF acquired subsequent to January 1, 2024.

Impairment of real estate

During the nine months ended September 30, 2025, we recognized impairment charges aggregating $485.6 million, classified

in impairment of real estate in our consolidated statement of operations, primarily related to the following assets:

  • Impairment charge of $206.2 million was recognized to reduce the carrying amount of a non-Megacampus property

aggregating 179,100 RSF in Long Island City, a non-core location within our New York City submarket, to its estimated fair

value less costs to sell of approximately $31.1 million upon meeting the criteria for classification as held for sale. This property

met the held for sale criteria in September 2025, when we committed to dispose of it following our reevaluation of its alignment

with our Megacampus strategy and decided to allocate sales proceeds toward other projects with higher value-creation

opportunities. As of September 30, 2025, the property is 52% occupied. We expect to complete the sale of this property within

the next 12 months.

  • Impairment charge of $43.4 million was recognized to reduce the carrying amount of a retail shopping center aggregating

249,275 RSF with a future development opportunity aggregating 281,592 SF in our Cambridge/Inner Suburbs submarket of

Greater Boston to its estimated fair value less costs to sell of approximately $96.3 million upon meeting the criteria for

classification as held for sale.This property met the held for sale criteria in September 2025 upon our commitment to dispose

of this asset and allocate sales proceeds toward other projects with higher value-creation opportunities and our obtaining of all

required approvals to sell. In October 2025, we completed the sale of this asset, with no gain or loss recognized upon sale.

  • Impairment charge of $47.3 million was recognized to reduce the carrying amount of land parcels aggregating 374,349 SF in a

non-cluster/other market to its estimated fair value less costs to sell of approximately $28.9 million upon meeting the criteria for

classification as held for sale. The held for sale criteria were met in June 2025 upon our decision to dispose of this asset. In

September 2025, we completed the sale, with no gain or loss recognized upon sale.

  • Impairment charge of $42.8 million was recognized to reduce the carrying amount of an office property aggregating 182,276

RSF in Carlsbad, San Diego to its estimated fair value less costs to sell. This property met the criteria for classification as held

for sale in April 2025 upon our commitment to sell, at which time we recognized an impairment of $35.4 million based on

negotiations with a potential buyer at that time. In September 2025, we recognized an additional impairment charge of $7.3

million to adjust the asset’s carrying amount to the currently negotiated reduced sales price less costs to sell of approximately

$61.8 million. We expect to complete this sale within the next 12 months.

  • Impairment charge of $32.2 million was recognized during the three months ended March 31, 2025 related to a ground lease

entered into in 2021 for a future development opportunity in the San Francisco Bay Area market. Refer to “Lessee operating

costs” in Note 5 – “Leases” to our unaudited consolidated financial statements in Item 1 for additional information.

  • Impairment charge of $31.8 million was recognized to reduce the carrying amount of one vacant property aggregating 104,531

RSF in the Research Triangle market to its estimated fair value less costs to sell of approximately $1.2 million upon meeting

the criteria for classification as held for sale in September 2025. The held for sale criteria were met upon our decision to sell

this asset, due to its noncontiguous location relative to most other properties on the Alexandria Center® for Sustainable

Technologies Megacampus, and to allocate the sales proceeds, and other capital necessary to lease the property, toward

other projects with greater value-creation opportunities. We expect to complete the sale within the next 12 months.

  • Impairment charge of $27.8 million was recognized to reduce the carrying amounts of land parcels aggregating 154,308 SF on

a non-Megacampus in our Sorrento Mesa submarket of San Diego to their estimated fair values less costs to sell of

approximately $13.9 million upon meeting the criteria for classification as held for sale in September 2025. These assets met

the criteria for classification as held for sale upon our reevaluation of their alignment with our Megacampus strategy and our

decision to reallocate capital toward our other projects with greater value-creation opportunities. We expect to complete the

sale of these assets within the next 12 months.

  • Impairment charge of $17.3 million was recognized to reduce the carrying amounts of two operating properties aggregating

210,481 RSF in our Sorrento Mesa submarket of San Diego to their estimated fair values less costs to sell of approximately

$112.3 million, upon meeting the criteria for classification as held for sale. The held for sale criteria were met in June 2025

upon our commitment to dispose of these properties. In August 2025, we completed the sale of one of the properties

aggregating 79,945 RSF for a sales price of $45.0 million, with no gain or loss recognized upon sale. We expect to complete

the sale of the remaining property within the next 12 months.

During the nine months ended September 30, 2024, we recognized real estate impairment charges aggregating $36.5 million,

which primarily consisted of pre-acquisition costs related to two potential acquisitions in the 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, and a real estate impairment charge to adjust the carrying amount of one property in Canada that continued to meet the

held-for-sale classification to the sales price under negotiation with a potential buyer less costs to sell.

General and administrative expenses

General and administrative expenses for the nine months ended September 30, 2025 decreased by $46.6 million, or 34.4%, to

$89.0 million, compared to $135.6 million for the nine months ended September 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 September 30, 2025 and 2024 were 5.7% and 8.9%, respectively.

Interest expense

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

Nine Months Ended September 30,
Component20252024Change
Gross interest$409,603$379,554$30,049
Capitalized interest(248,579)(249,375)796
Interest expense$161,024$130,179$30,845
Average debt balance outstanding(1)$13,200,441$12,417,845$782,596
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 nine months ended September 30, 2025, compared to the nine months ended

September 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$19,227
$600 million of unsecured senior notes payable due 20545.71%February 20244,127
$400 million of unsecured senior notes payable due 20365.38%February 20242,576
Higher average outstanding balances under commercial paper program and/ or unsecured senior line of credit13,197
Other increase in interest1,476
Total increases40,603
Decreases in interest incurred due to:
Repayments of debt:
$600 million of unsecured senior notes payable due 20253.62%April 2025(8,749)
Secured notes payable7.18%August 2025(1,805)
Total decreases(10,554)
Change in gross interest30,049
Decrease in capitalized interest796
Total change in interest expense$30,845

(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 nine months ended September 30, 2025, we recognized investment loss aggregating $52.5 million, which consisted

of $94.7 million of realized gains, $71.6 million of unrealized losses, and $75.5 million of impairment charges.

During the nine months ended September 30, 2024, we recognized investment income aggregating $14.9 million, which

consisted of $85.2 million of realized gains, $32.5 million of unrealized losses, and $37.8 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.

Gain on sales of real estate

During the nine months ended September 30, 2025, we recognized $22.5 million of gains classified in gain on sales of real

estate within our consolidated statement of operations. These gains included $12.7 million recognized during the three months ended

March 31, 2025, in connection with one sales-type lease for an operating property in our Seattle market, and $9.3 million recognized

upon the disposition of our controlling interest in a consolidated joint venture that owns Pacific Technology Park in our Sorrento Mesa

submarket. For additional information, refer to Note 5 – “Leases” and Note 4 — “Consolidated and unconsolidated real estate joint

ventures,” respectively, to our unaudited consolidated financial statements in Item 1.

During the nine months ended September 30, 2024, we recognized $27.5 million of gains primarily related to the disposition of

1165 Eastlake Avenue East in our Lake Union submarket. The gains were classified in gain on sales of real estate within our

consolidated statement of operations for the nine months ended September 30, 2024.

Other comprehensive income

Other comprehensive income (loss) primarily comprised unrealized foreign currency translation gains or losses related to our

operations in Canada. Total other comprehensive income for the nine months ended September 30, 2025 aggregating $14.0 million

includes $11.1 million of cumulative translation gain related to our operations in Canada, resulting from the CAD’s strengthening against

the USD during this period. The increase also includes $3.0 million of unrealized gains related to the change in the fair value of our

cross-currency swap agreements, resulting from the CAD’s weakening since the execution of these agreements on July 29, 2025

through September 30, 2025. Refer to Note 11 – “Hedge Agreements” to our unaudited consolidated financial statements in Item 1 for

additional information.

Total other comprehensive loss of $6.6 million for the nine months ended September 30, 2024 is primarily due to unrealized

foreign currency translation loss related to our operations in Canada.

Summary of capital expenditures

Our construction spending for the nine months ended September 30, 2025 and projected spending for the year ending

December 31, 2025 consisted of the following (in thousands):

Nine Months Ended September 30, 2025Projected Guidance Midpoint for Year Ending December 31, 2025
Construction of Class A/A+ properties:
Active construction projects
Under construction$799,723$1,240,000
Future pipeline pre-construction
Primarily Megacampus expansion pre-construction work (entitlement, design, and site work)365,654500,000
Revenue- and non-revenue-enhancing capital expenditures230,867415,000(1)
Construction spending (before contributions from noncontrolling interests or tenants):1,396,2442,155,000
Contributions from noncontrolling interests (consolidated real estate joint ventures)(156,668)(230,000)(2)
Tenant-funded and -built landlord improvements(171,153)(175,000)
Total construction spending$1,068,423$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 $320 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)
October 1, 2025 through December 31, 2026$130,980
2027 and beyond35,925
Total$166,905

(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 nine months ended September 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$650,0048%
2027 and beyond stabilization2,157,70126
Smaller redevelopments and repositioning of capital projects1,128,760(1)14
Future pipeline projects with key pre-construction milestones during 4Q25 and 2026:(3)
Megacampus projects3,032,254(2)(3)37
Non-Megacampus projects1,211,641(3)15
Total average real estate basis capitalized(4)$8,180,360100%

(1)Includes the real estate basis related to the 617,458 RSF of vacant space as of September 30, 2025 that is leased but not yet delivered. The weighted-average expected

delivery date is approximately May 1, 2026.

(2)Includes 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, which represent a total average capitalized real

estate basis of approximately $1.2 billion during the nine months ended September 30, 2025.

(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 14, 2026 on a weighted-average real estate investment basis. We will evaluate whether to

proceed with additional pre-construction and/or construction activities based on leasing demand and/or market conditions, pause future investments, or consider the

potential dispositions of real estate assets.

(4)In addition to capitalized interest, we incur additional capitalized project costs, including property taxes, insurance, and other costs directly related and essential to the

construction of Class A/A+ properties. If we cease activities necessary to prepare a project for its intended use, costs related to such project are expensed as incurred.

Annualized capitalized operating expenses and payroll represent approximately 2% and 1%, respectively, of the total average real estate basis subject to capitalization

for the nine months ended September 30, 2025.

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.

Key changes to our 2025 guidance include the following:

1)The midpoint of our guidance range for 2025 net (loss) income per share was reduced by $3.44 from $0.50 to $(2.94). In

addition to the items discussed in item 2 below, the update to our guidance range for 2025 net (loss) income per share

includes the following:

  • Potential additional impairments of real estate (including impairments on stabilized and non-stabilized properties and land)

that may be recognized during the three months ending December 31, 2025, ranging from $0 to $685 million, related to

assets that could potentially be sold in the fourth quarter of 2025 or 2026, and if such assets meet the held for sale criteria

during the three months ending December 31, 2025, considering market factors, buyer ability to perform, our desire to

proceed with a sale at a particular price, and other factors. As of September 30, 2025, these assets were evaluated under

the held for use model and were determined to be recoverable using a weighted-average probability approach. However,

if any of these assets subsequently meet the criteria to be designated as held for sale, we could recognize impairment

charges to reduce the carrying value of these assets to each asset’s fair value less costs to sell.

  • Potential additional gain on sales of real estate that may be recognized during the three months ending December 31,

2025, ranging from $0 to $240 million, related to assets that may be sold in the fourth quarter of 2025.

  • These potential impairments and gains on sales of real estate will not impact our funds from operations per share

pursuant to the Nareit definition of funds from operations.

2)The midpoint of our guidance range for 2025 funds from operations per share – diluted, as adjusted, was reduced by 25 cents,

from $9.26 to $9.01. The primary drivers of the change include the following:

  • A 1.0% reduction in projected 2025 same property net operating income and a 0.9% reduction in our projected operating

occupancy percentage in North America as of December 31, 2025 (at the midpoints of our guidance ranges), primarily due

to slower than anticipated re-leasing of expiring spaces and lease-up of vacancy in our operating portfolio, reflecting

reduced demand across the life science industry.

  • A reduction in projected 2025 realized gains on non-real estate investments. The midpoint of our revised guidance range

for 2025 realized gains on non-real estate investments assumes approximately $15 million in the fourth quarter of 2025,

compared to the quarterly average realized gains of approximately $32 million per quarter for the nine months ended

September 30, 2025.

3)Our guidance range for net debt and preferred stock Adjusted EBITDA – fourth quarter of 2025 annualized increased from less

than or equal to 5.2x to a range of 5.5x to 6.0x. The primary drivers of the change include the following:

  • A $450 million reduction in the midpoint of our guidance range for 2025 dispositions and sales of partial interests. This

includes expected delays in the closing of certain dispositions that are now anticipated to be completed during the first half

of 2026.

  • A reduction in projected Adjusted EBITDA in the fourth quarter of 2025 related to the changes in same property

performance (net operating income) and realized gains on non-real estate investments as described above.

Projected 2025 Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – DilutedAs of 10/27/25As of 7/21/25Key Changes to Midpoint
Net (loss) income per share(1)$(5.68) to $(0.20)$0.40 to $0.60(2)
Depreciation and amortization of real estate assets7.057.05
Gain on sales of real estate(0.14) to (1.54)(0.08)(2)
Impairment of real estate – rental properties and land(3)6.69 to 2.670.77(2)
Allocation of unvested restricted stock awards(0.03)(0.03)
Funds from operations per share(4)$7.89 to $7.95$8.11 to $8.31
Unrealized losses on non-real estate investments0.420.53
Impairment of non-real estate investments0.450.30
Impairment of real estate0.230.23
Allocation to unvested restricted stock awards(0.01)(0.01)
Funds from operations per share, as adjusted(4)$8.98 to $9.04$9.16 to $9.36
Midpoint$9.01$9.26Reduction of 25 cents(2)

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

funds from operations per share, as adjusted.

(2)Refer to the discussion regarding key changes to our 2025 guidance above for additional details.

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

(4)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 10/27/25As of 7/21/25Key Changes to Midpoint
LowHighLowHigh
Operating occupancy percentage in North America as of December 31, 202590.0%91.6%(2)90.9%92.5%90 bps reduction
Lease renewals and re-leasing of space:
Rental rate changes7.0%15.0%(3)9.0%17.0%200 bps reduction(2)
Rental rate changes (cash basis)0.5%8.5%0.5%8.5%No change
Same property performance:
Net operating income changes(4.7)%(2.7)%(3.7)%(1.7)%100 bps reduction
Net operating income changes (cash basis)(1.2)%0.8%(1.2)%0.8%No change
Straight-line rent revenue$75$95$96$116$21 million reduction
General and administrative expenses$112$127$112$127No Change
Capitalization of interest$320$350$320$350
Interest expense(4)$195$225$185$215$10 million increase(3)
Realized gains on non-real estate investments(5)$100$120$100$130$5 million reduction

(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)Our guidance assumes an approximate 1% benefit related to a range of assets with vacancy that could potentially qualify for classification as held for sale by

December 31, 2025. These assets have not yet reached the criteria for held for sale designation as of September 30, 2025.

(3)In October 2025, we executed a one-year lease extension aggregating 247,743 RSF with an investment-grade rated government institution tenant at a recently acquired

office property in our Canada market. At acquisition, this building was originally targeted for a future change in use, but we instead renewed the existing tenant through

the beginning of 2027, with no incremental capital investment. We continue to evaluate options to convert this space, subject to market conditions. The impact from this

renewal on our 2025 rental rate changes is anticipated to result in a reduction of approximately 2.0%.

(4)The increase in the midpoint of our guidance range for 2025 interest expense is primarily due to the $450 million reduction to the midpoint of our guidance range for

2025 dispositions and sales of partial interests, which includes expected delays in the closing of certain dispositions that are now anticipated to be completed in the first

half of 2026.

(5)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. The midpoint of our revised guidance range for 2025 realized gains on non-real estate investments assumes approximately $15 million in the

fourth quarter of 2025, compared to the quarterly average realized gains of approximately $32 million per quarter for the nine months ended September 30, 2025. Refer

to Note 7 – “Investments” to our unaudited consolidated financial statements in Item 1 for additional details.

Key Credit Metric Targets**(1)**As of 10/27/25As of 7/21/25Key Changes
Net debt and preferred stock to Adjusted EBITDA – fourth quarter of 2025 annualized5.5x to 6.0xLess than or equal to 5.2x0.6x increase(2)
Fixed-charge coverage ratio – fourth quarter of 2025 annualized3.6x to 4.1x4.0x to 4.5x0.4x reduction

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

(2)Refer to the discussion regarding key changes to our 2025 guidance above for additional details.

Summary of key items that may impact 2026 results

We expect to introduce 2026 guidance on December 3, 2025 at Investor Day. The following is an initial summary of key items

that are expected to impact 2026 results:

  • Core operations – Slower demand across the life science sector and increased supply for life science real estate could negatively

impact future occupancy. Additional considerations include the following:

  • Same property net operating income decrease for the three months ended September 30, 2025 compared to the three months

ended September 30, 2024 of 6.0% reflects a decline relative to the first half of 2025. Refer to “Same properties” in Item 2 for

additional details.

  • Operating occupancy has decreased four consecutive quarters from 94.7% as of September 30, 2024 to 90.6% as of

September 30, 2025.

  • Before the benefit of excluding assets designated as held for sale which contained vacancy, occupancy during the three

months ended September 30, 2025 declined 1.1% compared to the three months ended June 30, 2025, primarily related to

lease expirations during the third quarter of 2025. These lease expirations resulting in the 1.1% decline in occupancy

previously generated annual rental revenue aggregating approximately $29.0 million and had a weighted-average lease

expiration date at the end of July 2025. We are currently marketing these spaces.

  • Our guidance for operating occupancy percentage in North America as of December 31, 2025 assumes an approximate 1%

benefit related to a range of assets with vacancy that could potentially qualify for designation as held for sale by December 31,

2025, but that have not yet qualified as of September 30, 2025. After considering this potential adjustment, the midpoint of our

guidance range for occupancy as of December 31, 2025 implies an 80 bps decline in operating occupancy percentage during

the fourth quarter of 2025.

  • There are key lease expirations primarily located in the Greater Boston, San Francisco Bay Area, and San Diego markets

aggregating 1.2 million RSF with a weighted-average lease expiration date of March 19, 2026 and annual rental revenue

aggregating $81 million, which are expected to become vacant upon lease expiration. We expect downtime on these spaces

ranging from 6 to 24 months on a weighted-average basis. Refer to “Summary of contractual lease expirations” in Item 2 for

additional details.

  • Capitalized interest – There is approximately $4.2 billion of average real estate basis capitalized during the nine months ended

September 30, 2025, related to future pipeline projects undergoing critical pre-construction activities, including various phases of

entitlement, design, site work, and other activities necessary to begin aboveground vertical construction. We expect these projects

to reach anticipated pre-construction milestones on April 14, 2026, on a weighted-average real estate investment basis. We will

evaluate, on an asset-by-asset basis, whether to (i) proceed with additional pre-construction and/or construction activities based on

leasing demand and/or market conditions, (ii) pause future investments, or (iii) consider the potential dispositions of these real

estate assets. If we cease activities necessary to prepare a project for its intended use, costs related to such project, including

interest, payroll, property taxes, insurance, and other costs directly related and essential to the construction of Class A/A+

properties, will be expensed as incurred. Refer to “Average real estate basis used for capitalization of interest” in Item 2 for

additional details.

  • Realized gains on non-real estate investments – The midpoint of our revised guidance range for 2025 realized gains on non-real

estate investments assumes approximately $15 million for the fourth quarter of 2025, compared to the quarterly average realized

gains of approximately $32 million per quarter for the nine months ended September 30, 2025. Refer to “Note 7 – Investments” to

our unaudited consolidated financial statements in Item 1 for additional details.

  • General and administrative expenses – Over the past several years, we have implemented comprehensive measures to reduce our

expenditures across our organization, including our general and administrative expenses. These initiatives are expected to

generate a reduction in general and administrative expenses of approximately $49 million, or 29%, during the year ending

December 31, 2025 (at the midpoint of our 2025 guidance range) compared to the year ended December 31, 2024. Given that

some of these costs savings are expected to be temporary in nature, we anticipate approximately half of the cost reductions

expected to be achieved in 2025 will continue in 2026.

  • Dispositions and equity-type capital

  • As of October 27, 2025, our share of pending dispositions subject to non-refundable deposits, signed letters of intent, and/or

purchase and sale agreement negotiations aggregated $1.0 billion. We expect these dispositions to close in late fourth quarter

of 2025; therefore, the corresponding reduction in EBITDA is expected to impact the first quarter of 2026. Refer to

“Dispositions and sale of partial interests” in Item 2 for additional details.

  • We expect construction spending in 2026 to be similar or slightly higher than the $1.75 billion midpoint of our guidance range

for 2025 construction in order to complete our active construction projects and significant revenue- and non-revenue-

enhancing capital expenditures necessary to lease vacant space. Given the factors previously described that could negatively

impact EBITDA, we may require significant equity-type capital to manage our leverage profile.

  • We expect a significant source of funding to come from the sale of non-core assets in 2026. We anticipate an end to our large-

scale non-core asset sales program in 2026 or early 2027. As of September 30, 2025, 77% of our annual rental revenue is

from our Megacampus™ platform, and we expect this percentage to continue to grow over time.

  • Dividends and net cash provided by operating activities after dividends

  • From 2013 to 2025, dividends per share and funds from operations per share, as adjusted have been highly correlated, with

cumulative increases of 102% and 105%, respectively.

  • The factors previously described could lead to a reduction in funds from operations per share, as adjusted and net cash

provided by operating activities. At the current dividend rate, the amount of net cash provided by operating activities after

payment of dividends available to recycle and address our 2026 capital needs could be reduced. As a result, we expect our

Board of Directors to carefully evaluate our 2026 dividend strategy.

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**(1)**
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
15 Necco Street/Greater Boston/Seaport Innovation District43.3%345,996
285, 299, 307, and 345 Dorchester Avenue/Greater Boston/Seaport Innovation District40.0%—(2)
Alexandria Center® for Science and Technology – Mission Bay/San Francisco Bay Area/ Mission Bay(3)75.0%548,215
601, 611, 651(2), 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(2)(4)45.0%(5)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(2)(6)50.0%829,437
Summers Ridge Science Park/San Diego/Sorrento Mesa(7)70.0%316,531
1201 and 1208 Eastlake Avenue East/Seattle/Lake Union70.0%206,134
400 Dexter Avenue North/Seattle/Lake Union70.0%290,754
800 Mercer Street/Seattle/Lake Union40.0%—(2)
Unconsolidated Real Estate Joint Ventures
Property/Market/SubmarketOur Ownership Share(8)Operating RSF at 100%
1655 and 1725 Third Street/San Francisco Bay Area/Mission Bay10.0%586,208
1450 Research Boulevard/Maryland/Rockville73.2%(9)42,012
101 West Dickman Street/Maryland/Beltsville58.4%(9)142,933

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

(1)In addition to the real estate joint ventures listed, we have one consolidated real estate joint venture in the Greater Boston market in which a partner holds a $48.7 million

redeemable noncontrolling interest earning a fixed return.

(2)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.

(3)Includes 409 and 499 Illinois, 1450, 1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South. Operating RSF excludes 409 and 499 Illinois, which met the

criteria to be designated as held for sale as of September 2025.

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

(5)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.

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

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

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

(9)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

September 30, 2025 (dollars in thousands):

Maturity DateStated RateInterest Rate(1)At 100%Our Share
Unconsolidated Joint VentureAggregate CommitmentDebt Balance(2)
101 West Dickman Street10/29/26SOFR+1.95%(3)6.20%$26,750$18,99958.4%
1450 Research Boulevard12/6/26SOFR+1.95%(3)6.26%13,0008,93273.2%
1655 and 1725 Third Street(4)2/10/356.37%6.44%500,000496,79410.0%
$539,750$524,725

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

(2)Represents outstanding principal, net of unamortized deferred financing costs, as of September 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 nine months ended September 30, 2025 (in thousands):

Noncontrolling Interest Share of Consolidated Real Estate Joint VenturesOur Share of Unconsolidated Real Estate Joint Ventures
September 30, 2025September 30, 2025
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
Total revenues$118,646$353,241$2,700$7,963
Rental operations(38,170)(108,978)(1,025)(3,008)
80,476244,2631,6754,955
General and administrative(630)(2,193)(20)(101)
Interest(151)(905)(1,060)(3,118)
Depreciation and amortization of real estate assets(45,327)(114,785)(852)(2,848)
Impairment of real estate———(8,673)
Gain on sale of interest of unconsolidated JV——458458
Fixed returns allocated to redeemable noncontrolling interests(1)541943——
$34,909$127,323$201$(9,327)
Straight-line rent and below-market lease revenue$6,663$16,857$172$506
Funds from operations(2)$80,236$242,108$595$1,736

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

(1)Represents an allocation of joint venture earnings to redeemable noncontrolling interests for properties in the Greater Boston and San Francisco Bay Area markets.

These redeemable noncontrolling interests earn a fixed return on their investment rather than participate in the operating results of the properties.

(2)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 September 30, 2025
Noncontrolling Interest Share of Consolidated Real Estate Joint VenturesOur Share of Unconsolidated Real Estate Joint Ventures
Investments in real estate$4,103,608$99,393
Cash, cash equivalents, and restricted cash160,6462,341
Other assets445,47910,533
Secured notes payable—(67,315)
Other liabilities(230,757)(5,351)
Redeemable noncontrolling interests(58,662)—
$4,420,314$39,601

During the nine months ended September 30, 2025 and 2024, our consolidated real estate joint ventures distributed an

aggregate of $186.8 million and $179.1 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.

September 30, 2025Year Ended December 31, 2024
Three Months EndedNine Months Ended
Realized gains$9,646(1)$19,115(1)$59,124(2)
Unrealized gains (losses)18,515(3)(71,568)(4)(112,246)(5)
Investment income (loss)$28,161$(52,453)$(53,122)
September 30, 2025December 31, 2024
InvestmentsCostUnrealized GainsUnrealized LossesCarrying AmountCarrying Amount
Publicly traded companies$197,229$28,964$(101,901)$124,292$105,667
Entities that report NAV482,73498,002(40,603)540,133609,866
Entities that do not report NAV:
Entities with observable price changes80,45453,409(9,614)124,249174,737
Entities without observable price changes422,519——422,519400,487
Investments accounted for under the equity methodN/AN/AN/A326,445186,228
September 30, 2025$1,182,936(6)$180,375$(152,118)$1,537,638$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

13%

Public

21%

Tenant

87%

Private

79%

Non-Tenant

(1)Consists of realized gains of $34.8 million and $94.7 million, partially offset by impairment charges of $25.1 million and $75.5 million during the three and nine months

ended September 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 $51.3 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 $32.8 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 September 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 nine

months ended September 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 September 30, 2025. Refer to “Gross assets” under “Definitions and reconciliations” in Item 2 for additional details.

Liquidity

LiquidityLimited Outstanding Borrowings and Significant Availability on Unsecured Senior Line of Credit
$4.2B(in millions)
q325lineofcredit v4.jpg
(In millions)
Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program$3,450
Cash, cash equivalents, and restricted cash584
Investments in publicly traded companies124
Liquidity as of September 30, 2025$4,158

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 a strong 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; and investments in publicly traded companies as of

September 30, 2025 (in thousands):

DescriptionStated RateAggregate CommitmentsOutstanding BalanceRemaining Commitments/ Liquidity
Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper programSOFR+0.855%$5,000,000$1,550,000$3,450,000
Cash, cash equivalents, and restricted cash584,179
Investments in publicly traded companies124,292
Liquidity as of September 30, 2025$4,158,471

Cash, cash equivalents, and restricted cash

As of September 30, 2025 and December 31, 2024, we had $584.2 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, 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 nine months ended September 30, 2025 and 2024 (in thousands):

Nine Months Ended September 30,
20252024Change
Net cash provided by operating activities$1,101,668$1,230,346$(128,678)
Net cash used in investing activities$(1,437,538)$(1,956,959)$519,421
Net cash provided by financing activities$360,850$645,405$(284,555)

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 nine months ended September 30, 2025 decreased by $128.7 million to $1.1 billion, compared to $1.2 billion

for the nine months ended September 30, 2024. The decrease was primarily due to the ground lease prepayment of $135.0 million

made in January 2025 for a 24-year 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 nine months ended September 30, 2025 and 2024 consisted of the following (in

thousands):

Nine Months Ended September 30,Change
20252024
Sources of cash from investing activities:
Proceeds from sales of real estate$227,105$229,790$(2,685)
Sales of and distributions from non-real estate investments77,067141,762(64,695)
Return of capital from unconsolidated real estate joint ventures458—458
304,630371,552(66,922)
Uses of cash for investing activities:
Purchases of real estate—201,049(201,049)
Additions to real estate1,538,6131,932,351(393,738)
Change in escrow deposits7,3645,5121,852
Investments in unconsolidated real estate joint ventures11,2394,0397,200
Additions to non-real estate investments184,952185,560(608)
1,742,1682,328,511(586,343)
Net cash used in investing activities$1,437,538$1,956,959$(519,421)

The decrease in net cash used in investing activities for the nine months ended September 30, 2025, compared to the nine

months ended September 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 nine months ended September 30, 2025 and 2024 consisted of the following

(in thousands):

Nine Months Ended September 30,
20252024Change
Borrowings under secured note payable$4,031$24,853$(20,822)
Repayments of borrowings under secured notes payable(154,212)(32)(154,180)
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 program15,378,0157,935,6007,442,415
Repayments of borrowings under commercial paper program(13,828,015)(7,580,600)(6,247,415)
Payments of loan fees(5,307)(36,366)31,059
Changes related to debt1,343,0441,342,261783
Contributions from and sales of noncontrolling interests132,162251,252(119,090)
Distributions to and purchases of noncontrolling interests(204,543)(231,072)26,529
Repurchase of common stock(208,187)—(208,187)
Dividends on common stock(684,419)(671,366)(13,053)
Taxes paid related to net settlement of equity awards(17,207)(45,670)28,463
Net cash provided by financing activities$360,850$645,405$(284,555)

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)As of 10/27/25Certain Completed ItemsAs of 7/21/25 MidpointKey Changes to Midpoint
RangeMidpoint
Sources of capital:
Increase in debt$60$260$160See below$(290)$450 million increase
Net cash provided by operating activities after dividends425525475475
Dispositions and sales of partial interests1,1001,9001,500(1)1,950$450 million decrease
Total sources of capital$1,585$2,685$2,135$2,135
Uses of capital:
Construction$1,450$2,050$1,750$1,750
Acquisitions and other opportunistic uses of capital(2)—500250$208(2)250
Ground lease prepayment135135135$135135
Total uses of capital$1,585$2,685$2,135$2,135
Increase in debt (included above):
Issuance of unsecured senior notes payable$550$550$550$550$550
Repayment of unsecured notes payable(600)(600)(600)$(600)(600)
Repayment of secured note payable(3)(154)(154)(154)$(154)(154)
Unsecured senior line of credit, commercial paper program, and other264464364(86)
Increase in debt$60$260$160$(290)$450 million increase

(1)As of the date of this report, completed dispositions aggregated $508.3 million and our share of pending transactions subject to non-refundable deposits, signed letters

of intent, or purchase and sale agreement negotiations aggregated $1.0 billion. 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 September 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 repaid a secured construction loan held by our development project at 99 Coolidge Avenue in our Cambridge/Inner Suburbs submarket. Refer to

Note 10 – “Secured and unsecured senior debt” to our unaudited consolidated financial statements in Item 1 for additional information.

The key assumptions behind the sources and uses of capital in the table above include 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 $50 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 nine months ended September 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 September 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 September 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 nine months ended September 30, 2025 were issued at a

weighted-average yield to maturity of 4.64%. As of September 30, 2025, we had $1.5 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 nine

months ended September 30, 2025 (dollars in thousands):

Average Debt OutstandingWeighted-Average Interest Rate
September 30, 2025September 30, 2025
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
Long-term fixed-rate debt$12,121,219$12,290,2033.88%3.86%
Short-term variable-rate unsecured senior line of credit and commercial paper program debt1,503,453935,3534.644.64
Blended average interest rate13,624,67213,225,5563.963.92
Loan fee amortization and annual facility fee related to unsecured senior line of creditN/AN/A0.140.13
Total/weighted average$13,624,672$13,225,5564.10%4.05%

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 $1.10 billion to $1.90 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 14 – “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 nine months ended September 30, 2025, we have not issued any common stock under our ATM

program. As of September 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 October 1, 2025

through December 31, 2027 and beyond, we expect to receive capital contributions aggregating $166.9 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 to up to $230.0 million at the midpoint of our

guidance range for 2025 construction spending.

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 4.2 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 $248.6 million for the nine months

ended September 30, 2025, consistent with $249.4 million capitalized during nine months ended September 30, 2024. This reflects a

consistent weighted-average capitalized cost basis of $8.2 billion for the nine months ended September 30, 2025, as compared to

$8.1 billion for the nine months ended September 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 $69.6 million and $76.8 million, and property taxes, insurance

on real estate, and indirect project costs aggregating $111.7 million and $96.5 million during the nine months ended

September 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 $43.0 million for the nine months ended September 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 nine months

ended September 30, 2025, we capitalized total initial direct leasing costs of $95.7 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 September 30, 2025, we did not repurchase any shares of common stock.

  • During the nine months ended September 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 nine months ended September 30, 2025.

For the year ending December 31, 2025, we expect real estate acquisitions and other opportunistic uses of capital, including

common stock repurchases, to aggregate up to $500 million.

Dividends

During the nine months ended September 30, 2025 and 2024, we paid common stock dividends of $684.4 million and

$671.4 million, respectively. The increase of $13.1 million in dividends paid on our common stock for the nine months ended

September 30, 2025, compared to the nine months ended September 30, 2024, was primarily due to an increase in the related

dividends to $3.96 per common share paid for the nine months ended September 30, 2025 from $3.84 per common share paid for the

nine months ended September 30, 2024. We have historically funded 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. Future dividends are

at the discretion of our Board and subject to various considerations, including net income, cash flows, capital requirements, debt

covenants, market conditions, dividend yield, taxable income, payout ratios, and other factors. There can be no assurance that we will

continue our historical dividend per share growth or maintain dividends at the current level.

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 September 30, 2025 were as follows:

Covenant Ratios(1)RequirementSeptember 30, 2025
Total Debt to Total AssetsLess than or equal to 60%32%
Secured Debt to Total AssetsLess than or equal to 40%—%
Consolidated EBITDA(2) to Interest ExpenseGreater than or equal to 1.5x9.8x
Unencumbered Total Asset Value to Unsecured DebtGreater than or equal to 150%302%

(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 September 30, 2025 were as follows:

Covenant Ratios(1)RequirementSeptember 30, 2025
Leverage RatioLess than or equal to 60.0%33.6%
Secured Debt RatioLess than or equal to 45.0%—%
Fixed-Charge Coverage RatioGreater than or equal to 1.50x3.58x
Unsecured Interest Coverage RatioGreater than or equal to 1.75x8.54x

(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 September 30, 2025, 88.6% 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 September 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 40 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 45 to 81 years. The weighted-average remaining lease term of these ground leases is 73 years, including

extension options that we are reasonably certain to exercise.

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 September 30, 2025, the remaining contractual payments under ground and office lease agreements in which we are the

lessee aggregated $757.9 million and $20.9 million, respectively. As of September 30, 2025, our operating lease liability, calculated as

the present value of the remaining payments aggregating $778.8 million under our operating lease agreements, including our extension

options that we are reasonably certain to exercise, was $362.0 million and was classified in accounts payable, accrued expenses, and

other liabilities in our consolidated balance sheet. As of September 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 $713.4 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 September 30, 2025, remaining aggregate costs under contract for the construction of properties undergoing

development, redevelopment, and improvements under the terms of leases approximated $1.1 billion. 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 $377.0 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 11 years, with a weighted-average expiration of 7.9 years as of September 30, 2025.

Our former joint venture partner in the 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 September 30, 2025, the option has not been exercised.

In July 2025, we amended the agreement for our consolidated joint venture at 99 Coolidge Avenue in our Cambridge/Inner

Suburbs submarket. Pursuant to the amended agreement, our partner has a put option beginning January 2026 to require us to

purchase its redeemable noncontrolling interest aggregating $48.7 million plus any unpaid distributions accruing at a fixed annual rate

of 4.05%.

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 nine months ended September 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$(46,252)
Other comprehensive income before reclassifications14,049
Net other comprehensive income14,049
Balance as of September 30, 2025$(32,203)

Inflation

As of September 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 issuing new unsecured senior notes

payable and our variable-rate borrowings, including borrowings under our unsecured senior line of credit and commercial paper

program, and secured loans held by our unconsolidated real estate joint ventures.

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 September 30, 2025 and December 31, 2024, and results

of operations and comprehensive income for the nine months ended September 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 September 30, 2025 and December 31, 2024

and for the nine months ended September 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):

September 30, 2025December 31, 2024
Assets:
Cash, cash equivalents, and restricted cash$139,186$103,993
Other assets180,796153,913
Total assets$319,982$257,906
Liabilities:
Unsecured senior notes payable$12,044,999$12,094,465
Unsecured senior line of credit and commercial paper1,548,542—
Other liabilities540,406542,322
Total liabilities$14,133,947$12,636,787
Nine Months Ended September 30, 2025Year Ended December 31, 2024
Total revenues$34,489$59,023
Total expenses(248,954)(349,437)
Net loss(214,465)(290,414)
Net income attributable to unvested restricted stock awards(7,452)(13,394)
Net loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders$(221,917)$(303,808)

As of September 30, 2025, 359 of our 375 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 nine months

ended September 30, 2025 (in thousands):

Noncontrolling Interest Share of Consolidated Real Estate Joint VenturesOur Share of Unconsolidated Real Estate Joint Ventures
September 30, 2025September 30, 2025
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
Net income (loss)$34,909$127,323$201$(9,327)
Depreciation and amortization of real estate assets45,327114,7858522,848
Gain on sale of interest of unconsolidated JV——(458)(458)
Impairment of real estate———8,673
Funds from operations$80,236$242,108$595$1,736

The following tables present a reconciliation of net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common

stockholders, the most directly comparable financial measure presented in accordance with GAAP, including our share of amounts from

consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria Real Estate Equities,

Inc.’s common stockholders – diluted, and funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common

stockholders – diluted, as adjusted, and the related per share amounts for the three and nine months ended September 30, 2025 and

2024 (in thousands, except per share amounts). Per share amounts may not add due to rounding.

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted$(234,937)$164,674$(356,147)$374,477
Depreciation and amortization of real estate assets338,182291,2581,021,292864,326
Noncontrolling share of depreciation and amortization from consolidated real estate JVs(45,327)(32,457)(114,785)(94,725)
Our share of depreciation and amortization from unconsolidated real estate JVs8521,0752,8483,177
Gain on sales of real estate(9,824)(1)(27,114)(22,989)(27,506)
Impairment of real estate – rental properties and land323,870(2)5,741454,9607,923
Allocation to unvested restricted stock awards(1,648)(2,908)(3,590)(7,657)
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted(3)371,168400,269981,5891,120,015
Unrealized (gains) losses on non-real estate investments(18,515)(2,610)71,56832,470
Impairment of non-real estate investments25,139(4)10,33875,53537,824
Impairment of real estate——39,34328,581
Loss on early extinguishment of debt107(5)—107—
Increase in provision for expected credit losses on financial instruments——285—
Allocation to unvested restricted stock awards(74)(125)(2,156)(1,640)
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted$377,825$407,872$1,166,271$1,217,250

(1)Includes our share of gain on sale of real estate by an unconsolidated real estate joint venture of $458 thousand, which is classified as equity in earnings of

unconsolidated real estate joint ventures in our consolidated statements of operations.

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

(3)Calculated in accordance with standards established by the Nareit Board of Governors.

(4)Primarily related to four non-real estate investments in privately held entities that do not report NAV.

(5)Refer to Note 10 – “Secured and unsecured senior debt” to our unaudited consolidated financial statements for additional information.

Three Months Ended September 30,Nine Months Ended September 30,
(Per share)2025202420252024
Net (loss) income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted$(1.38)$0.96$(2.09)$2.18
Depreciation and amortization of real estate assets1.731.515.344.49
Gain on sales of real estate(0.06)(0.16)(0.14)(0.16)
Impairment of real estate – rental properties and land1.900.032.670.05
Allocation to unvested restricted stock awards(0.01)(0.01)(0.02)(0.05)
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted2.182.335.766.51
Unrealized (gains) losses on non-real estate investments(0.11)(0.02)0.420.19
Impairment of non-real estate investments0.150.060.450.22
Impairment of real estate——0.230.17
Allocation to unvested restricted stock awards——(0.01)(0.01)
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted$2.22$2.37$6.85$7.08
Weighted-average shares of common stock outstanding – diluted(1)
Earnings per share – diluted170,181172,058170,278172,007
Funds from operations – diluted, per share170,305172,058170,351172,007
Funds from operations – diluted, as adjusted, per share170,305172,058170,351172,007

(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 nine months ended

September 30, 2025 and 2024 (dollars in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Net (loss) income$(197,845)$213,603$(221,372)$526,828
Interest expense54,85243,550161,024130,179
Income taxes3,7371,8775,9024,823
Depreciation and amortization340,230293,9981,028,415872,272
Stock compensation expense10,29315,52532,88747,157
Loss on early extinguishment of debt107—107—
Gain on sales of real estate(9,366)(27,114)(22,531)(27,506)
Unrealized (gains) losses on non-real estate investments(18,515)(2,610)71,56832,470
Impairment of real estate323,8705,741485,63036,504
Impairment of non-real estate investments25,13910,33875,53537,824
Increase in provision for expected credit losses on financial instruments——285—
Adjusted EBITDA$532,502$554,908$1,617,450$1,660,551
Total revenues$751,944$791,607$2,272,142$2,327,449
Adjusted EBITDA margin71%70%71%71%

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 September 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 September 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 nine months ended September 30,

2025 and 2024 (dollars in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Adjusted EBITDA$532,502$554,908$1,617,450$1,660,551
Interest expense$54,852$43,550$161,024$130,179
Capitalized interest86,09186,496248,579249,375
Amortization of loan fees(4,505)(4,222)(13,811)(12,510)
Amortization of debt discounts(325)(330)(1,009)(976)
Cash interest and fixed charges$136,113$125,494$394,783$366,068
Fixed-charge coverage ratio:
– quarter annualized3.9x4.4x4.1x4.5x
– trailing 12 months4.1x4.5x4.1x4.5x

We are not able to forecast the net income of future periods without unreasonable effort and therefore do not provide a

reconciliation for fixed-charge coverage ratio on a forward-looking basis. 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.

Gross assets

Gross assets are calculated as total assets plus accumulated depreciation as of September 30, 2025 and December 31, 2024

(in thousands):

September 30, 2025December 31, 2024
Total assets$37,375,148$37,527,449
Accumulated depreciation6,416,7455,625,179
Gross assets$43,791,893$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 September 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 September 30, 2025 (dollars in thousands):

Percentage of
Book ValueGross AssetsAnnual Rental Revenue
Projects under active construction and one 100% pre-leased committed near- term project expected to commence in the next year$3,724,8019%—%
Future development projects(1) and land parcels primarily located in Megacampuses4,871,463111
$8,596,26420%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 September 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—52,620—52,620
Future projects:
446, 458, and 500 Arsenal Street/Cambridge/Inner SuburbsDev——116,623116,623
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——39,37039,370
CanadaRedev——247,743247,743
——2,082,4542,082,454
Total—52,6202,082,4542,135,074

(1)Includes vacant square footage as of September 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 consists 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, excluding properties classified as held for sale, as of

September 30, 2025 (dollars in thousands):

Annual Rental RevenueDevelopment and Redevelopment Pipeline RSF
Megacampus$1,522,94220,092,287
Core and non-core452,5446,270,183
Total$1,975,48626,362,470
Megacampus as a percentage of annual rental revenue and of total development and redevelopment pipeline RSF77%76%

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, 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 debt to net debt and preferred stock and computes the ratio to Adjusted EBITDA as of

September 30, 2025 and December 31, 2024 (dollars in thousands):

September 30, 2025December 31, 2024
Secured notes payable$—$149,909
Unsecured senior notes payable12,044,99912,094,465
Unsecured senior line of credit and commercial paper1,548,542—
Unamortized deferred financing costs76,38377,649
Cash and cash equivalents(579,474)(552,146)
Restricted cash(4,705)(7,701)
Preferred stock——
Net debt and preferred stock$13,085,745$11,762,176
Adjusted EBITDA:
– quarter annualized$2,130,008$2,273,480
– trailing 12 months$2,185,820$2,228,921
Net debt and preferred stock to Adjusted EBITDA:
– quarter annualized6.1x5.2x
– trailing 12 months6.0x5.3x

Net operating income, net operating income (cash basis), and operating margin

The following table reconciles net income (loss) to net operating income and net operating income (cash basis) and computes

operating margin for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Net (loss) income$(197,845)$213,603$(221,372)$526,828
Equity in (earnings) losses of unconsolidated real estate joint ventures(201)(139)9,327(424)
General and administrative expenses29,22443,94589,027135,629
Interest expense54,85243,550161,024130,179
Depreciation and amortization340,230293,9981,028,415872,272
Impairment of real estate323,8705,741485,63036,504
Loss on early extinguishment of debt107—107—
Gain on sales of real estate(9,366)(27,114)(22,531)(27,506)
Investment (income) loss(28,161)(15,242)52,453(14,866)
Net operating income512,710558,3421,582,0801,658,616
Straight-line rent revenue(18,821)(29,087)(59,380)(125,676)
Amortization of deferred revenue related to tenant-funded and -built landlord improvements(5,455)(329)(9,507)(329)
Amortization of acquired below-market leases(6,456)(17,312)(31,874)(70,167)
Provision for expected credit losses on financial instruments——285—
Net operating income (cash basis)$481,978$511,614$1,481,604$1,462,444
Net operating income (cash basis) – annualized$1,927,912$2,046,456$1,975,472$1,949,925
Net operating income (from above)$512,710$558,342$1,582,080$1,658,616
Total revenues$751,944$791,607$2,272,142$2,327,449
Operating margin68%71%70%71%

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.

We are not able to forecast the net income of future periods without unreasonable effort and therefore do not provide a

reconciliation for net operating income on a forward-looking basis. 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.

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 a development or redevelopment 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 nine months ended September 30,

2025 and 2024 (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Income from rentals$735,849$775,744$2,216,303$2,286,457
Rental revenues(541,070)(579,569)(1,646,559)(1,737,804)
Tenant recoveries$194,779$196,175$569,744$548,653

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 nine months ended September 30, 2025 and 2024 (dollars in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Unencumbered net operating income$512,710$553,589$1,579,167$1,644,687
Encumbered net operating income—4,7532,91313,929
Total net operating income$512,710$558,342$1,582,080$1,658,616
Unencumbered net operating income as a percentage of total net operating income100.0%99.1%99.8%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 13 – “Earnings per share” and Note 14 –

“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 nine months ended September 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 September 30,Nine Months Ended September 30,
2025202420252024
Basic shares for earnings per share170,181172,058170,278172,007
Unvested RSAs with forfeitable dividends————
Diluted shares for earnings per share170,181172,058170,278172,007
Basic shares for funds from operations per share and funds from operations per share, as adjusted170,181172,058170,278172,007
Unvested RSAs with forfeitable dividends124—73—
Diluted shares for funds from operations per share and funds from operations per share, as adjusted170,305172,058170,351172,007
Weighted-average unvested RSAs with nonforfeitable dividends used in the allocations of net income, funds from operations, and funds from operations, as adjusted1,9172,8381,9892,901

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