Alexandria Real Estate Equities, Inc.: Form 10-Q for the period ended Sep 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 September 30, 2025, Alexandria has a total market capitalization of $27.8 billion and an

asset base in North America that includes 39.1 million RSF of operating properties and 4.2 million RSF of Class A/A+ properties

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

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

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

teamwork. Our tenants include multinational pharmaceutical companies; life science product, service, and device companies; public

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

others. Alexandria has a long-standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and

collaborative Megacampus environments that enhance our tenants’ ability to successfully recruit and retain world-class talent and

inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science

companies through our venture capital platform.

As of September 30, 2025:

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

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

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

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

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

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

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

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

• 82% of our leasing activity during the last twelve months was generated from our existing tenant base.

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

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

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

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

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

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

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

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

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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, strong margins, and long lease terms

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

As of September 30, 2025, unless stated otherwise:

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

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

6.0x and 3.6x to 4.1x, respectively.

• Significant liquidity of $4.2 billion, or 4.2x our debt maturities through 2027.
• Only 7% of our total debt matures through 2027.
• 11.6 years weighted-average remaining term of debt, longest among S&P 500 REITs.
• Since 2021, our quarter-end fixed-rate debt has averaged 96.7%.
• Total debt and preferred stock to gross assets of 31%.
• $166.9 million of capital contribution commitments from existing consolidated real estate joint venture partners to fund

construction from October 1, 2025 through 2027 and beyond.

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Solid leasing volume and rental rate increases

• Leasing volume of 1,171,344 RSF during the three months ended September 30, 2025.
• Includes the largest life science lease in company history with a long-standing multinational pharmaceutical tenant for

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

in our University Town Center submarket.

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

quarters.

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

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

• 82% of our leasing activity during the last twelve months was generated from our existing tenant base.

Key operating metrics

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

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

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

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

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

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

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

by $118.5 million, or 5.8%, compared to the three months ended September 30, 2024 annualized. Refer to “Net operating

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

reconciliation of our net income to net operating income (cash basis).

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

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

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

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

• Same property net operating income changes
• (6.0)% and (3.1)% (cash basis) for the three months ended September 30, 2025, compared to the three months

ended September 30, 2024.

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

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

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

September 30, 2024.

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

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

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

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

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

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

be achieved in 2025 will continue in 2026.

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

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

other S&P 500 REITs.

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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 of $1.32 per share for the three months ended September 30, 2025, aggregating $5.28

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

ended September 30, 2024.

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

September 30, 2025.

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

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

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

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

of Directors expects to carefully evaluate our 2026 dividend strategy.

Ongoing execution of Alexandria’s 2025 capital recycling strategy

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

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

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

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

partial interests” in Item 2 for additional details.

Leasing progress on temporary vacancy

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

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

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

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

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

lease expiration date at the end of July 2025.

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

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

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

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

• $27.8 billion in total market capitalization.
• $14.2 billion in total equity capitalization.
• Non-real estate investments aggregating $1.5 billion:
• Unrealized gains presented in our consolidated balance sheet were $28.3 million, comprising gross unrealized gains

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

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

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

impairment charges.

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Key capital events

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

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

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

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

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

External growth and investments in real estate

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

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

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

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

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

$16 million.

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

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

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

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

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

income from 2024 from projects that are 85% leased.

• 76% of the RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.

(dollars in millions)

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

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

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

projects” in Item 2 for additional information.

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

2026 from projects expected to stabilize in 2027 and beyond.

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

through the fourth quarter of 2026.

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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 occupancy, and adversely affect our operating

results.

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

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

success of other laboratory operators have prompted and may continue to prompt new and existing life science developers to

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

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

markets such as Boston, San Diego, and the San Francisco Bay Area, heightening competitive pressures and diluting

landlords’ pricing power in certain submarkets.

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

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

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

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

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

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

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

amounts):

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

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

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

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

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

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

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

within anticipated time frames, even at reduced rates.

As of September 30, 2025, we anticipate that 4.2 million RSF of our projects undergoing construction and one 100% pre-

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

through 2028 and will generate $390 million in future incremental annual net operating income. These projects are 43% leased

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

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

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

overall economics. Realization of the aforementioned risks could hinder our ability to secure tenants for the remaining

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

commencement of, the projected incremental annual net operating income.

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• Unfavorable macroeconomic environment, capital markets, and life science industry fundamentals may negatively

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

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

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

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

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

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

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

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

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

type capital to manage our leverage profile.

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

acquisition and other opportunistic uses of capital spending is expected to be funded through dispositions and sales of

partial interests in core and non-core real estate assets. Real estate investments are generally less liquid than many other

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

environment of oversupply.

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

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

to oversupply. Although the U.S. Federal Reserve lowered the federal funds target range from 5.25%–5.50% at the end of

2023 to 4.25%–4.50% during 2024, and to 4.00%–4.25% in September 2025, interest rates remain elevated. This could

continue to limit access to debt and/or equity financing for prospective buyers of our real estate assets, potentially

eliminating their participation in the market or forcing them to seek more expensive alternative funding options. All other

aspects being equal, such challenges for buyers lead to an excess of properties available for sale, which exert downward

pressure on property valuations and elevate capitalization rates, adversely impacting the sales proceeds we expect from

our real estate asset sales.

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

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

real estate impairments and making it more challenging to execute asset sales within expected timelines and at favorable

pricing. For additional information about our dispositions, refer to “Sales of real estate assets and impairment of real

estate” in Note 3 – “Investments in real estate” to our unaudited consolidated financial statements in “Item 1. Financial

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

of approximately $1.50 billion at the midpoint of our 2025 guidance range. However, we may not be able to achieve this

and/or other targets disclosed in our 2025 guidance as a result of the uncertainties discussed in this section as well as in

“Item 1A. Risk factors” within “Part II – Other information” of this quarterly report on Form 10-Q and “Item 1A. Risk factors”

within Part I in our annual report on Form 10-K for the year ended December 31, 2024.

The table below presents total dispositions and a trend of increasing impairments of real estate and capitalization rates

associated with dispositions and sales of partial interests in our real estate assets (dollars in thousands), which is partly

attributable to the quality of core and non-core assets we sold during each period. There is no assurance that this upward

trend will stabilize or reverse in the future.

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

additional information.

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

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

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

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

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

unstabilized, and land parcels.

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

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

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

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

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

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

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

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

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

impairments ranging from $0 to $685 million.

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

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

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

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

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

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

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

most directly comparable financial measure presented in accordance with GAAP, refer to “Funds from operations and

funds from operations, as adjusted, attributable to Alexandria Real Estate Equities, Inc.’s common stockholders” under

“Definitions and reconciliations” in Item 2.

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

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

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

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

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

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

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

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

guidance range. Elevated benchmark interest rates may result in debt funding options that are costlier, less accessible, or

even unavailable, potentially limiting our ability to complete our development and redevelopment projects on schedule and

thereby delaying our expected incremental annual net operating income generation and negatively affecting our business.

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

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

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

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

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

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

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

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

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

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

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

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

suspension of our construction projects, delay of future projects, or sale of non-income-producing property. This could

result in a decline in our capitalized interest for 2025 and beyond below our current projections and a further increase in

interest expense recognized in our consolidated statement of operations.

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

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

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

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

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

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

includes:

• $2.8 billion related to development and redevelopment projects under construction and one 100% pre-leased

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

• $1.1 billion related to smaller redevelopments and repositioning capital projects; and
• $4.2 billion related to future pipeline projects expected to reach key milestones in the fourth quarter of 2025 and 2026,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

affected.

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

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

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

The table below presents realized gains, impairments, and unrealized losses on our non-real estate investments (in

thousands):

(1) Excludes impairment charges.

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

December 31, 2023 aggregated to $180.4 million, $228.1 million, and $320.4 million, respectively.

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

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

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

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

investments, and overall business. Material developments include workforce reductions at the National Institutes of Health

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

funding freezes affecting research at certain U.S. research institutions. These changes have led to the suspension of

many research projects, delays in regulatory reviews and approvals of drugs and other medical products, and increased

barriers to clinical and regulatory progress, including for early-stage life science companies. Moreover, foreign markets,

especially China, are rapidly gaining ground as global biotechnology leaders due to their centralized funding and faster

regulatory timelines. The U.S. life science industry risks losing its competitive advantage as companies increasingly look

abroad to conduct research. Combined with new immigration restrictions that affect international research talent, these

policy actions threaten the long-term viability of the U.S. biomedical industry. The cumulative effect of these developments

may significantly reduce tenant demand for U.S. life science real estate. At the same time, trade tensions and widespread

tariffs may increase the cost of capital and key materials, which could delay or reduce our development pipeline. Refer to

“Item 1A. Risk factors” within “Part II – Other information” of this quarterly report on Form 10-Q for more information.

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

performance, including but not limited to our income from rentals, net operating income, results of operations, funds from operations,

operating margins, initial stabilized yields (unlevered) on new or existing construction projects, occupancy, EPS, FFO per share, FFO

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

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

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

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

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

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

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

value of our common stock.

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

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

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

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

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

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

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

critical.

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

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

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

26.4 million RSF as of September 30, 2025, of which 76% is concentrated within our Megacampus ecosystems. Their

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

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

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

access to transit. With inspiring design and people-centric amenities, we believe these campuses enhance our tenants’

confidence in using these spaces as effective recruiting tools. In contrast, we believe that a significant amount of the

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

strategic design of our Megacampus ecosystems.

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

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

three decades, we have established a significant market presence in AAA innovation cluster locations, which is

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

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

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

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• Leasing volume aggregating 3.0 million RSF for the nine months ended September 30, 2025.

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

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

Point by Alexandria Megacampus in our University Town Center submarket.

• Weighted-average lease term of 12.6 years for leases executed during the nine months ended September 30, 2025.
• Projects expected to stabilize in 2025 and 2026 are 80% leased/negotiating.
• Rental rate increases of 13.6% and 6.8% (cash basis) for the nine months ended September 30, 2025.
• Occupancy of 90.6% as of September 30, 2025.
• Strength of our brand. As a recognized leader in the life science and real estate sectors, Alexandria has successfully

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

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

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

brand strength include the following:

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

tenant base.

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

publicly traded large cap companies.

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

September 30, 2025.

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

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

financial position is highlighted by several key indicators:

• Our significant liquidity of $4.2 billion as of September 30, 2025 provides us the flexibility to address our operational

needs and to pursue strategic opportunities.

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

2025:

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

range.

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

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

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

guidance range.

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

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

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

annualized.

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

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

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

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

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

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

debt maturities.

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

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

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

groundbreaking scientific research and has been cultivated and maintained over many years.

The demanding nature of laboratory-based scientific research requires strict adherence to safety standards set by local,

state, and federal regulatory bodies. Key compliance aspects include good manufacturing practices (GMP) and Clinical

Laboratory Improvement Amendments (CLIA) certifications, adherence to national biosafety level guidelines, proper

permitting and handling of hazardous waste generation and chemical storage, maintenance of safety stations, effective

management of ultra-low temperature freezers, and careful licensing and management of radioactive materials.

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

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

multifaceted sources of funding, including private venture capital, biopharmaceutical spend, government funding, and

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

positions us to effectively capitalize on these long-term trends:

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

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

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

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

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

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

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

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

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

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

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

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

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

ended December 31, 2023. These initiatives are expected to generate a reduction in general and administrative

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

2025 guidance range) compared to the year ended December 31, 2024. These savings are expected to stem from a

variety of implemented cost-control and efficiency initiatives, including, but not limited to, the following:

(i) Personnel-related matters, including:

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

(ii) Streamlining of business processes:

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

elimination of redundancies through better alignment and consolidation of roles.

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

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Operating summary

Same Property Performance: Net Operating Income Changes 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

68% 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 7.5 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)

(3.1)%

2024 YTD 9/30/25

(1)

5.5x to 6.0x

3.6x to 4.1x

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

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

financial measures presented in accordance with GAAP.

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

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

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

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

(5) Quarter annualized.

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Stable Cash Flows From Our High-Quality and Diverse Mix of Approximately 700 Tenants

Investment-Grade or Publicly Traded Large Cap Tenants

90%

of ARE’s Top 20 Tenant Annual Rental Revenue

53%

of ARE’s Total Annual Rental Revenue

Life Science

Product,

Service, and

Device

Multinational

Pharmaceutical

Public

Biotechnology

• Approved or

Marketed

Product

Other(1)

Advanced

Technologies(2)

Public

Biotechnology –

Preclinical or

Clinical Stage

Government

Institutions

Biomedical

Institutions(3)

Private

Biotechnology

Percentage of ARE’s

Annual Rental Revenue

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

information.

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

retail-related tenants.

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

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

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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 85,652 RSF and 136,131 RSF as of September 30, 2025 and December 31, 2024, respectively. During the trailing twelve

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

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

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

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

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

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

technologies use.

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Summary of contractual lease expirations

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

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

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

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

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

2025:

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

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

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

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

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

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

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

reposition for advanced technologies use;

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

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

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

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

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

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

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

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

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

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

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

current projects” in Item 2 for additional details.

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Top 20 tenants

90% of Top 20 Tenant Annual Rental Revenue Is From Investment-Grade

or Publicly Traded Large Cap Tenants(1)

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

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

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

average market cap amounts):

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

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

estate joint ventures and average market capitalization, respectively.

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

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

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

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

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

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

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

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

estate joint ventures. Excluding these ground leases, the weighted-average remaining lease term for our top 20 tenants was 7.7 years as of September 30, 2025.

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

(formerly known as TIBCO Software, Inc.) was in place when we acquired the properties, of which 137,970 RSF has lease expirations through 2026. Refer to footnote 1 in

“Summary of contractual lease expirations” in Item 2 for additional details.

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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 September 30, 2025 in each of our markets in North America

(dollars in thousands, except per RSF amounts):

Summary of occupancy percentages in North America

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

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

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

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

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

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

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

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

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

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

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

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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 may result in higher

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

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

other activities preceding commencement of construction of aboveground building improvements.

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

20%

Non-Income-

Producing Assets

Projects under active construction with

stabilization in 2025-2027 and beyond

and one 100% pre-leased committed

near-term project expected to commence

in the next year– $3.7 billion

Future development projects(5) and land parcels,

primarily located in Megacampuses with critical

milestones in 4Q25 and 2026 – $4.9 billion

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

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

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

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

currently included in rental properties.

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

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

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

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

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Dispositions and sales of partial interests

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

report consisted of the following (dollars in thousands):

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

financial statements for additional information.

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

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

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

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

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

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

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

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

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

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

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

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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

(1)

(2)

(3)

(4)

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

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

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

operating income from development and redevelopment projects expected to be placed into service primarily commencing from the fourth quarter of 2025 through the fourth quarter of 2026 is projected to be $83 million. Refer to

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

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

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

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

Incremental Annual Net Operating Income Generated From YTD 3Q25 Deliveries

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

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

thousands):

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

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

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

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

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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.

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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 September 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

76% of Our Total Development and Redevelopment Pipeline RSF

Is Within Our Megacampus™ Ecosystems

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

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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)

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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 2,135,074 RSF of buildings currently in operation that we expect to demolish or redevelop and commence future construction subject to market conditions and leasing. Refer to “Investments in real estate”

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

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

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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 nine months ended September 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 reconciles the number of Same

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

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

2025:

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

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

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

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

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

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

2023 and accordingly are part of our same property pool for the nine months ended September 30, 2025, including at 325 Binney Street in our Cambridge submarket, 15

Necco Street in our Seaport Innovation District submarket, and 751 Gateway Boulevard in our South San Francisco submarket. Excluding the impact of these initial free

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

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

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

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

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

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

Same Property – Net Operating Income

Same Property – Net Operating Income (Cash Basis)

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

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

Properties for the three months ended September 30, 2025, compared to the three months ended September 30, 2024 (dollars in

thousands). Refer to “Definitions and reconciliations” in Item 2 for definitions of “Tenant recoveries” and “Net operating income” and

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

net income, respectively.

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

for the three months ended September 30, 2025 would have decreased by 3.7% over the corresponding period in 2024.

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Income from rentals

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

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

discussed below.

Rental revenues

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

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

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

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

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

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

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

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

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

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

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

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

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

Tenant recoveries

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

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

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

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

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

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

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

leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes,

insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in

addition to base rent. This increase was partially offset by a decrease in Same Properties’ tenant recoveries resulting from a decrease

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

ended September 30, 2024.

Rental operations

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

$239.2 million, compared to $233.3 million for the three months ended September 30, 2024. The increase was primarily due to higher

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

rental operating expenses of $0.9 million primarily as a result of real estate dispositions since July 1, 2024.

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

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

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

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

primarily due to new developments in the Greater Boston and San Francisco Bay Area markets delivered in 2023, with property taxes

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

Depreciation and amortization

Depreciation and amortization expense for the three months ended September 30, 2025 increased by $46.2 million, or 15.7%,

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

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

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

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Impairment of real estate

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

primarily included the following:

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

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

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

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

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

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

this property within the next 12 months.

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

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

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

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

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

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

recognized upon sale.

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

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

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

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

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

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

12 months.

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

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

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

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

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

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

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

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

negotiation with a potential buyer less costs to sell.

General and administrative expenses

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

to $29.2 million, compared to $43.9 million for the three months ended September 30, 2024, primarily due to cost-control and efficiency

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

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

months ended September 30, 2025 and 2024 were 5.7% and 8.9%, respectively.

Interest expense

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

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

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

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

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

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

other bank fees.

Investment income (loss)

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

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

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

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

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

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

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

Gain on sales of real estate

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

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

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

statements in Item 1.

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

1165 Eastlake Avenue East in our Lake Union submarket.

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

ended September 30, 2025 and 2024, respectively.

Other comprehensive (loss) income

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

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

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

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

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

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

additional information.

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

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

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Comparison of results for the nine months ended September 30, 2025 to the nine months ended September 30, 2024

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

Properties for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 (dollars in

thousands). Refer to “Definitions and reconciliations” in Item 2 for definitions of “Tenant recoveries” and “Net operating income” and

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

net income, respectively.

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

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

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Income from rentals

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

compared to $2.29 billion for the nine months ended September 30, 2024, due to a decrease in rental revenues, partially offset by an

increase in tenant recoveries, as discussed below.

Rental revenues

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

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

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

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

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

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

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

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

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

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

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

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

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

Tenant recoveries

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

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

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

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

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

September 30, 2025, 91% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay

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

(including increases thereto) in addition to base rent. This increase was partially offset by a decrease in Same Properties’ tenant

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

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

Other income

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

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

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

Rental operations

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

$690.1 million, compared to $668.8 million for the nine months ended September 30, 2024. The increase was primarily due to

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

Non-Same Properties’ rental operating expenses of $26.8 million primarily as a result of dispositions of real estate assets since January

1, 2024.

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

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

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

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

aggregating $10.0 million primarily due to new developments in the Greater Boston and San Francisco Bay Area markets delivered in

2023, with property taxes based on these properties’ higher assessed values becoming effective subsequent to July 1, 2024, and (iii)

repair and maintenance expenses aggregating $8.3 million primarily due to a more severe winter in 2025 compared to 2024 in the

Greater Boston market.

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Depreciation and amortization

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

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

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

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

Impairment of real estate

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

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

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

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

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

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

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

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

the next 12 months.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

sale of these assets within the next 12 months.

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

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

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

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

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

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

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

which primarily consisted of pre-acquisition costs related to two potential acquisitions in the Greater Boston market that we decided to

no longer proceed with as a result of the macroeconomic environment that negatively impacted the financial outlooks of these

acquisitions, and a real estate impairment charge to adjust the carrying amount of one property in Canada that continued to meet the

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

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General and administrative expenses

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

$89.0 million, compared to $135.6 million for the nine months ended September 30, 2024, primarily due to cost-control and efficiency

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

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

months ended September 30, 2025 and 2024 were 5.7% and 8.9%, respectively.

Interest expense

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

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

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

The net change in interest expense during the nine months ended September 30, 2025, compared to the nine months ended

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

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

other bank fees.

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Investment loss

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

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

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

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

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

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

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

Gain on sales of real estate

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

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

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

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

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

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

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

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

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

Other comprehensive income

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

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

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

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

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

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

additional information.

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

foreign currency translation loss related to our operations in Canada.

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Summary of capital expenditures

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

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

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

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

to be $320 million at the midpoint of our guidance for 2025 construction spending.

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

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

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

construction through 2027 and beyond (in thousands):

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

Average real estate basis used for capitalization of interest

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

the nine months ended September 30, 2025 (in thousands):

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

delivery date is approximately May 1, 2026.

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

• San Carlos, Campus Point by Alexandria, and Alexandria Center® for Advanced Technologies – South Lake Union, which represent a total average capitalized real

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

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

activities necessary to begin aboveground vertical construction on April 14, 2026 on a weighted-average real estate investment basis. We will evaluate whether to

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

potential dispositions of real estate assets.

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

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

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

for the nine months ended September 30, 2025.

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Projected results

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

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

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

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

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

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

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

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

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

Key changes to our 2025 guidance include the following:

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

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

includes the following:

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

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

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

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

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

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

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

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

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

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

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

pursuant to the Nareit definition of funds from operations.

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

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

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

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

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

reduced demand across the life science industry.

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

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

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

September 30, 2025.

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

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

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

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

of 2026.

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

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

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

funds from operations per share, as adjusted.

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

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

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

and reconciliations” in Item 2 for additional information.

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

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

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

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

significant changes to such guidance.

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

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

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

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

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

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

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

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

half of 2026.

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

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

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

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

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

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

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Summary of key items that may impact 2026 results

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

that are expected to impact 2026 results:

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

impact future occupancy. Additional considerations include the following:

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

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

additional details.

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

September 30, 2025.

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

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

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

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

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

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

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

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

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

the fourth quarter of 2025.

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

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

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

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

additional details.

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

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

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

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

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

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

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

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

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

additional details.

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

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

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

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

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

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

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

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

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

expected to be achieved in 2025 will continue in 2026.

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

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

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

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

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

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

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

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

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

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

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

• Dividends and net cash provided by operating activities after dividends
• From 2013 to 2025, dividends per share and funds from operations per share, as adjusted have been highly correlated, with

cumulative increases of 102% and 105%, respectively.

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

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

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

Board of Directors to carefully evaluate our 2026 dividend strategy.

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Consolidated and unconsolidated real estate joint ventures

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

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

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

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

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

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

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

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

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

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

redeemable noncontrolling interest earning a fixed return.

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

properties” in Item 2 for additional details.

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

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

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

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

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

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

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

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

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

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

performance of the joint venture.

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

September 30, 2025 (dollars in thousands):

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

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

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

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

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

venture partners, including our share of $10.8 million.

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

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

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

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

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

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

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

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

aggregate of $186.8 million and $179.1 million, respectively, to our joint venture partners. Refer to our consolidated statements of cash

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

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 September 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 September 30, 2025 (in thousands):

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

September 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 September 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 USD 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 September 30, 2025 (in thousands):

(1) Refer to Note 11 – “Hedge agreements” to our unaudited consolidated financial statements for additional information.

The sensitivity analyses assume a parallel shift of all foreign currency exchange rates with respect to the USD; 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 nine months ended September 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 September 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 September 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 September 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 U.S. government funding, staffing, trade, policies, and other federal actions 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, and government institutions that determine their R&D 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 U.S. administration has implemented 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

In 2025 to date, 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.

Restructuring and workforce reductions at the CDC

In 2025 to date, the U.S. Centers for Disease Control and Prevention (“CDC”) underwent a significant restructuring and

workforce reduction, including the dismissal of key scientific and policy personnel and the consolidation of several vaccine

safety and surveillance programs. These developments have raised concerns among public health and industry stakeholders

about the agency’s capacity to maintain vaccine oversight, coordinate immunization programs, and respond to emerging

infectious disease threats. Reduced CDC staffing and operational realignments may disrupt the collection and dissemination of

critical epidemiological data, delay updates to vaccination guidelines, and impair public confidence in vaccine safety. For our

tenants and venture investment portfolio companies operating in the vaccine research, development, and manufacturing

sectors, diminished CDC engagement could lead to uncertainty in regulatory expectations, lower vaccine uptake rates, and

delay the adoption of new immunization technologies. Any such disruptions could undermine the commercial viability of

vaccine-related products, reduce R&D investment in the field, and in turn negatively impact demand for our specialized life

science facilities and the value of our venture investment portfolio.

NIH grant cuts and impact on research institutions

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

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

below and have 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.

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• 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 the 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 resistance from Congress, and,

until a new budget is approved Congress, 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 science companies, potentially impacting U.S. global life science leadership and long-term

domestic 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. Further, 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.

• 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 such as 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 and immigration 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. biotechnology workforce. As limitations on their residency and employment take effect, a growing share of

talent is migrating to foreign markets. The U.S. life science 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 Department of Health and Human Services to set U.S. drug price benchmarks at the

lowest prices paid in comparable developed countries. Although the President projected price reductions of 30%-80%, most

reforms would require formal rulemaking and are likely to face legal obstacles. In July 2025, the White House sent letters to the

chief executive officers of 17 major drug manufacturers, demanding compliance within 60 days and noting that noncompliance

could result in the federal government's enforcement through "every tool in our arsenal." Most recently, the Trump

administration and AstraZeneca and Pfizer reached public agreements under which both companies will offer many drugs at

“most-favored-nation” (“MFN”) pricing through Medicaid and via a new direct-to-consumer platform, and in return AstraZeneca

and Pfizer will receive a three-year tariff reprieve. While these developments signal accelerating government pressure on

industry pricing, they also inject significant ambiguity into commercial forecasts for pharmaceutical and biotechnology firms. If

widely adopted, MFN pricing could materially compress margins, reduce investment in R&D, and suppress expansions by our

life science tenants, adversely impacting demand for laboratory and related technical office space and manufacturing space,

and thereby posing downside risk to property income and investment valuations.

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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 phase-down 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 investment and real

estate requirements.

Rapid expansion of China’s biotechnology sector and potential adverse impact on demand for U.S. life science real estate

The U.S. life science 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, could negatively impact demand for U.S. laboratory space. Given lower operational costs and faster clinical

trial recruitment timelines, China may attract biotechnology firms to conduct their R&D activities, including clinical trials, in China

rather than in the U.S.

Additionally, the U.S. biopharmaceutical 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 biopharmaceutical

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

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

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

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 financial 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 remained 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.

• On August 21, 2025, the U.S. and the European Union reached a trade agreement establishing a 15% ceiling on

tariffs applied to pharmaceutical products traded between the two regions. The accord preserves supply chain

continuity for a significant share of imported active pharmaceutical ingredients and finished drug products sourced

from Europe while signaling potential divergence in tariff treatment for manufacturers based outside allied markets

such as India and China.

• On September 25, 2025, President Trump announced, effective October 1, pharmaceutical manufacturers would

be subject to a 100% tariff on all branded and patented drugs imported into the U.S. The President stated that

manufacturers could avoid these tariffs by establishing U.S.-based production operations, with qualifying activity

defined as either projects that have broken ground or are already under construction. The measure excludes

generic drugs and exempts companies actively developing or constructing domestic manufacturing facilities.

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If tariff uncertainty, its associated costs, and the disruption of broader financial markets continue, 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

commencement of net operating income 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

prevent our delivery of 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 laboratory 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. These dynamics 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, raise new debt or equity capital at favorable terms, and impact pricing on dispositions. 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 biotechnology

sector, may shift R&D activity abroad, reducing domestic demand for specialized laboratory infrastructure. If U.S.-based life

science 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 science real estate market could weaken. This may lead to asset

devaluation, reduced investor confidence, and a more challenging environment for sustaining growth and delivering stockholder

value.

Life science industry dynamics

The life science industry is undergoing a prolonged period of structural and cyclical challenges that may materially and

adversely affect our business, financial condition, and results of operations. The venture capital ecosystem that supports early-

stage platform development has experienced several years of contraction as investors look to more de-risked later-stage assets

that may not require significant R&D laboratory requirements. Additionally, historical performance data increasingly shows that

life science venture capital returns have underperformed relative to technology-focused funds and broader public market

indices. While a small number of firms have demonstrated consistently outperformed, the majority of life science-focused funds

have delivered uneven results, leading institutional investors, including endowments, foundations, and pension funds, to

reassess their long-term allocations to the sector.

This reassessment may result in a long-term reduction in capital available to private biotechnology companies, which

represent a meaningful portion of our tenant base. The high failure rate of private biotechnology companies, coupled with the

increasing cost and complexity of drug development, has led many investors to shift their focus toward more de-risked clinical-

stage assets, often sourced internationally. As a result, fewer early-stage private biotechnology companies may be formed and

funded in the U.S., which may reduce demand for the specialized laboratory space we provide across our campuses.

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In addition, the private life science market has become increasingly selective, with available capital chasing a limited

number of high-quality opportunities. This dynamic has compressed potential returns, on average, and altered the risk-reward

profile for investors. While this does not necessarily indicate a permanent shift, it does reflect a more cautious and selective

investment environment that may persist for the foreseeable future. These conditions may lead to reduced biotechnology

company formation in the U.S., diminished tenant demand, slower leasing velocity, and increased turnover among higher-risk

early-stage biotechnology tenants, particularly in markets where our portfolio is heavily concentrated in emerging biotechnology.

These industry dynamics may also affect our ability to raise capital to fund future development projects. If capital

markets perceive the life science sector as structurally challenged, our cost of capital may increase and our access to equity or

debt financing may be constrained. This could limit our ability to pursue new development opportunities, reposition existing

assets, or invest in strategic initiatives that enhance long-term stockholder value.

To address these risks, we have employed and may continue to employ a range of mitigating strategies, including:

• Deepening relationships with top-tier venture capital firms and academic institutions to identify and support high-

potential tenants earlier in their life cycle.

• Expanding our proprietary products to offer operational support, shared infrastructure, and flexible leasing models

that improve capital efficiency for emerging companies.

• Enhancing our data and analytics capabilities to better assess tenant viability, monitor portfolio risk, and inform

leasing and development decisions.

• Exploring strategic partnerships with pharmaceutical companies, contract research organizations (“CROs”), and

investment-grade institutions to create more stable demand anchors within our campuses.

• Convening influential stakeholders through our industry-leading Alexandria Summit® event series, which brings

together key decision makers, life science thought leaders, venture capital firms, members of Congress,

regulatory agency executives, and other policymakers to prioritize diseases with unmet needs and advance the

development of novel, effective therapies.

• Exploring alternative uses for Alexandria’s robust laboratory and office infrastructure by, for example, technology

tenants that require specialized R&D space.

While we believe these strategies can help mitigate the impact of current industry headwinds, there can be no

assurance that they will fully offset the risks associated with reduced formation and performance of private biotechnology

companies. If we are unable to respond effectively to these evolving market conditions, our ability to lease space, maintain high

occupancy levels, generate consistent cash flows, deliver earnings growth, and provide long-term value to our stockholders

may be materially and adversely affected.

Failure of the U.S. federal government to manage its fiscal matters may negatively impact the economic environment

and adversely impact our business

An inability of the U.S. federal government to manage its fiscal matters and enact appropriate fiscal legislation may

significantly impact the national and global economic and financial environment, result in reduced economic confidence

domestically and globally, reduce investment spending, increase borrowing costs, impact availability and cost of capital, and

significantly hinder or reduce economic activity. These economic impacts could adversely affect our business and the

businesses of our tenants.

In September 2025, Congress failed to enact a budget for the upcoming fiscal year, which resulted in a partial

government shutdown that began on October 1, 2025 and remains in effect as of the date of this report. The shutdown affected

certain key agencies at the federal government level, resulting in partial closures of operations. Thousands of federal

employees have been furloughed or laid off, some essential personnel are working without pay, and many non-essential agency

functions have ceased. During a shutdown, the FDA maintains critical operations but is unable to accept new drug applications.

The NIH and CDC may experience staffing furloughs, suspended operations, and delayed reviews of grant applications.

Prolonged or repeated shutdowns or short-term Congressional budget resolutions could adversely affect business operations of

some of our tenants that depend on federal funding, contracts, or regulatory actions to sustain their operations. Our tenants

may experience delays in submitting or advancing new drug applications, or receiving device approvals should the operations at

the FDA and other oversight bodies be reduced. The NIH may pause peer-review meetings, issuance of new grants, and many

program activities, and its Clinical Center will be unable to launch new trials during the funding lapse. The FDA’s operations may

become limited to work deemed “safety-critical” and activities supported by carryover user fees, and the agency has stated it

will be unable to accept certain new submissions requiring fees until funding resumes. These outcomes could impede R&D

progress, postpone commercialization milestones, and delay anticipated financing. Additionally, the broader economic and

capital market consequences of an extended shutdown, such as weakened investor confidence, deferred initial public offerings

(“IPOs”), and a slower pace of venture and private equity deployment, could further strain tenants’ access to capital. Our

tenants may seek to reduce cash outflows by delaying rent payments, renegotiating lease terms, downsizing existing space

commitments, or filing for bankruptcy or ceasing operations altogether.

If any of our tenants becomes a debtor in a case under the U.S. Bankruptcy Code, as amended, we cannot evict that

tenant solely because of its bankruptcy. The bankruptcy court may authorize the tenant to reject and terminate its lease with us.

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Our claim against such a tenant for uncollectible future rent would be subject to a statutory limitation that will likely be

substantially less than the remaining rent actually owed to us under the tenant’s lease. Any shortfall in rent payments could

adversely affect our cash flows and our ability to make distributions to our stockholders.

We hold equity investments in certain publicly traded companies, limited partnerships, and privately held entities

primarily involved in the life science and technology industries. The valuation of these investments is affected by many external

factors beyond our control, including, but not limited to, market prices, market conditions, healthcare legislation, prospects for

favorable or unfavorable clinical trial results, new product initiatives, the manufacturing and distribution of new products, product

safety and efficacy issues, and new collaborative agreements. Reduced activities or temporary closures of agencies such as

the FDA and SEC may adversely affect business operations, financial results, IPO processing, and project funding for the

companies in which we hold equity investments. Unfavorable developments with respect to any of these factors may have an

adverse impact on the valuation of our equity investments.

We cannot predict the timing or duration of appropriation lapses or the extent of any public policy changes. If the

shutdown persists, or if future lapses recur, our business and that of our tenants and our venture investment portfolio

companies could be adversely affected. These risks may also impact our overall liquidity, our borrowing costs, or the market

price of our common stock.

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