Alexandria Real Estate Equities, Inc.: Form 10-Q for the period ended Jun 30, 2025

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.

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Overview

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

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

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

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

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

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

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

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

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

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

teamwork. Our tenants include multinational pharmaceutical companies; public and private biotechnology companies; life science

product, service, and medical device companies; digital health, advanced technology, and agtech companies; academic and medical

research institutions; U.S. government research agencies; non-profit organizations; and venture capital firms. Alexandria has a long-

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

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

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

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

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

As of June 30, 2025:

• Investment-grade or publicly traded large cap tenants represented 53% of our annual rental revenue;
• Approximately 97% of our leases (on an annual rental revenue basis) contained effective annual rent escalations

approximating 3% that were either fixed or indexed based on a consumer price index or other index;

• Approximately 91% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay

substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other

operating expenses (including increases thereto) in addition to base rent;

• Approximately 92% of our leases (on an annual rental revenue basis) provided for the recapture of capital expenditures

(such as HVAC maintenance and/or replacement, roof replacement, and parking lot resurfacing) that we believe would

typically be borne by the landlord in traditional office leases; and

• 84% of our leasing activity during the last twelve months was generated from our existing tenant base.

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

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

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

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

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

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

also includes drawing upon our deep, broad, and long-standing real estate and life science industry relationships in order to retain

tenants, identify and attract new and leading tenants, and source additional real estate.

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Executive summary

Operating results

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

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

in “Results of operations” in Item 2.

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

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

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

details.

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

As of June 30, 2025, unless stated otherwise:

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

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

5.2x and 4.0x to 4.5x, respectively.

• Significant liquidity of $4.6 billion.
• Only 9% of our total debt matures through 2027.
• 12.0 years weighted-average remaining term of debt, longest among S&P 500 REITs.
• Since 2021, our quarter-end fixed-rate debt averaged 97.2%.
• Total debt and preferred stock to gross assets of 30%.
• $297.3 million of capital contribution commitments from existing consolidated real estate joint venture partners to fund

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

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Leasing volume and rental rate increases

• Leasing volume of 769,815 RSF during the three months ended June 30, 2025.
• In July 2025, we executed the largest life science lease in company history with a long-standing multinational pharmaceutical

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

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

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

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

information.

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

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

• 84% of our leasing activity during the last twelve months was generated from our existing tenant base.

Key operating metrics

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

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

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

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

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

the six months ended June 30, 2025.

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

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

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

net income to net operating income (cash basis).

• Same property net operating income changes
• (5.4)% and 2.0% (cash basis) for the three months ended June 30, 2025, compared to the three months ended June 30,

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

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

2025. Excluding the impact of these lease expirations, same property net operating income changes for the three months

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

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

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

2 for additional details.

• (4.3)% and 3.4% (cash basis) for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.
• General and administrative expenses
• $59.8 million for the six months ended June 30, 2025, representing cost savings of $31.9 million, or 35%, compared to the

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

related costs and streamlining business processes.

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

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

months ended June 30, 2024.

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

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

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

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

reinvested annually.

• Dividend yield of 7.3% as of June 30, 2025.
• Dividend payout ratio of 57% for the three months ended June 30, 2025.
• Significant net cash flows provided by operating activities after dividends retained for reinvestment aggregating $2.3 billion for

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

Ongoing execution of Alexandria’s 2025 capital recycling strategy

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

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

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

Significant leasing progress on temporary vacancy

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

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

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

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

• $25.7 billion in total market capitalization.
• $12.4 billion in total equity capitalization.
• Non-real estate investments aggregating $1.5 billion:
• Unrealized gains presented in our consolidated balance sheet were $7.7 million, comprising gross unrealized gains and

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

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

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

charges.

Key capital events

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

proceeds from our February 2025 unsecured senior notes payable offering.

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

common stock through December 31, 2025.

• During the three months ended June 30, 2025, we did not repurchase any shares.
• As of the date of this report, the approximate value of shares authorized and remaining under this program was

$241.8 million.

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

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

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

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

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

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External growth and investments in real estate

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

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

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

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

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

$15 million.

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

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

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

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

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

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

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

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

for 2024.

• 74% of RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.

(dollars in millions)

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

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

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

projects” in Item 2 for additional information.

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

2026 from projects expected to stabilize in 2027 and beyond.

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

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

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Trends that may affect our future results

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

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

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

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

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

discussion of additional risks we face.

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

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

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

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

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

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

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

power in certain submarkets.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

oversupply.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the future.

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

2 for additional information.

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

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

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

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

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

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

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

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

negatively affecting our business.

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

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

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

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

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

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

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

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

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

in receiving or replacing materials subject to tariffs.

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

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

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

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

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

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

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

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

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

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

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

consolidated statement of operations.

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

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

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

includes

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

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

• $1.0 billion related to smaller redevelopments and repositioning capital projects;
• $1.2 billion related to key future Megacampus expansion pre-construction work; and
• $3.0 billion related to future pipeline projects expected to reach key milestones in the second half of 2025 and 2026,

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

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

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

market conditions.

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

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

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

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

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

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

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

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

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

potentially disrupting our capital strategy.

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

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

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

(1) Excludes impairment charges.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Form 10-Q for more information.

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

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

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

our common stock.

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

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

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

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

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

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

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

critical.

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

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

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

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

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

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

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

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

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

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

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

ecosystems deliver.

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

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

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

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

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

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

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

current challenging macroeconomic environment:

• Occupancy of 90.8% as of June 30, 2025.
• Rental rate increases of 13.2% and 6.9% (cash basis) for the six months ended June 30, 2025.
• Leasing volume aggregating 1.8 million RSF for the six months ended June 30, 2025.
• In July 2025, we executed the largest life science lease in company history with a long-standing multinational

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

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

• The weighted-average lease term for leases executed during six months ended June 30, 2025 was 10.2 years.
• Projects expected to stabilize in 2025 and 2026 are 84% leased/negotiating.

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

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

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

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

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

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

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

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

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

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

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

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

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

brand strength include the following:

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

base.

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

traded large cap companies.

• As of June 30, 2025, our occupancy is 90.8%.
• Our tenant collections have remained consistently high over the last four years, averaging 99.8% since the beginning

of 2021 through June 30, 2025.

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

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

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

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

positions us to effectively capitalize on these ongoing trends:

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

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

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

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

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

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

position is highlighted by several key indicators:

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

and to pursue strategic opportunities.

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

2025:

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

range.

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

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

July 1, 2025 to December 31, 2025.

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

guidance range.

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

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

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

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

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

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

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

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

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

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

maturities.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(i) Personnel-related matters, including:

• Reduction in headcount over the last two years.
• Restructuring of various compensation plans.

(ii) Streamlining of business processes:

• Implementation of systems upgrades, process improvements, and smarter technology.
• Renegotiation of contracts related to legal, technology, and operational support services, and

elimination of redundancies through better alignment and consolidation of roles.

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

beyond 2025.

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Operating summary

Same Property Net Operating Income Performance Rental Rate Growth: Renewed/Re-Leased Space

Margins(2) Favorable Lease Structure(3)

Operating Adjusted EBITDA Strategic Lease Structure by Owner and Operator of Collaborative Megacampus Ecosystems

71% 71% Increasing cash flows

Percentage of leases containing annual rent escalations 97%

Stable cash flows

Long-Duration Lease Terms(4) Percentage of triple net leases 91%

9.4 Years 7.4 Years Lower capex burden

Percentage of leases providing for the recapture of capital expenditures 92%

Top 20 Tenants All Tenants

Net Debt and Preferred Stock to Adjusted EBITDA(5) Fixed-Charge Coverage Ratio(5)

4.0x to 4.5x

(1)

(4.3)%

2024 YTD 6/30/25

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

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

financial measures presented in accordance with GAAP.

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

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

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

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

(5) Quarter annualized.

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Stable Cash Flows From Our High-Quality and Diverse Mix of Approximately 750 Tenants

Investment-Grade or Publicly Traded Large Cap Tenants

89%

of ARE’s Top 20 Tenant Annual Rental Revenue

53%

of ARE’s Total Annual Rental Revenue

Percentage of ARE’s Annual Rental Revenue

Life Science

Product,

Service, and

Device

Multinational

Pharmaceutical

Public

Biotechnology –

Approved or

Marketed

Product

Public

Biotechnology –

Preclinical or

Clinical Stage

Private

Biotechnology

Other(3)

Biomedical

Institutions(1)

Government

Institutions

Advanced Technologies(2)

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

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

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

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

retail-related tenants.

Multinational

Pharmaceutical

Public

Biotechnology

Life Science

Product,

Service, and

Device

Biomedical

Institutions

Private

Biotechnology

Other

Advanced

Technologies

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

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

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

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Leasing Activity

The following table summarizes our leasing activity at our properties:

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

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

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

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

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

months ended June 30, 2025 was $47.01.

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

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

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

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

RSF.

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Summary of contractual lease expirations

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

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

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

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

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

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

(1) Primarily represents assets that were recently acquired for future development or redevelopment opportunities, for which we expect, subject to market conditions and

leasing, to commence first-time conversion from non-laboratory space to laboratory space, or to commence future ground-up development. As of June 30, 2025, the

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

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

properties.

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

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

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

advanced technology use;

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

to multi-tenancy; and

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

repositioning the building for multi-tenant use.

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

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

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

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Top 20 tenants

89% of Top 20 Tenant Annual Rental Revenue Is From Investment-Grade

or Publicly Traded Large Cap Tenants(1)

Our properties are leased to a high-quality and diverse group of tenants, with no individual tenant accounting for greater than

5.5% of our annual rental revenue in effect as of June 30, 2025. The following table sets forth information regarding leases with our 20

largest tenants in North America based upon annual rental revenue in effect as of June 30, 2025 (dollars in thousands, except average

market cap amounts):

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

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

estate joint ventures and average market capitalization, respectively.

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

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

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

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

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

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

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

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

rental revenue is presented using 100% of the annual rental revenue from our consolidated properties and our share of annual rental revenue from our unconsolidated real

estate joint ventures. Excluding these ground leases, the weighted-average remaining lease term for our top 20 tenants was 7.6 years as of June 30, 2025.

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

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

additional details.

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Locations of properties

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

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

thousands, except per RSF amounts):

Summary of occupancy percentages in North America

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

Class A/A+ Properties in AAA Locations

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

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

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

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

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

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

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

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

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

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

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

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

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Investments in real estate

A key component of our business model is our disciplined allocation of capital to the development and redevelopment of new

Class A/A+ properties, and property enhancements identified during the underwriting of certain acquired properties, primarily located in

collaborative Megacampus ecosystems in AAA life science innovation clusters. These projects are focused on providing high-quality,

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

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

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

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

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

other activities preceding commencement of construction of aboveground building improvements.

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

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

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

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

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

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

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

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

currently included in rental properties.

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

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

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Dispositions and sales of partial interests

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

following (dollars in thousands):

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

statements for additional information.

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New Class A/A+ development and redevelopment properties

ALEXANDRIA’S DEVELOPMENT AND REDEVELOPMENT

DELIVERIES ARE EXPECTED TO PROVIDE INCREMENTAL

GROWTH IN ANNUAL NET OPERATING INCOME

(2)

(5)

(4)

(1)

(3)

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

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

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

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

the initial and stabilized occupancy years under “New Class A/A+ development and redevelopment properties: current projects” in Item 2 for additional details.

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

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

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

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

Incremental Annual Net Operating Income Generated From 1H25 Deliveries

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

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

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

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

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

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

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

investment due to construction cost savings from overall project efficiencies.

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

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

(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.

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

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

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

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

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

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

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

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

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

74% of Our Total Development and Redevelopment Pipeline RSF Is Within Our Megacampus™ Ecosystems

The following table summarizes the key information for all our development and redevelopment projects in North America as of June 30, 2025 (dollars in thousands):

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

76

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

77

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

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

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

(1) Total square footage includes 2,578,478 RSF of buildings currently in operation that we expect to demolish or redevelop and commence future construction subject to market conditions and leasing. Refer to “Investments in real estate”

under “Definitions and reconciliations” in Item 2 for additional information, including development and redevelopment square feet currently included in rental properties.

(2) During the three months ended September 30, 2024, we filed a lawsuit against the New York City Health + Hospitals Corporation and the New York City Economic Development Corporation for fraud and breach of contract concerning our

option to ground lease a land parcel to develop a future world-class life science building within the Alexandria Center® for Life Science – New York City Megacampus. Refer to “Legal proceedings” in Item 1 under Part II – Other Information

for additional details.

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

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Results of operations

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

amounts):

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.

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Same properties

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

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

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

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

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

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

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

Interest rate risk

The primary market risk to which we believe we may be exposed is interest rate risk, which may result from many factors,

including government monetary and tax policies, domestic and international economic and political considerations, and other factors

that are beyond our control.

In order to modify and manage the interest rate characteristics of our outstanding debt and to limit the effects of interest rate

risks on our operations, we may utilize a variety of financial instruments, including interest rate hedge agreements, caps, floors, and

other interest rate exchange contracts. The use of these types of instruments to hedge a portion of our exposure to changes in interest

rates may carry additional risks, such as counterparty credit risk and the legal enforceability of hedge agreements. As of June 30, 2025,

we did not have any outstanding interest rate hedge agreements.

Our future earnings and fair values relating to our outstanding debt are primarily dependent upon prevalent market rates of

interest. The following tables illustrate the effect of a 1% change in interest rates, assuming a zero percent interest rate floor, on our

fixed- and variable-rate debt as of June 30, 2025 (in thousands):

These amounts are determined by considering the effect of the hypothetical interest rates on our borrowings as of June 30,

2025. These analyses do not consider the effects of the reduced level of overall economic activity that could exist in such an

environment. Furthermore, in the event of a change of such magnitude, we would consider taking actions to further mitigate our

exposure to the change. Because of the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity

analyses assume no changes in our capital structure.

Equity price risk

We have exposure to equity price market risk because we hold equity investments in publicly traded companies and privately

held entities. All of our investments in actively traded public companies are reflected in our consolidated balance sheets at fair value.

Our investments in privately held entities that report NAV per share are measured at fair value using NAV as a practical expedient to fair

value. Our equity investments in privately held entities that do not report NAV per share are measured at cost less impairments,

adjusted for observable price changes during the period. Changes in fair value of public investments, changes in NAV per share

reported by privately held entities, and observable price changes of privately held entities that do not report NAV per share are

classified as investment income (loss) in our consolidated statements of operations. There is no assurance that future declines in value

will not have a material adverse effect on our future results of operations. The following table illustrates the effect that a 10% change in

the value of our equity investments would have on earnings as of June 30, 2025 (in thousands):

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Foreign currency exchange rate risk

We have exposure to foreign currency exchange rate risk related to our subsidiaries operating in Canada and Asia. The

functional currencies of our foreign subsidiaries are the local currencies in each respective country. Gains or losses resulting from the

translation of our foreign subsidiaries’ balance sheets and statements of operations are classified in accumulated other comprehensive

income (loss) as a separate component of total equity and are excluded from net income (loss). Gains or losses will be reflected in our

consolidated statements of operations when there is a sale or partial sale of our investment in these operations or upon a complete or

substantially complete liquidation of the investment. The following tables illustrate the effect that a 10% change in foreign currency rates

relative to the U.S. dollar would have on our potential future earnings and on the fair value of our net investment in foreign subsidiaries

based on our current operating assets outside the U.S. as of June 30, 2025 (in thousands):

The sensitivity analyses assume a parallel shift of all foreign currency exchange rates with respect to the U.S. dollar; however,

foreign currency exchange rates do not typically move in such a manner, and actual results may differ materially.

Our exposure to market risk elements for the six months ended June 30, 2025 was consistent with the risk elements presented

above, including the effects of changes in interest rates, equity prices, and foreign currency exchange rates.

Evaluation of disclosure controls and procedures

As of June 30, 2025, we had performed an evaluation, under the supervision of our principal executive officers and principal

financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. These controls and

procedures have been designed to ensure that information required for disclosure is recorded, processed, summarized, and reported

within the requisite time periods. Based on our evaluation, the principal executive officers and principal financial officer concluded that

our disclosure controls and procedures were effective as of June 30, 2025.

Changes in internal control over financial reporting

There has not been any change in our internal control over financial reporting during the three months ended June 30, 2025

that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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

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

contained under the caption “Item 1A. Risk factors” in our annual report on Form 10-K for the year ended December 31, 2024. Those risk

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

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

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

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

annual report on Form 10-K for the year ended December 31, 2024, except for the following updates:

Changes to regulatory, funding, staffing, trade, and other policies and actions by the U.S. government could

adversely affect our business operations or those of our tenants and our venture investment portfolio companies.

Domestic and international policy shifts may introduce considerable uncertainty to the macroeconomic and regulatory

landscape in which we, our tenants, and our venture investment portfolio companies operate. Our tenants and our venture

investment portfolio companies include entities in the pharmaceutical, biotechnology, medical device, life science, and related

industries, academic and private institutions, government institutions that determine their research and development budgets

based on several factors, including the availability of government and other funding, and the operational efficiency and reliability

of public regulatory institutions.

Since January 2025, the current U.S. administration has enacted and proposed substantial policy changes that affect

federal health agencies, research funding, public health priorities, and international trade. These measures — ranging from

staffing and budget reductions at the U.S. Food and Drug Administration (“FDA”) and the National Institutes of Health (“NIH”) to

sweeping tariff actions, as described below — may significantly disrupt the life science ecosystem in which we, our tenants, and

our venture investment portfolio companies operate.

Reductions in FDA Workforce and Budget

In 2025, the FDA laid off approximately 3,500 employees, representing approximately 19% of its workforce at the

beginning of the year. Such workforce reductions at the FDA have raised some concerns regarding the agency’s capacity to

perform timely regulatory reviews and approvals of drugs and other medical products. Recent and/or potential further reductions

in workforce or other personnel changes at the FDA, including terminations, may disrupt the agency’s review and approval

processes for our tenants’ and our venture investment portfolio companies’ products. Such disruptions could lead to setbacks in

research and development timelines, negatively impacting life science companies’ ability to advance their pipelines, secure

investor funding, or achieve commercial viability, which could severely affect their operations and financial performance and, as

a result adversely impact our operating and financial results.

NIH Grant Cuts and Impact on Research Institutions

The current U.S. administration has implemented significant policy changes affecting the NIH, leading to substantial

disruptions in biomedical research across the U.S. These actions included staff layoffs and funding cuts, as described below,

and resulted in the suspension of numerous research projects, posing risks to scientific advancement and introducing

uncertainty for some of our tenants and venture investment portfolio companies.

• NIH budget freeze and workforce cuts. On January 27, 2025, the U.S. administration issued an executive order to

suspend NIH grant funding, freezing much of NIH’s nearly $48 billion budget for 2025. Though the suspension was

eventually blocked and reversed, during the first half of 2025 the NIH laid off approximately 5,000 employees and

contractors across its approximately 20,000-person workforce.

In May 2025, the White House introduced a budget proposal for fiscal year 2026 that would reduce the NIH budget by

40%, from $48 billion to $27.5 billion. The proposal has been met with push back from Congress, and, until a new

budget is approved by the legislature, the NIH budget will remain at 2024 levels through a continuing resolution.

Should the NIH budget be significantly reduced, it may affect funding of early research that drives the formation of new

life companies, potentially impacting the U.S.'s global life science leadership and long-term demand for life science

real estate.

• Termination of NIH grants and funding commitments to major research institutions. On January 20, 2025, President

Trump issued an executive order directing every U.S. agency, including the NIH, to “terminate, to the maximum extent

allowed by law” all grants relating to diversity, equity, and inclusion. On January 29, 2025, the President issued an

executive order to make it “the policy of the United States to combat anti-Semitism vigorously, using all available and

appropriate legal tools, to prosecute, remove, or otherwise hold to account the perpetrators of unlawful anti-Semitic

harassment and violence.” As a result of one or both executive orders, the NIH, the world’s largest funder of

biomedical research, has withheld funding from certain U.S. research institutions.

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• 15% cap on indirect cost reimbursements of all NIH grants. On February 7, 2025, the NIH introduced a policy limiting

indirect cost reimbursements to 15% for all NIH grants, representing a significant reduction from historic levels, which

were approximately double that rate on average, and in some cases significantly higher. This change threatens to

substantially impact the ability of research institutions to support their infrastructure and administrative costs, including

their ability to lease life science facilities.

A coalition of 22 state attorneys general, along with organizations like the Association of American Medical Colleges,

filed lawsuits challenging the NIH’s policy changes, particularly the 15% cap on indirect costs. On April 7, 2025, a federal court

issued a permanent injunction blocking the enforcement of this cap. However, the U.S. administration has signaled its intent to

appeal and/or pursue similar funding restrictions through future legislative or administrative actions. If implemented, any such

funding cap could negatively impact our tenants that depend on grant funding for its operations. It could also reduce the

financial resources available to such tenants, forcing them to scale back operations, reduce leased space, or delay their plans

for lease expansion.

Termination of federal research funding that affected prominent academic institutions has already led to reductions in

postdoctoral hiring and the closure of critical programs. Moreover, recent changes to visa rules have introduced new uncertainty

around the ability of international graduate students and postdoctoral researchers to remain in the U.S. following graduation.

Many of these individuals represent years of training investment and historically have formed a key segment of the U.S. biotech

workforce. As limitations on their residency and employment take effect, a growing share of talent is migrating to foreign

markets. The U.S. life sciences real estate market has historically benefited from robust domestic R&D activity and venture

capital investment. However, other countries are increasingly positioned to attract top-tier biomedical talent, venture capital, and

clinical trials. The global leadership in biotechnology currently held by the U.S. may begin to shift abroad. The reduced

attractiveness of the U.S. as a destination for research and commercialization could lead to a substantial long-term decline in

the size of our life science tenant base and of life science real estate.

Drug Pricing Regulation — Most Favored Nation Executive Order

On May 12, 2025, President Trump issued an executive order titled “Delivering Most-Favored-Nation Prescription Drug

Pricing to American Patients,” directing the U.S. Department of Health and Human Services to establish pricing benchmarks for

prescription drugs based on the lowest prices paid in other developed countries. While the President announced that the

“prescription drug and pharmaceutical prices will be reduced, almost immediately, by 30% to 80%,” many of the proposed

changes would require formal rulemaking and are expected to face legal challenges. Although the implementation timeline and

extent of any actual price reductions remain uncertain. If enacted, these changes could materially affect our life science tenants

by potentially diminishing their profitability and constraining future growth, which in turn can reduce their future demand for life

science space.

Dismissal of the Entire Independent Vaccine Advisory Panel at the U.S. Centers for Disease Control and Prevention (CDC)

In June 2025, the U.S. Health Secretary unilaterally dismissed all 17 members of the Advisory Committee on

Immunization Practices (ACIP) at the CDC, and withdrew a recommendation for administering COVID shots to children and

pregnant women. Shortly thereafter, the Health Secretary named eight new members to serve on the panel, including several

anti-vaccine advocates.

Reductions in Medicaid Funding under the One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act was signed into law. Included in the bill is an estimated $1 trillion in cuts

to Medicaid spending, implemented through Medicaid work requirements, patient cost-sharing, and a phasedown of Medicaid

provider taxes and state-directed payments. Such reductions in Medicaid spending could result in lower revenue for some life

science tenants, adversely impacting financial performance and potentially resulting in reduced life science real estate

requirements.

The Rapid Expansion of China’s Biotechnology Sector May Adversely Impact Demand for U.S. Life Sciences Real Estate

The U.S. life sciences real estate market has historically benefited from robust domestic R&D activity and venture

capital investment. The accelerated growth of China’s biotechnology industry—fueled by state subsidies, regulatory reform, and

inexpensive talent —poses a potential threat to U.S. lab space demand. Given lower operational costs and faster clinical trial

recruitment timelines, China may attract biotech firms to conduct R&D activities in China rather than the U.S.

Additionally, the U.S. biopharma sector is increasingly sourcing innovative assets from China, with over one-third of in-

licensed molecules at major U.S. pharmaceutical companies now originating from Chinese firms. If biopharma companies

increasingly rely on acquiring or in-licensing assets from China instead of looking to innovation developed in the U.S., it could

negatively impact the fundamentals of the U.S. biotech market leading to reduced investment and fewer U.S.-based biotech

companies. Should this occur, demand for domestic lab space could decline.

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Tariff Escalation, Trade Disruption, and Financial Market Instability

Beginning in March 2025, the U.S. government implemented a series of trade actions that have reshaped global

economic relations and triggered market volatility, specifically:

• On February 1, 2025, President Trump signed executive orders imposing a 25% tariff on all goods from Mexico and

Canada and a 10% tariff on China.

• On March 3, 2025, the President increased tariffs on all products from China from 10% to 20%. He also implemented

new 25% tariffs on imports from Mexico and Canada.

• On April 2, 2025, the President declared a national emergency to address the U.S. trade deficit and imposed a 10%

universal import tariff on all goods, with higher rates for 57 trading partners. This announcement led to a significant

stock market decline, with the S&P 500 Index, Dow Jones Industrial Average, and the Nasdaq Composite dropping by

approximately 6.0%, 5.5%, and 5.8%, respectively.

• On April 9, 2025, facing a global market meltdown, the President announced a 90-day pause on tariffs for most

countries but raised the tax rate on Chinese imports to 125%. Following the announcement, the S&P 500 Index surged

9.5%. However, on April 10, 2025, U.S. stocks fell as the initial euphoria over the pause on tariffs faded. Subsequently,

on June 12, 2025, the President announced that the 125% tariff would be replaced with a 55% tariff on select Chinese

goods. Pharmaceutical ingredients and critical materials remain partially exempt.

• On April 14, 2025, the U.S. government launched an investigation into pharmaceuticals to justify tariffs that may be

implemented on pharmaceutical products. In 2024, over $200 billion in pharmaceutical products were imported to the

U.S., and it is estimated that U.S. tariffs could add $46 billion in costs to the pharmaceutical industry.

If financial markets continue to be disrupted, we may face the following risks:

• Restricted access to capital. Market instability may hinder our ability to raise capital, including through dispositions,

sales of partial interests, and new debt capital, and could potentially delay our current or future development and

redevelopment projects.

• Rising construction costs. Our general contractors may face difficulty procuring construction materials at reasonable

prices, particularly those subject to tariffs or disrupted supply, which may lead to project delays and/or increased costs.

Rising costs and procurement challenges could significantly impact the yields and delay net operating income

commencement from our current and future development and redevelopment pipeline.

• Risks to tenant operations. Many of our tenants rely on the import and export of materials, components, and/or

specialized equipment. As a result, their products may become prohibitively expensive to manufacture or sell. These

challenges may adversely affect our tenants’ ability to meet their lease obligations or to renew their leases with us.

• Macroeconomic impact. Widespread tariffs, restricted trade, increased market volatility, and reduced investor

confidence may trigger inflationary pressure and elevate the risk of a U.S. recession.

The cost increases that may result from tariffs, trade conflicts, and financial market volatility may significantly impact our

development and redevelopment projects. Elevated material costs may lead to higher overall project budgets and extended

construction timelines or require modifications to project scope to preserve economic feasibility. Any such adjustments may adversely

affect our ability to deliver space on time and within budget, delay occupancy and commencement of rental income, and impact

projected net operating income and yields.

Any of the aforementioned and future developments may adversely affect occupancy rates, rental income, and the value of

our real estate portfolio in several ways. First, regulatory delays and reduced NIH funding may slow the pace of innovation and

company formation, leading to fewer early-stage tenants seeking lab space. Established tenants may face financial strain due to

reduced grant support, drug pricing pressures, and increased operational costs from tariffs, prompting them to downsize, consolidate,

or defer expansion plans. This could result in lower leasing, increased vacancy rates, and downward pressure on rental rates across

our portfolio.

Second, macroeconomic volatility and restricted access to capital markets may impair our ability to fund new developments or

raise new debt or equity capital at favorable terms. Rising construction costs and supply chain disruptions could delay project

completions, reduce development yields, and impact the timing of rental income generation. Additionally, if tenants are unable to absorb

higher operating costs or pass them on to customers, their financial health may deteriorate, increasing the risk of lease defaults or

renegotiations.

Finally, the growing competitiveness of international markets—particularly China’s rapidly expanding biotech sector—may

shift R&D activity abroad, reducing domestic demand for specialized lab infrastructure. If U.S.-based life sciences companies

increasingly rely on foreign innovation or relocate operations to more favorable regulatory or cost environments, the long-term

fundamentals of the U.S. life sciences real estate market could weaken. This may lead to asset devaluation, reduced investor

confidence, and a more challenging environment for sustaining growth and delivering shareholder value.

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