ALEXANDRIA REAL ESTATE EQUITIES, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31 , 2024

Commission file number 1-12993

ALEXANDRIA REAL ESTATE EQUITIES, INC.

(Exact name of registrant as specified in its charter)

Maryland	95-4502084
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

26 North Euclid Avenue , Pasadena , California 91101

(Address of principal executive offices) (Zip code)

( 626 ) 578-0777

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	ARE	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during

the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements

for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of

Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an

emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in

Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Smaller reporting company	☐
Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or

revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control

over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued

its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing

reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received

by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the shares of Common Stock held by non-affiliates of registrant was approximately $ 20.3 billion based on the closing price for

such shares on the New York Stock Exchange on June 30, 2024 .

As of January 15, 2025 , 173,091,762 shares of common stock were outstanding.

Documents Incorporated by Reference

Part III of this annual report on Form 10-K incorporates certain information by reference from the registrant’s definitive proxy statement to be filed within 120

days of the end of the fiscal year covered by this annual report on Form 10-K in connection with the registrant’s annual meeting of stockholders to be held on or

about May 13, 2025 .

INDEX TO FORM 10-K

ALEXANDRIA REAL ESTATE EQUITIES, INC.

	PART I	Page
ITEM 1.	BUSINESS ...............................................................................................................................................................................	1
ITEM 1A.	RISK FACTORS ......................................................................................................................................................................	7
ITEM 1B.	UNRESOLVED STAFF COMMENTS ..................................................................................................................................	50
ITEM 1C.	CYBERSECURITY .................................................................................................................................................................	50
ITEM 2.	PROPERTIES .........................................................................................................................................................................	52
ITEM 3.	LEGAL PROCEEDINGS .......................................................................................................................................................	82
ITEM 4.	MINE SAFETY DISCLOSURES ..........................................................................................................................................	82
	PART II
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES ..........................................................................................................	83
ITEM 6.	[RESERVED] ...........................................................................................................................................................................	83
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ........................................................................................................................................................................	84
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK .........................................................	141
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA .........................................................................................	143
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE .........................................................................................................................................................................	143
ITEM 9A.	CONTROLS AND PROCEDURES ......................................................................................................................................	143
ITEM 9B.	OTHER INFORMATION ........................................................................................................................................................	145
ITEM 9C.	DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS .................................	145
	PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE ...........................................................	146
ITEM 11.	EXECUTIVE COMPENSATION ...........................................................................................................................................	146
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS ...............................................................................................................................................	146
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE ...................	146
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES .......................................................................................................	146
	PART IV
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES ...............................................................................................	147

GLOSSARY

The following abbreviations or acronyms that may be used in this document

shall have the adjacent meanings set forth below:

ASU	Accounting Standards Update
ATM	At the Market
CIP	Construction in Progress
EPS	Earnings per Share
FASB	Financial Accounting Standards Board
FDA	U.S. Food and Drug Administration
FDIC	Federal Deposit Insurance Corporation
FFO	Funds From Operations
GAAP	U.S. Generally Accepted Accounting Principles
HVAC	Heating, Ventilation, and Air Conditioning
IRS	Internal Revenue Service
JV	Joint Venture
LEED ®	Leadership in Energy and Environmental Design
Nareit	National Association of Real Estate Investment Trusts
NAV	Net Asset Value
NYSE	New York Stock Exchange
REIT	Real Estate Investment Trust
RSF	Rentable Square Feet/Foot
SEC	Securities and Exchange Commission
SF	Square Feet/Foot
SoDo	South of Downtown submarket of Seattle
SOFR	Secured Overnight Financing Rate
SoMa	South of Market submarket of San Francisco
U.S.	United States
VIE	Variable Interest Entity

PART I

Forward-looking statements

Certain information and statements included in this annual report on Form 10-K, 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 description of risks and uncertainties in “ Item 1A. Risk factors ” in this annual report on

Form 10-K. Additional information regarding risk factors that may affect us is included in “ Item 7. Management’s discussion and

analysis of financial condition and results of operations ” in this annual report on Form 10-K. Readers of our annual report on Form

10-K should also read our SEC and other publicly filed documents for further discussion regarding such factors.

As used in this annual report on Form 10-K, references to the “Company,” “Alexandria,” “ARE,” “we,” “us,” and “our” refer to

Alexandria Real Estate Equities, Inc. and its consolidated subsidiaries. Alexandria ® , Lighthouse Design ® logo, Building the Future of

Life-Changing Innovation ® , Megacampus™, Labspace ® , Alexandria Lifeline ™ , Alexandria Center ® , Alexandria Technology Square ® ,

Alexandria Technology Center ® , Alexandria Innovation Center ® , and Alexandria Summit ® are copyrights and trademarks of

Alexandria Real Estate Equities, Inc. All other company names, trademarks, and logos referenced herein are the property of their

respective owners. The following discussion should be read in conjunction with our consolidated financial statements and notes

thereto under “Item 15. Exhibits and financial statement schedules” in this annual report on Form 10-K.

ITEM 1. BUSINESS

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 December 31, 2024 , Alexandria has a total market capitalization of

$29.0 billion and an asset base in North America that includes 39.8 million RSF of operating properties and 4.4 million RSF of Class

A/A+ properties undergoing construction .

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

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

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

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

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

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

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

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

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

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

As of December 31, 2024 , we had 391 properties in North America consisting of approximately 44.1 million RSF of

operating properties and new Class A/A+ development and redevelopment properties under construction , including 67 operating

properties and development projects that are held by consolidated real estate joint ventures and four properties that are held by

unconsolidated real estate joint ventures. The occupancy percentage of our operating properties in North America was 94.6% as of

December 31, 2024 . The 10-year average occupancy percentage of our operating properties as of December 31, 2024 was 96% .

Investment-grade or publicly traded large cap tenants represented 52% of our total annual rental revenue in effect as of

December 31, 2024 . Additional information regarding our consolidated and unconsolidated real estate joint ventures is included in

“ Item 7. Management’s discussion and analysis of financial condition and results of operations ” in this annual report on Form 10-K.

For information regarding risk factors that may affect us, refer to “ Item 1A. Risk factors ” and “ Item 7. Management’s discussion and

analysis of financial condition and results of operations ” in this annual report on Form 10-K.

Business objective and strategies

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, which we believe is a key driver of tenant demand for our properties. Our strategy also includes drawing upon our deep,

broad, and longstanding real estate and life science industry relationships in order to retain tenants, identify and attract new and leading

tenants, and source additional real estate.

Our tenant base is broad and diverse within the life science industry. For a more detailed description of our properties and

tenants, refer to “ Item 2. Properties ” in this annual report on Form 10-K. We have an experienced Board of Directors (the “Board”) and

are led by an executive and senior management team with extensive experience in the real estate and life science industries.

Acquisitions

We seek to identify and acquire high-quality properties in our cluster markets. Critical evaluation of prospective property

acquisitions is an essential component of our acquisition strategy. When evaluating acquisition opportunities, we assess a full range of

matters relating to the prospective property or properties, including:

• Proximity to centers of innovation and technological advances;

• Location of the property and our strategy in the relevant market, including our Megacampus strategy;

• Quality of existing and prospective tenants;

• Condition and capacity of the building infrastructure;

• Physical condition of the structure and common area improvements;

• Quality and generic characteristics of the improvements;

• Opportunities available for leasing vacant space and for re-tenanting or renewing occupied space;

• Availability of and/or ability to add appropriate tenant amenities;

• Availability of land for future ground-up development of new space;

• Opportunities to generate higher rent through redevelopment of existing space;

• The property’s unlevered yields;

• Potential impacts of climate change and extreme weather conditions; and

• Our ability to increase the property’s long-term financial returns.

Development, redevelopment, and pre-construction

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

Class A/A+ properties, as well as property enhancements identified during the underwriting of certain acquired properties. These efforts

are primarily concentrated in collaborative Megacampus ecosystems within AAA life science innovation clusters, as well as other

strategic locations that support innovation and growth. These projects are generally focused on providing high-quality, generic, and

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

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

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

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

Development projects generally consist of the ground-up development of generic and reusable laboratory facilities.

Redevelopment projects consist of the permanent change in use of acquired office, warehouse, or shell space into laboratory space.

We generally will not commence new development projects for aboveground construction of new Class A/A+ laboratory space without

first securing significant pre-leasing for such space, except when there is solid market demand for high-quality Class A/A+ properties.

Priority anticipated projects are those most likely to commence future ground-up development or first-time conversion from

non-laboratory space to laboratory space prior to our other future projects, pending market conditions and leasing negotiations.

Pre-construction activities include entitlements, permitting, design, site work, and other activities preceding commencement of

construction of aboveground building improvements. The advancement of pre-construction efforts is focused on reducing the time

required to deliver projects to prospective tenants. These critical activities add significant value for future ground-up development and

are required for the vertical construction of buildings. Ultimately, these projects will provide high-quality facilities and are expected to

generate significant revenue and cash flows.

Another key component of our business model is our redevelopment of acquired office, warehouse, or shell space into high-

quality, generic, and reusable laboratory space that can be leased at higher rental rates. Our redevelopment strategy generally includes

significant pre-leasing of projects prior to the commencement of redevelopment.

Non-real estate investments

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

invest primarily in highly innovative entities whose focus on the development of therapies and products that advance human health and

transform patients’ lives is aligned with Alexandria’s purpose of making a positive and meaningful impact on the health, safety, and well-

being of the global community. Our status as a REIT limits our ability to make such non-real estate investments. Therefore, we conduct,

and will continue to conduct, our non-real estate investment activities in a manner that complies with REIT requirements.

Balance sheet and financial strategy

We seek to maximize balance sheet liquidity and flexibility, cash flows, and cash available for distribution to our stockholders

through the ownership, operation, management, and selective acquisition, development, and redevelopment of new Class A/A+

properties primarily located in collaborative Megacampus ecosystems in AAA life science innovation clusters, as well as the prudent

management of our balance sheet. In particular, we seek to maximize balance sheet liquidity and flexibility, cash flows, and cash

available for distribution to our stockholders by:

• Maintaining access to diverse sources of capital, which include, among others, net cash flows from operating activities

after dividends, incremental leverage-neutral debt supported by growth in EBITDA, strategic value harvesting and asset

recycling through real estate dispositions and sales of partial interests, non-real estate investment sales, sales of equity,

and joint venture capital;

• Maintaining significant liquidity through borrowing capacity under our unsecured senior line of credit and commercial

paper program, secured construction loans, marketable securities, issuances of forward equity contracts from time to time,

and cash, cash equivalents, and restricted cash;

• Continuing to improve our credit profile;

• Minimizing the amount of debt maturing in a single year;

• Maintaining commitment to long-term capital to fund growth;

• Maintaining low to modest leverage;

• Minimizing variable interest rate risk;

• Generating high-quality, strong, and increasing operating cash flows;

• Selectively selling real estate assets, including land parcels, non-core operating assets, and sales of partial interests, and

reinvesting the proceeds into our highly leased value-creation development and redevelopment projects;

• Allocating capital to Class A/A+ properties located in collaborative Megacampus™ ecosystems in AAA life science

innovation clusters;

• Maintaining geographic diversity in intellectual centers of innovation;

• Selectively acquiring high-quality life science space in our target innovation cluster submarkets at prices that enable us to

realize attractive returns;

• Selectively developing properties in our target innovation cluster submarkets;

• Selectively redeveloping acquired office, warehouse, or shell space, or newly acquired properties, into high-quality,

generic, and reusable laboratory space that can be leased at higher rental rates in our target innovation cluster

submarkets;

• Renewing existing tenant space at higher rental rates to the extent possible;

• Minimizing tenant improvement costs;

• Improving investment returns through the leasing of vacant space and the replacing of existing tenants with new tenants

at higher rental rates;

• Executing leases with high-quality tenants and proactively monitoring tenant health;

• Maintaining solid occupancy while attaining high rental rates;

• Realizing contractual rental rate escalations; and

• Implementing effective cost control measures, including negotiating pass-through provisions in tenant leases for operating

expenses and certain capital expenditures.

Competition

In general, other laboratory and technology properties are located in close proximity to our properties. The amount of rentable

space available in any market could have a material effect on our ability to rent space and on the rental rates we can attain for our

properties. In addition, we compete for investment opportunities with other REITs, insurance companies, pension and investment funds,

private equity entities, partnerships, developers, investment companies, owners/occupants, and foreign investors. Many of these

entities have substantially greater financial resources than we do and may be able to invest more than we can or accept more risk than

we are willing to accept. These entities may be less sensitive to risks with respect to the creditworthiness of a tenant or the overall

expected returns from real estate investments. In addition, as a result of their financial resources, our competitors may offer more free

rent concessions, lower rental rates, or higher tenant improvement allowances in order to attract tenants. These leasing incentives

could hinder our ability to maintain or raise rents and attract or retain tenants. Competition may also reduce the number of suitable

investment opportunities available to us or may increase the bargaining power of property owners seeking to sell. Competition in

acquiring existing properties and land, both from institutional capital sources and from other REITs, has been very strong over the past

several years; however, we believe we have differentiated ourselves from our competitors. With our founding in 1994, Alexandria

pioneered the life science real estate niche. Today, we are the preeminent and longest-tenured owner, operator, and developer of

collaborative Megacampus ecosystems in AAA life science innovation cluster locations. We continue to maintain and cultivate many of

the most important and strategic relationships in the life science industry.

Segment information

As of December 31, 2024 , our operating segments consist of the following geographic markets: Greater Boston, San

Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, New York City, Texas, and Canada . Refer to Note 18 –

“Segment information” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information.

Regulation

General

Properties in our markets are subject to various laws, ordinances, and regulations, including regulations relating to common

areas. We believe we have the necessary permits and approvals to operate each of our properties.

Americans with Disabilities Act

Our properties must comply with Title III of the Americans with Disabilities Act of 1990 (“ADA”) to the extent that such

properties are “public accommodations” as defined by the ADA. The ADA may require removal of structural barriers to permit access by

persons with disabilities in certain public areas of our properties where such removal is readily achievable. We believe that our

properties are in substantial compliance with the ADA and that we will not be required to incur substantial capital expenditures to

address the requirements of the ADA. However, noncompliance with the ADA could result in the imposition of fines or an award of

damages to private litigants. The obligation to make readily achievable accommodations is an ongoing one, and we will continue to

assess our properties and make alterations as appropriate in this respect.

Environmental matters

Under various environmental protection laws, a current or previous owner or operator of real estate may be liable for

contamination resulting from the presence or discharge of hazardous or toxic substances at that property and may be required to

investigate and remediate contamination located on or emanating from that property. Such laws often impose liability without regard to

whether the owner or operator knew of, or was responsible for, the presence of the contaminants, and the liability may be joint and

several. Previous owners may have used some of our properties for industrial and other purposes, so those properties may contain

some level of environmental contamination. The presence of contamination or the failure to remediate contamination at our properties

may expose us to third-party liability or may materially adversely affect our ability to sell, lease, or develop the real estate or to borrow

capital using the real estate as collateral.

State regulations, such as California’s Connelly Act and Proposition 65, among others, require certain building owners and

operators to disclose information on the presence of asbestos or other harmful substances. Some of our properties may have asbestos-

containing building materials. Environmental laws require that asbestos-containing building materials be properly managed and

maintained and may impose fines and penalties on building owners or operators for failure to comply with these requirements. These

laws may also allow third parties to seek recovery from owners or operators for personal injury associated with exposure to asbestos-

containing building materials.

In addition, some of our tenants handle hazardous substances and wastes as part of their routine operations at our properties.

Environmental laws and regulations subject our tenants, and potentially us, to liability resulting from such activities. Environmental

liabilities could also affect a tenant’s ability to make rental payments to us. We require our tenants to comply with these environmental

laws and regulations and to indemnify us against any related liabilities.

Independent environmental consultants have conducted Phase I or similar environmental site assessments on the properties

in our portfolio. Site assessments are intended to discover and evaluate information regarding the environmental condition of the

surveyed property and surrounding properties and do not generally include soil samplings, subsurface investigations, or an asbestos

survey. To date, these assessments have not revealed any material environmental liability that we believe would have a material

adverse effect on our business, assets, or results of operations, and ongoing expenditures to comply with existing environmental

regulations are not expected to be material. Nevertheless, it is possible that the assessments on our properties have not revealed all

environmental conditions, liabilities, or compliance concerns that may have arisen after the review was completed or may arise in the

future; and future laws, ordinances, or regulations may also impose additional material environmental liabilities.

Insurance

With respect to our properties, we carry commercial general liability insurance, and all-risk property insurance, including

business interruption and loss of rental income coverage. We select policy specifications and insured limits that we believe to be

appropriate given the relative risk of loss and the cost of the coverage. In addition, we have obtained earthquake insurance for certain

properties located in the vicinity of known active earthquake zones in an amount and with deductibles we believe are commercially

reasonable. We also carry environmental insurance and title insurance policies on our properties. We generally obtain title insurance

policies when we acquire a property, with each policy covering an amount equal to the initial purchase price of each property.

Accordingly, any of our title insurance policies may be in an amount less than the current value of the related property. Additional

information about risk factors that may affect us is included in “ Item 1A. Risk factors ” in this annual report on Form 10-K.

Available information

Copies of our annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, including any

amendments to the foregoing reports, are available, free of charge, through our corporate website at www.are.com as soon as is

reasonably practicable after such material is electronically filed with, or furnished to, the SEC. The current charters of our Board of

Directors’ Audit, Compensation, and Nominating & Governance Committees, along with our Corporate Governance Guidelines and

Business Integrity Policy and Procedures for Reporting Non-Compliance (the “Business Integrity Policy”), are also available on our

corporate website. Additionally, any amendments to, and waivers of, our Business Integrity Policy that apply to our Chief Executive

Officer or our Chief Financial Officer will be available free of charge on our corporate website in accordance with applicable SEC and

NYSE requirements. Written requests should be sent to Alexandria Real Estate Equities, Inc., 26 North Euclid Avenue , Pasadena ,

California 91101 , Attention: Investor Relations. The public may also download these materials from the SEC’s website at www.sec.gov.

Human capital

As of December 31, 2024 , we had 552 employees . We place a significant focus on building loyalty and trusted relationships

with our employees. We have a Business Integrity Policy that applies to all of our employees, and its receipt and review by each

employee is documented and verified annually. To promote an exceptional corporate culture, Alexandria monitors employee satisfaction,

actively seeks employee feedback, and enhances our employee benefit offerings. We conduct annual performance reviews with our

employees, administer formal employee surveys, and our talent management team holds regular meetings with employees to gather

insights and drive ongoing improvements to the overall employee experience.

We recognize that the fundamental strength of Alexandria is driven by the contributions of each and every team member and

that our future growth relies on their continued success. We make substantial effort to hire, develop, and retain talented employees, and

we have an exceptional track record of promoting highly qualified candidates from within the Company. Our executive and senior

management teams, represented by 62 individuals at senior vice president level and above, have an average of 24 years of real estate

experience, including 13 years with Alexandria. Moreover, our executive management team alone averages 19 years of experience with

the Company. Alexandria’s executive and senior management teams have unique experience and expertise in creating, owning, and

operating highly dynamic and collaborative Megacampus ecosystems in key life science cluster locations. These teams include regional

market directors with leading reputations and longstanding relationships within the life science community in their respective markets.

We believe that our expertise, experience, reputation, and key relationships in the real estate and life science industries provide

Alexandria with significant competitive advantages in attracting new business opportunities.

Our ability to retain talent further supports our business continuity and leadership stability. From 2020 to 2024 , our voluntary

and total turnover rates averaged 4.0% and 8.5% , respectively, which are below the REIT industry averages of 11.0% and 15.0% ,

respectively, as reported in the 2024 Nareit Compensation & Benefits Survey (data for 2023 ).

Offering robust benefits to support our employees’ health and overall success

We provide a robust benefits package intended to meet and exceed the needs of our employees and their families. Our

company-sponsored benefits cover 100% of insurance premiums for both employees and their dependents, and include a wide range of

offerings, such as a high-coverage, low-deductible preferred provider organization (“PPO”) medical plan, PPO dental and orthodontia

coverage, a vision plan, a comprehensive prescription drug program, infertility and family planning benefits, short-term and long-term

disability benefits, and life and accidental death and dismemberment coverage.

Investing in professional development and training

We provide meaningful opportunities for growth and development through a variety of learning opportunities, including

development programs that leverage social learning, instructor-led trainings, on-demand trainings and resources, and a highly utilized

mentoring program. Development programs and trainings cover topics such as leadership development, project management, business

writing, change management, interviewing, presentations, productivity, goal setting, delegation, communication, and feedback. Our

mentoring program enables employees to partner with senior leaders throughout the organization for support and career guidance.

ITEM 1A. RISK FACTORS

Overview

The following risk factors may adversely affect our overall business, financial condition, results of operations, and cash flows;

our ability to make distributions to our stockholders; our access to capital; or the market price of our common stock, as further described

in each risk factor below. In addition to the information set forth in this annual report on Form 10-K, one should carefully review and

consider the information contained in our other reports and periodic filings that we make with the SEC. Those risk factors could

materially affect our overall business, financial condition, results of operations, and cash flows; our ability to make distributions to our

stockholders; our access to capital; or the market price of our common stock. The risks that we describe in our public filings are not the

only risks that we face. Additional risks and uncertainties not presently known to us, or that we currently consider immaterial, also may

materially adversely affect our business, financial condition, and results of operations. Additional information regarding forward-looking

statements is included in the beginning of Part I in this annual report on Form 10-K.

Risk factors summary

An investment in our securities involves various risks. Such risks, including those set forth in the summary of material risks in

this Item 1A, should be carefully considered before purchasing our securities.

Risks related to operating factors

• We may be unable to identify and complete acquisitions, investments, or development or redevelopment projects or to

successfully and profitably operate properties.

• We could default on our ground leases or be unable to renew or re-lease our land or space on favorable terms or at all.

Our tenants may also be unable to pay us rent.

• The cost of maintaining and improving the quality of our properties may be higher than anticipated, and we may be unable

to pass any increased operating costs through to our tenants, which can result in reduced cash flows and profitability.

• We could be held liable for environmental damages resulting from our tenants’ use of hazardous materials, or from

harmful mold, poor air quality, or other defects from our properties, or we could face increased costs in complying with

other environmental laws.

• The loss of services of any of our senior officers or key employees and increased competition for skilled personnel could

adversely affect us and/or increase our labor costs.

• We rely on a limited number of vendors to provide utilities and other services at our properties, and disruption in such

services may have an adverse effect on our operations and financial condition.

• Our insurance policies may not adequately cover all of our potential losses, or we may incur costs due to the financial

condition of our insurance carriers.

• We may change business policies without stockholder approval.

• Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business.

• If we failed to qualify as a REIT, we would be taxed at corporate rates and would not be able to take certain deductions

when computing our taxable income.

• We may not be able to raise sufficient capital to fund our operations due to adverse changes in our credit ratings, our

inability to refinance our existing debt or issue new debt, or our inability to sell existing real estate and non-real estate

assets timely or at optimal prices.

• We may invest or spend the net proceeds from our equity or debt offerings in ways with which our investors may not agree

and in ways that may not earn a profit.

• Our debt service obligations may restrict our ability to engage in some business activities or cause other adverse effects

on our business.

• We face risks and liabilities associated with our investments (including those in connection with short-term liquid

investments) and the companies in which we invest (including properties owned through partnerships, limited liability

companies, and joint ventures, as well as through our non-real estate venture investment portfolio), which expose us to

risks similar to those of our tenant base and additional risks inherent in venture capital investing. We may be limited in our

ability to diversify our investments.

Risks related to market and industry factors

• There are limits on ownership of our stock under which a stockholder may lose beneficial ownership of its shares, as well

as certain provisions of our charter and bylaws that may delay or prevent transactions that otherwise may be desirable to

our stockholders.

• Possible future sales of shares of our common stock could adversely affect its market price.

• We are dependent on the health of the life science industry, and changes within this industry, increased competition, or the

inability of our tenants and non-real estate equity investments within this industry to obtain funding for research,

development, and other operations may adversely impact their ability to make rental payments to us or adversely impact

their value.

• Market disruption and volatility, poor economic conditions in the capital markets and global economy, including in

connection with a widespread pandemic or outbreak of a highly infectious or contagious disease, and tight labor markets

could adversely affect the value of the companies in which we hold equity investments or the ability of tenants and the

companies in which we invest to continue operations, raise additional capital, or access capital from venture capital

investors or financial institutions on favorable terms or at all.

Risks related to government and global factors

• Actions, policy, or key leadership changes in government agencies, or changes to laws or regulations, including those

related to tax, accounting, debt, derivatives, government spending, or funding (including those related to the FDA, the

National Institutes of Health (the “NIH”), the SEC, and other agencies), and drug and healthcare pricing, costs, and

programs could have a significant negative impact on the overall economy, our tenants and companies in which we invest,

and our business.

• Partial or complete government shutdown resulting in temporary closures of agencies could adversely affect our tenants

(some of which are also government agencies) and the companies in which we invest, including delays in the

commercialization of such companies’ products, decreased funding of research and development, or delays surrounding

approval of budget proposals.

• The outbreak of any highly infectious or contagious disease could adversely impact our financial condition and results of

operations, and/or that of our tenants and non-real estate investments.

Risks related to general and other factors

• Social, political, and economic instability, unrest, significant changes, and other circumstances beyond our control,

including circumstances related to changes in the U.S. political landscape, could adversely affect our business operations.

• Seasonal weather conditions, climate change and severe weather, changes in the availability of transportation or labor,

and other related factors may affect our ability to conduct business, the products and services of our tenants, or the

availability of such products and services of our tenants and the companies in which we invest.

• We may be unable to meet our sustainability goals.

• Changes in privacy and information security laws, regulations, policies, and contractual obligations related to data privacy

and security, or our failure to comply with such requirements, could subject us to fines or penalties or increase our cost of

doing business, compliance risks, and potential liability and otherwise adversely affect our business or results of

operations.

• System failures or security incidents through cyberattacks, intrusions, or other methods could disrupt our information

technology networks, enterprise applications, and related systems, cause a loss of assets or data, give rise to remediation

or other expenses, expose us to liability under federal and state laws, and subject us to litigation and investigations, which

could result in substantial reputational damage and adversely affect our business and financial condition.

• The enactment of legislation, including the Inflation Reduction Act of 2022, may adversely impact our financial condition

and results of operations.

We attempt to mitigate the foregoing risks. However, if we are unable to effectively manage the impact of these and other risks,

our ability to meet our investment objectives may be substantially impaired and any of the foregoing risks could materially adversely

affect our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, or the market

price of our common stock.

Operating factors

We may be unable to identify and complete acquisitions and successfully operate acquired properties.

We continually evaluate the market of available properties and may acquire properties when opportunities exist. Our ability to

acquire properties on favorable terms and successfully operate them may be exposed to significant risks, including, but not limited to,

the following:

• We may be unable to acquire a desired property because of competition from other real estate investors with significant

capital, including both publicly traded REITs and institutional funds.

• Even if we are able to acquire a desired property, competition from other potential acquirers may significantly increase the

purchase price or result in other less favorable terms.

• Even if we enter into agreements for the acquisition of properties, these agreements are subject to customary conditions

to closing, including completion of due diligence investigations to our satisfaction.

• We may be unable to complete an acquisition because we cannot obtain debt and/or equity financing on favorable terms

or at all.

• We may spend more than budgeted amounts to make necessary improvements or renovations to acquired properties.

• We may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of operating properties or

portfolios of properties, into our existing operations.

• Acquired properties may be subject to tax reassessment, which may result in higher-than-expected property tax

payments.

• Market conditions may result in higher-than-expected vacancy rates and lower-than-expected rental rates.

• We may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to

unknown liabilities, such as liabilities for the remediation of undisclosed environmental contamination; claims by tenants,

vendors, or other persons dealing with the former owners of the properties; and claims for indemnification by general

partners, directors, officers, and others indemnified by the former owners of the properties.

The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations,

our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our

common stock, and our ability to satisfy our debt service obligations.

We may suffer economic harm as a result of making unsuccessful acquisitions in new markets.

We may pursue selective acquisitions of properties in markets where we have not previously owned properties. These

acquisitions may entail risks in addition to those we face in other acquisitions where we are familiar with the markets, such as the risk of

not correctly anticipating conditions or trends in a new market and therefore not being able to generate profit from the acquired property.

If this occurs, it could adversely affect our financial condition, results of operations, and cash flows, our ability to make distributions to

our stockholders, our ability to satisfy our debt service obligations, and the market price of our common stock.

The acquisition or development of new properties may give rise to difficulties in predicting revenue potential.

We may continue to acquire additional properties and/or land and may seek to develop our existing land holdings strategically

as warranted by market conditions. These acquisitions and developments could fail to perform in accordance with expectations. If we

fail to accurately estimate occupancy levels, rental rates, lease commencement dates, operating costs, or costs of improvements to

bring an acquired property or a development property up to the standards established for our intended market position, the performance

of the property may be below expectations. Acquired properties may have characteristics or deficiencies affecting their valuation or

revenue potential that we have not yet discovered. We cannot assure our stockholders that the performance of properties acquired or

developed by us will increase or be maintained under our management.

We may fail to achieve the financial results expected from development or redevelopment projects.

There are significant risks associated with development and redevelopment projects, including, but not limited to, the following

possibilities:

• We may not complete development or redevelopment projects on schedule or within budgeted amounts.

• We may be unable to lease development or redevelopment projects on schedule or within projected amounts.

• We may encounter project delays or cancellations due to unavailability of necessary labor and construction materials.

• We may expend funds on, and devote management’s time to, development and redevelopment projects that we may not

complete.

• We may abandon development or redevelopment projects after we begin to explore them, and as a result, we may lose

deposits or fail to recover costs already incurred.

• Market and economic conditions may deteriorate, which can result in lower-than-expected rental rates.

• We may face higher operating costs than we anticipated for development or redevelopment projects, including insurance

premiums, utilities, security, real estate taxes, and costs of complying with changes in government regulations or

increases in tariffs.

• We may face higher requirements for capital improvements than we anticipated for development or redevelopment

projects, particularly in older structures.

• We may be unable to proceed with development or redevelopment projects because we cannot obtain debt and/or equity

financing on favorable terms or at all.

• We may fail to retain tenants that have pre-leased our development or redevelopment projects if we do not complete the

construction of these properties in a timely manner or to the tenants’ specifications.

• Tenants that have pre-leased our development or redevelopment projects may file for bankruptcy or become insolvent, or

otherwise elect to terminate their lease prior to delivery, which may adversely affect the income produced by, and the

value of, our properties or require us to change the scope of the project, which may potentially result in higher construction

costs, significant project delays, or lower financial returns.

• We may encounter delays, refusals, unforeseen cost increases, and other impairments resulting from third-party litigation,

natural disasters, or severe weather conditions.

• We may encounter delays or refusals in obtaining all necessary zoning, land use, building, occupancy, and other required

government permits and authorizations.

• We may be unable to proceed with our development or redevelopment projects as anticipated due to changing zoning,

land use, building, occupancy, or other government codes or regulations.

• Development or redevelopment projects may have defects we do not discover through our inspection processes, including

latent defects that may not reveal themselves until many years after we put a property in service.

The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations,

our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our

common stock, and our ability to satisfy our debt service obligations.

We may face increased risks and costs associated with volatility in commodity and labor prices or as a result of

supply chain or procurement disruptions, which may adversely affect the status of and returns on our construction projects.

The price of commodities and skilled labor for our construction projects may increase unpredictably due to external factors,

including, but not limited to, performance of third-party suppliers and contractors; overall market supply and demand; inflationary

pricing; government regulation; international trade; and changes in general business, economic, or political conditions. As a result, the

costs of raw construction materials and skilled labor required for the completion of our development and redevelopment projects may

fluctuate significantly from time to time.

We rely on a number of third-party suppliers and contractors to supply raw materials and skilled labor for our construction

projects. We believe we have favorable relationships with our suppliers and contractors. We have not encountered significant difficulty

collaborating with our suppliers and contractors and obtaining materials and skilled labor, nor experienced significant delays due to

disputes, work stoppages, or contractors’ misconduct or failure to perform. While we do not rely on any single supplier or vendor for the

majority of our materials and skilled labor, we may experience difficulties obtaining necessary materials from suppliers or vendors

whose supply chains might become impacted by economic or political changes, or difficulties obtaining adequate skilled labor from

third-party contractors in a tightening labor market. It is uncertain whether we would be able to source the essential commodities,

supplies, materials, and skilled labor timely or at all without incurring significant costs or delays, particularly during times of economic

uncertainty resulting from events outside of our control. We may be forced to purchase supplies and materials in larger quantities or in

advance of when we would typically purchase them. This may cause us to require use of capital sooner than anticipated. Alternatively,

we may also be forced to seek new third-party suppliers or contractors, whom we have not worked with in the past, and it is uncertain

whether these new suppliers will be able to adequately meet our materials or labor needs. Our dependence on unfamiliar supply chains

or relatively small supply partners may adversely affect the cost and timely completion of our construction projects. In addition, we may

be unable to compete with entities that may have more favorable relationships with their suppliers and contractors or greater access to

the required construction materials and skilled labor.

In addition, new climate change-related initiatives entered into by the U.S. government in collaboration with partner countries

through global climate agreements may impose stricter requirements for building materials, such as lumber, steel, and concrete, which

could significantly increase our construction costs if the manufacturers and suppliers of our materials are burdened with expensive cap-

and-trade or similar regulations or requirements, and the costs of which are passed onto customers like us. As a result of the factors

discussed above, we may be unable to complete our development or redevelopment projects timely and/or within our budget, which

may affect our ability to lease space to potential tenants and adversely affect our business, financial condition, and results of operations.

If we fail to identify and develop relationships with a sufficient number of qualified suppliers and contractors, the

quality and status of our construction projects may be adversely affected.

We believe we have favorable relationships with our existing suppliers and contractors, and we generally have not

encountered difficulty collaborating with and obtaining materials and skilled labor, nor experienced significant delays or increases in

overall project costs due to disputes, work stoppages, or contractors’ misconduct or failure to perform. However, it is possible we may

experience these events in the future, or our existing suppliers and contractors may encounter supply chain disruptions from time to

time that hinder their ability to supply necessary materials and labor to us. As a result, we may be forced to seek new resources for our

construction needs. We may become reliant on unfamiliar supply chains or relatively small supply partners, which may cause

uncertainty in the quality, cost, and timely completion of our construction projects.

Our ability to continue to identify and develop relationships with a sufficient network of qualified suppliers who can adequately

meet our construction timing and quality standards can be a significant challenge, particularly in the event of global supply chain

disruptions. If we fail to identify and develop relationships with a sufficient number of suppliers and contractors who can appropriately

address our construction needs, we may experience disruptions in our suppliers’ logistics or supply chain networks or information

technology systems, and other factors beyond our or our suppliers’ control. If we are unable to access materials and labor to complete

our construction projects within our expected budgets and meet our tenants’ demands and expectations in a timely and efficient

manner, our results of operations, cash flows, and reputation may be adversely impacted.

Our tenants may face increased risks and costs associated with volatility in commodity and labor prices or the prices

or availability of specialized materials or equipment, or as a result of supply chain or procurement disruptions of such items,

which may adversely affect their businesses or financial condition.

Our tenants are generally subject to the same generalized risks of commodity and labor price increases and supply chain or

procurement as we and many other companies are. A number of our tenants, however, are also involved in highly specialized research

or manufacturing activities that may require unique or custom chemical or biologic materials or sophisticated specialty equipment that is

not widely available and therefore may be particularly susceptible to supply chain disruption. In addition, these tenants may have

complex supply chains due to their specialized activities that are subject to stringent government regulations, which may further hinder

their access to necessary materials and equipment. While we are not aware of such issues materially affecting our tenants to date, it is

possible that these issues may affect our tenants adversely in the future.

We could default on leases for land on which some of our properties are located or held for future development.

If we default under the terms of a ground lease obligation, we may lose the ownership rights to the property subject to the

lease. Prior to the expiration of a ground lease and all of its options, we may not be able to renegotiate a new lease on favorable terms,

if at all. The loss of the ownership rights to these properties or an increase in rental expense could have a material adverse effect on our

financial condition, results of operations, and cash flows, and our ability to satisfy our debt service obligations and make distributions to

our stockholders, as well as the market price of our common stock. Refer to “ Ground lease obligations ” under “ Item 7. Management’s

discussion and analysis of financial condition and results of operations ” in this annual report on Form 10-K for additional information on

our ground lease obligations.

We may not be able to operate properties successfully and profitably.

Our success depends in large part upon our ability to operate our properties successfully. If we are unable to do so, our

business could be adversely affected. The ownership and operation of real estate is subject to many risks that may adversely affect our

business and our ability to make payments to our stockholders, including, but not limited to, the following risks:

• Our properties may not perform as we expect.

• We may have to lease space at rates below our expectations.

• We may not be able to obtain financing on acceptable terms.

• We may not be able to acquire or sell properties when desired or needed due to the illiquid nature of real estate assets.

• We may underestimate the cost of improvements required to maintain or improve space to meet standards established for

the market position intended for that property.

• We may not be able to complete improvements required to maintain or improve space due to unanticipated delays,

significant cost increases by our vendors, or cancellation of construction resulting from shortages in the supply of

necessary construction materials.

The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations,

our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our

common stock, and our ability to satisfy our debt service obligations.

We may experience increased operating costs, which may reduce profitability to the extent that we are unable to pass

those costs through to our tenants.

Our properties are subject to increases in operating expenses, including insurance, property taxes, utilities, administrative

costs, and other costs associated with security, landscaping, and repairs and maintenance of our properties. As of December 31, 2024 ,

approximately 92% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially

all real estate and other rent-related taxes, insurance, utilities, security, common area expenses, and other operating expenses

(including increases thereto) in addition to base rent.

Our operating expenses may increase as a result of tax reassessments that our properties are subject to on a regular basis

(annually, triennially, etc.), which may result in increases in property taxes as property values increase over time. In California, however,

pursuant to the existing state law commonly referred to as Proposition 13, properties are generally reassessed to market value at the

time of change in ownership or completion of construction; thereafter, annual property reassessments are limited to 2% of previously

assessed values. As a result, Proposition 13 generally results in significant below-market assessed values over time. From time to time,

lawmakers and political coalitions initiate efforts to repeal or amend Proposition 13 to eliminate its application to commercial and

industrial properties, which, if successful, may prohibit or limit the passing of increased property tax assessments onto tenants.

Our triple net leases allow us to pass through, among other costs, substantially all real estate and rent-related taxes to our

tenants in the form of tenant recoveries. Consequently, as a result of our triple net leases, we do not expect potential increases on

property taxes as a result of tax reassessments to significantly impact our operating results. We cannot be certain, however, that we will

be able to continue to negotiate pass-through provisions related to taxes in tenant leases in the future, or that higher pass-through

expenses will not lead to lower base rents in the long run as a result of tenants’ not being able to absorb higher overall occupancy

costs. Thus, the repeal of or amendment to Proposition 13 could lead to a decrease in our income from rentals over time. If our

operating expenses increase without a corresponding increase in revenues, our profitability could diminish. In addition, we cannot be

certain that increased costs will not lead our current or prospective tenants to seek space outside of the state of California, which could

significantly hinder our ability to increase our rents or to maintain existing occupancy levels. The repeal of or amendment to Proposition

13 in California may significantly increase occupancy costs for some of our tenants and may adversely impact their financial condition,

ability to make rental payments, and ability to renew lease agreements, which in turn could adversely affect our financial condition,

results of operations, and cash flows and our ability to make distributions to our stockholders.

In addition, compliance with various laws passed in California and other states in which we conduct business may result in

cost increases due to new constraints on our business and the effects of potential non-compliance by us or third-party service

providers. Any changes in connection with compliance could be time consuming and expensive, while failure to timely implement

required changes could subject us to liability for non-compliance, any of which could adversely affect our business, operating results,

and financial condition.

Most of our costs, such as operating and general and administrative expenses, interest expense, and real estate

acquisition and construction costs, are subject to inflation.

As of December 31, 2024 , 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 the CPI or another index. We have long-term lease

agreements with our tenants, of which 3% – 11% (based on occupied RSF) expire each year. We believe that these annual lease

expirations allow us to reset these leases to market rents upon renewal or re-leasing and that annual rent escalations within our long-

term leases are generally sufficient to offset the effect of inflation on non-recoverable costs, such as general and administrative and

interest expenses. However, during inflationary periods in which the inflation rate exceeds the annual rent escalation percentages within

our lease contracts, these rate escalations or the resetting of rents from our renewal and re-leasing activities may not adequately offset

the impact of inflation.

Our operating expenses are incurred in connection with, among others, property-related contracted services such as janitorial

and engineering services, utilities, security, repairs and maintenance, and insurance. Property taxes are also impacted by inflationary

changes as taxes are regularly reassessed based on changes in the fair value of our properties located outside of California. As

discussed previously, in California, property taxes are not reassessed based on changes in the fair value of the underlying real estate

asset but are instead limited to a maximum 2% annual increase by law.

Our operating expenses, with the exception of ground lease rental expenses, are typically recoverable through our lease

arrangements, which allow us to pass through substantially all expenses associated with property taxes, insurance, utilities, security,

repairs and maintenance, and other operating expenses (including increases thereto) to our tenants. As of December 31, 2024 ,

approximately 92% of our existing leases (on an annual rental revenue basis) were triple net leases, which allow us to recover

operating expenses, and approximately 92% o f our existing leases (on an annual rental revenue basis) also provided for the recapture

of capital expenditures. Our remaining leases are generally gross leases, which provide for recoveries of operating expenses above the

operating expenses from the initial year within each lease.

Due to our ability to largely recover increases in operating expenses from our triple net leases, inflation typically does not have

a significant adverse effect on our net operating income, results of operations, and operating cash flows at the property level. However,

there is no guarantee that our tenants would be able to absorb these expense increases and to continue to pay us their portion of

operating expenses, capital expenditures, and rent, or to be able to continue operating their businesses or conducting research and

development activities altogether. Alternatively, our tenants may decide to relocate to areas with lower rent and operating expenses

where we may not currently own properties, and, as a result, our tenants may cease leasing properties from us.

Our general and administrative expenses consist primarily of compensation costs, technology services, and professional

service fees. Annually, our employee compensation is adjusted to reflect merit increases; however, to maintain our ability to successfully

compete for the best talent, especially in a talent shortage environment, rising inflation rates may require us to provide compensation

increases beyond historical annual merit increases, which may unexpectedly and/or significantly increase our compensation costs.

Similarly, technology services and professional service fees are also subject to the impact of inflation and generally increase

proportionately with increasing market prices for such services. Consequently, inflation may increase our general and administrative

expenses over time.

During inflationary periods, interest rates have historically increased. For instance, to control the rate of inflation, the Board of

Governors of the Federal Reserve System (the “U.S. Federal Reserve”) raised its benchmark federal funds rate from nearly zero in

March 2022 to a range between 4.25% and 4.50% a s of December 31, 2024. Although there are expectations that the U.S. Federal

Reserve will be reducing the federal funds rate in 2025, these expectations might not materialize. Interest rates at elevated levels could

increase our financing costs over time, either through near-term borrowings on our variable-rate unsecured senior line of credit and

commercial paper program, refinancing of our existing borrowings, or the issuance of new debt. In addition, elevated market interest

rates may result in a decrease in the value of our real estate and could also adversely affect the securities markets in general, which

could impact the market price of our common stock without regard to our operating performance. Any such unfavorable changes to our

borrowing costs and stock price could significantly impact our ability to raise new debt and equity capital going forward.

Additionally, inflationary pricing may increase the construction costs necessary to complete our development and

redevelopment projects, including, but not limited to, costs of construction materials, labor, and services from third-party contractors and

suppliers. Certain increases in the costs of construction materials, however, can often be managed in our development and

redevelopment projects through either (i) general budget contingencies built into our overall construction costs estimates for each of our

projects or (ii) guaranteed maximum price construction contracts, which stipulate a maximum price for certain construction costs and

shift inflation risk to our construction general contractors. However, it is not guaranteed that our budget contingencies would accurately

account for potential construction cost increases. Nor is it guaranteed that our general contractors would be able to absorb such

increases in costs and complete our construction projects timely, within budget, or at all.

We rely on a number of third-party suppliers and contractors to supply raw materials, skilled labor, and services for our

construction projects. We have not encountered significant difficulty collaborating with these third-party suppliers and contractors and

obtaining materials and skilled labor, nor experienced significant delays or increases in overall project costs due to the factors

discussed above. While we do not rely on any single supplier or vendor for the majority of our materials and skilled labor, we may

experience difficulties obtaining necessary materials from suppliers or vendors whose supply chains might become impacted by

economic or political changes, outmoded technology, aging infrastructure, shortages of shipping containers and/or means of

transportation, or difficulties obtaining adequate skilled labor from third-party contractors. It is uncertain whether we would be able to

continue to source the essential commodities, supplies, materials, and skilled labor timely or at all without incurring significant costs or

delays, particularly during times of economic uncertainty resulting from events outside of our control. Higher construction costs could

adversely impact our net investments in real estate and expected yields on our development and redevelopment projects, which may

make otherwise lucrative investment opportunities less profitable to us.

Historically, during periods of increasing interest rates, real estate valuations have generally decreased as a result of rising

capitalization rates which tend to move directionally with interest rates. Consequently, prolonged periods of higher interest rates may

negatively impact the valuation of our real estate asset portfolio and lead to higher cost of capital and/or lower sales proceeds from

future real estate dispositions.

The realization of any of the aforementioned risks could adversely affect our financial condition, results of operations, and cash

flows, our stock price and market capitalization, as well as our ability to pay dividends.

The cost of maintaining the quality of our properties may be higher than anticipated, which can result in reduced

cash flows and profitability.

If our properties are not as attractive to current and prospective tenants in terms of rent, services, condition, or location as

properties owned by our competitors, we could lose tenants or suffer lower rental rates. As a result, we may, from time to time, be

required to make significant capital expenditures to maintain the competitiveness of our properties. However, there can be no

assurances that any such expenditures would result in higher occupancy or higher rental rates or deter existing tenants from relocating

to properties owned by our competitors.

Our inability to renew leases or re-lease space on favorable terms as leases expire may significantly affect our

business.

Our revenues are derived primarily from rental payments and reimbursement of operating expenses under our leases. If our

tenants experience a downturn in their business or other types of financial distress, they may be unable to make timely payments under

their leases. In addition, because of the impact to the business environment due to civil unrest, high cost of living, taxes, and other

increased region-specific costs of doing business in certain of our markets and submarkets, such as those located in the states of

California and Washington, tenants may choose not to renew or re-lease space. Also, if our tenants terminate early or decide not to

renew their leases, we may not be able to re-lease the space. Even if tenants decide to renew or lease space, the terms of renewals or

new leases, including the cost of any tenant improvements, concessions, and lease commissions, may be less favorable to us than

current lease terms. Consequently, we could generate less cash flows from the affected properties than expected, which could

negatively impact our business. We may have to divert cash flows generated by other properties to meet our debt service payments, if

any, or to pay other expenses related to owning the affected properties.

The inability of a tenant to pay us rent could adversely affect our business.

Our revenues are derived primarily from rental payments and reimbursement of operating expenses under our leases. If our

tenants, especially significant tenants, fail to make rental payments under their leases, our financial condition, cash flows, and ability to

make distributions to our stockholders could be adversely affected. Additionally, the inability of the U.S. Congress to enact a budget for

a fiscal year or the occurrence of partial or complete U.S. government shutdowns may result in financial difficulties for tenants that are

dependent on federal funding, which could adversely affect the ability of those tenants to pay us rent.

The bankruptcy or insolvency of a major tenant may also adversely affect the income produced by a property. 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. Our claim against such a tenant for

uncollectible future rent would be subject to a statutory limitation that might be substantially less than the remaining rent actually owed

to us under the tenant’s lease. Any shortfall in rental payments could adversely affect our cash flows and our ability to make

distributions to our stockholders.

We could be held liable for damages resulting from our tenants’ use of hazardous materials.

Many of our tenants engage in research and development activities that involve controlled use of hazardous materials,

chemicals, and biologic and radioactive compounds. In the event of contamination or injury from the use of these hazardous materials,

we could be held liable for damages that result. This liability could exceed our resources and any recovery available through any

applicable insurance coverage, which could adversely affect our ability to make distributions to our stockholders.

Together with our tenants, we must comply with federal, state, and local laws and regulations governing the use, manufacture,

storage, handling, and disposal of hazardous materials and waste products. Failure to comply with these laws and regulations, or

changes thereto, could adversely affect our business or our tenants’ businesses and their ability to make rental payments to us.

Our properties may have defects that are unknown to us.

Although we thoroughly review the physical condition of our properties before they are acquired, and as they are developed or

redeveloped, any of our properties may have characteristics or deficiencies unknown to us that could adversely affect the property’s

value or revenue potential.

Our properties may contain or develop harmful mold or suffer from other air quality issues, which could lead to

liability for adverse health effects and costs to remedy the problem.

When excessive moisture accumulates in buildings or on building materials, mold may grow, particularly if the moisture

problem remains undiscovered or is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Indoor

air quality issues can also stem from inadequate ventilation, chemical contamination from indoor or outdoor sources, and other

biological contaminants such as pollen, viruses, and bacteria. Indoor exposure to airborne toxins or irritants above certain levels may

cause a variety of adverse health effects and symptoms, including allergic or other reactions. As a result, the presence of significant

mold or other airborne contaminants at any of our properties could require us to undertake a costly remediation program to contain or

remove the mold or other airborne contaminants from the affected property or increase indoor ventilation. In addition, the presence of

significant mold or other airborne contaminants could expose us to liability from our tenants, employees of our tenants, and others if

property damage or health concerns arise.

We may not be able to obtain additional capital to further our business objectives.

Our ability to acquire, develop, or redevelop properties depends upon our ability to obtain capital. The real estate industry has

historically experienced periods of volatile debt and equity capital markets and/or periods of extreme illiquidity. A prolonged period in

which we cannot effectively access the public debt and/or equity markets may result in heavier reliance on alternative financing sources

such as dispositions and partial interest sales to undertake new investments. An inability to obtain debt and/or equity capital on

acceptable terms could delay or prevent us from acquiring, financing, and completing desirable investments and could otherwise

adversely affect our business. Also, the issuance of additional shares of capital stock or interests in subsidiaries to fund future

operations could dilute the ownership of our then-existing stockholders. Even as liquidity returns to the market, debt and equity capital

may be more expensive than in prior years.

We may not be able to sell our properties quickly to raise capital.

Investments in real estate are relatively illiquid compared to other investments. Accordingly, we may not be able to sell our

properties when we desire or at prices acceptable to us in response to changes in macroeconomic or other conditions. In addition,

certain of our properties have low tax bases relative to their estimated current market values. As such, the sale of these assets would

generate significant taxable gains that may increase our REIT distribution requirement unless we sold such properties in a qualifying

tax-deferred exchange under Section 1031 (“Section 1031 Exchange”) of the Internal Revenue Code of 1986, as amended (the

“Internal Revenue Code”), or in a similar tax-free or tax-deferred transaction or applied an offsetting tax deduction. For a sale to qualify

for tax-deferred treatment under Section 1031, net proceeds from the sale of a property must be held by a third-party escrow agent until

applied toward the purchase of a qualifying real estate asset. It is possible we may encounter delays in reinvesting such proceeds, or

we may be unable to reinvest such proceeds at all, due to an inability to procure qualifying real estate. Any delay or limitation in using

the reinvestment proceeds to acquire additional real estate assets may cause the reinvestment proceeds to become taxable to us.

Furthermore, if current laws applicable to such tax-deferred transactions are later amended or repealed, we may no longer be able to

sell properties on a tax-deferred basis, which may adversely affect our results of operations and cash flows.

In addition, the Internal Revenue Code limits our ability to sell properties held for less than two years. These limitations on our

ability to sell our properties may adversely affect our cash flows, our ability to repay debt, and our ability to make distributions to our

stockholders.

Adverse changes in our credit ratings could negatively affect our financing ability.

Our credit ratings may affect the amount of capital we can access, as well as the terms and pricing of any debt we may incur.

There can be no assurance that we will be able to maintain and/or improve our current credit ratings. In the event that our current credit

ratings are downgraded or removed, we would most likely incur higher borrowing costs and experience greater difficulty in obtaining

additional financing, which in turn would have a material adverse impact on our financial condition, results of operations, cash flows,

and liquidity.

We may not be able to refinance our debt, and/or our debt may not be assumable.

The real estate industry may require more funds to refinance debt maturities than are available from lenders. This potential

shortage of available funds from lenders and stricter credit underwriting guidelines may limit our ability to refinance our debt as it

matures or may adversely affect our financial condition, results of operations, and cash flows, our ability to make distributions to our

stockholders, and the market price of our common stock.

We may not be able to borrow additional amounts through the issuance of unsecured bonds or under our unsecured

senior line of credit or commercial paper program.

There is no assurance that we will be able to continue to access the unsecured bond market on favorable terms. Our ability to

borrow additional amounts through the issuance of unsecured bonds may be negatively impacted by periods of illiquidity in the bond

market.

Aggregate borrowings under our unsecured senior line of credit require compliance with certain financial and non-financial

covenants. Borrowings under our unsecured senior line of credit are funded by a group of banks. Our ability to borrow additional

amounts under our unsecured senior line of credit and commercial paper program may be negatively impacted by a decrease in cash

flows from our properties, a default or cross-default under our unsecured senior line of credit and commercial paper program, non-

compliance with one or more loan covenants associated with our unsecured senior line of credit, and non-performance or failure of one

or more lenders under our unsecured senior line of credit. In addition, we may not be able to refinance or repay outstanding borrowings

on our unsecured senior line of credit or commercial paper program.

Our inability to borrow additional amounts on an unsecured basis could delay us in or prevent us from acquiring, financing, and

completing desirable investments, which could adversely affect our business; and our inability to refinance or repay amounts under our

unsecured senior line of credit or commercial paper program may adversely affect our cash flows, ability to make distributions to our

stockholders, financial condition, and results of operations.

Our unsecured senior line of credit restricts our ability to engage in some business activities.

Our unsecured senior line of credit contains customary negative covenants and other financial and operating covenants that,

among other things:

• Restrict our ability to incur additional indebtedness;

• Restrict our ability to make certain investments;

• Restrict our ability to merge with another company;

• Restrict our ability to make distributions to our stockholders;

• Require us to maintain financial coverage ratios; and

• Require us to maintain a pool of qualified unencumbered assets.

Complying with these restrictions may prevent us from engaging in certain profitable activities and/or constrain our ability to

effectively allocate capital. Failure to comply with these restrictions may result in our defaulting on these and other loans, which would

likely have a negative impact on our operations, financial condition, and ability to make distributions to our stockholders.

Our debt service obligations may have adverse consequences on our business operations.

We use debt to finance our operations, including the acquisition, development, and redevelopment of properties. Our use of

debt may have adverse consequences, including, but not limited to, the following:

• Our cash flows from operations may not be sufficient to meet required payments of principal and interest.

• We may be forced to dispose of one or more of our properties, possibly on disadvantageous terms, to make payments on

our debt.

• If we default on our secured debt obligations, the lenders or mortgagees may foreclose on our properties that secure

those loans.

• A foreclosure on one of our properties could create taxable income without any accompanying cash proceeds to pay the

tax.

• A default under a loan that has cross-default provisions may cause us to automatically default on another loan.

• We may not be able to refinance or extend our existing debt.

• The terms of any refinancing or extension may not be as favorable as the terms of our existing debt.

• We may be subject to a significant increase in the variable interest rates on our unsecured senior line of credit, secured

construction loan, or commercial paper program, which could adversely impact our cash flows and operations.

• The terms of our debt obligations may require a reduction in our distributions to stockholders.

If our expenses exceed our revenues, we may have to borrow additional funds, and we may not be able to make

distributions to our stockholders.

If our properties do not generate revenues sufficient to cover our operating expenses, including our debt service obligations

and capital expenditures, we may have to borrow additional amounts to cover fixed costs and cash flow needs. This could adversely

affect our ability to make distributions to our stockholders. Factors that could adversely affect the revenues we generate from, and the

values of, our properties include, but are not limited to:

• National, local, and worldwide economic and political conditions;

• Competition from other properties;

• Changes in the life science industry;

• Real estate conditions in our target markets;

• Our ability to collect rental payments;

• The availability of financing;

• Changes to the financial and banking industries;

• Changes in interest rate levels;

• Vacancies at our properties and our ability to re-lease space;

• Changes in tax or other regulatory laws;

• The costs of compliance with government regulation;

• The lack of liquidity of real estate investments;

• Increases in operating costs; and

• Increases in costs to address environmental impacts related to climate change or natural disasters.

In addition, if a lease at a property is not a triple net lease, we will have greater exposure to increases in expenses associated

with operating that property. Certain significant expenditures, such as mortgage payments, real estate taxes, insurance, and

maintenance costs, are generally fixed and do not decrease when revenues at the related property decrease.

If we fail to effectively manage our debt obligations, we could become highly leveraged, and our debt service

obligations could increase to unsustainable levels.

Our organizational documents do not limit the amount of debt that we may incur. Therefore, if we fail to prudently manage our

capital structure, we could become highly leveraged. This would result in an increase in our debt service obligations that could

adversely affect our cash flows and our ability to make distributions to our stockholders. Higher leverage could also increase the risk of

default on our debt obligations or may result in downgrades to our credit ratings.

Failure to meet market expectations for our financial performance would likely adversely affect the market price and

volatility of our stock.

Our actual financial results may differ materially from expectations and/or the guidance we provide. This may be a result of

various factors, including, but not limited to:

• The status of the economy;

• The status of capital markets, including availability and cost of capital;

• Changes in financing terms available to us;

• Negative developments in the operating results or financial condition of tenants, including, but not limited to, their ability to

pay rent;

• Our ability to re-lease space at similar rates as leases expire;

• Our ability to reinvest sale proceeds in a timely manner at rates similar to the rate at which assets are sold;

• Our ability to successfully complete developments or redevelopments of properties for lease on time and/or within budget;

• Our ability to procure third-party suppliers or providers of necessary construction materials for our developments and

redevelopments of properties;

• Regulatory approval and market acceptance of the products and technologies of tenants;

• Liability or contract claims by or against tenants;

• Unanticipated difficulties and/or expenditures relating to future acquisitions;

• Environmental laws affecting our properties;

• Changes in rules or practices governing our financial reporting; and

• Other legal and operational matters, including REIT qualification and key management personnel recruitment and

retention.

Failure to meet market expectations, particularly with respect to earnings estimates, funds from operations per share,

operating cash flows, and revenues, would likely result in a decline and/or increased volatility in the market price of our common stock

or other outstanding securities.

The price per share of our stock may fluctuate significantly.

The market price per share of our common stock may fluctuate significantly in response to a variety of factors, many of which

are beyond our control, including, but not limited to:

• The availability and cost of debt and/or equity capital;

• The condition of our balance sheet;

• Actual or anticipated capital requirements;

• The condition of the financial and banking industries;

• Actual or anticipated variations in our quarterly operating results or dividends;

• The amount and timing of debt maturities and other contractual obligations;

• Changes in our net income, funds from operations, or guidance;

• The publication of research reports and articles (or false or misleading information) about us, our tenants, the real estate

industry, or the life science industry;

• The general reputation of REITs and the attractiveness of their equity securities in comparison to other debt or equity

securities (including securities issued by other real estate-based companies);

• General stock and bond market conditions, including changes in interest rates on fixed-income securities, that may lead

prospective stockholders to demand a higher annual yield from future dividends;

• Changes in our analyst ratings;

• Changes in our corporate credit ratings or credit ratings of our debt or other securities;

• Changes in market valuations of similar companies;

• Adverse market reaction to any additional debt we incur or equity we raise in the future;

• Additions, departures, or other announcements regarding our key management personnel and/or the Board of Directors;

• Actions by institutional stockholders;

• Speculation in the press or investment community;

• Short selling of our common stock or related derivative securities;

• The publication or dissemination of opinions, characterizations, or disinformation that are intended to create negative

market momentum, including through the use of social media;

• Risks associated with generative artificial intelligence tools and large language models and the conclusions that these

tools and models may draw about our business and prospects in connection with the dissemination of negative opinions,

characterizations, or disinformation;

• Terrorist activity adversely affecting the markets in which our securities trade, possibly increasing market volatility and

causing the further erosion of business and consumer confidence and spending;

• Government regulatory action and changes in tax laws;

• Fiscal policies or inaction at the U.S. federal government level that may lead to federal government shutdowns or negative

impacts on the U.S. economy;

• Fluctuations due to general market volatility;

• Disruptions in the banking sector or failures of financial institutions that we or our tenants may or may not have business

relationships with;

• Global market factors adversely affecting the U.S. economic and political environment;

• General market and economic conditions; and

• The realization of any of the other risk factors included in this annual report on Form 10-K.

These factors may cause the market price of shares of our common stock to decline, regardless of our financial condition,

results of operations, business, or prospects.

Possible future sales of shares of our common stock could adversely affect its market price.

We cannot predict the effect, if any, of future sales of shares of our common stock or the market price of our common stock.

Sales of substantial amounts of capital stock, or the perception that such sales may occur, could adversely affect the prevailing market

price for our common stock. Refer to “ Other sources ” under “ Item 7. Management’s discussion and analysis of financial condition and

results of operations ” in this annual report on Form 10-K.

We have reserved a number of shares of common stock for issuance to our directors, officers, and employees pursuant to our

Amended and Restated 1997 Stock Award and Incentive Plan (sometimes referred to herein as our “equity incentive plan”). We have

filed a registration statement with respect to the issuance of shares of our common stock pursuant to grants under our equity incentive

plan. In addition, any shares issued under our equity incentive plan will be available for sale in the public market from time to time

without restriction by persons who are not our “affiliates” (as defined in Rule 144 adopted under the Securities Act of 1933, as

amended). Affiliates will be able to sell shares of our common stock subject to restrictions under Rule 144.

Our distributions to stockholders may decline at any time.

We may not continue our current level of distributions to our stockholders. Our Board of Directors will determine future

distributions based on a number of factors, including, but not limited to:

• The amount of net cash provided by operating activities available for distribution;

• Our financial condition and capital requirements;

• Any decision to reinvest funds rather than to distribute such funds;

• Our capital expenditures;

• The annual distribution requirements under the REIT provisions of the Internal Revenue Code;

• Restrictions under Maryland law; and

• Other factors our Board of Directors deems relevant.

A reduction in distributions to stockholders may negatively impact our stock price.

Distributions on our common stock may be made in the form of cash, stock, or a combination of both.

As a REIT, we are required to distribute at least 90% of our taxable income to our stockholders. Typically, we generate cash for

distributions through our operations, the disposition of assets, including partial interest sales, or the incurrence of additional debt. Our

Board of Directors may determine in the future to pay dividends on our common stock in cash, in shares of our common stock, or in a

combination of cash and shares of our common stock. For example, we may declare dividends payable in cash or stock at the election

of each stockholder, subject to a limit on the aggregate cash that could be paid. Any such dividends would be distributed in a manner

intended to count in full toward the satisfaction of our annual distribution requirements and to qualify for the dividends paid deduction.

While the IRS privately has ruled that such a dividend would so qualify if certain requirements are met, no assurances can be provided

that the IRS would not assert a contrary position in the future. Moreover, a reduction in the cash yield on our common stock may

negatively impact our stock price.

We have certain ownership interests outside the U.S. that may subject us to risks different from or greater than those

associated with our domestic operations.

We have a small portfolio of operating properties outside the U.S., primarily in Canada. Acquisition, development,

redevelopment, ownership, and operating activities outside the U.S. involve risks that are different from those we face with respect to

our domestic properties and operations. These risks include, but are not limited to:

• Adverse effects of changes in exchange rates for foreign currencies;

• Challenges and/or taxation with respect to the repatriation of foreign earnings or repatriation of proceeds from the sale of

one or more of our foreign investments;

• Changes in foreign political, regulatory, and economic conditions, including nationally, regionally, and locally;

• Challenges in managing international operations;

• Challenges in hiring or retaining key management personnel;

• Challenges of complying with a wide variety of foreign laws and regulations, including those relating to real estate,

corporate governance, operations, taxes, employment, data privacy and security, and legal proceedings;

• Differences in lending practices;

• Differences in languages, cultures, and time zones;

• Changes in applicable laws and regulations in the U.S. that affect foreign operations;

• Challenges in managing foreign relations and trade disputes that adversely affect U.S. and foreign operations;

• Partial or complete U.S. federal government shutdowns, trade disagreements with other countries, or uncertainties that

could affect business transactions within the U.S. and with foreign entities;

• Changes in tax and local regulations with potentially adverse tax consequences and penalties; and

• Foreign ownership and transfer restrictions.

In addition, our foreign investments are subject to taxation in foreign jurisdictions based on local tax laws and regulations and

on existing international tax treaties. We invest in foreign markets under the assumption that our future earnings there will be taxed at

the current prevailing income tax rates. There are no guarantees that foreign governments will continue to honor existing tax treaties we

have relied upon for our foreign investments or that the current income tax rates in those markets will not increase significantly, thus

impacting our ability to repatriate our foreign investments and related earnings. Moreover, any international currency gain recognized

with respect to changes in exchange rates may not qualify under gross income tests that we must satisfy annually in order to qualify

and maintain our status as a REIT.

Investments in international markets may also subject us to risks associated with establishing effective controls and

procedures to regulate the operations in foreign locations and to monitor compliance with U.S. laws and regulations, including the

Foreign Corrupt Practices Act and similar foreign laws and regulations. The Foreign Corrupt Practices Act and similar applicable anti-

corruption laws prohibit individuals and entities from offering, promising, authorizing, or providing payments or anything of value, directly

or indirectly, to government officials in order to obtain, retain, or direct business. Failure to comply with these laws could subject us to

civil and criminal penalties that could materially adversely affect our results of operations or the value of our international investments.

In addition, if we fail to effectively manage our international operations, our overall financial condition, results of operations, and cash

flows, and the market price of our common stock could be adversely affected.

Furthermore, we may in the future enter into agreements with foreign entities that are governed by the laws of, and are subject

to dispute resolution rules of, another country or region. In some cases, such a country or region might not have a forum that provides

us an effective or efficient means for resolving disputes that may arise under these agreements.

We are subject to risks and liabilities in connection with properties owned through partnerships, limited liability

companies, and joint ventures.

Our organizational documents do not limit the amount of funds that we may invest in non-wholly owned partnerships, limited

liability companies, or joint ventures. Partnership, limited liability company, or joint venture investments involve certain risks, including,

but not limited to, the following:

• Upon bankruptcy of non-wholly owned partnerships, limited liability companies, or joint venture entities, we may become

liable for the liabilities of the partnership, limited liability company, or joint venture;

• We may share certain approval rights over major decisions with third parties;

• Our partners may file for bankruptcy protection or otherwise fail to fund their share of required capital contributions;

• Our partners may have economic or other business interests or goals that are inconsistent with our business interests or

goals and that could affect our ability to lease or re-lease the property, operate the property, or maintain our qualification

as a REIT;

• Our partners may have banking or financial relationships with institutions that become insolvent or otherwise fail, which

could affect our access to capital;

• Our ability to sell the interest on advantageous terms when we so desire may be limited or restricted under the terms of

our agreements with our partners; and

• We may not continue to own or operate the interests or assets underlying such relationships or may need to purchase

such interests or assets at an above-market price to continue ownership.

In addition, in some of our real estate joint ventures, predominantly consolidated, our partners hold contractual rights that allow

them to sell their interests, initiate a buy/sell process, or force the sale of a property. As of December 31, 2024 , the aggregate

noncontrolling interest balance in our consolidated balance sheet is $4.5 billion . In six consolidated joint ventures with aggregate

noncontrolling interests of approximately $1.0 billion , our partners currently have the ability to exercise these rights. In 23 other

consolidated real estate joint ventures with aggregate noncontrolling interests of approximately $3.0 billion , these rights become

exercisable upon the expiration of respective lockout provisions during 2025 through 2031 .

If a joint venture partner elects to sell their interest, we have the right of first refusal to acquire the partner’s interest at the

partner’s specified price. If we decline, the partner has the right to sell to a third party with minimal to no input from us. Alternatively,

some agreements allow the partner to force a sale of the underlying property. In such cases, we typically have a right of first offer.

However, if we choose not to proceed, the property may be sold to a third party under terms that are outside of our control. A price

offered to the third party is generally subject to certain limitations, and if it falls below a specified threshold, the partner must offer the

reduced price to us before proceeding.

The risks noted above could negatively impact us or may require us to:

• Sell the underlying asset subject to our interest in the joint venture when we otherwise would not;

• Reallocate existing capital or seek new funding in order to maintain an ownership interest in or control of an asset,

potentially straining our liquidity position and/or diluting earnings per share;

• Contribute additional capital if our partners fail to fund their share of any required capital contributions or are unable to

access capital as a result of their financial distress or disruptions in the banking sector;

• Experience substantial unanticipated delays that could hinder either the initiation or completion of redevelopment activities

or new construction;

• Incur additional expenses or reduce revenues that could prevent the achievement of yields or returns that were initially

anticipated;

• Become engaged in a dispute with our joint venture partner that could lead to the sale of either party’s ownership interest

or the property at a price below estimated fair market value;

• Initiate litigation or settle disagreements with our partner through litigation or arbitration; and

• Suffer losses or decreased returns as a result of actions taken by our partner with respect to our joint venture investments.

We generally seek to maintain control of our partnerships, limited liability companies, and joint venture investments, and

structure our joint venture agreements in a manner sufficient to permit us to achieve our business objectives. However, we may not be

able to do so, and the occurrence of one or more of the events described above could adversely affect our financial condition, results of

operations, and cash flows, our funds from operations per share, our ability to make distributions to our stockholders, and the market

price of our common stock.

We may not be able to attain the expected return on our investments in real estate joint ventures.

We have consolidated and unconsolidated real estate joint ventures in which we share certain ownership and decision-making

powers with one or more parties. Our joint venture partners must agree in order for the applicable joint venture to take specific major

actions, including budget approvals, acquisitions, sales of assets, debt financing, execution of lease agreements, and vendor approvals.

Under these joint venture arrangements, any disagreements between our partners and us may result in delayed or unfavorable

decisions. Our inability to take unilateral actions that we believe are in our best interests may result in missed opportunities and an

ineffective allocation of resources and could have an adverse effect on the financial performance of our joint ventures and our operating

results.

We could incur significant costs due to the financial condition of our insurance carriers.

We insure our properties with insurance companies we believe have good ratings at the time our policies are put into effect.

The financial condition of one or more of the insurance companies we hold policies with may be negatively impacted, which can result

in their inability to pay on future insurance claims. Their inability to pay future claims may have a negative impact on our financial

results. In addition, the failure of one or more insurance companies may increase the cost of renewing our insurance policies or

increase the cost of insuring additional properties and recently developed or redeveloped properties.

Our insurance may not adequately cover all potential losses .

As a part of Alexandria’s risk management program, we maintain all-risk property insurance for our portfolio to mitigate risks

posed by extreme weather events, natural disasters (including floods, wildfires, earthquakes, and wind events), and terrorism. Our all-

risk property insurance currently provides a $2.0 billion per occurrence li mit for our operating portfolio. However, it may not fully cover all

potential losses. There is no assurance that we will maintain current levels of insurance coverage in the future.

A significant portion of our real estate portfolio is located in seismically active regions, including the San Francisco Bay Area,

San Diego, and Seattle, and a damaging earthquake in any region could significantly impact multiple properties. For these properties,

we have obtained earthquake insurance in an amount and with deductibles we believe are commercially reasonable. For properties in

California, coverage is $335 million , per occurrence and has an annual aggregate limit, subject to a 5% deductible of the property’s

replacement value. For the Seattle region, the coverage is $200 million , per occurrence and has an annual aggregate limit, subject to a

2% deductible. Nevertheless, a major earthquake in any region could lead to substantial losses, potentially exceeding our insurance

coverage and resulting in material aggregate deductible amounts. This could adversely affect our business, financial condition, results

of operations, and cash flows.

In addition, we carry environmental and title insurance policies for our properties. We generally obtain title insurance policies

when we acquire a property, with each policy covering an amount equal to the initial purchase price of each property. Accordingly,

current property values may exceed the amount covered by a related title insurance policy.

We regularly evaluate the insurance market, including for coverage against terrorism, earthquakes, and other catastrophic

events. However, we cannot predict the availability and affordability of such coverage in the future. Should the premiums for our

earthquake and other insurance policies become prohibitively expensive or if we decide to self-insure some of our risks, we may modify

or discontinue the coverage for some or all of our properties.

If we experience a loss at any of our properties that is not covered by insurance, exceeds our insurance policy limits, or is

subject to a policy deductible, we could lose the capital invested in the affected property and, possibly, future revenues from that

property. In addition, we could continue to be obligated on any mortgage indebtedness or be responsible for other obligations related to

the affected properties. All of our wholly owned properties, including properties partially owned through joint ventures that are managed

by our joint venture partners, carry comprehensive liability, fire, extended coverage, and rental loss insurance.

For our properties in wildfire- or flood-prone areas, we are evaluating mitigation strategies and potential operational and

physical improvements. For example, resilience measures that may be implemented at some of our properties may include:

• Fire-resilience measures. Incorporation of brush management practices into landscape design; selection and positioning

of less flammable vegetation species at a reasonable distance from a property; construction of building envelopes with

fire-resistant materials; and installation of HVAC systems that are able to filter smoke particulates from the air in the event

of a fire.

• Flood-resilience measures . Positioning of critical building mechanical equipment on roofs or significantly above projected

potential flood elevations; storage of temporary flood barriers on site to be deployed at building entrances in the event of a

flood; elevation of property entrances or the first floor above projected present-day and future flood elevations; installation

of backflow preventors on storm/sewer utilities that discharge from the building; and waterproofing of the building

envelope up to the projected flood elevation.

Our tenants are also required to maintain comprehensive insurance policies, including commercial general liability insurance

typically obtained for similar properties. However, we and our tenants do not generally insure against certain types of losses that are

either uninsurable or prohibitively costly to insure. We cannot predict the future availability of insurance coverage against any risk of

loss. Insurance companies may discontinue coverage for certain risks, or, if offered, such coverage may become excessively

expensive.

The loss of services of any of our executive and/or senior officers could adversely affect us.

We depend upon the services and contributions of relatively few executive and senior officers. The loss of services or

contributions of any one of them may adversely affect our business, financial condition, and prospects. We use the extensive personal

and business relationships that members of our management have developed over time with owners of life science properties and with

major tenants and venture investment portfolio companies in the life science industry. We cannot assure our stockholders that our

executive and senior officers will remain employed with us. In California and certain other regions where we have operations, there is

intense competition for individuals with skill sets needed for our business. Moreover, in California, where our headquarters and many of

our properties are located, high state and local taxes and increased home prices contribute to the high cost of living, which may impair

our ability to attract and retain employees locally in the future. Due to the long-term nature of our investments and properties, we are

unable to predict and may be unable to effectively control such costs. If we do not succeed in attracting new personnel and retaining

and motivating existing personnel, our business may suffer, and we may be unable to implement our current initiatives or grow

effectively.

Failure to maintain effective internal control over financial reporting could have a material adverse effect on our

business, results of operations, financial condition, and stock price.

Pursuant to the Sarbanes-Oxley Act of 2002, we are required to provide a report by management on internal control over

financial reporting, including management’s assessment of the effectiveness of internal control. Changes to our business will

necessitate ongoing changes to our internal control systems and processes. Internal control over financial reporting may not prevent or

detect misstatement because of its inherent limitations, including the possibility of human error, the circumvention or overriding of

controls, or fraud. Therefore, even effective internal controls can provide only reasonable assurance with respect to the preparation and

fair presentation of financial statements. If we fail to maintain the adequacy of our internal controls, including any failure to implement

required new or improved controls, or if we experience difficulties in their implementation, our business, results of operations, and

financial condition could be materially harmed, we could fail to meet our reporting obligations, and there could be a material adverse

effect on the market price of our common stock.

If we failed to qualify as a REIT, we would be taxed at corporate rates and would not be able to take certain

deductions when computing our taxable income.

We have elected to be taxed as a REIT under the Internal Revenue Code. If, in any taxable year, we failed to qualify as a

REIT:

• We would be subject to federal and state income taxes on our taxable income at regular corporate rates;

• We would not be allowed a deduction for distributions to our stockholders in computing taxable income;

• We would be disqualified from treatment as a REIT for the four taxable years following the year during which we lost

qualification, unless we were entitled to relief under the Internal Revenue Code; and

• We would no longer be required by the Internal Revenue Code to make distributions to our stockholders.

As a result of any additional tax liability, we may need to borrow funds or liquidate certain investments in order to pay the

applicable tax. Accordingly, funds available for investment or distribution to our stockholders would be reduced for each of the years

involved.

Qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code to our

operations and financial results, as well as the determination of various factual matters and circumstances not entirely within our

control. There are only limited judicial or administrative interpretations of these provisions. Although we believe that our current

organization and method of operation comply with the rules and regulations promulgated under the Internal Revenue Code to enable us

to qualify as a REIT, we cannot assure our stockholders that we are or will remain so qualified. To qualify as a REIT, we must satisfy a

number of requirements, including those regarding the ownership of our stock and the composition of our assets and gross income. We

must also make distributions to stockholders aggregating at least 90% of our annual REIT taxable income, excluding net capital gains.

We currently own, and may acquire in the future, direct or indirect interests in one or more entities that have elected or may

elect to be taxed as REITs under the Internal Revenue Code, which are subject to the various REIT qualification requirements and

limitations described herein. If any of these entities were to fail to qualify as a REIT, then (i) the entity would become subject to federal

and state income taxes, (ii) shares in such an entity would cease to be qualifying assets for purposes of asset tests applicable to REITs,

and (iii) we may fail certain of the asset tests applicable to REITs, in which event we would fail to qualify as a REIT unless we qualify for

certain relief provisions.

In addition, we currently own interests in certain taxable REIT subsidiaries and may continue to acquire such interests in the

future. A taxable REIT subsidiary is a corporation (or entity treated as a corporation for federal income tax purposes), other than a REIT,

that has made a joint election with a parent REIT (which directly or indirectly owns stock in the REIT subsidiary) to be treated as a

taxable REIT subsidiary. The subsidiary is subject to federal and state income taxes as a regular C corporation and is further subject to

a 100% excise tax for certain transactions between the taxable REIT subsidiary and its parent REIT that are not conducted on an arm’s-

length basis. We intend to structure our transactions with any taxable REIT subsidiaries that we own to ensure that they are entered into

on arm’s-length terms to avoid incurring the 100% excise tax mentioned above. However, there can be no assurance that we will be

able to successfully structure future transactions to avoid being subject to the 100% excise tax, which may adversely impact our cash

flows, ability to make distributions to stockholders, and results of operations.

From time to time, we dispose of properties in transactions qualified as Section 1031 Exchanges. If a transaction intended to

qualify as a Section 1031 Exchange is later determined by the IRS to be taxable or if we are unable to identify and complete the

acquisition of a suitable replacement property to effect a Section 1031 Exchange or if the laws surrounding Section 1031 Exchanges

are amended or repealed, we may not be able to dispose of properties on a tax-deferred basis. In such a case, our earnings and profits

and our taxable income would increase, which could increase the dividend income and reduce the return of capital to our stockholders.

As a result, we may be required to pay additional dividends to stockholders, or if we do not pay additional dividends, our corporate

income tax liability could increase and we may be subject to interest and penalties.

We may not be able to participate in certain sales that the IRS characterizes as “prohibited transactions.” The tax imposed on

REITs engaging in prohibited transactions is a 100% tax on net income from the transaction. Whether or not the transaction is

characterized as a prohibited transaction is a factual matter. Generally, prohibited transactions are sales or other dispositions of

property, other than foreclosures, characterized as held primarily for sale to customers in the ordinary course of business. However, a

sale will not be considered a prohibited transaction if it meets certain safe harbor requirements. Although we do not intend to participate

in prohibited transactions, there is no guarantee that the IRS would agree with our characterization of our properties or that we will meet

the safe harbor requirements.

Federal income tax rules are constantly under review by the U.S. Congress and the IRS. Changes to tax laws could adversely

affect our investors or our tenants, and we cannot predict how those changes may affect us in the future. New legislation, U.S. Treasury

Department regulations, administrative interpretations, or court decisions could significantly and negatively affect our ability to qualify as

a REIT, the federal income tax consequences of such qualification, or an investment in our stock. Also, laws relating to the tax treatment

of investment in other types of business entities could change, making an investment in such other entities more attractive relative to an

investment in a REIT.

We are dependent on third parties to manage certain amenities at our properties.

We retain third-party managers to manage certain amenities at our properties, such as restaurants, conference centers,

exercise facilities, and parking garages. Our income from our properties may be adversely affected if these parties fail to provide quality

services and amenities with respect to our properties. While we monitor the performance of these third parties, we may have limited

recourse if we believe they are not performing adequately. In addition, these third-party managers may operate, and in some cases may

own or invest in, properties or businesses that compete with our properties, which may result in conflicts of interest. As a result, these

third-party managers may have made, and may in the future make, decisions that are not in our best interests.

We rely on a limited number of vendors to provide utilities and certain other services at our properties, and disruption

in these services may have a significant adverse effect on our business operations, financial condition, and cash flows.

We rely on a limited number of vendors to provide key services, including, but not limited to, utilities, security, and construction

services, at certain of our properties. Our business and property operations may be adversely affected if key vendors fail to adequately

provide key services at our properties as a result of natural disasters (such as fires, floods, earthquakes, etc.), power interruptions,

bankruptcies, war, acts of terrorism, public health emergencies, cyberattacks, pandemics, or other unanticipated catastrophic events. If

a vendor encounters financial difficulty such as bankruptcy or other events beyond our control that cause it to fail to adequately provide

utilities, security, construction, or other important services, we may experience significant interruptions in service and disruptions to

business operations at our properties, incur remediation costs, and become subject to claims and damage to our reputation.

In addition, difficulties encountered by key vendors in providing necessary services at our properties could result in significant

market rate increases for such services. Our triple net leases allow us to pass through substantially all operating expenses and certain

capital expenditures to our tenants in the form of additional rent. However, we cannot be certain that we will be able to continue to

negotiate pass-through provisions in tenant leases in the future, which could lead to a decrease in our recovery of operating expenses.

If our operating expenses increase without a corresponding increase in revenues, our profitability could diminish. Also, we cannot be

certain that increased costs will not lead our current or prospective tenants to seek space elsewhere, which could significantly hinder

our ability to increase our rents or to maintain existing occupancy levels. Additionally, this may significantly increase occupancy costs for

some of our tenants and may adversely impact their financial condition, ability to make rental payments, and ability to renew their lease

agreements.

Pacific Gas and Electric Company (“PG&E”) is the primary public utility company providing electrical and gas service to

residential and commercial customers in northern California, including the San Francisco Bay Area. Most of our properties located in

our San Francisco Bay Area market depend on PG&E for the delivery of these essential services. PG&E initiated voluntary

reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code in January 2019 in response to potential liabilities arising

from a series of catastrophic wildfires that occurred in Northern California in 2017 and 2018. While PG&E emerged from bankruptcy in

July 2020, there is no guarantee that PG&E, or other major utilities providers on which we rely in other cities in which we operate, will

be able to sustain safe operations and continue to provide consistent utilities services during similar or future incidents. During periods

of high winds and high fire danger in past fire seasons, PG&E preemptively shut off power to areas of Central and Northern California.

The shutoffs were designed to help guard against fires ignited in areas with high winds and dry conditions. PG&E has warned that it

may have to employ shutoffs while the utility company addresses maintenance issues. Future shutoffs of power may impact the

reliability of access to a stable power supply at our properties and, in turn, adversely impact our tenants’ businesses. In addition, there

is no guarantee that PG&E’s safety measures mandated by regulators will be timely and sufficient to prevent future catastrophic

wildfires. Similarly, we rely on a limited number of vendors that provide utilities services to our properties in other regions. There is no

guarantee that similar events of bankruptcy or distress would not cause unanticipated disruptions in service to any of our properties in

affected areas.

The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations,

our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our

common stock, and our ability to satisfy our debt service obligations.

We may change our business policies without stockholder approval.

Our Board of Directors determines all of our material business policies, with management’s input, including those related to:

• REIT qualification;

• Incurrence of debt and debt management activities;

• Selective acquisition, disposition, development, and redevelopment activities;

• Stockholder distributions; and

• Other policies, as appropriate.

Our Board of Directors may amend or revise these policies at any time without a vote of our stockholders. A change in these

policies could adversely affect our business and our ability to make distributions to our stockholders.

There are limits on the ownership of our capital stock under which a stockholder may lose beneficial ownership of its

shares and that may delay or prevent transactions that might otherwise be desired by our stockholders.

In order for a company to qualify as a REIT under the Internal Revenue Code, not more than 50% of the value of its

outstanding stock may be owned, directly or constructively, by five or fewer individuals or entities (as set forth in the Internal Revenue

Code) during the last half of a taxable year. Furthermore, shares of our company’s outstanding stock must be beneficially owned by 100

or more persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year.

In order for us to maintain our qualification as a REIT, among other things, our charter provides for an ownership limit, which

prohibits, with certain exceptions, direct or constructive ownership of shares of stock representing more than 9.8% of the combined total

value of our outstanding shares of stock by any person, as defined in our charter. Our Board of Directors, in its sole discretion, may

waive the ownership limit for any person. However, our Board of Directors may not grant such waiver if, after giving effect to such

waiver, we would be “closely held” under Section 856(h) of the Internal Revenue Code. As a condition to waiving the ownership limit,

our Board of Directors may require a ruling from the IRS or an opinion of legal counsel in order to determine our status as a REIT.

Notwithstanding the receipt of any such ruling or opinion, our Board of Directors may impose such conditions or restrictions as it deems

appropriate in connection with granting a waiver.

Our charter further prohibits transferring shares of our stock if such transfer would result in our being “closely held” under

Section 856(h) of the Internal Revenue Code or would result in shares of our stock being owned by fewer than 100 persons.

The constructive ownership rules are complex and may cause shares of our common stock owned directly or constructively by

a group of related individuals or entities to be constructively owned by one individual or entity. A transfer of shares to a person who, as a

result of the transfer, violates these limits shall be void or these shares shall be exchanged for shares of excess stock and transferred to

a trust for the benefit of one or more qualified charitable organizations designated by us. In that case, the intended transferee will have

only a right to share, to the extent of the transferee’s original purchase price for such shares, in proceeds from the trust’s sale of those

shares and will effectively forfeit its beneficial ownership of the shares. These ownership limits could delay, defer, or prevent a

transaction or a change in control that might involve a premium price for the holders of our common stock or that might otherwise be

desired by such holders.

In addition to the ownership limit, certain provisions of our charter and bylaws may delay or prevent transactions that

may be deemed to be desirable to our stockholders.

As authorized by Maryland law, our charter allows our Board of Directors to cause us to issue additional authorized but

unissued shares of our common stock or preferred stock and to classify or reclassify unissued shares of common or preferred stock

without any stockholder approval. Our Board of Directors could establish a series of preferred stock that could delay, defer, or prevent a

transaction that might involve a premium price for our common stock or that might, for other reasons, be desired by our common

stockholders, or a series of preferred stock that has a dividend preference that may adversely affect our ability to pay dividends on our

common stock.

Our charter permits the removal of a director only upon a two-thirds majority of the votes entitled to be cast generally in the

election of directors, and our bylaws require advance notice of a stockholder’s intention to nominate directors or to present business for

consideration by stockholders at an annual meeting of our stockholders. However, the stockholders are able to adopt, alter, amend, or

repeal our bylaws with a majority of the votes entitled to be cast on the matter and without the approval of the Board of Directors. Such

changes could potentially lead to disruption of corporate strategy, complications in strategic transactions, or other adverse effects. Our

charter and bylaws also contain other provisions that may delay, defer, or prevent a transaction or change in control that involves a

premium price for our common stock or that, for other reasons, may be desired by our stockholders.

Market and industry factors

We face substantial competition in our target markets.

The significant competition for business in our target markets could have an adverse effect on our operations. We compete for

investment opportunities with:

• Other REITs;

• Insurance companies;

• Pension and investment funds;

• Private equity entities;

• Partnerships;

• Developers;

• Investment companies;

• Owners/occupants; and

• Foreign investors, including sovereign wealth funds.

Many of these entities have substantially greater financial resources than we do and may be able to pay more than we can or

accept more risk than we are willing to accept. These entities may be less sensitive to risks with respect to the creditworthiness of a

tenant or the geographic concentration of their investments. These entities may also have more favorable relationships and pricing with

suppliers and contractors and may complete construction projects sooner and at lower costs than we are able. We may also face

competition with these entities for access to the same or similar raw materials and labor resources from suppliers and contractors, as

well as access to the specific suppliers and contractors we use. Competition may also reduce the number of suitable investment

opportunities available to us or may increase the bargaining power of property owners seeking to sell. If there is no matching growth in

demand, the intensified competition may lead to oversupply of available space comparable to ours and result in the pressure on rental

rates and greater incentives awarded to tenants. To maintain our ability to retain current and attract new tenants, we may be forced to

reduce the rental rates that our tenants are currently willing to pay or offer greater tenant concessions. Should we encounter intensified

competition or oversupply, we cannot be certain that we will be able to compete successfully, maintain our occupancy and rental rates,

and continue to expand our business. As a result, our financial condition, results of operations, and cash flows, our ability to pay

dividends, and our stock price may be adversely affected.

Poor economic conditions in our markets could adversely affect our business.

Our properties are primarily located in the following markets:

• Greater Boston

• San Francisco Bay Area

• San Diego

• Seattle

• Maryland

• Research Triangle

• New York City

• Texas

• Canada

As a result of our geographic concentration, we depend upon the local economic and real estate conditions in these markets.

We are therefore subject to increased exposure (positive or negative) to economic, tax, and other competitive factors specific to

markets in confined geographic areas. Our operations may also be affected if too many competing properties are built in any of these

markets. An economic downturn in any of these markets could adversely affect our operations and our ability to make distributions to

our stockholders. We cannot assure our stockholders that these markets will continue to grow or remain favorable to the life science

industry.

Improvements to our properties are significantly more costly than improvements to traditional office space.

Many of our properties generally contain infrastructure improvements that are significantly more costly than improvements to

other property types. Although we have historically been able to recover the additional investment in infrastructure improvements

through higher rental rates, there is the risk that we will not be able to continue to do so in the future. Typical infrastructure

improvements include:

• Reinforced concrete floors;

• Upgraded roof loading capacity;

• Increased floor-to-ceiling heights;

• Heavy-duty HVAC systems;

• Enhanced environmental control technology;

• Significantly upgraded electrical, gas, and plumbing infrastructure; and

• Laboratory benches and fume hoods.

Because many of our infrastructure improvements are specialized and costlier than those for other property types, we may be

more significantly impacted by any unanticipated delays or increased costs due to price volatility or supply shortages of construction

materials or labor. As a result, we may be unable to complete our improvements as scheduled or within budgeted amounts, which may

adversely affect our ability to lease available space to potential tenants or to reduce our projected project returns.

Our tenants and venture investments are primarily in the life science industry, and changes within this industry may

adversely impact our revenues from lease payments, the value of our non-real estate investments, and our operating results.

In general, our business strategy is to invest primarily in properties used by tenants in the life science industry. Through our

venture investment portfolio, we also hold investments in companies that, similar to our tenant base, are concentrated in the life science

industry. Our business could be adversely affected if the life science industry is impacted by an economic, financial, or banking crisis, or

if these industries migrate from the U.S. to other countries. Because of our industry focus, events within this industry may have a more

pronounced effect on our results of operations and ability to make distributions to our stockholders than if we had more diversified

tenants and investments. Also, some of our properties may be better suited for a particular life science industry tenant and could require

significant modification before we are able to re-lease space to a tenant that does not operate in one of these industries. Generally, our

properties may not be suitable for lease to traditional office tenants without significant expenditures on renovations.

Our ability to negotiate contractual rent escalations on future leases and to achieve increases in rental rates will depend upon

market conditions and the demand for laboratory space at the time the leases are negotiated and the increases are proposed.

It is common for businesses in the life science industry to undergo mergers, acquisitions, or other consolidations. Mergers,

acquisitions, or consolidations of life science entities in the future could reduce the RSF requirements of our tenants and prospective

tenants, which may adversely impact the demand for laboratory space, our future revenue from lease payments, and our results of

operations.

It is also possible that our tenants or venture investments within these industries may be adversely affected by crises involving

financial institutions with which they have business relationships. On March 10, 2023, Silicon Valley Bank (“SVB”), the 16th largest bank

in the U.S. at the time and headquartered in California, was closed by the California Department of Financial Protection and Innovation,

which appointed the FDIC as receiver. SVB was a provider of commercial and private banking products and services to industries

including life science, technology, and healthcare. SVB is now a division of First Citizens Bank. Additionally, on March 12, 2023, the

New York State Department of Financial Services announced that it had closed New York-based Signature Bank and appointed the

FDIC as a receiver, and on May 1, 2023, regulators seized control of First Republic Bank and sold the majority of its assets and

deposits to JPMorgan Chase.

Although we did not have bank accounts, loans to or from, or investments in any venture funds led by SVB or any other

recently failed financial institution, some of our tenants and venture investments may have banking or other business relationships with

such entities. Despite protections by the U.S. Federal Reserve, the FDIC, and the Treasury, if our tenants or venture investments are

unable to access cash or other capital from these institutions or any other financial institution that might fail in the future, their liquidity,

ability to meet operating expense obligations, and financial performance may be adversely affected. Accordingly, such tenants may be

unable to pay us rent, or our venture investments may decline in value, which may negatively impact our financial results.

Some of our current or future tenants may also include technology companies in their startup or growth phases of their life

cycle. Fluctuations in market confidence in these companies or adverse changes in economic, financial, or banking conditions, such as

the failure of financial institutions, including the events discussed above, may have a disproportionate effect on the operations of such

companies. Deterioration of our tenants’ financial condition may result in our inability to collect lease payments from them and therefore

may negatively impact our operating results.

Our results of operations depend on our tenants’ research and development efforts and their ability to obtain funding

for these efforts.

Our tenant base includes entities in the pharmaceutical, biotechnology, medical device, life science, and related industries;

academic institutions; government institutions; and private foundations. Our tenants determine their research and development budgets

based on several factors, including the need to develop new products, the availability of government and other funding, competition,

and the general availability of resources. Our investments through our venture investment portfolio are also in companies that, similar to

our tenant base, are concentrated in the life science industry.

Research and development budgets fluctuate due to changes in available resources, research priorities, general economic

conditions, institutional and government budgetary limitations, and mergers and consolidations of entities. Our business could be

adversely impacted by a significant decrease in research and development expenditures by our tenants, our venture investment

portfolio companies, or the life science industry.

Our tenants also include research institutions whose funding is largely dependent on grants from government agencies, such

as the NIH, the National Science Foundation, and similar agencies or organizations. U.S. government funding of research and

development is subject to the political process, which is often unpredictable. Other programs, such as Homeland Security or defense,

could be viewed by the government as higher priorities. Additionally, proposals to reduce or eliminate budgetary deficits have

sometimes included reduced allocations to the NIH and other U.S. government agencies that fund research and development

activities. Additionally, the inability of the U.S. Congress to enact a budget for a fiscal year or the occurrence of partial or complete U.S.

federal government shutdowns may result in temporary closures of agencies such as the FDA or NIH, which could adversely affect

business operations of our tenants that are dependent on government approvals and appropriations. Any shift away from funding of

research and development or delays surrounding the approval of government budget proposals may adversely impact our tenants’

operations, which in turn may impact their demand for life science/laboratory space and their ability to make lease payments to us and

thus adversely impact our results of operations.

Our life science industry tenants and venture investment portfolio companies are subject to a number of risks unique

to their industry, including (i) changes in technology, patent expiration, and intellectual property rights and protection,

(ii) high levels of regulation, (iii) failures in the safety and efficacy of their products, and (iv) significant funding requirements

for product research and development. These risks may adversely affect our tenants’ ability to make rental payments or

satisfy their other lease obligations to us or may impact our venture investment portfolio companies’ value and consequently

may materially adversely affect our business, results of operations, financial condition, and stock price.

Changes in technology, patent expiration, and intellectual property rights and protection

• Our tenants and venture investment portfolio companies develop and sell products and services in an industry that is

characterized by rapid and significant technological changes, frequent new product and service introductions and

enhancements, evolving industry standards, and uncertainty over the implementation of new healthcare reform legislation,

which may cause them to lose competitive positions and adversely affect their operations.

• Many of our tenants and venture investment portfolio companies, and their licensors, require patent, copyright, or trade

secret protection and/or rights to use third-party intellectual property to develop, make, market, and sell their products and

technologies. A tenant or venture investment portfolio company may be unable to commercialize its products or

technologies if patents covering such products or technologies are not issued or are successfully challenged, narrowed,

invalidated, or circumvented by third parties. Additionally, a third party may own intellectual property that limits a tenant’s

or venture investment portfolio company’s ability to bring to market its product or technology without securing a license or

other rights to use the third-party intellectual property, which may require the tenant to pay an upfront fee or royalty.

Failure to obtain these rights from third parties may make it challenging or impossible for a tenant or venture investment

portfolio company to develop and commercialize its products or technologies, which could adversely affect its competitive

position and operations.

• Many of our tenants and venture investment portfolio companies depend upon patents to provide exclusive marketing

rights for their products. As their product patents expire, competitors may be able to legally produce and market products

similar to the products of our tenants or venture investment portfolio companies, which could have a material adverse

effect on their sales and results of operations.

High levels of regulation

• Some of our life science industry tenants and venture investment portfolio companies develop and manufacture products

that require regulatory approval, including approval from the FDA, prior to being manufactured, marketed, sold, and used.

The regulatory approval process to manufacture and market drugs is costly, typically takes many years, requires validation

through clinical trials and the use of substantial resources, and is often unpredictable. A tenant or venture investment

portfolio company may fail to obtain or may experience significant delays in obtaining these approvals. Even if the tenant

or venture investment portfolio company obtains regulatory approvals, marketed products will be subject to ongoing

regulatory review and potential loss of approvals.

• The ability of some of our life science industry tenants and venture investment portfolio companies to commercialize any

future products successfully will depend in part on the coverage and reimbursement levels set by government authorities,

private health insurers, and other third-party payors. Additionally, reimbursements may decrease in the future.

Failures in the safety and efficacy of their products

• Some of our life science industry tenants and venture investment portfolio companies may find that their potential products

are not effective, or are even harmful, when tested in humans.

• Some of our life science industry tenants and venture investment portfolio companies depend upon the commercial

success of certain products. Even if a product developed by a life science industry tenant or venture investment portfolio

company is proven safe and effective in human clinical trials, and the requisite regulatory approvals are obtained,

subsequent discovery of safety issues with these products could cause product liability events, additional regulatory

scrutiny and requirements for additional labeling, loss of approval, withdrawal of products from the market, and the

imposition of fines or criminal penalties.

• A product developed, manufactured, marketed, or sold by a life science industry tenant or venture investment portfolio

company may not be well accepted by doctors and patients, or may be less effective or accepted than a competitor’s

product.

• The negative results of safety signals arising from the clinical trials of the competitors of our life science industry tenants

or venture investment portfolio companies may prompt regulatory agencies to take actions that may adversely affect the

clinical trials or products of our tenants or venture investment portfolio companies.

Significant funding requirements for product research and development

• Some of our life science industry tenants and venture investment portfolio companies require significant funding to

develop and commercialize their products and technologies, which must be obtained from venture capital firms; private

investors; public markets; other companies in the life science industry; or federal, state, and local governments. Such

funding may become unavailable or difficult to obtain. The ability of each tenant or venture investment portfolio company

to raise capital will depend on its financial and operating condition, viability of its products and technology, and the overall

condition of the financial, banking, and economic environment, as well as government budget policies.

• Even with sufficient funding, some of our life science industry tenants or venture investment portfolio companies may not

be able to discover or identify potential drug targets in humans, or potential drugs for use in humans, or to create tools or

technologies that are commercially useful in the discovery or identification of potential drug targets or drugs.

• Some of our life science industry tenants or venture investment portfolio companies may not be able to successfully

manufacture their products economically, even if such products are proven through human clinical trials to be safe and

effective in humans.

• Marketed products also face commercialization risk, and some of our life science industry tenants and venture investment

portfolio companies may never realize projected levels of product utilization or revenues.

• Negative news regarding the products, the clinical trials, or other business developments of our life science industry

tenants or venture investment portfolio companies may cause their stock price or credit profile to deteriorate.

We cannot assure our stockholders that our life science industry tenants or venture investment portfolio companies will be able

to develop, manufacture, market, or sell their products and technologies due to the risks inherent in the life science industry. Any life

science industry tenant or venture investment portfolio company that is unable to avoid, or sufficiently mitigate, the risks described

above may have difficulty making rental payments or satisfying its other lease obligations to us or may have difficulty maintaining the

value of our investment. Such risks may also decrease the credit quality of our life science industry tenants and venture investment

portfolio companies or cause us to expend more funds and resources on the space leased by these tenants than we originally

anticipated. The increased burden on our resources due to adverse developments relating to our life science industry tenants may

cause us to achieve lower-than-expected yields on the space leased by these tenants. Negative news relating to our more significant

life science industry tenants and venture investment portfolio companies may also adversely impact our stock price.

Our agtech industry tenants and venture investment portfolio companies are subject to a number of risks unique to

their industry, including (i) uncertain regulatory environment, (ii) seasonality in business, (iii) unavailability of transportation

mechanisms for carrying products and raw materials, (iv) changes in costs or constraints on supplies or energy used in

operations, (v) strikes or labor slowdowns or labor contract negotiations, and (vi) rapid technological changes in agriculture.

These risks may adversely affect our tenants’ ability to make rental payments or satisfy their other lease obligations to us or

may impact our venture investment portfolio companies’ value, which consequently may materially adversely affect our

business, results of operations, financial condition, and stock price.

Uncertain regulatory environment

• Laws and regulations governing the Internet, e-commerce, electronic devices, and other services and products developed

by the agtech industry continue to evolve. Existing and future laws and regulations and the halting of operations at certain

agencies resulting from partial or complete U.S. federal government shutdowns may impede the growth of our agtech

industry tenants and venture investment portfolio companies. These laws and regulations may cover, among other areas,

taxation, privacy, data protection, pricing, content, copyrights, distribution, mobile communications, business licensing,

and consumer protection.

Seasonality in business

• Our agtech industry tenants’ and venture investment portfolio companies’ businesses may fluctuate from time to time due

to seasonal weather conditions and other factors out of their control, affecting products and services our agtech industry

tenants and venture investment portfolio companies offer.

Unavailability of transportation mechanisms for carrying products and raw materials

• Some of our agtech industry tenants’ and venture investment portfolio companies’ businesses depend on transportation

services to deliver their products or to deliver raw materials to their clients. If transportation service providers are

unavailable or fail to deliver our agtech industry tenants’ or venture investment portfolio companies’ products in a timely

manner, they may be unable to manufacture and deliver their services and products on a timely basis.

Changes in costs or constraints on supplies or energy used in operations

• Similarly, if fuel or other energy prices increase, it may increase transportation costs, which could affect our agtech

industry tenants’ and venture investment portfolio companies’ businesses.

Strikes or labor slowdowns or labor contract negotiations

• Our agtech industry tenants and venture investment portfolio companies may face labor strikes, work slowdowns, labor

contract negotiations, or other job actions from their employees or third-party contractors. In the event of a strike, work

slowdown, or other similar labor unrest, our agtech industry tenants or venture investment portfolio companies may not

have the ability to adequately staff their businesses, which could have an adverse effect on their operations and revenue.

Rapid technological changes in agriculture

• The agtech industry is characterized by regular new product and service introductions, and the emergence of new industry

standards and practices. A failure to respond in a timely manner to these market conditions could materially impair the

operations of our agtech industry tenants and venture investment portfolio companies.

• Technological advances in agriculture could decrease the demand for crop nutrients, energy, and other crop input

products and services our agtech industry tenants and venture investment portfolio companies provide. Genetically

engineered crops that resist disease and insects could affect the demand for certain of our tenants’ or venture investment

portfolio companies’ products. Demand for fuel could decline as technology allows for more efficient usage of equipment.

We cannot assure our stockholders that our agtech industry tenants and venture investment portfolio companies will be able to

develop, produce, market, or sell their products and services due to the risks inherent in the agtech industry. Any agtech industry tenant

or venture investment portfolio company that is unable to avoid, or sufficiently mitigate, the risks described above may have difficulty

making rental payments or satisfying its other lease obligations to us. Such risks may also decrease the credit quality of our agtech

industry tenants or venture investment portfolio companies or cause us to expend more funds and resources on the space leased by

these tenants than we originally anticipated. The increased burden on our resources due to adverse developments relating to our

agtech industry tenants may cause us to achieve lower-than-expected yields on the space leased by these tenants. Unfavorable news

relating to our more significant agtech industry tenants and venture investment portfolio companies may also adversely impact our stock

price.

Our technology industry tenants and venture investment portfolio companies are subject to a number of risks unique

to their industry, including (i) an uncertain regulatory environment, (ii) rapid technological changes, (iii) a dependency on the

maintenance and security of the Internet infrastructure, (iv) significant funding requirements for product research and

development and sales growth, and (v) inadequate intellectual property protections. These risks may adversely affect our

tenants’ ability to make rental payments to us or satisfy their other lease obligations or may impact our venture investment

portfolio companies’ value, which consequently may materially adversely affect our business, results of operations, financial

condition, and stock price.

Uncertain regulatory environment

• Laws and regulations governing the Internet, e-commerce, electronic devices, and other services continue to evolve.

Existing and future laws and regulations and the halting of operations at certain agencies resulting from partial or

complete U.S. federal government shutdowns may impede the growth of our technology industry tenants and venture

investment portfolio companies. These laws and regulations may cover, among other areas, taxation, worker

classification, privacy, data protection, pricing, content, copyrights, distribution, mobile communications, business

licensing, and consumer protection.

Rapid technological changes

• The technology industry is characterized by rapid changes in customer requirements and preferences, frequent new

product and service introductions, and the emergence of new industry standards and practices. A failure to respond in a

timely manner to these market conditions could materially impair the operations of our technology industry tenants and

venture investment portfolio companies.

Dependency on the maintenance and security of the Internet infrastructure

• Some of our technology industry tenants and venture investment portfolio companies depend on continued and

unimpeded access to the Internet by users of their products and services, as well as access to mobile networks. Internet

service providers and mobile network operators may be able to block, degrade, or charge additional fees to these tenants,

venture investment portfolio companies, or users of their products and services.

• The Internet has experienced, and is likely to continue to experience, outages and other delays. These outages and

delays, as well as problems caused by cyberattacks and computer malware, viruses, worms, and similar programs, may

materially affect the ability of our technology industry tenants and venture investment portfolio companies to conduct

business.

• Reliance on a limited number of cloud provider vendors may result in detrimental impacts on or halts of operations during

instances of network outages or interruptions.

• Security breaches or network attacks may delay or interrupt the services provided by our technology industry tenants and

venture investment portfolio companies and could harm their reputations or subject them to significant liability.

Significant funding requirements for product research and development and sales growth

• Some of our technology industry tenants and venture investment portfolio companies require significant funding to

develop and commercialize their products and technologies, which must be obtained from venture capital firms; private

investors; public markets; companies in the technology industry; or federal, state, and local governments. Such funding

may become unavailable or difficult to obtain. The ability of each tenant or venture investment portfolio company to raise

capital will depend on its financial and operating condition, viability of their products, and the overall condition of the

financial, banking, governmental budget policies, and economic environment.

• Even with sufficient funding, some of our technology industry tenants and venture investment portfolio companies may not

be able to discover or identify potential customers or to create tools or technologies that are commercially useful.

• Some of our technology industry tenants and venture investment portfolio companies may not be able to successfully

manufacture their products economically.

• Marketed products also face commercialization risk, and some of our technology industry tenants and venture investment

portfolio companies may never realize projected levels of product utilization or revenues.

• Unfavorable news regarding the products or other business developments of our technology industry tenants or venture

investment portfolio companies may cause their stock price or credit profile to deteriorate.

Inadequate intellectual property protections

• The products and services provided by some of our technology industry tenants and venture investment portfolio

companies are subject to the threat of piracy and unauthorized copying, and inadequate intellectual property laws and

other inadequate protections could prevent them from enforcing or defending their proprietary technologies. These tenants

and venture investment portfolio companies may also face legal risks arising out of user-generated content.

• Trademark, copyright, patent, domain name, trade dress, and trade secret protection is very expensive to maintain and

may require our technology industry tenants and venture investment portfolio companies to incur significant costs to

protect their intellectual property rights.

We cannot assure our stockholders that our technology industry tenants and venture investment portfolio companies will be

able to develop, manufacture, market, or sell their products and services due to the risks inherent in the technology industry. Any

technology industry tenant or venture investment portfolio company that is unable to avoid, or sufficiently mitigate, the risks described

above may have difficulty making rental payments or satisfying its other lease obligations to us or may have difficulty maintaining the

value of our investment. Such risks may also decrease the credit quality of our technology industry tenants or venture investment

portfolio companies or cause us to expend more funds and resources on the space leased by these tenants than we originally

anticipated. The increased burden on our resources due to adverse developments relating to our technology industry tenants may

cause us to achieve lower-than-expected yields on the space leased by these tenants. Unfavorable news relating to our more

significant technology industry tenants and venture investment portfolio companies may also adversely impact our stock price.

The companies in which we invest through our non-real estate venture investment portfolio expose us to risks similar

to those of our tenant base and additional risks inherent in venture capital investing, which could materially affect our

reported asset and liability values and earnings and may materially and adversely affect our reported results of operations.

Through our strategic venture investment portfolio, we hold investments in companies that, similar to our tenant base, are

concentrated in the life science industry. The venture investment portfolio companies in which we invest are accordingly subject to risks

similar to those posed by our tenant base, including those disclosed in this annual report on Form 10-K. In addition, the companies in

which we invest through our venture investment portfolio are subject to the risks inherent in venture capital investing and may be

adversely affected by external factors beyond our control and other risks, including, but not limited to, the following:

• Risks inherent in venture capital investing, which typically focuses on small early-stage companies with unproven

technologies and limited access to capital and is therefore generally considered more speculative than investment in

larger, more established companies.

• Market disruption and volatility, which may adversely affect the value of the companies in which we hold equity

investments and, in turn, our ability to realize gains upon sales of these investments.

• Disruptions, uncertainty, or volatility in the capital markets and global economy, which may impact the ability of the

companies in which we invest to raise additional capital or access capital from venture capital investors or financial

institutions on favorable terms.

• Liquidity of the companies in which we invest, which may (i) impede our ability to realize the value at which these

investments are carried if we are required to dispose of them, (ii) make it difficult for us to sell these investments on a

timely basis, and (iii) impair the value of such investments.

• Changes in the political climate, potential reforms and changes to government negotiation and regulation, the effect of

healthcare reform legislation, including those that may limit pricing of pharmaceutical products and drugs, market prices

and conditions, 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, all of which may affect

the valuation, funding opportunities, business operations, and financial results of the companies in which we invest.

• Changes in U.S. federal government organizations or other agencies, including changes in policy, regulations, budgeting,

retention of key leadership and other personnel, administration of drug approvals or restrictions on drug product or service

development or commercialization, or a partial or complete future government shutdown resulting in temporary closures of

agencies such as the FDA and SEC, could adversely affect the companies in which we invest, including delays in the

commercialization of such companies’ products, decreased funding of research and development in the life science

industry, or delays surrounding approval of budget proposals for any in this industry.

• Impacts or changes in business for any reason, including diversion of healthcare resources away from clinical trials,

delays, or difficulties enrolling patients or maintaining scheduled appointments in clinical trials, interruptions, and delays in

laboratory research due to the reduction in employee resources stemming from social distancing requirements and the

desire of employees to avoid contact with people, insufficient inventory of supplies and reagents necessary for laboratory

research due to interruptions in supply chain, delays or difficulties obtaining clinical site locations or engaging clinical site

staff, interruptions on clinical site monitoring due to travel restrictions, delays in interacting with or receiving approval from

regulatory agencies in connection with research activities or clinical trials, and disruptions to manufacturing facilities and

supply lines.

• Reduction in revenue or revenue growth, deterioration in the global economy, or other reasons, may impair the value of

the companies in which we hold equity investments or impede their ability to raise additional capital.

• Seasonal weather conditions, changes in availability of transportation or labor, and other related factors may affect the

products and services or the availability of the products and services of the companies in which we invest in the agtech

sector.

Many of the factors listed above are beyond our control and, if the venture investment portfolio companies are adversely

affected by any of the foregoing, could materially affect our reported asset and liability values and earnings and may materially and

adversely affect our reported results of operations. The occurrence of any of these adverse events could cause the market price of

shares of our common stock to decline regardless of the performance of our primary real estate business.

Market and other external factors may adversely impact the valuation of our non-real estate equity investments.

We hold equity investments in certain publicly traded companies, limited partnerships, and privately held entities primarily

involved in the life science industry through our venture investment portfolio. The valuation of these investments is affected by many

external factors beyond our control, including, but not limited to, market prices, market conditions, the effect of healthcare reform

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. In addition, partial or complete future government

shutdowns that may result in temporary closures of agencies such as the FDA and SEC may adversely affect the processing of initial

public offerings, business operations, financial results, and funding for projects of 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.

Market and other external factors may negatively impact the liquidity of our non-real estate equity investments.

We make and hold investments in privately held life science companies through our venture investment portfolio. These

investments may be illiquid, which could impede our ability to realize the value at which these investments are carried if we are required

to dispose of them. The lack of liquidity of these investments may make it difficult for us to sell these investments on a timely basis and

may impair the value of these investments. If we are required to liquidate all or a portion of these investments quickly, we may realize

significantly less than the amounts at which we had previously valued these investments.

Government factors

Negative impact on economic growth resulting from the combination of federal income tax policy, debt policy, and

government spending may adversely affect our results of operations.

Global macroeconomic conditions affect our and our tenants’ businesses. Instability in the banking and government sectors of

the U.S. and/or the negative impact on economic growth resulting from the combination of government tax policy, debt policy, and

government spending, may have an adverse effect on the overall economic growth and our future revenue growth and profitability.

Volatile, negative, or uncertain economic conditions could undermine business confidence in our significant markets or in other markets

and cause our tenants to reduce or defer their spending, which would negatively affect our business. Growth in the markets we serve

could be at a slow rate or could stagnate or contract in each case for an extended period of time. Differing economic conditions and

patterns of economic growth and contraction in the geographic regions in which we operate and the industries we serve may in the

future affect demand for our services. Our revenues and profitability are derived from our tenants in North America, some of which

derive significant revenues from their international operations. Ongoing economic volatility and uncertainty affects our business in a

number of other ways, including making it more difficult to accurately forecast client demand beyond the short term and to effectively

build our revenue and spending plans. Economic volatility and uncertainty are particularly challenging because it may take some time

for the effects and resulting changes in demand patterns to manifest themselves in our business and results of operations. Changing

demand patterns from economic volatility and uncertainty could have a significant negative impact on our results of operations. These

risks may impact our overall liquidity, our borrowing costs, or the market price of our common stock.

Changes to the U.S. tax laws and implementation of new tax policies could have a significant negative impact on the

overall economy, our tenants, and our business.

Changes to U.S. tax laws that may be enacted in the future, including changes that may be introduced from time to time as a

result of a change in administration of the U.S. government, could negatively impact the overall economy, government revenues, the

real estate industry, our tenants, and us, in ways that cannot be reliably predicted. There can be no assurance that future changes to

the U.S. tax laws or regulatory changes will not be proposed or enacted that could impact our business and financial results. The REIT

rules are regularly under review by persons involved in the legislative process and by the IRS and the U.S. Treasury Department, which

may result in revisions to regulations and interpretations in addition to statutory changes. If enacted, certain of such changes could have

an adverse impact on our business and financial results.

Furthermore, the incoming administration of President Trump has included as part of its agenda a potential reform of U.S. tax

laws. The details of the potential reform have not yet emerged, but during his 2024 presidential campaign, President Trump outlined

several intended reforms, including reducing the corporate tax rate for domestic oil and gas production, repealing green energy tax

credits, extending certain provisions of the Tax Cuts and Jobs Act of 2017 (“TCJA”), and imposing new tariffs. Many political and

economic commentators believe that the combined impact of extending certain tax benefits pursuant to the TCJA and the

implementation of new tariffs could potentially lead to increases in the U.S. deficit, inflation, and interest rates, all of which could

contribute to increases in market interest rates and a decrease in U.S. economic growth with a possibility of a recession. However, we

cannot predict whether, when, or to what extent these new regulations or rulings will be issued, nor the long-term impact of the

proposed tax reforms on the real estate industry. Current and prospective investors should consult their tax advisors regarding the effect

of potential changes to the U.S. federal tax laws on an investment in our shares.

Actual and anticipated changes to the regulations of the healthcare system may have a negative impact on the

pricing of drugs, the cost of healthcare coverage, and the reimbursement of healthcare services and products.

The FDA and comparable agencies in other jurisdictions directly regulate many critical activities of life science, technology, and

healthcare industries, including the conduct of preclinical and clinical studies, product manufacturing, advertising and promotion,

product distribution, adverse event reporting, and product risk management. In both domestic and foreign markets, sales of products

depend in part on the availability and amount of reimbursement by third-party payors, including governments and private health plans.

Governments may regulate coverage, reimbursement, and pricing of products to control cost or affect utilization of products. Private

health plans may also seek to manage cost and utilization by implementing coverage and reimbursement limitations. Substantial

uncertainty exists regarding the reimbursement by third-party payors of newly approved healthcare products. The U.S. and foreign

governments regularly consider reform measures that affect healthcare coverage and costs. Such reforms may include changes to the

coverage and reimbursement of healthcare services and products. In particular, there have been judicial and congressional challenges

to the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act

(collectively, the “ACA”), which could have an impact on coverage and reimbursement for healthcare terms and services covered by

plans authorized by the ACA. During 2017 several attempts were made to amend the ACA; however, no amendment proposal gained

the 50-vote support from the U.S. Senate needed to pass a repeal bill. As a result, in October 2017, then President Trump issued

an executive order, “Promoting Healthcare Choice and Competition Across the United States,” which the Biden administration repealed

in January 2021. Since winning reelection in November 2024, President Trump has stated that he has “concepts of a plan” to repeal or

reform the ACA, but further details have not yet been publicly disclosed. It is unclear how these healthcare reform measures of the

Trump administration or other efforts, if any, to challenge, repeal, or replace the ACA will impact our business. It is also unknown what

other changes will be implemented through the U.S. Congress or future executive orders and how these would impact our tenants.

Government and other regulatory oversight and future regulatory and government interference with the healthcare systems may

adversely impact our tenants’ businesses and our business.

U.S. government tenants may not receive anticipated appropriations, which could hinder their ability to pay us.

U.S. government tenants are subject to government funding. If one or more of our U.S. government tenants fail to receive

anticipated appropriations, we may not be able to collect rental amounts due to us. A significant reduction in federal government

spending, particularly a sudden decrease due to tax reform or a sequestration process, which has occurred in recent years and may

occur again in the coming years, could also adversely affect the ability of these tenants to fulfill lease obligations or decrease the

likelihood that they will renew their leases with us. In addition, budgetary pressures have resulted in, and may continue to result in,

reduced allocations to government agencies that fund research and development activities, such as the NIH. For example, the NIH

budget has been, and may continue to be, significantly impacted by the sequestration provisions of the Budget Control Act of 2011,

which became effective on March 1, 2013. Past proposals to reduce budget deficits have included reduced NIH and other research and

development budgets. Any shift away from the funding of research and development or delays surrounding the approval of government

budget proposals may cause our tenants to default on rental payments or delay or forgo leasing our rental space, which could adversely

affect our business, financial condition, or results of operations. Additionally, the inability of the U.S. Congress to enact a budget for a

future fiscal year or the occurrence of partial or complete U.S. federal government shutdowns could adversely impact demand for our

services by limiting federal funding available to our tenants and their customers. In addition, defaults under leases with U.S. government

tenants are governed by federal statute and not by state eviction or rent deficiency laws. As of December 31, 2024 , leases with U.S.

government tenants at our properties accounted for approximately 1.4% of our aggregate annual rental revenue in effect as of

December 31, 2024 .

Some of our tenants may be subject to increasing government price controls and other healthcare cost-containment

measures.

Government healthcare cost-containment measures can significantly affect our tenants’ revenue and profitability. In many

countries outside the U.S., government agencies strictly control, directly or indirectly, the prices at which our pharmaceutical industry

tenants’ products are sold. In a number of European Union (“EU”) member states, the pricing and/or reimbursement of prescription

pharmaceuticals are subject to governmental control, and legislators, policymakers, and healthcare insurance funds continue to

propose and implement cost-containing measures to keep healthcare costs down, due in part to the attention being paid to healthcare

cost containment and other austerity measures in the EU. In the U.S., our pharmaceutical industry tenants are subject to substantial

pricing pressures from state Medicaid programs, private insurance programs, and pharmacy benefit managers. In addition, many state

legislative proposals could further negatively affect pricing and/or reimbursement for our pharmaceutical industry tenants’ products.

Also, the pricing environment for pharmaceuticals continues to be in the political spotlight in the U.S. Pharmaceutical and medical

device product pricing is subject to enhanced government and public scrutiny and calls for reform. Some states have implemented, and

other states are considering implementing, pharmaceutical price controls or patient access constraints under the Medicaid program,

and some states are considering price-control regimes that would apply to broader segments of their populations who are not Medicaid

eligible. We anticipate that pricing pressures from both governments and private payors inside and outside the U.S. will become more

severe over time.

Changes in U.S. federal government funding for the FDA, the NIH, and other government agencies could hinder their

ability to hire and retain key leadership and other personnel, properly administer drug innovation, or prevent new products

and services from being developed or commercialized by our life science industry tenants and venture investment portfolio

companies, which could negatively impact our business.

The ability of the FDA to review and approve new products can be affected by a variety of factors, including budget and

funding levels, the ability to hire and retain key personnel, and statutory, regulatory, and policy changes. Average review times at the

agency have fluctuated in recent years as a result. In addition, government funding of the NIH and other government agencies that fund

research and development activities is subject to the political process, which is inherently fluid and unpredictable.

The ability of the FDA, the NIH, and other government agencies to properly administer their functions is highly dependent on

the levels of government funding and the ability to fill key leadership appointments, among various factors. Delays in filling or replacing

key positions could significantly impact the ability of the FDA, the NIH, and other agencies to fulfill their functions and could greatly

impact healthcare and the drug industry.

However, any future government proposals to reduce or eliminate budgetary deficits may include reduced allocations to the

FDA, the NIH, and other related government agencies. These budgetary pressures may result in a reduced ability by the FDA and the

NIH to perform their respective roles and may have a related impact on academic institutions and research laboratories whose funding

is fully or partially dependent on both the level and the timing of funding from government sources. Robert F. Kennedy Jr., who has

been nominated by President Trump for Secretary of the U.S. Department of Health and Human Services, which oversees the FDA and

NIH, has previously stated his intent to downsize or restructure these agencies, including by appointing new directors to the agencies.

However, no definitive proposals have been publicly disclosed at this time, and we cannot anticipate the effect that any such

restructuring or new appointments may have on our tenants or our business.

In the event of a partial or complete government shutdown, the FDA and certain other science agencies may temporarily cease

certain operations. Furthermore, during such shutdown, the FDA may maintain only operations deemed to be essential for public health

while suspending the acceptance of new medical product applications and routine regulatory and compliance work related to medical

products, certain drugs, and foods.

Disruptions at the FDA and other agencies, such as those resulting from a restructuring of these agencies, a government

shutdown, or uncertainty from stopgap spending bills may slow the time necessary for new drugs and devices to be reviewed and/or

approved by necessary government agencies and may affect the ability of the healthcare and drug industries to deliver new products to

the market in a timely manner, which would adversely affect our tenants’ operating results and business. Interruptions to the function of

the FDA and other government agencies could adversely affect the demand for laboratory space and significantly impact our operating

results and our business.

Changes in laws and regulations that control drug pricing for government programs may adversely impact our

operating results and our business.

On August 22, 2022, the Inflation Reduction Act of 2022 was signed into law. This legislation allows, for the first time ever, the

U.S. Department of Health and Human Services to negotiate Medicare drug prices directly with manufacturers. Specifically, the law

requires manufacturers to charge a negotiated “maximum fair price” for select drugs covered by Medicare Part B and Part D or be

subject to an excise tax for noncompliance, introduces penalties for drug manufacturers that increase drug prices over the rate of

inflation, and caps additional out-of-pocket expenses for Medicare beneficiaries.

We cannot predict the ultimate impact of this legislation or the content and outcome of future potential reforms and changes

to the government’s ability to regulate and negotiate drug pricing. Changes in policy that limit prices may reduce the financial

incentives for the research and development efforts that lead to discovery and production of new therapies and solutions to life-

threatening conditions. Negative impacts of new policies could adversely affect our tenants’ and venture investment portfolio

companies’ businesses, including life science companies, which may reduce the demand for life science/laboratory space and

negatively impact our operating results and our business.

Global factors

The outbreak of any highly infectious or contagious disease could adversely impact or cause disruption to our

financial condition and results of operations.

The effects of any future outbreak of any highly infectious or contagious disease on our (or our tenants’) ability to successfully

operate could be adversely impacted by the following factors, among others:

• The continued service and availability of personnel, including our executive officers and other leaders who are part of our

management team, and our ability to recruit, attract, and retain skilled personnel. To the extent our management or

personnel are impacted in significant numbers by the outbreak of pandemic or epidemic disease and are not available or

allowed to conduct work, our business and operating results may be negatively impacted.

• Our (or our tenants’) ability to operate, generally or in affected areas, or delays in the supply of products or services from

our vendors that are necessary for us to operate effectively.

• Our tenants’ ability to pay rent on their leases in full and timely and, to the extent necessary, our inability to restructure our

tenants’ long-term rent obligations on terms favorable to us or to timely recapture the space for re-leasing.

• Difficulty in our accessing debt and/or equity capital on attractive terms, or at all, and a severe disruption and instability in

the global financial markets, or deterioration in credit and financing conditions, which may affect our (or our tenants’)

ability to access capital necessary to fund business operations or replace or renew maturing liabilities on a timely basis

and may adversely affect the valuation of financial assets and liabilities, any of which could affect our (or our tenants’)

ability to meet liquidity and capital expenditure requirements or could have a material adverse effect on our business,

financial condition, results of operations, and cash flows.

• Complete or partial closures of, or other operational issues at, one or more of our properties resulting from government

action or directives.

• Our (or our tenants’) ability to continue or complete construction as planned for our tenants’ operations, or delays in the

supply of materials or labor necessary for construction, which may affect our (or our tenants’) ability to complete

construction or to complete it timely, our ability to prevent a lease termination, and our ability to collect rent, which may

have a material adverse effect on our business, financial condition, results of operations, and cash flows.

• The cost of implementing precautionary measures, including, but not limited to, potential additional health insurance and

labor-related costs.

• Governmental efforts (such as moratoriums on or suspensions of eviction proceedings) that may affect our ability to collect

rent or enforce remedies for the failure of our tenants to pay rent.

• Uncertainty related to whether the U.S. Congress or state legislatures will pass additional laws providing for additional

economic stimulus packages, governmental funding, or other relief programs, whether such measures will be enacted,

whether our tenants will be eligible or will apply for any such funds, whether the funds, if available, could be used by our

tenants to pay rent, and whether such funds will be sufficient to supplement our tenants’ rent and other obligations to us.

• Deterioration of global economic conditions and job losses, which may decrease demand for and occupancy levels of our

rental properties and may cause our rental rates and property values to be negatively impacted.

• Our dependence on short-term and long-term debt sources, including our unsecured senior line of credit, commercial

paper program, and unsecured senior notes, which may affect our ability to continue our investing activities and make

distributions to our stockholders.

• Declines in the valuation of our properties, which may affect our ability to dispose of assets at attractive prices or to obtain

debt financing secured by our properties and may reduce the availability of debt funding.

• Declines in the valuation of our venture investment portfolio, which may (i) impede our ability to realize the value at which

these investments are carried if we are required to dispose of them, (ii) make it difficult for us to sell these investments on

a timely basis, and (iii) impair the value of such investments.

• Refusal, failure, or delay by one or more of our lenders under our unsecured senior line of credit to fund their financing

commitment to us, which we may not be able to replace on favorable terms, or at all.

• To the extent we enter into derivative financial instruments, one or more counterparties to our derivative financial

instruments could default on their obligations to us or could fail, increasing the risk that we may not realize the benefits of

utilizing these instruments.

• Any possession taken of our properties, in whole or in part, by governmental authorities for public purposes in eminent

domain proceedings.

• Our level of insurance coverage and recovery we receive under any insurance we maintain, which may be delayed by, or

insufficient to fully offset potential/actual losses caused by any highly infectious or contagious disease.

• Any increase in insurance premiums and imposition of large deductibles.

• Our level of dependence on the Internet, as it relates to employees’ working remotely, and increases in malware

campaigns and phishing attacks preying on the uncertainties surrounding any highly infectious or contagious disease,

which may increase our vulnerability to cyberattacks.

• Our ability to ensure business continuity in the event our continuity of operations plan is not effective or is improperly

implemented or deployed during a disruption.

• Our ability to operate, which may cause our business and operating results to decline or may impact our ability to comply

with regulatory obligations and may lead to reputational harm and regulatory issues or fines.

The rapid spread, development, and fluidity of a highly infectious or contagious disease may result in significant disruption of

the global financial market and labor markets and may lead to a deterioration of economic conditions, an economic downturn, and/or a

recession at a global scale, which could materially affect our (or our tenants’) performance, financial condition, results of operations,

and cash flows.

The outbreak or spread of any highly infectious or contagious disease could adversely impact or cause disruption to

our tenants’ financial condition and results of operations, which may adversely impact our ability to generate income

sufficient to meet operating expenses or generate income and capital appreciation .

Our tenants, many of which conduct business in the life science industry, may incur significant costs or losses responding to

any highly infectious or contagious disease, lose business due to interruption in their operations, or incur other liabilities related to

shelter-in-place orders, quarantines, infection, or other related factors. Tenants that experience deteriorating financial conditions as a

result of the outbreak or spread of such disease may be unwilling or unable to pay rent in full or timely due to bankruptcy, lack of

liquidity, lack of funding, operational failures, or other reasons. Our tenants’ defaults and delayed or partial rental payments could

adversely impact our rental revenues and operating results.

The negative effects of any highly infectious or contagious disease on our tenants in the life science industry may include, but

are not limited to:

• Delays or difficulties in enrolling patients or maintaining scheduled study visits in clinical trials;

• Delays or difficulties in clinical site initiation, including difficulties in recruiting clinical site investigators and staff;

• Diversion of healthcare resources away from clinical trials, including the diversion of hospitals serving as our tenants’

clinical trial sites and hospital staff supporting the conduct of our tenants’ clinical trials;

• Interruptions of key clinical trial or other research activities, such as clinical trial site monitoring, due to limitations on travel

imposed or recommended by federal or state governments, employers, and others;

• Limitations in employee resources that would otherwise be focused on our tenants’ research, business, or clinical trials,

including because of sickness of employees or their families, the desire of employees to avoid contact with large groups of

people, or as a result of the governmental imposition of shelter-in-place or similar working restrictions;

• Interruptions in supply chain, manufacturing, and global shipping, or other delays that may affect the transport of materials

necessary for our tenants’ research, clinical trials, or manufacturing activities;

• Reduction in revenue projections for our tenants’ products due to the prioritization of the treatment of affected patients

over other treatments, such as specialty and elective procedures;

• Delays in necessary interactions with ethics committees, regulators, and other important agencies and contractors due to

limitations in employee resources or forced furlough of government employees;

• Delays in receiving approval from regulatory authorities to initiate planned clinical trials or research activities;

• Delays in commercialization of our tenants’ products and approval by government authorities (such as the FDA and the

federal and state Emergency Management Agencies) of our tenants’ products caused by disruptions, funding shortages,

or health concerns, as well as by the prioritization by the FDA of the review and approvals of diagnostics, therapeutics,

and vaccines that are related to an outbreak;

• Difficulty in retaining staff or rehiring staff in connection with layoffs caused by deteriorating global market conditions;

• Changes in local regulations as part of a response to an outbreak or spread that may require our tenants to change the

ways in which their clinical trials are conducted, which may result in unexpected costs or the discontinuation of the clinical

trials altogether;

• Refusal or reluctance of the FDA to accept data from clinical trials in affected geographies outside the U.S.;

• Diminishing public trust in healthcare facilities or other facilities that are treating (or have treated) patients affected by

contagious diseases; and

• Inability to access capital on terms favorable to our tenants because of changes in company valuation and/or investor

appetite due to a general downturn in economic and financial conditions and the volatility of the market.

The negative effects of any highly infectious or contagious disease on our tenants in the agtech industry may include:

• Reduction in productive capacity and profitability because of decreased labor availability due, for example, to government

restrictions, the inability of employees to report to work, or collective bargaining efforts;

• Potential contract cancellations, project reductions, and reduction in demand for our tenants’ products due to the adverse

effect on business confidence and consumer sentiments and the general downturn in economic conditions;

• Disruption of the logistics necessary to import, export, and deliver products to target companies and their customers due

to ports and other channels of entry being closed or operating at only a portion of capacity;

• Disruptions to manufacturing facilities and supply lines; and

• Inability to access capital on terms favorable to our tenants because of changes in company valuation and/or investor

appetite due to a general downturn in economic and financial conditions and the volatility of the market.

The negative effects of any highly infectious or contagious disease on our tenants in the technology industry may include:

• Reduction in staff productivity due to business closures, alternative working arrangements, or illness of staff and/or illness

in the family;

• Reduction in sales of our tenants’ services and products, longer sales cycles, reduction in subscription duration and value,

slower adoption of new technologies, and increase in price competition due to economic uncertainties and downturns;

• Disruptions to our tenants’ supply chain, manufacturing vendors, or logistics providers of products or services;

• Limitations on business and marketing activities due to travel restrictions, virtualization, or cancellation of related events;

• Adverse impact on customer relationships and our ability to recognize revenues due to our tenants’ inability to access their

clients’ sites for implementation and on-site consulting services;

• Inability to recruit and develop highly skilled employees with appropriate qualifications, to conduct background checks on

potential employees, and to provide necessary equipment and training to new and existing employees;

• Network infrastructure and technology system failures of our tenants, or of third-party services used by our tenants, which

may result in system interruptions, reputational harm, loss of intellectual property, delays in product development, lengthy

interruptions in services, breaches of data security, and loss of critical data;

• Higher employment compensation costs that may not be offset by improved productivity or increased sales; and

• Inability to access capital on terms favorable to our tenants because of changes in company valuation and/or investor

appetite due to a general downturn in of economic and financial conditions and the volatility of the market.

The potential impact of any highly infectious or contagious disease with respect to our tenants or our properties is difficult to

predict and could have a material adverse impact on our tenants’ operations and, in turn, on our revenues, business, and results of

operations, as well as the value of our stock. Any highly infectious or contagious disease may directly or indirectly cause the realization

of any of the other risk factors included in this annual report on Form 10-K.

Other factors

We may incur significant costs if we fail to comply with laws or if laws change.

Our properties are subject to many federal, state, and local regulatory requirements and to state and local fire, life-safety,

environmental, and other requirements. If we do not comply with all of these requirements, we may have to pay fines to government

authorities or damage awards to private litigants or temporarily halt operations due to injunctions. We do not know whether these

requirements will change or whether new requirements will be imposed. Changes in these regulatory requirements could require us to

make significant unanticipated expenditures. These expenditures could have an adverse effect on us and our ability to make

distributions to our stockholders.

For example, the California Safe Drinking Water and Toxic Enforcement Act, also referred to as Proposition 65, requires “clear

and reasonable” warnings be given to persons who are exposed to chemicals known to the State of California to cause cancer or

reproductive toxicity. We believe that we comply with Proposition 65 requirements; however, there can be no assurance that we will not

be adversely affected by litigation or regulatory enforcement relating to Proposition 65. In addition, there can be no assurance that the

costs of compliance with new environmental laws and regulations will not be significant or will not adversely affect our ability to meet our

financial expectations, our financial condition, results of operations, and cash flows.

We may incur significant costs in complying with the Americans with Disabilities Act and similar laws.

Under the ADA, places of public accommodation and/or commercial facilities must meet federal requirements related to access

and use by disabled persons. We may be required to make substantial capital expenditures at our properties to comply with this law. In

addition, non-compliance could result in the imposition of fines or an award of damages to private litigants.

A number of additional federal, state, and local laws and regulations exist regarding access to properties by disabled persons.

These regulations may require modifications to our properties or may affect future renovations. These expenditures may have an

adverse impact on overall returns on our investments.

We face possible risks and costs associated with the effects of climate change and severe weather .

We cannot predict the rate at which climate change will progress. However, the physical effects of climate change could have a

material adverse effect on our properties, operations, and business. For example, most of our properties are located along the east and

west coasts of the U.S. To the extent that climate change impacts changes in weather patterns, our markets could experience severe

weather, including hurricanes, severe winter storms, and coastal flooding due to increases in storm intensity and rising sea levels.

Certain of our properties are also located along shorelines and may be vulnerable to coastal hazards, such as sea level rise, severe

weather patterns and storm surges, land erosion, and groundwater intrusion. Over time, these conditions could result in declining

demand for space at our properties, delays in construction, resulting in increased construction costs, or in our inability to operate the

buildings at all. Climate change and severe weather may also have indirect effects on our business by increasing the cost of, or

decreasing the availability of, property insurance on terms we find acceptable, by increasing the costs of energy, maintenance, repair of

water and/or wind damage, and snow removal at our properties.

In March 2022, the SEC released a proposed standard that would require quantitative disclosures of certain climate-related

metrics and greenhouse gas (“GHG”) emissions, including within the footnotes to our consolidated financial statements. On March 6,

2024, the SEC adopted the new standards, with the rules originally set to take effect as of May 28, 2024. These rules would have

required public companies to disclose information on (i) climate-related financial risks, (ii) GHG emissions, and (iii) climate-related

targets or transition plans. However, on April 4, 2024, the SEC issued an order to stay these rules pending judicial review following legal

challenges. As of the date of this report, the implementation of the new climate-related disclosures remains indefinitely delayed. We

continue to monitor developments and assess the potential effect of these new standards, if implemented at all, on our future

consolidated financial statements.

In addition, California introduced new climate-related reporting requirements under the Climate Corporate Data Accountability

Act (SB 253) and the Climate-Related Financial Risk Act (SB 261), which were signed into law in October 2023. These laws require

corporations doing business in California to annually report their GHG emissions across Scopes 1, 2, and 3 (SB 253) and to disclose

climate-related financial risks and risk mitigation strategies (SB 261). Reporting under these laws is phased in, with initial emissions

reporting required in 2026 based on 2025 data, and climate risk disclosures commencing in 2026. Considering our operations in

California, we continue to enhance our existing data collection, reporting, and assurance processes for climate-related metrics and

risks.

In August 2022, the U.S. Congress signed into law the Inflation Reduction Act of 2022 (“IRA”), which directed nearly $400

billion of federal spending to be used toward reducing carbon emissions and funding clean energy over the next 10 years and was

designed to encourage private investment in clean energy, transport, and manufacturing. Since its inaugural year in 2023, nearly $500

billion in new green investments and 334,000 new green jobs across the U.S. have been attributed to the IRA. However, long-term

impacts and benefits, if any, resulting from the IRA are still to be determined.

Numerous states and municipalities have adopted state and local laws and policies on climate disclosures and climate change

and emission reduction targets impacting the building sector. For example, the State of California enacted legislation requiring certain

companies to disclose GHG emissions and climate-related financial risk information. Other cities, including Boston, Cambridge, New

York, and Seattle, have passed ordinances that set limits on GHG emissions associated with building operations. Some municipalities,

including the Cities of New York and San Francisco, have also implemented legislation to eliminate the use of natural gas in new

construction projects.

President Trump’s victory in the U.S. presidential election, as well as the Republican Party’s gaining control of both the U.S.

House of Representatives and Senate in the congressional election, may create regulatory uncertainty with respect to climate change

policy. During the election campaign, President Trump made comments suggesting that he was not supportive of various clean energy

programs and initiatives, including the United Nations (“U.N.”) Framework Convention on Climate Change, designed to curtail global

warming. On January 20, 2025, President Trump signed an executive order to withdraw the U.S. from the Paris Agreement, marking a

significant shift in U.S. climate policy. It remains unclear what further actions President Trump may take with respect to domestic and

international programs and initiatives, and what support the Trump administration would have for any potential changes to such

legislative programs and initiatives in the U.N. or the U.S. Congress.

Changes in federal, state, and local legislation and regulation based on concerns about climate change could result in

increased capital expenditures on our existing properties and our new development properties (for example, to improve their energy

efficiency and/or resistance to severe weather), and in our and our tenants’ increased compliance and other costs, without a

corresponding increase in revenue, which may result in adverse impacts to our and our tenants’ operating results.

Also, we rely on a limited number of vendors to provide key services, including, but not limited to, utilities and construction

services, at certain of our properties. If, as a result of unanticipated events, including those resulting from climate change, these

vendors fail to adequately provide key services, we may experience significant interruptions in service and disruptions to business

operations at our properties, incur remediation costs, and become subject to claims and damage to our reputation. Near ly 40% o f the

properties we own and operate are located in California, where climate change has been linked to the progressively warmer and drier

weather associated with ideal conditions for highly destructive wildfires.

For example, most of our properties located in our San Francisco Bay Area market depend on PG&E for the delivery of electric

and gas services. In January 2019, in response to potential liabilities arising from a series of catastrophic wildfires that occurred in

Northern California in 2017 and 2018, PG&E initiated voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy

Code. While PG&E emerged from bankruptcy in July 2020, there is no guarantee that PG&E will be able to sustain safe operations and

continue to provide consistent utilities services. During periods of high winds and high fire danger in recent fire seasons, PG&E has

preemptively shut off power to areas of Central and Northern California. The shutoffs were designed to help guard against fires ignited

in areas with high winds and dry conditions. PG&E has warned that it may have to employ shutoffs while the utility company addresses

maintenance issues. Future shutoffs of power may impact the reliability of access to a stable power supply at our properties. There is no

guarantee that in the future climate change and severe weather will not adversely affect PG&E or any of our other key vendors, which in

turn could have a material adverse effect on our properties and our tenants’ operations, as well as on our financial condition, results of

operations, and cash flows.

There can be no assurance that climate change and severe weather, or the potential impacts of these events on our vendors

and suppliers, will not have a material adverse effect on our properties, operations, or business.

We may incur significant costs in complying with environmental laws.

Federal, state, and local environmental laws and regulations may require us, as a current or prior owner or operator of real

estate, to investigate and remediate hazardous or toxic substances or petroleum products released at or from any of our properties. The

cost of investigating and remediating contamination could be substantial and could exceed the amount of any insurance coverage

available to us. In addition, the presence of contamination, or the failure to properly remediate, may adversely affect our ability to lease

or sell an affected property, or to borrow funds using that property as collateral.

Under environmental laws and regulations, we may have to pay government entities or third parties for property damage and

for investigation and remediation costs incurred by those parties relating to contaminated properties regardless of whether we knew of

or caused the contamination. Even if more than one party was responsible for the contamination, we may be held responsible for all of

the remediation costs. In addition, third parties may sue us for damages and costs resulting from environmental contamination, or jointly

responsible parties may contest their responsibility or be financially unable to pay their share of such costs.

Environmental laws also govern the presence, maintenance, and removal of asbestos-containing building materials. These

laws may impose fines and penalties on us for the release of asbestos-containing building materials and may allow third parties to seek

recovery from us for personal injury from exposure to asbestos fibers. We have detected asbestos-containing building materials at

some of our properties, but we do not expect that they will result in material environmental costs or liabilities for us.

Environmental laws and regulations also require the removal or upgrading of certain underground storage tanks and regulate:

• The discharge of stormwater, wastewater, and any water pollutants;

• The emission of air pollutants;

• The generation, management, and disposal of hazardous or toxic chemicals, substances, or wastes; and

• Workplace health and safety.

Many of our tenants routinely handle hazardous substances and wastes as part of their operations at our properties.

Environmental laws and regulations subject our tenants, and potentially us, to liability resulting from these activities. Environmental

liabilities could also affect a tenant’s ability to make rental payments to us. We require our tenants to comply with these environmental

laws and regulations and to indemnify us against any related liabilities.

Independent environmental consultants have conducted Phase I or similar environmental assessments at our properties. We

intend to use consultants to conduct similar environmental assessments on our future acquisitions. These types of assessments

generally include a site inspection, interviews, and a public records review, but no subsurface sampling. These assessments and

certain additional investigations of our properties have not to date revealed any environmental liability that we believe would have a

material adverse effect on our business, assets, or results of operations.

Additional investigations have included, as appropriate:

• Asbestos surveys;

• Radon surveys;

• Lead-based paint surveys;

• Mold surveys;

• Additional public records review;

• Subsurface sampling; and

• Other testing.

Nevertheless, it is possible that the assessments on our current properties have not revealed, and that assessments on future

acquisitions will not reveal, all environmental liabilities. Consequently, there may be material environmental liabilities of which we are

unaware that may result in substantial costs to us or our tenants and that could have a material adverse effect on our business.

Environmental, health, or safety matters are subject to evolving regulatory requirements. Costs and capital expenditures

relating to the evolving requirements depend on the timing of the promulgation and enforcement of new standards. As discussed in the

immediately preceding risk factor, due to concern over the risks of climate change, a more restrictive regulatory framework to reduce

GHG pollution might be implemented, including the adoption of carbon taxes, restrictive permitting, and increased efficiency standards.

These requirements could make our operations more expensive and lengthen our project timelines. The costs of complying with

evolving regulatory requirements, including GHG regulations and policies, could negatively impact our financial results. Moreover,

changes in environmental regulations could inhibit or interrupt our operations or require modifications to our facilities. Accordingly,

environmental, health, or safety regulatory matters could result in significant unanticipated costs or liabilities and could have a material

adverse effect on our business, financial condition, results of operations, and cash flows, and the market price of our common stock.

We may be unable to meet our sustainability goals.

We seek to make a positive and meaningful impact on the health, safety, and well-being of our tenants, stockholders,

employees, and the communities in which we live and work. In support of these efforts, we have set sustainability goals for

development projects, including energy and water use reduction, diversion of construction waste from landfills, and targeted levels of

certification by third-party green and healthy building rating organizations and programs. For our operating properties, we have set a

2030 target to reduce operational emissions per RSF, and we continue to pursue measures aimed at reducing water consumption and

increasing waste diversion. There are significant risks that may prevent us from achieving such goals, including, but not limited to, the

following possibilities:

• Change in market conditions may affect our ability to deploy capital for projects such as those that reduce energy, water

consumption, and GHG emissions and that provide waste savings.

• The quantity of investment-grade renewable energy projects that can be contracted and constructed by 2030 has

decreased in recent years due to factors such as backlogs in regional transmission organizations’ interconnection queues

and higher demand from large buyers. Additionally, the cost of contracts for new renewable energy (power purchase

agreements and virtual power purchase agreements) has increased in recent years due to such factors as higher material

and labor costs, interconnection backlogs, and increased demand for renewable energy. Such changes in the availability

and costs of renewable energy may impact our ability to procure renewable energy to reduce GHG emissions from

purchased electricity.

• Our tenants may be unwilling or unable to accept potential incremental expenses associated with sustainability programs,

including expenses to comply with requirements stipulated under building certification standards such as LEED, Fitwel,

and WELL.

The realization of any of the above risks could significantly impact our reputation, our ability to reduce operational emissions

per RSF to meet our 2030 target, our ability to attract tenants that have set GHG emissions reduction goals and/or include LEED

certification among their priorities when selecting a location to lease, and our ability to continue developing properties in markets where

high levels of LEED certification contribute to our efforts to obtain building permits and entitlements.

We may invest or spend the net proceeds from the offerings of our unsecured senior notes payable earmarked for

Eligible Green Projects (the “Green Bonds”) in ways investors may not agree with and in ways that may not earn a profit.

The respective net proceeds from issuances of Green Bonds are expected to be used to fund, in whole or in part, Eligible

Green Projects (as defined below), including the development and redevelopment of such projects. The net proceeds from these

offerings are typically initially used to reduce the outstanding balance on our unsecured senior line of credit or amounts outstanding

under our commercial paper program. We then allocate the funds to recently completed and future Eligible Green Projects. ‘‘Eligible

Green Projects’’ are defined as:

• New Class A/A+ development properties that have received or are expected to receive LEED Gold or Platinum

certification;

• Existing Class A/A+ redevelopment properties that have received or are expected to receive LEED Gold or Platinum

certification; and

• Tenant improvements that have received or are expected to receive LEED Gold or Platinum certification.

Eligible Green Projects include projects with disbursements made in the three years preceding the applicable issue date of the

Green Bonds. We intend to spend the remaining net proceeds from the sale of the Green Bonds within two years following the

applicable issue date of the Green Bonds. LEED is a voluntary, third-party building certification process developed by the U.S. Green

Building Council (‘‘USGBC’’), a non-profit organization. The USGBC developed the LEED certification process to (i) evaluate the

environmental performance from a whole-building perspective over a building’s life cycle, (ii) provide a definitive standard for what

constitutes a ‘‘green building,’’ (iii) enhance environmental awareness among architects and building contractors, and (iv) encourage the

design and construction of energy-efficient, water-conserving buildings that use sustainable or green resources and materials.

There can be no assurance that the projects funded with the proceeds from the Green Bonds will meet investor criteria and

expectations regarding environmental impact and sustainability performance. In particular, no assurance is given that the use of such

proceeds for any Eligible Green Projects will satisfy, whether in whole or in part, any present or future investor expectations or

requirements regarding any investment criteria or guidelines with which such investor or its investments are required to comply, whether

by any present or future applicable law or regulations or by its own bylaws or other governing rules or investment portfolio mandates (in

particular, with regard to any direct or indirect environmental, sustainability, or social impact of any projects or uses, the subject of or

related to, the relevant Eligible Green Projects). Adverse environmental or social impacts may occur during the design, construction,

and operation of the projects, or the projects may become controversial or criticized by activist groups or other stakeholders. In addition,

although we will limit the use of proceeds from the Green Bonds to Eligible Green Projects, there can be no assurance that one or more

development, redevelopment, and tenant improvement projects that we expect will receive a LEED certification will actually receive

such certification. Furthermore, from time to time, we may refinance our debt to take advantage of lower market rates or other favorable

terms, and we may pursue this strategy in the future in connection with our Green Bonds. If the terms of the refinanced agreements set

different or no restrictions on the range of purposes the funds can be allocated to, we can provide no assurance that allocations to

future Eligible Green Projects established prior to the refinancing of our Green Bonds will remain unchanged after the refinancing has

been completed.

Changes in U.S. accounting standards may adversely impact us.

The regulatory boards and government agencies that determine financial accounting standards and disclosures in the U.S.,

which include the FASB and the SEC, continually change and update the financial accounting standards we must follow.

From time to time, the FASB issues ASUs that could have a material effect on our financial condition or results of operations,

which in turn could also significantly impact the market price of our common stock. Such potential impacts include, without limitation,

significant changes to our balance sheet, significant changes to the timing or methodology of revenue or expense recognition, or

significant fluctuations in our reported results of operations, including an increase in our operating expenses or general and

administrative expenses related to payroll costs, legal costs, and other out-of-pocket costs incurred in order to comply with the

requirements of these ASUs.

Any difficulties in the implementation of changes in accounting principles, including the ability to modify our accounting

systems and to update our policies, procedures, information systems, and internal control over financial reporting, could result in

materially inaccurate financial statements, which in turn could harm our operating results or cause us to fail to meet our reporting

obligations. Significant changes that may be introduced by ASUs could cause fluctuations in revenue and expense recognition and

materially affect our results of operations. We may also experience an increase in general and administrative expenses resulting from

additional resources required for the initial implementation of such ASUs. This could adversely affect our reported results of operations,

profitability, and financial statements. Additionally, the adoption of new accounting standards could affect the results of our debt

covenant calculations. It cannot be assured that we will be able to work with our lenders to successfully amend our debt covenants in

response to changes in accounting standards.

We are subject to evolving privacy and information security laws, regulations, policies, and contractual obligations

related to data privacy and security. Changes to these requirements, or our noncompliance therewith, could subject us to

fines or penalties, increased costs of doing business, compliance risks, and potential liability and could materially and

adversely affect our business, financial condition, and results of operations.

In the ordinary course of business, we handle personal data and other sensitive information, including that of our tenants,

vendors, and employees. As such, we are subject to numerous data privacy and security mandates, including laws, regulations,

external and internal data privacy and security policies, and contractual requirements.

For example, the California Privacy Rights Act (“CPRA”), which became effective on January 1, 2023, significantly expanded

the definition of “consumer,” originally defined by the California Consumer Privacy Act (“CCPA”), to include job applicants, employees,

and independent contractors. Additionally, the CPRA introduced new rights of consumers to limit the use of their sensitive personal

information and mandated employers disclose personal information usage, an individual’s rights under the CCPA, and their personal

information retention period or the criteria they use to determine their retention period.

The CCPA, which became effective on January 1, 2020, applies to consumers, business entities, and residents of California. It

broadly defined “personal information,” providing California residents with expanded privacy rights and protections, and established civil

penalties for violations for certain data breaches. It also enabled California residents to opt out of the sales of their personal information,

with noncompliant businesses facing significant penalties.

We have taken actions to proactively enhance our handling of personal information, including, but not limited to:

• Updating external and internal privacy notices and policies;

• Implementing procedures to comply with the CCPA and CPRA, including procedures to effectively address potential requests

from California residents, including our employees, regarding their personal information;

• Revising our document retention policy to minimize the storage of information subject to the CCPA and CPRA; and

• Amending contracts with our partners and vendors to incorporate data use restrictions, security measures, and other required

provisions.

However, there is no guarantee that we will adequately address the requirements of the CCPA and CPRA, or evolving laws in

other jurisdictions. The data privacy and security landscape is becoming increasingly complex. Differing regulations may result in

inconsistent applications and interpretations across multiple jurisdictions. As such, we may be required to devote significant resources

and implement or significantly change existing technologies, systems, or practices in order to prepare for and comply with new

regulations. Our failure to comply with applicable federal, state, and local privacy laws could lead to:

• Damage to our reputation;

• Increased remediation and compliance costs;

• Government investigations and enforcement actions;

• Fines, penalties, or litigation, including class actions;

• Challenges in raising capital; and

• Inability to execute on our business strategy, including our growth plans.

Changes in the aforementioned laws may subject us to increased compliance risks and potential liability, and materially and

adversely impact our business, financial condition, and results of operations.

If our information technology networks or data, or those of third parties with whom we work, are or were disrupted or

otherwise compromised, we could experience adverse consequences resulting from such compromise, including, but not

limited to, costly remediation or other expenses, liability under federal and state laws, litigation and investigations,

reputational damage, disruptions to our business operations, decreased cash flows, and other adverse consequences.

Information technology, communication networks, enterprise applications, and related systems, including those in our

properties, are essential to the operation of our business. In the ordinary course of our business, we use these systems to service our

tenants, manage our tenant and vendor relationships, and for internal communications, accounting, financial reporting, record-keeping,

and many other key aspects of our business. These operations rely on the secure collection, storage, transmission, and other

processing of confidential and other sensitive information in our computer systems and networks and subject us, and the third parties

with whom we work, to a variety of evolving threats, including, but not limited to, ransomware attacks, which could cause security

incidents.

Cyberattacks, malicious Internet-based activity, online and offline fraud, and other similar activities threaten the confidentiality,

integrity, and availability of our confidential, proprietary, and sensitive data and information technology systems, and those of the third

parties with whom we work. Such threats are prevalent and continue to rise, are increasingly difficult to detect, and come from a variety

of sources, including traditional computer “hackers,” threat actors, “hacktivists,” organized criminal threat actors, personnel (such as

through theft or misuse), sophisticated nation states, and nation-state-supported actors.

Some actors now engage and are expected to continue to engage in cyberattacks, including, without limitation, nation-state

actors for geopolitical reasons and in conjunction with military conflicts and defense activities. During times of war and other major

conflicts, we and the third parties with whom we work may be vulnerable to a heightened risk of these attacks, including retaliatory

cyberattacks, that could materially disrupt our systems and operations, supply chain, and ability to produce, sell, and distribute our

services.

We and the third parties with whom we work are subject to a variety of evolving threats, including, but not limited to, physical

break-ins; disruptions due to power outages or catastrophic events, such as fires, floods, hurricanes, and earthquakes; breaches of our

secure network by an unauthorized party (including those caused by supply chain breaches); software vulnerabilities or bugs; malware

(including as a result of advanced persistent threat intrusions); malicious code (such as computer viruses and worms); attachments to

emails; denial-of-service attacks; credential stuffing; credential harvesting; employee error, theft, or misuse; social engineering attacks

(including through deep fakes, which may be increasingly more difficult to identify as fake, and phishing attacks); ransomware attacks;

server malfunctions; software or hardware failures; loss of data or other information technology assets; adware; telecommunications

failures; attacks enhanced or facilitated by AI; or other similar threats. For example, we have been the target of phishing attempts in the

past and expect such attempts will continue in the future.

In particular, severe ransomware attacks are becoming increasingly prevalent and can lead to significant interruptions in our

operations and properties; loss of confidential, proprietary, and sensitive data; reputational harm; loss of income; and diversion of funds.

Extortion payments may alleviate the negative impact of a ransomware attack, but we may be unwilling or unable to make such

payments due to, for example, applicable laws or regulations prohibiting such payments.

Remote work has increased risks to our information technology systems and confidential, proprietary, and sensitive data as

more of our employees utilize network connections, computers, and devices outside our premises or network, including working at

home, while in transit, and in public locations. Future or past business transactions (such as acquisitions or integrations) could expose

us to additional cybersecurity risks and vulnerabilities as our systems could be negatively affected by vulnerabilities present in acquired

or integrated entities’ systems and technologies outside of our control. Furthermore, we may discover security issues that were not

found during due diligence of such acquired or integrated entities, and it may be difficult to integrate companies into our information

technology environment and security program.

In addition, our reliance on third parties introduces new cybersecurity risks and vulnerabilities, including supply chain attacks,

and other threats to our business operations. We rely on third parties and technologies to operate critical business systems to process

confidential, proprietary, and sensitive data in a variety of contexts, including, without limitation, cloud-based infrastructure, data center

facilities, encryption and authentication technology, employee emails, and other functions. We also rely on third parties to provide other

products, services, or otherwise to operate our business. Our ability to monitor these third parties’ information security practices is

limited, and these third parties may not have adequate information security measures in place. When the third parties with whom we

work experience a security incident or other interruption, we could experience adverse consequences. While we may be entitled to

damages if the third parties with whom we work fail to satisfy their data privacy or security-related obligations to us, any award may be

insufficient to cover our damages, or we may be unable to recover such award. In addition, supply chain attacks have increased in

frequency and severity, and we cannot guarantee that third parties’ infrastructure in our supply chain or that of the third parties with

whom we work have not been compromised.

We may expend significant resources or modify our business activities to try to protect against security incidents. Additionally,

certain data privacy and security obligations may require us to implement and maintain certain security measures or industry-standard

or reasonable security measures to protect our information technology systems and confidential, proprietary, and sensitive data.

While we have implemented security measures designed to safeguard our systems and confidential, proprietary, and sensitive

data from security incidents and to manage cybersecurity risks, there can be no assurance that these measures will be effective. We

take steps to monitor and develop our information technology networks and infrastructure and invest in the development and

enhancement of our controls designed to prevent, detect, respond to, and mitigate the risk of unauthorized access, misuse, computer

viruses, and other events that could have a security impact. Additionally, we take steps designed to detect, mitigate, and remediate

vulnerabilities in our information systems (such as our hardware and/or software, including that of third parties with whom we work), but

we may not be able to detect and remediate all such vulnerabilities including on a timely basis. Further, we may experience delays in

developing and deploying remedial measures and patches designed to address any such identified vulnerabilities. Vulnerabilities could

be exploited and result in a security incident.

Any of the previously identified or similar threats could cause a security incident or other interruption that could result in

unauthorized, unlawful, or accidental acquisition, modification, destruction, loss, alteration, encryption, disclosure of, or access to our

confidential, proprietary, and sensitive data or our information technology systems, or those of the third parties with whom we work. A

security incident or other interruption involving our information systems or those of our tenants, vendors, software creators, cloud

providers, cybersecurity service providers, or other third parties with whom we work could lead to, among other things:

• Theft of our cash, cash equivalents, or other liquid assets, including publicly traded securities;

• Unauthorized access to, and destruction, loss, theft, misappropriation, or release of, proprietary, confidential, sensitive, or

otherwise valuable information of ours or our tenants, and other business partners, which could be used to compete

against us or for disruptive, destructive, or otherwise harmful purposes and outcomes;

• Our inability to produce financial and operational data necessary to comply with rules and regulations from the SEC, the

IRS, or other state and federal regulatory agencies;

• Our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT;

• Violation of our lease agreements or other agreements;

• Difficulties in employee retention and recruitment;

• Unauthorized access to, and destruction, disruption, loss, or denial of service to our buildings;

• Increase in the cost of proactive defensive measures to prevent future cyber incidents, including hiring personnel and

consultants or investing in additional technologies; and

• Increase in our cybersecurity insurance premiums.

Furthermore, the extent of a particular security incident and the steps that we may need to take to investigate the security

incident may not be immediately clear. Therefore, in the event of a security incident, it may take a significant amount of time before such

an investigation can be completed. During an investigation, we may not necessarily know the extent of the damage incurred or how

best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, which

could further increase the costs and consequences of a security incident. Additionally, applicable data privacy and security obligations

may require us to notify relevant stakeholders, including affected individuals, customers, regulators, and investors of security incidents

or to implement other requirements, such as providing credit monitoring. Such disclosures and compliance with such requirements are

costly, and the disclosure or the failure to comply with such disclosure requirements could lead to adverse consequences.

If we (or a third party with whom we work) experience a security incident or are perceived to have experienced a security

incident, we may experience material adverse consequences, such as government enforcement actions (for example, investigations,

fines, penalties, audits, and inspections); additional reporting requirements and/or oversight; restrictions on processing sensitive

information (including personal data); litigation (including class claims); indemnification obligations; negative publicity; reputational

harm; monetary fund diversions; diversion of management attention; interruptions in our operations (including availability of data);

financial loss; and other similar harms. Security incidents and attendant material consequences may prevent or cause customers to

stop using our services, deter new customers from using our products/services, and negatively impact our ability to grow and operate

our business.

Our contracts may not contain limitations of liability, and even where they do, there can be no assurance that limitations of

liability in our contracts are sufficient to protect us from liabilities, damages, or claims related to our data privacy and security

obligations. We cannot be sure that our insurance coverage will be adequate or sufficient to protect us from or to mitigate liabilities

arising out of our data privacy and security practices, that such coverage will continue to be available on commercially reasonable terms

or at all, or that such coverage will pay future claims.

In addition to experiencing a security incident, third parties may gather, collect, or infer sensitive information about us from

public sources, data brokers, or other means that reveals competitively sensitive details about our organization and could be used to

undermine our competitive advantage or market position. Additionally, proprietary, confidential, and/or sensitive information of the

Company or our tenants could be leaked, disclosed, or revealed as a result of or in connection with our employees’, personnel’s, or

vendors’ use of generative artificial intelligence technologies.

Even if we are not targeted directly, cyberattacks on the U.S. government, financial markets, financial institutions, or other

businesses, including our tenants, vendors, software creators, cloud providers, cybersecurity service providers, and other third parties

with whom we work, may occur, and such events could disrupt our normal business operations and networks in the future.

The increased use of artificial intelligence (“AI”) and automation in life science research and development (“R&D”)

activities may change the uses, space configurations, and tenant requirements for our laboratory properties in currently

unforeseen ways.

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

cloud computing, quantum computing, and other advanced computational technologies into their R&D programs. It is expected that

such technologies will accelerate and streamline a number of R&D functions, including, for example, through the targeted design and

evaluation of clinical trials and the efficient identification of the most promising drug development candidates from among multiple

possible drugs. In addition, life science companies, like companies in many other industries, are increasingly integrating new

technologies, such as robotics and advanced automation of recurring tasks, into their businesses, including their R&D activities. It is

widely thought that the life science and healthcare industries, like most industries, are in only the early stages of an advanced

technology revolution that may have profound, and largely currently unknown, impacts on their businesses, including the processes and

strategies underlying R&D and commercialization of new products.

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

features (including energy delivery, environmental, sustainability, security, and waste disposal features) to enable our tenants to perform

at the highest levels. It is currently unknown how the ongoing adoption of advanced technologies and automation in the life science

industry will impact the optimal space configurations and infrastructure features of the “laboratory of the future,” and we may face new

tenant requirements and requests that will require significant expenditures that may not be entirely recoverable through increased rents.

For example, the adoption of AI by our tenants may lead to infrastructure requirements that our buildings currently do not

accommodate, such as increased power needs due to high-performance computing. Infrastructure upgrades may necessitate

substantial capital expenditures and could potentially impact the environmental footprint of our building operations.

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

individual tenants and prospective tenants for space may decrease over time. If we are not able to offset any reduction in demand from

the foregoing developments through repurposing space, property dispositions, or other means, the realization of any of the

aforementioned risks could have a material adverse impact on our revenues, net operating income, results of operations, funds from

operations, operating margins, occupancy, earnings per share, FFO per share, our overall business, and the market value of our

common stock.

General risk factors

We face risks associated with short-term liquid investments.

From time to time, we may have significant cash balances that we invested in a variety of short-term investments that are

intended to preserve principal value and maintain a high degree of liquidity while providing current income. These investments may

include (either directly or indirectly) obligations (including certificates of deposit) of banks, money market funds, treasury bank

securities, and other short-term securities. Investments in these securities and funds are not insured against loss of principal. Under

certain circumstances, we may be required to redeem all or part of these securities or funds at less than par value. A decline in the

value of our investments, or a delay or suspension of our right to redeem them, may have a material adverse effect on our results of

operations or financial condition and our ability to pay our obligations as they become due.

Competition for skilled personnel could increase labor costs.

We compete with various other companies in attracting and retaining qualified and skilled personnel. We depend on our ability

to attract and retain skilled management personnel who are responsible for the day-to-day operations of the Company. Competitive

pressures may require that we enhance our pay and benefits package to compete effectively for such personnel. We may not be able to

offset such additional costs by increasing the rates we charge tenants. If there is an increase in these costs or if we fail to attract and

retain qualified and skilled personnel, our business and operating results could be adversely affected.

Failure to hedge effectively against interest rate changes may adversely affect our results of operations.

From time to time, we may enter into interest rate hedge agreements to manage some of our exposure to interest rate

volatility. Interest rate hedge agreements involve risks, such as the risk that counterparties may fail to honor their obligations under

these arrangements. In addition, these arrangements may not be effective in reducing our exposure to changes in interest rates. These

risk factors may lead to failure to hedge effectively against changes in interest rates and therefore could adversely affect our results of

operations. As of December 31, 2024 , we had no interest rate hedge agreements outstanding.

Market volatility may negatively affect our business.

From time to time, the capital and credit markets experience volatility. In some cases, the markets have produced downward

pressure on stock prices and credit capacity for certain issuers without regard to those issuers’ underlying financial and/or operating

strength. If market disruption and volatility occur, there can be no assurance that we will not experience an adverse effect, which may

be material, on our business, financial condition, and results of operations. Market disruption and volatility may adversely affect the

value of the companies in which we hold equity investments, including through our non-real estate venture investment portfolio, and we

may be required to recognize losses in our earnings. Disruptions, uncertainty, or volatility in the capital markets may also limit our

access to capital from financial institutions on favorable terms, or altogether, and our ability to raise capital through the issuance of

equity securities could be adversely affected by causes beyond our control through extraordinary disruptions in the global economy and

financial systems or through other events.

Changes in financial accounting standards may adversely impact our compliance with financial debt covenants .

Our unsecured senior notes payable contain financial covenants that are calculated based on GAAP at the date the

instruments were issued. However, certain debt agreements, including those related to our unsecured senior line of credit, contain

financial covenants whose calculations are based on current GAAP, which is subject to future changes. Our unsecured senior line of

credit agreement provides that our financial debt covenants be renegotiated in good faith to preserve the original intent of the existing

financial covenant when such covenant is affected by an accounting standard change. For those debt agreements that require the

renegotiation of financial covenants upon changes in accounting standards, there is no assurance that we will be successful in such

negotiations or that the renegotiated covenants will not be more restrictive to us.

Extreme weather and natural or other unforeseen disasters may cause property damage or disrupt operations, which

could harm our business and operating results.

We have properties located in areas that may be subject to extreme weather and natural or other disasters, including, but not

limited to, earthquakes, winds, floods, hurricanes, fires, power shortages, telecommunication failures, medical epidemics, explosions, or

other natural or man-made accidents or incidents. Our corporate headquarters and certain properties are located in areas of California

that have historically been subject to earthquakes and wildfires. Such conditions and disastrous events may damage our properties,

disrupt our operations, or adversely impact our tenants’ or third-party vendors’ operations. These events may affect our ability to operate

our business and have significant negative consequences on our financial and operating results. Damage caused by these events may

result in costly repairs for damaged properties or equipment, delays in the development or redevelopment of our construction projects,

or interruption of our daily business operations, which may result in increased costs and decreased revenues.

We maintain insurance coverage at levels that we believe are appropriate for our business. However, we cannot be certain

that the amount of coverage will be adequate to satisfy damages or losses incurred in the event of another wildfire or other natural or

man-made disaster, which may lead to a material adverse effect on our properties, operations, and our business, or those of our

tenants.

Failure of the U.S. federal government to manage its fiscal matters or to avoid a government shutdown may

negatively impact the economic environment and adversely impact our results of operations.

Congressional disagreement over the federal budget and the maximum amount of debt the federal government is permitted to

have outstanding (commonly referred to as the “debt ceiling”) has previously caused the U.S. federal government to shut down for

periods of time. Generally, if effective legislation to fund government operations and manage the level of federal debt is not enacted, the

federal government may suspend its investments for certain government accounts, among other available options, in order to prioritize

payments on its obligations. A failure by the U.S. Congress to pass spending bills or address the debt ceiling at any point in the future

would increase the risk of default by the U.S. on its obligations, the risk of a lowering of the U.S. federal government’s credit rating, and

the risk of other economic dislocations. Such a failure, or the perceived risk of such a failure, could consequently have a material

adverse effect on the financial markets and economic conditions in the U.S. and globally. Twice in the past decade, by the

appropriations legislation deadline, Congress failed to pass a new appropriations bill or continuing resolution to temporarily extend

funding, resulting in U.S. government shutdowns that caused federal agencies to halt non-essential operations. If economic conditions

severely deteriorate as a result of U.S. federal government fiscal gridlock, our operations, or those of our tenants, could be affected,

which may adversely impact our financial condition and results of operations. These risks may also impact our overall liquidity, our

borrowing costs, or the market price of our common stock .

Changes in laws, regulations, and financial accounting standards may adversely affect our reported results of

operations.

As a response, in large part, to perceived abuses and deficiencies in current regulations believed to have caused or

exacerbated the 2008 global financial crisis, legislative, regulatory, and accounting standard-setting bodies around the world are

engaged in an intensive, wide-ranging examination and rewriting of the laws, regulations, and accounting standards that have

constituted the basic playing field of global and domestic business for several decades. In many jurisdictions, including the U.S., the

legislative and regulatory response has included the extensive reorganization of existing regulatory and rule-making agencies and

organizations, and the establishment of new agencies with broad powers. This reorganization has disturbed longstanding regulatory

and industry relationships and established procedures.

The rule-making and administrative efforts have focused principally on the areas perceived as having contributed to the

financial crisis, including banking, investment banking, securities regulation, and real estate finance, with spillover impacts on many

other areas. These initiatives have created a degree of uncertainty regarding the basic rules governing the real estate industry, and

many other businesses, that is unprecedented in the U.S. at least since the wave of lawmaking, regulatory reform, and government

reorganization that followed the Great Depression.

The global financial crisis and the aggressive reaction of the government and accounting profession thereto have occurred

against a backdrop of increasing globalization and internationalization of financial and securities regulation that began prior to the 2008

financial crisis. As a result of this ongoing trend, financial and investment activities previously regulated almost exclusively at a local or

national level are increasingly being regulated, or at least coordinated, on an international basis, with national rule-making and

standard-setting groups relinquishing varying degrees of local and national control to achieve more uniform regulation and reduce the

ability of market participants to engage in regulatory arbitrage between jurisdictions. This globalization trend has continued, arguably

with an increased sense of urgency and importance, since the financial crisis.

This high degree of regulatory uncertainty, coupled with considerable additional uncertainty regarding the underlying condition

and prospects of global, domestic, and local economies, has created a business environment that makes business planning and

projections even more uncertain than is ordinarily the case for businesses in the financial and real estate sectors.

In the commercial real estate sector in which we operate, the uncertainties posed by various initiatives of accounting standard-

setting authorities to fundamentally rewrite major bodies of accounting literature constitute a significant source of uncertainty as to the

basic rules of business engagement. Changes in accounting standards may have a significant effect on our financial results and on the

results of our tenants, which would in turn have a secondary impact on us.

Global financial stressors, high structural unemployment levels, and other events or circumstances beyond our

control may adversely affect our industry, business, results of operations, contractual commitments, and access to capital.

From 2008 through 2010, significant concerns over energy costs, geopolitical issues, the availability and cost of credit, the

U.S. mortgage market, and a declining real estate market in the U.S. contributed to increased volatility, diminished expectations for the

economy and the markets, and high levels of structural unemployment by historical standards. These factors, combined with volatile oil

prices and fluctuating business and consumer confidence, precipitated a steep economic decline. Further, severe financial and

structural strains on the banking and financial systems have led to significant lack of trust and confidence in the global credit and

financial system. Consumers and money managers have liquidated and may liquidate equity investments, and consumers and banks

have held and may hold cash and other lower-risk investments, which has resulted in significant and, in some cases, catastrophic

declines in the equity capitalization of companies and failures of financial institutions. Although U.S. bank earnings and liquidity have

rebounded, the potential of significant future bank credit losses creates uncertainty for the lending outlook.

Downgrades of the U.S. federal government’s sovereign credit rating and an economic crisis in Europe could

negatively impact our liquidity, financial condition, and earnings.

Previous U.S. debt ceiling and budget deficit concerns, together with sovereign debt conditions in Europe, have increased the

possibility of additional downgrades of sovereign credit ratings and economic slowdowns. There is no guarantee that future debt ceiling

or federal spending legislation will not fail and cause the U.S. to default on its obligations, which would likely cause the U.S. credit rating

to degrade.

S&P Global Ratings lowered its long-term sovereign credit rating of the U.S. from “AAA” to “AA+” in 2011, which it affirmed in

Similarly, Fitch Ratings downgraded the sovereign credit rating of the U.S. from “AAA” to “AA+” in 2023 and affirmed the “AA+”

rating in 2024 . However, further fiscal impasses within the federal government may result in future downgrades. The impact of any

further downgrades to the U.S. government’s sovereign credit rating, or its perceived creditworthiness, is inherently unpredictable and

could adversely affect the U.S. and global financial markets and economic conditions. This could cause further increases in interest

rates and borrowing costs, which may negatively impact our ability to access the debt markets on favorable terms. In addition, the

lowered credit rating could create broader financial turmoil and uncertainty, which may exert downward pressure on the market price of

our common stock. Continued adverse economic conditions could have a material adverse effect on our business, financial condition,

and results of operations.

Economic and social volatility and geopolitical instability outside of the U.S. due to large-scale conflicts, including

warfare among countries, may adversely impact us, the U.S., and global economies.

From time to time, tensions between countries may erupt into warfare and may adversely affect neighboring countries and

those who conduct trade or foreign relations with those affected regions. Such acts of war may cause widespread and lingering damage

on a global scale, including, but not limited to, (i) safety and cyber security, (ii) the economy, and (iii) global relations.

In February 2022, Russia invaded Ukraine. In response to the invasion and ensuing war, many countries, including the U.S.,

imposed significant economic and other sanctions against Russia. The war has created the largest refugee crisis in Europe since World

War II and has inflicted significant damage to Ukraine’s infrastructure and economy. Both countries’ economies may be significantly

affected, which may also adversely impact the global economy, including that of the U.S. Further, Russia has launched an onslaught of

cyberwarfare against Ukraine following its invasion, targeting the country’s critical infrastructure, government agencies, media

organizations, and related think tanks in the U.S. and EU.

The U.S. federal government has cautioned Americans on the possibility of Russia targeting the U.S. with cyberattacks in

retaliation for sanctions that the U.S. has imposed and has urged both the public and private sectors to strengthen their cyber defenses

and protect critical services and infrastructure. Additionally, President Biden directed government bodies to mandate cybersecurity and

network defense measures within their respective jurisdictions and has initiated action plans to reinforce cybersecurity within the

electricity, pipeline, and water sectors. The Biden administration also launched joint efforts with CISA through its “Shields Up” campaign

to defend the U.S. against possible cyberattacks. CISA published advisories warning of Russian state-sponsored threat actors targeting

“COVID-19 research, governments, election organizations, healthcare and pharmaceutical, defense, energy, video gaming, nuclear,

commercial facilities, water, aviation, and critical manufacturing” sectors in the U.S. and other Western nations. While we have not

experienced such cyberattacks to date, it is yet unknown whether Russia will be successful in breaching our network defenses or, more

broadly, those within the areas listed above, which, if successful, may cause disruptions to critical infrastructure required for our

operations and livelihoods, or those of our tenants, communities, and business partners.

Disruption, instability, volatility, and decline in economic activity, regardless of where it occurs, whether caused by acts of war,

other acts of aggression, or terrorism, could in turn also harm the demand for, the safety of, and the value of our properties. As a result

of the factors discussed above, we may be unable to operate our business as usual, which may adversely affect our cash flows,

financial condition, and results of operations.

Adoption of the Basel III standards and other regulatory standards affecting financial institutions may negatively

impact our access to financing or affect the terms of our future financing arrangements.

In response to various financial crises and the volatility of financial markets, the Basel Committee on Banking Supervision (the

“Basel Committee”) adopted the Basel III regulatory capital framework (“Basel III” or the “Basel III Standards”). The final package of

Basel III reforms was approved by the G20 leaders in November 2010. However, due to global events and industry feedback, the

implementation timeline has been extended multiple times. The final regulations are tentatively set to be released and to take effect by

mid-2025.

U.S. regulators have implemented various measures under the Basel III framework, including supplementary leverage ratio

standards (SLR Standards) and a risk-based capital surcharge for global systemically important banking organizations (GSIBs), fully

effective as of 2019. Additionally, the Liquidity Coverage Ratio (LCR), finalized in 2014, aims to enhance the resilience of internationally

active banks by requiring adequate high-quality liquid assets to cover net cash outflows, with stricter U.S. requirements phased in by

2017.

The Volcker Rule, introduced under the Dodd-Frank Act, restricts proprietary trading and certain relationships with private

equity and hedge funds. Amendments in 2020 simplified compliance and reduced restrictions, but further changes to “covered funds”

are anticipated. These regulations, alongside the Basel Committee’s deferred final Basel III implementation now targeted for July 2025,

may increase capital requirements and constrain financing availability or terms from both U.S. and foreign financial institutions.

Social, political, and economic changes or instability, and other circumstances beyond our control could adversely

affect our business operations.

Our business may be adversely affected by social, political, and economic instability, unrest, or disruption in a geographic

region in which we operate, regardless of cause, including legal, regulatory, and policy changes by a new presidential administration in

the U.S., protests, demonstrations, strikes, riots, civil disturbance, disobedience, insurrection, or social and other political unrest.

Such events may result in restrictions, curfews, or other actions and give rise to significant changes in regional and global

economic conditions and cycles, which may adversely affect our financial condition and operations. For example, past instances of

unrest in cities throughout the U.S. in connection with civil rights, liberties, and social and governmental reform led in some locations to

the imposition of mandatory curfews and deployment of the U.S. National Guard. Government actions in an effort to protect people and

property, including curfews and restrictions on business operations, may disrupt operations, harm perceptions of personal well-being,

and increase the need for additional expenditures on security resources. In addition, action resulting from such social or political unrest

may pose significant risks to our personnel, facilities, and operations. We cannot ensure there will not be further political or social unrest

in the future or that there will not be other events that could lead to social, political, and economic disruptions. If such events or

disruptions persist for a prolonged period of time, our overall business and results of operations may be adversely affected.

Changes in federal policy, including tax policies, and at regulatory agencies occur over time through policy and personnel

changes following elections, which can lead to changes involving the level of oversight and focus on certain industries and corporate

entities. For example, as a federal government contractor, we maintain plans to ensure compliance with nondiscrimination and

regulatory requirements for qualified employees on the basis of gender, race, disability, and veteran status. Consequently, we may be

subject to executive orders and regulatory changes affecting various aspects of our operations, including compliance with

nondiscrimination plans. Any required elimination or modification of such plans in response to new executive orders could pose

challenges in hiring or retaining employees, and may lead to other adverse operational impacts. Failure to comply with these

requirements could expose us to administrative, civil, or criminal liabilities, including fines, penalties, repayments, or suspension or

debarment from eligibility for future U.S. government contracts.

The nature, timing, and economic and political effects of potential changes to the current legal and regulatory frameworks

affecting the life science industry, as well as the real estate industry in general, remain highly uncertain. For example, any proposals to

make changes related to U.S. tax law, including those related to Section 1031 Exchanges, may have a material adverse effect on our

business, financial condition, results of operations, and growth prospects. From time to time, we dispose of properties in transactions

qualified as Section 1031 Exchanges. If the laws surrounding Section 1031 Exchanges were amended or repealed, we may not be able

to dispose of properties on a tax-deferred basis. In such a case, our earnings and profits and our taxable income would increase, which

could increase dividend income and reduce the return of capital to our stockholders. As a result, we may be required to pay additional

dividends to stockholders, or, if we do not pay additional dividends, our corporate income tax liability could increase and we may be

subject to interest and penalties.

Similarly, changes in federal policy that affect the geopolitical landscape could give rise to circumstances outside our control

that could have negative impacts on our business operations. During the prior Trump administration, increased tariffs were implemented

on goods imported into the U.S., particularly from China, Canada, and Mexico. As China was and is a major global exporter of steel,

solar panels, and aluminum, the tariffs on these specific imports led to a trade war between not only the U.S. and China, but also

between the U.S. and the international community. Other countries, including China, Canada, and the EU, implemented retaliatory

tariffs in response to these policies on U.S. goods. During the 2024 presidential campaign, President Trump pledged to impose an

additional 25% tariff on certain exports from Canada and Mexico, and up to an additional 60% tariff on certain exports from China.

These and similar types of trade policies could lead to issues with global supply chains on a macroeconomic scale, including steel,

pharmaceuticals, and construction equipment, all of which are critical to our and our tenant’s businesses. For example, several of our

largest tenants are European companies whose U.S. business operations could be directly impacted by the tariffs on the EU due to

increased costs on operations and supply chains. Similarly, many of our tenants are in the pharmaceutical industry. As China is a global

leader in the market for active pharmaceutical ingredients, the imposition of tariffs, especially at such unprecedented rates, could

potentially raise the cost of generic drugs in the U.S., which would in turn have direct consequences on our tenants in the

pharmaceutical industry. Such tariffs and changes to U.S. trade policy previously had, and in the future could, lead to further adverse

effects on the U.S. domestic economy and our or our tenant’s businesses.

Terrorist attacks may have an adverse impact on our business and operating results and could decrease the value of

our assets.

Terrorist attacks such as those that took place on September 11, 2001, could have a material adverse impact on our business,

our operating results, and the market price of our common stock. Future foreign or domestic terrorist attacks may result in declining

economic activity, which could reduce the demand for, and the value of, our properties. To the extent that any future foreign or domestic

terrorist attacks impact our tenants, their businesses similarly could be adversely affected, including their ability to continue to honor

their lease obligations.

Our business and operations would suffer in the event of information technology system failures.

Despite system redundancy, the implementation of security measures, and the existence of a disaster recovery plan for our

internal information technology systems, our systems are vulnerable to damages from any number of sources, including computer

viruses, unauthorized access, energy blackouts, natural disasters, terrorism, war, and telecommunications failures. Any system failure

or accident that causes interruptions in our operations could result in a material disruption to our business. We may also incur additional

significant costs to remedy damages caused by such disruptions.

Short sellers may engage in manipulative activity intended to drive down the market price of our common stock,

which could result in a material diversion of our management’s time and may also lead to related governmental or regulatory

inquiries or other legal actions, among other effects.

Short selling is the practice of selling securities that the seller does not own but rather has borrowed or intends to borrow from

a third party with the intention of subsequently buying lower-priced identical securities to return to the lender. Accordingly, it is in the

interest of a short seller to want the price of our common stock to decline. At any time, short sellers may publish, or arrange for the

dissemination of, opinions, or characterizations that are intended to create negative market momentum, including through the use of

social media. In light of the recent proliferation of generative artificial intelligence tools and large language models, there is also a risk

that the dissemination of such opinions, characterizations or disinformation may negatively impact the conclusions that these tools and

models draw about our business and prospects.

Short selling reports may potentially lead to increased volatility in an issuer’s stock price and to regulatory and governmental

inquiries. In June 2023, a short seller published reports that contained certain negative and false allegations regarding our business and

financial prospects. Regardless of merit, these allegations and false statements may spread quickly and diminish confidence in our

business, financial prospects, or reputation. As a result, maintaining or reinforcing our reputation may require us to devote significant

resources to refuting incorrect or misleading allegations, pursuing or defending related legal actions, or engaging in other activities that

could be costly, time consuming, or unsuccessful. Additionally, any potential inquiry or formal investigation from a governmental

organization or other regulatory body, including an inquiry from the SEC, arising from the presence of such allegations could result in a

material diversion of our management’s time and may have a material adverse effect on our business and results of operations.

We hold a portion of our cash and cash equivalents in deposit accounts that could be adversely affected if the

financial institutions holding such deposits fail.

We maintain our cash and cash equivalents at insured financial institutions. The combined account balances at each institution

periodically substantially exceed the FDIC insurance coverage of $250,000 , and, as a result, there is a concentration of credit risk

related to amounts in excess of FDIC insurance coverage. As such, we may be subject to a risk of loss or delay in accessing all or a

portion of our funds exceeding the FDIC insurance coverage, which could adversely impact our short-term liquidity, ability to operate our

business, and financial performance.

Any or all of the foregoing could have a material adverse effect on our financial condition, results of operations, and cash

flows, or the market price of our common stock. Additional risks and uncertainties not currently known to us, or that we presently deem

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

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C. CYBERSECURITY

Risk management and strategy

Our corporate information technology, communication networks, enterprise applications, accounting and financial reporting

platforms, and related systems, and those that we offer to our tenants are necessary for the operation of our business. We use these

systems, among others, to manage our tenant and vendor relationships, for internal communications, for accounting to operate record-

keeping function, and for many other key aspects of our business. Our business operations rely on the secure collection, storage,

transmission, and other processing of proprietary, confidential, and sensitive data.

We have implemented and maintain various information security processes designed to identify, assess and manage material

risks from cybersecurity threats to our critical computer networks, third-party hosted services, communications systems, hardware and

software, and our critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in

nature, and tenant data (“Information Systems and Data”).

We rely on a multidisciplinary team, including our information security function, legal department, management, and third-party

service providers, as described further below, to identify, assess, and manage cybersecurity threats and risks. We identify and assess

risks from cybersecurity threats by monitoring and evaluating our threat environment and our risk profile using various methods

including, for example, using manual and automated tools, subscribing to reports and services that identify cybersecurity threats,

analyzing reports of threats and threat actors, conducting scans of the threat environment, evaluating our industry’s risk profile, utilizing

internal and external audits, and conducting threat and vulnerability assessments.

Depending on the environment, we implement and maintain various technical, physical, and organizational measures,

processes, standards, and/or policies designed to manage and mitigate material risks from cybersecurity threats to our Information

Systems and Data, including risk assessments, incident detection and response, vulnerability management, disaster recovery and

business continuity plans, internal controls within our accounting and financial reporting functions, encryption of data, network security

controls, access controls, physical security, asset management, systems monitoring, vendor risk management program, employee

training, and penetration testing.

We work with third parties from time to time that assist us to identify, assess, and manage cybersecurity risks, including

professional services firms, consulting firms, threat intelligence service providers, and penetration testing firms.

To operate our business, we utilize certain third-party service providers to perform a variety of functions. We seek to engage

reliable, reputable service providers that maintain cybersecurity programs. Depending on the nature of the services provided, the

sensitivity and quantity of information processed, and the identity of the service provider, our vendor management process may include

reviewing the cybersecurity practices of such provider, contractually imposing obligations on the provider, conducting security

assessments, and conducting periodic reassessments during their engagement.

We are not aware of any risks from cybersecurity threats, including as a result of any cybersecurity incidents, which have

materially affected or are reasonably likely to materially affect our Company, including our business strategy, results of operations, or

financial condition. Refer to “Item 1A. Risk factors” in this annual report on Form 10-K, including “If our information technology networks

or data, or those of third parties upon which we rely, are or were disrupted or otherwise compromised, we could experience costly

remediation or other expenses, liability under federal and state laws, and litigation and investigations, any of which could result in

substantial reputational damage and materially and adversely affect our business, financial condition, results of operations, cash flows,

and the market price of our common stock”, for additional discussion about cybersecurity-related risks.

Governance

Our Board of Directors holds oversight responsibility over the Company’s strategy and risk management, including material

risks related to cybersecurity threats. This oversight is executed directly by the Board of Directors and through its committees. The Audit

Committee of the Board of Directors (the “Audit Committee”) oversees the management of systemic risks, including cybersecurity, in

accordance with its charter. The Audit Committee engages in regular discussions with management regarding the Company’s significant

financial risk exposures and the measures implemented to monitor and control these risks, including those that may result from material

cybersecurity threats. These discussions include the Company’s risk assessment and risk management policies.

Our management, represented by our Chief Technology Officer, Greg C. Thomas, and our Chief Financial Officer and

Treasurer, Marc E. Binda , leads our cybersecurity risk assessment and management processes and oversees their implementation and

maintenance.

Greg C. Thomas is an experienced information technology professional in our information technology department and has

served as Chief Technology Officer since 2018. He works with the Company’s internal information technology department and external

partners to monitor and improve our cybersecurity capabilities. Mr. Thomas possesses a proven real estate industry track record of

guiding organizations through strategic technology, organizational, risk mitigation, process improvement initiatives, and digital

transformations. He also possesses extensive experience in technology and cybersecurity, gained over his career spanning more than

30 years, including as Chief Information Officer at two other large real estate firms, as well as in leadership roles within the real estate

industry technology practices of Ernst & Young LLP and Deloitte LLP. He earned Bachelor of Science degrees in Systems Analysis and

Finance from Miami University.

Marc E. Binda, CPA, is an experienced risk management professional in our finance and risk management function and has

served as Chief Financial Officer since September 2023 and as Treasurer since April 2018. Mr. Binda previously served as Executive

Vice President – Finance and Treasurer from June 2019 to September 2023, as Senior Vice President – Finance and Treasurer from

April 2018 to June 2019, as Senior Vice President – Finance from April 2012 to April 2018, and in other capacities from January 2005 to

April 2012. Mr. Binda currently oversees key functions for the Company’s accounting, finance, and treasury strategies, including risk

management. In addition, Mr. Binda leads the Company’s cybersecurity risk oversight and the development and enhancement of

internal controls designed to prevent, detect, address, and mitigate the risk of cyber incidents.

Management, in coordination with our information technology department, is responsible for hiring appropriate personnel,

helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key

priorities to relevant personnel. Management is responsible for approving budgets, approving cybersecurity processes, and reviewing

cybersecurity assessments and other cybersecurity-related matters.

Our cybersecurity incident response and vulnerability management processes are designed to escalate certain cybersecurity

incidents to members of management depending on the circumstances. Management, including the Chief Technology Officer and Chief

Financial Officer and Treasurer, serves on the Company’s incident response team to help the Company mitigate and remediate

cybersecurity incidents of which they are notified. In addition, the Company’s incident response processes include reporting to the Audit

Committee for certain cybersecurity incidents. The Audit Committee holds quarterly meetings and receives periodic reports from

management, including from our Chief Technology Officer and Chief Financial Officer and Treasurer , concerning the Company’s

significant cybersecurity threats and risk and the processes the Company has implemented to address them.

ITEM 2. PROPERTIES

General

As of December 31, 2024 , we had 391 properties in North America consisting of approximately 44.1 million RSF of operating

properties and new Class A/A+ development and redevelopment properties under construction, including 67 properties that are held by

consolidated real estate joint ventures and four properties that are held by unconsolidated real estate joint ventures. The occupancy

percentage of our operating properties in North America was 94.6% as of December 31, 2024 . The exteriors of our properties typically

resemble traditional office properties, but the interior infrastructures are designed to accommodate the needs of life science tenants.

These improvements typically are generic rather than specific to a particular tenant. As a result, we believe that the improvements have

long-term value and utility and are usable by a wide range of tenants. Improvements to our properties typically include:

• Reinforced concrete floors;

• Upgraded roof loading capacity;

• Increased floor-to-ceiling heights;

• Heavy-duty HVAC systems;

• Enhanced environmental control technology;

• Significantly upgraded electrical, gas, and plumbing infrastructure; and

• Laboratory benches.

As of December 31, 2024 , we held a fee simple interest in each of our properties, with the exception of 32 properties in North

America subject to ground leasehold interests, which accounted for approximately 8% of our total number of properties. Of these 32

properties, we held eight properties in the Greater Boston market, 20 properties in the San Francisco Bay Area market, one property in

the Seattle market, one property in the Maryland market, and two properties in the New York City market. During the year ended

December 31, 2024 , as a percentage of net operating income our ground lease rental expense aggregated 1.6% . Refer to our

consolidated financial statements and notes thereto in “ Item 15. Exhibits and financial statement schedules ” in this annual report on

Form 10-K for further discussion.

As of December 31, 2024 , we had over 1,000 le ases with a total of approximately 800 tena nts, and 171 , or 44% , of our 391

properties were single-tenant properties. Leases in our multi-tenant buildings typically have initial terms o f 3 to 9 year s, while leases in

our single-tenant buildings typically have initial terms o f 5 to 15 ye ars. Additionally, as of December 31, 2024 :

• Investment-grade or publicly traded large cap tenants represented 52% of our total annual rental revenue;

• Approximately 97% of our leases (on an annual rental revenue basis) contained effective annual rent escalations

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

• Approximatel y 92% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay

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

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

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

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

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

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

Our leases also typically give us the right to review and approve tenant alterations to the property. Generally, tenant-installed

improvements to the properties are reusable generic improvements and remain our property after termination of the lease at our

election. However, we are permitted under the terms of most of our leases to require that the tenant, at its expense, remove certain

non-generic improvements and restore the premises to their original condition.

Refer to “ Annual rental revenue ” and “ Operating statistics ” under “ Definitions and reconciliations ” in Item 7 in this annual report

on Form 10-K for a description of the basis used to compute the aforementioned measures.

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 December 31, 2024 in each of our markets in North America

(dollars in thousands, except per RSF amounts):

Market	RSF — Operating	Development	Redevelopment	Total	% of Total	Number of Properties	Annual Rental Revenue — Total	% of Total	Per RSF
Greater Boston	9,260,235	632,850	1,601,010	11,494,095	26%	64	$ 760,564	36%	$ 86.67
San Francisco Bay Area	7,680,005	394,781	366,939	8,441,725	19	65	443,345	21	66.78
San Diego	7,382,450	921,510	—	8,303,960	19	79	326,925	16	45.97
Seattle	3,186,812	227,577	—	3,414,389	8	45	136,014	5	46.19
Maryland	3,849,928	—	—	3,849,928	9	50	144,032	7	39.53
Research Triangle	3,802,204	—	—	3,802,204	9	38	116,808	6	31.53
New York City	921,774	—	—	921,774	2	4	73,534	4	90.26
Texas	1,845,159	—	73,298	1,918,457	4	15	44,022	2	24.99
Canada	888,189	—	139,311	1,027,500	2	11	19,661	1	23.08
Non-cluster/other markets	349,099	—	—	349,099	1	10	15,027	1	59.35
Properties held for sale	600,870	—	—	600,870	1	10	13,056	1	N/A
North America	39,766,725	2,176,718	2,180,558	44,124,001	100%	391	$ 2,092,988	100%	$ 56.98
		4,357,276

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:

Market	Operating Properties — 12/31/24		12/31/23	12/31/22	Operating and Redevelopment Properties — 12/31/24	12/31/23	12/31/22
Greater Boston	94.8%		94.9%	94.5%	80.8%	84.7%	85.5%
San Francisco Bay Area	93.3		94.8	96.7	89.1	91.4	93.3
San Diego	96.3		94.1	95.4	96.3	94.1	95.4
Seattle	92.4		95.2	97.0	92.4	90.7	90.1
Maryland	95.7		95.6	95.8	95.7	95.6	93.3
Research Triangle	97.4		97.8	94.0	97.4	97.8	85.0
New York City	88.4	(1)	85.3	92.3	88.4	85.3	92.3
Texas	95.5		95.1	91.2	91.8	91.5	81.6
Subtotal	94.8		94.9	95.1	90.0	90.7	89.9
Canada	95.9		87.1	80.8	82.9	73.0	68.2
Non-cluster/other markets	72.5		78.5	75.0	72.5	78.5	75.0
North America	94.6%	(2)	94.6%	94.8%	89.7%	90.2%	89.4%

(1) The Ale xandria Center ® for Life Science – New York City Megacampus is 98.7% occupied as of December 31, 2024 . Occupancy percentage in our New York City market

reflects vacancy at the Alexandria Center ® fo r Life Science – Long Island City property, which was 45.7% occupied as of December 31, 2024 .

(2) Includes temporary vacancy as of December 31, 2024 aggregating 278,528 RSF that is leased and expected to be occupied upon completion of the tenant improvement

to the spaces. The weighted-average expected delivery date of these spaces is May 12, 2025 .

Top 20 tenants

92% 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 more than 4.3%

of our annual rental revenue in effect as of December 31, 2024 . 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 December 31, 2024 (dollars in thousands, except

average market cap amounts):

				Aggregate RSF		Percentage of Annual Rental Revenue (1)	Investment-Grade Credit Ratings		Average Market Cap (in billions)
	Tenant						Moody’s	S&P
1	Eli Lilly and Company	8.4		1,122,777	$ 90,259	4.3%	A1	A+	$ 769.8
2	Moderna, Inc.	11.3		634,045	90,103	4.3	—	—	$ 35.1
3	Bristol-Myers Squibb Company	5.4		999,379	77,188	3.7	A2	A	$ 100.6
4	Takeda Pharmaceutical Company Limited	10.4		549,759	47,899	2.3	Baa1	BBB+	$ 44.2
5	Roche	8.2		647,069	37,405	1.8	Aa2	AA	$ 232.8
6	Illumina, Inc.	5.9		857,967	35,924	1.7	Baa3	BBB	$ 20.6
7	Alphabet Inc.	2.8		625,015	34,899	1.7	Aa2	AA+	$ 2,032.2
8	2seventy bio, Inc. (2)	8.7		312,805	33,543	1.6	—	—	$ 0.2
9	United States Government	5.6		429,359	28,861	1.4	Aaa	AA+	$ —
10	Cloud Software Group, Inc.	2.2	(3)	292,013	28,537	1.4	—	—	$ —
11	Novartis AG	3.5		448,690	27,958	1.3	Aa3	AA-	$ 235.1
12	Uber Technologies, Inc.	57.8	(4)	1,009,188	27,787	1.3	Baa2	BBB-	$ 147.7
13	AstraZeneca PLC	4.8		450,848	27,226	1.3	A2	A+	$ 226.6
14	Boston Children's Hospital	12.2		309,231	26,154	1.2	Aa2	AA	$ —
15	The Regents of the University of California	6.4		372,647	23,515	1.1	Aa2	AA	$ —
16	Sanofi	6.0		267,278	21,444	1.0	A1	AA	$ 127.9
17	Merck & Co., Inc.	8.5		337,703	21,401	1.0	A1	A+	$ 300.0
18	New York University	7.1		218,983	21,056	1.0	Aa2	AA-	$ —
19	Charles River Laboratories, Inc.	10.3		255,635	20,578	1.0	—	—	$ 11.1
20	Massachusetts Institute of Technology	5.0		237,849	20,228	1.0	Aaa	AAA	$ —
	Total/weighted-average	9.3	(4)	10,378,240	$ 741,965	35.4%

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 7 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 December 31, 2024 .

(2) Includes approximately 195,000 RSF, or 62.8% of the annual rental revenue generated from 2seventy bio as of December 31, 2024 , that is subleased to Regeneron

Pharmaceuticals, Inc., an investment-grade publicly traded biotechnology company. As of September 30, 2024 , 2seventy bio, Inc. held $192.4 million of cash, cash

equivalents, and marketable securities. Additionally, 90.2% of the annual rental revenue generated by 2seventy bio is guaranteed by another related public biotechnology

company.

(3) Consists of one lease at a property acquired in 2022 with future development and redevelopment opportunities. This lease with Cloud Software Group, Inc. (formerly known

as TIBCO Software, Inc.) was in place when we acquired the property.

(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 7.5 years as of December 31, 2024 .

Stable Cash Flows From Our High-Quality and Diverse Mix of Approximately 800 Tenants
	Investment-Grade or Publicly Traded Large Cap Tenants
	92%
	of ARE’s Top 20 Tenant Annual Rental Revenue
	52%
Percentage of ARE’s Annual Rental Revenue	of ARE’s Annual Rental Revenue
Solid Historical Occupancy of 96% Over Past 10 Years (2) From Historically Strong Demand for Our Class A/A+ Properties in AAA Locations
Annual Rental Revenue	Occupancy Across Key Locations
Percentage of ARE’s Annual Rental Revenue

Multinational

Pharmaceutical

Life Science

Product,

Service, and

Device

Public

Biotechnology -

Approved or

Marketed

Product

Public

Biotechnology -

Preclinical or

Clinical Stage

Private

Biotechnology

Other (1)

Other Investment-Grade

or Large Cap Tech

Biomedical and

Government

Institutions

Megacampus ™

Core and

Non-Core

(3)

As of December 31, 2024 . Annual rental revenue represents amounts in effect as of December 31, 2024 . Refer to “ Definitions and reconciliations ” in Item 7 for additional

information.

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

companies, as well as retail-related tenants, which generate less than 1.0% of our annual rental revenue.

(2) Represents the average occupancy percentage of operating properties as of each December 31 from 2015 through 2024.

(3) Refer to footnote 1 under “ Summary of occupancy percentages in North America ” in Item 2 for additional details.

Long-Duration and Stable Cash Flows From High-Quality and Diverse Tenants
Long-Duration Lease Terms
9.3 Years
Top 20 Tenants
7.5 Years
All Tenants
Weighted-Average Remaining Term (1)

Sustained Strength in Tenant Collections (2)
99.9%
For the Three Months Ended December 31, 2024
99.5%
January 2025

(1) Based on annual rental revenue in effect as of December 31, 2024 .

(2) Represents the portion of total receivables billed for each indicated period collected as of the date of this report.

Property listing

Our Megacampus ™ Properties Account for 77% of Our Annual Rental Revenue

The following table provides certain information about our properties as of December 31, 2024 (dollars in thousands):

							Occupancy Percentage
	RSF				Number of Properties	Annual Rental Revenue
							Operating	Operating and Redevelopment
Market / Submarket / Address	Operating	Development	Redevelopment	Total
Greater Boston
Cambridge/Inner Suburbs
Megacampus: Alexandria Center ® at Kendall Square	2,199,030	—	—	2,199,030	7	$ 228,062	100.0%	100.0%
50 (1) , 60 (1) , 75/125 (1) , 100 (1) , and 225 (1) Binney Street, 140 First Street, and 300 Third Street (1)
Megacampus: Alexandria Center ® at One Kendall Square	1,281,580	—	104,956	1,386,536	12	145,576	94.8	87.6
One Kendall Square (Buildings 100, 200, 300, 400, 500, 600/700, 1400, 1800, and 2000), 325 and 399 Binney Street, and One Hampshire Street
Megacampus: Alexandria Technology Square ®	1,185,190	—	—	1,185,190	7	110,969	97.7	97.7
100, 200, 300, 400, 500, 600, and 700 Technology Square
Megacampus: The Arsenal on the Charles	776,781	36,444	308,446	1,121,671	13	47,730	99.4	71.2
311, 321, and 343 Arsenal Street, 300, 400, and 500 North Beacon Street, 1, 2, 3, and 4 Kingsbury Avenue, and 100, 200, and 400 Talcott Avenue
Megacampus: 480 Arsenal Way, 446, 458, 500, 550 Arsenal Street, and 99 Coolidge Avenue (1)	633,056	204,395	—	837,451	6	28,173	98.4	98.4
Cambridge/Inner Suburbs	6,075,637	240,839	413,402	6,729,878	45	560,510	98.2	91.9
Fenway
Megacampus: Alexandria Center ® for Life Science – Fenway	1,291,019	392,011	137,675	1,820,705	3.0	100,587	89.7	81.1
401 and 421 (1) Park Drive and 201 Brookline Avenue (1)
Seaport Innovation District
5 and 15 (1) Necco Street	441,396	—	—	441,396	2	44,143	81.8	81.8
Seaport Innovation District	441,396	—	—	441,396	2	44,143	81.8	81.8
Route 128
Megacampus: Alexandria Center ® for Life Science – Waltham	466,094	—	596,064	1,062,158	5	36,659	100.0	43.9
40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street
19, 225, and 235 Presidential Way	585,226	—	—	585,226	3	13,937	100.0	100.0
Route 128	1,051,320	—	596,064	1,647,384	8	50,596	100.0	63.8
Other	400,863	—	453,869	854,732	6	4,728	59.7	28.0
Greater Boston	9,260,235	632,850	1,601,010	11,494,095	64	$ 760,564	94.8%	80.8%
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details. (1) We own a partial interest in this property through a real estate joint venture. Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details.

Property listing (continued)

							Occupancy Percentage
	RSF				Number of Properties	Annual Rental Revenue
							Operating	Operating and Redevelopment
Market / Submarket / Address	Operating	Development	Redevelopment	Total
San Francisco Bay Area
Mission Bay
Megacampus: Alexandria Center ® for Science and Technology – Mission Bay (1)	2,005,369	109,435	—	2,114,804	10	$ 90,452	95.1%	95.1%
1455 (2) , 1515 (2) , 1655, and 1725 Third Street, 409 and 499 Illinois Street, 1450 (3) , 1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South
Mission Bay	2,005,369	109,435	—	2,114,804	10	90,452	95.1	95.1
South San Francisco
Megacampus: Alexandria Technology Center ® – Gateway (1)	1,408,022	—	259,689	1,667,711	12	76,705	81.9	69.1
600 (2) , 601, 611, 630 (2) , 650 (2) , 651, 681, 685, 701, 751, 901 (2) , and 951 (2) Gateway Boulevard
Megacampus: Alexandria Center ® for Advanced Technologies – South San Francisco	812,453	—	107,250	919,703	5	52,990	100.0	88.3
213 (1) , 249, 259, 269, and 279 East Grand Avenue
Alexandria Center ® for Life Science – South San Francisco	504,053	—	—	504,053	3	32,767	93.9	93.9
201 Haskins Way and 400 and 450 East Jamie Court
Megacampus: Alexandria Center ® for Advanced Technologies – Tanforan	445,232	—	—	445,232	2	3,829	100.0	100.0
1122 and 1150 El Camino Real
Alexandria Center ® for Life Science – Millbrae (1)	—	285,346	—	285,346	1	—	N/A	N/A
230 Harriet Tubman Way
500 Forbes Boulevard (1)	155,685	—	—	155,685	1	10,680	100.0	100.0
South San Francisco	3,325,445	285,346	366,939	3,977,730	24	176,971	91.4	82.3
Greater Stanford
Megacampus: Alexandria Center ® for Life Science – San Carlos	738,038	—	—	738,038	9	41,671	94.5	94.5
825, 835, 960, and 1501-1599 Industrial Road
Alexandria Stanford Life Science District	704,560	—	—	704,560	9	75,771	98.5	98.5
3160, 3165, 3170, and 3181 Porter Drive and 3301, 3303, 3305, 3307, and 3330 Hillview Avenue
3412, 3420, 3440, 3450, and 3460 Hillview Avenue	340,103	—	—	340,103	5	23,603	82.9	82.9
3875 Fabian Way	228,000	—	—	228,000	1	9,402	100.0	100.0
2475 and 2625/2627/2631 Hanover Street and 1450 Page Mill Road	198,558	—	—	198,558	3	15,902	89.4	89.4
2100, 2200, and 2400 Geng Road	78,501	—	—	78,501	3	4,803	100.0	100.0
3350 West Bayshore Road	61,431	—	—	61,431	1	4,770	100.0	100.0
Greater Stanford	2,349,191	—	—	2,349,191	31	175,922	94.5	94.5
San Francisco Bay Area	7,680,005	394,781	366,939	8,441,725	65	$ 443,345	93.3%	89.1%
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details. (1) We own a partial interest in this property through a real estate joint venture. Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details. (2) We own 100% of this property. (3) During the three months ended December 31, 2024, we executed a letter of intent with a biomedical institution for the sale of a condominium interest aggregating 103,361 RSF, or approximately 49% of the development project, with the transaction expected to close in 2025. Accordingly, we adjusted the development project RSF and its related book value to reflect 109,435 RSF, with our ownership share expected to be 25% at completion of the project. Refer to “New Class A/A+ development and redevelopment properties: current projects” in Item 2 for additional details.

Property listing (continued)

							Occupancy Percentage
	RSF				Number of Properties	Annual Rental Revenue
							Operating	Operating and Redevelopment
Market / Submarket / Address	Operating	Development	Redevelopment	Total
San Diego
Torrey Pines
Megacampus: One Alexandria Square	840,192	241,504	—	1,081,696	10	$ 47,915	99.0%	99.0%
3115 and 3215 (1) Merryfield Row, 3010, 3013, and 3033 Science Park Road, 10935, 10945, 10955, and 10970 Alexandria Way, 10996 Torreyana Road, and 3545 Cray Court
ARE Torrey Ridge	299,138	—	—	299,138	3	13,263	79.7	79.7
10578, 10618, and 10628 Science Center Drive
ARE Nautilus	218,459	—	—	218,459	4	12,184	97.7	97.7
3530 and 3550 John Hopkins Court and 3535 and 3565 General Atomics Court
Torrey Pines	1,357,789	241,504	—	1,599,293	17	73,362	94.5	94.5
University Town Center
Megacampus: Campus Point by Alexandria (1)	1,594,463	426,927	—	2,021,390	10	86,469	98.0	98.0
9880 (2) , 10210, 10260, 10290, and 10300 Campus Point Drive and 4135, 4155, 4161, 4224, and 4242 Campus Point Court
Megacampus: 5200 Illumina Way (1)	792,687	—	—	792,687	6	29,978	100.0	100.0
9625 Towne Centre Drive (1)	163,648	—	—	163,648	1	6,520	100.0	100.0
University Town Center	2,550,798	426,927	—	2,977,725	17	122,967	98.8	98.8
Sorrento Mesa
Megacampus: SD Tech by Alexandria (1)	878,805	253,079	—	1,131,884	12	39,988	93.6	93.6
9605, 9645, 9675, 9725, 9735, 9808, 9855, and 9868 Scranton Road, 5505 Morehouse Drive (2) , and 10055, 10065, and 10075 Barnes Canyon Road
Megacampus: Sequence District by Alexandria	801,575	—	—	801,575	7	28,766	100.0	100.0
6260, 6290, 6310, 6340, 6350, 6420, and 6450 Sequence Drive
Pacific Technology Park (1)	544,352	—	—	544,352	5	9,352	92.8	92.8
9389, 9393, 9401, 9455, and 9477 Waples Street
Summers Ridge Science Park (1)	316,531	—	—	316,531	4	11,521	100.0	100.0
9965, 9975, 9985, and 9995 Summers Ridge Road
Scripps Science Park by Alexandria	144,113	—	—	144,113	1	11,379	100.0	100.0
10102 Hoyt Park Drive
ARE Portola	101,857	—	—	101,857	3	4,022	100.0	100.0
6175, 6225, and 6275 Nancy Ridge Drive
5810/5820 Nancy Ridge Drive	83,354	—	—	83,354	1	4,581	100.0	100.0
9877 Waples Street	63,774	—	—	63,774	1	2,680	100.0	100.0
5871 Oberlin Drive	33,842	—	—	33,842	1	1,909	100.0	100.0
Sorrento Mesa	2,968,203	253,079	—	3,221,282	35	$ 114,198	96.8%	96.8%
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details. (1) We own a partial interest in this property through a real estate joint venture. Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details. (2) We own 100% of this property.

Property listing (continued)

							Occupancy Percentage
	RSF				Number of Properties	Annual Rental Revenue
							Operating	Operating and Redevelopment
Market / Submarket / Address	Operating	Development	Redevelopment	Total
San Diego (continued)
Sorrento Valley
3911, 3931, and 3985 Sorrento Valley Boulevard	151,406	—	—	151,406	6	$ 3,970	54.0%	54.0%
11045 and 11055 Roselle Street	43,233	—	—	43,233	2	2,203	100.0	100.0
Sorrento Valley	194,639	—	—	194,639	8	6,173	64.2	64.2
Other	311,021	—	—	311,021	2	10,225	100.0	100.0
San Diego	7,382,450	921,510	—	8,303,960	79	326,925	96.3	96.3
Seattle
Lake Union
Megacampus: Alexandria Center ® for Life Science – Eastlake	1,152,644	—	—	1,152,644	9	77,461	95.6	95.6
1150, 1201 (1) , 1208 (1) , 1551, 1600, and 1616 Eastlake Avenue East, 188 and 199 (1) East Blaine Street, and 1600 Fairview Avenue East
Megacampus: Alexandria Center ® for Life Science – South Lake Union	381,380	227,577	—	608,957	3	21,890	99.6	99.6
400 (1) and 701 Dexter Avenue North and 428 Westlake Avenue North
219 Terry Avenue North	31,797	—	—	31,797	1	1,339	56.9	56.9
Lake Union	1,565,821	227,577	—	1,793,398	13	100,690	95.8	95.8
Elliott Bay
410 West Harrison Street and 410 Elliott Avenue West	20,101	—	—	20,101	2	710	100.0	100.0
Bothell
Megacampus: Alexandria Center ® for Advanced Technologies – Canyon Park	1,061,778	—	—	1,061,778	22	21,482	87.7	87.7
22121 and 22125 17th Avenue Southeast, 22021, 22025, 22026, 22030, 22118, and 22122 20th Avenue Southeast, 22333, 22422, 22515, 22522, 22722, and 22745 29th Drive Southeast, 21540, 22213, and 22309 30th Drive Southeast, and 1629, 1631, 1725, 1916, and 1930 220th Street Southeast
Alexandria Center ® for Advanced Technologies – Monte Villa Parkway	463,449	—	—	463,449	6	12,290	90.3	90.3
3301, 3303, 3305, 3307, 3555, and 3755 Monte Villa Parkway
Bothell	1,525,227	—	—	1,525,227	28	33,772	88.5	88.5
Other	75,663	—	—	75,663	2	842	98.5	98.5
Seattle	3,186,812	227,577	—	3,414,389	45	$ 136,014	92.4%	92.4%
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details. (1) We own a partial interest in this property through a real estate joint venture. Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details.

Property listing (continued)

							Occupancy Percentage
	RSF				Number of Properties	Annual Rental Revenue
							Operating	Operating and Redevelopment
Market / Submarket / Address	Operating	Development	Redevelopment	Total
Maryland
Rockville
Megacampus: Alexandria Center ® for Life Science – Shady Grove	1,692,350	—	—	1,692,350	20	$ 79,076	97.5%	97.5%
9601, 9603, 9605, 9704, 9708, 9712, 9714, 9800, 9804, 9808, 9900, and 9950 Medical Center Drive, 14920 and 15010 Broschart Road, 9920 Belward Campus Drive, and 9810 and 9820 Darnestown Road
1330 Piccard Drive	131,508	—	—	131,508	1	4,323	100.0	100.0
1405 and 1450 (1) Research Boulevard	114,849	—	—	114,849	2	3,029	73.3	73.3
1500 and 1550 East Gude Drive	91,359	—	—	91,359	2	1,844	100.0	100.0
5 Research Place	63,852	—	—	63,852	1	3,082	100.0	100.0
5 Research Court	51,520	—	—	51,520	1	1,976	100.0	100.0
12301 Parklawn Drive	49,185	—	—	49,185	1	1,598	100.0	100.0
Rockville	2,194,623	—	—	2,194,623	28	94,928	96.7	96.7
Gaithersburg
Alexandria Technology Center ® – Gaithersburg I	619,061	—	—	619,061	9	19,603	93.6	93.6
9, 25, 35, 45, 50, and 55 West Watkins Mill Road and 910, 930, and 940 Clopper Road
Alexandria Technology Center ® – Gaithersburg II	486,301	—	—	486,301	7	18,816	100.0	100.0
700, 704, and 708 Quince Orchard Road and 19, 20, 21, and 22 Firstfield Road
20400 Century Boulevard	81,006	—	—	81,006	1	2,107	100.0	100.0
401 Professional Drive	63,154	—	—	63,154	1	1,949	90.1	90.1
950 Wind River Lane	50,000	—	—	50,000	1	1,234	100.0	100.0
620 Professional Drive	27,950	—	—	27,950	1	1,207	100.0	100.0
Gaithersburg	1,327,472	—	—	1,327,472	20	44,916	96.6	96.6
Beltsville
8000/9000/10000 Virginia Manor Road	191,884	—	—	191,884	1	2,974	97.7	97.7
101 West Dickman Street (1)	135,949	—	—	135,949	1	1,214	69.9	69.9
Beltsville	327,833	—	—	327,833	2	4,188	86.1	86.1
Maryland	3,849,928	—	—	3,849,928	50	144,032	95.7	95.7
Research Triangle
Research Triangle
Megacampus: Alexandria Center ® for Life Science – Durham	2,214,887	—	—	2,214,887	16	$ 55,242	97.6	97.6
6, 8, 10, 12, 14, 40, 41, 42, and 65 Moore Drive, 21, 25, 27, 29, and 31 Alexandria Way, 2400 Ellis Road, and 14 TW Alexander Drive
Megacampus: Alexandria Center ® for Advanced Technologies and AgTech – Research Triangle	687,824	—	—	687,824	6	31,939	99.4	99.4
6, 8, 10, and 12 Davis Drive and 5 and 9 Laboratory Drive
Megacampus: Alexandria Center ® for Sustainable Technologies	364,493	—	—	364,493	7	$ 11,979	91.8%	91.8%
104, 108, 110, 112, and 114 TW Alexander Drive and 5 and 7 Triangle Drive
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details. (1) We own a partial interest in this property through a real estate joint venture. Refer to “ Consolidated and unconsolidated real estate joint ventures ” in Item 7 for additional details.

Property listing (continued)

							Occupancy Percentage
	RSF				Number of Properties	Annual Rental Revenue
							Operating	Operating and Redevelopment
Market / Submarket / Address	Operating	Development	Redevelopment	Total
Research Triangle (continued)
Research Triangle (continued)
Alexandria Technology Center ® – Alston	155,731	—	—	155,731	3	$ 4,126	94.7%	94.7%
100, 800, and 801 Capitola Drive
Alexandria Innovation Center ® – Research Triangle	136,722	—	—	136,722	3	4,235	99.2	99.2
7010, 7020, and 7030 Kit Creek Road
2525 East NC Highway 54	82,996	—	—	82,996	1	3,651	100.0	100.0
407 Davis Drive	81,956	—	—	81,956	1	3,323	100.0	100.0
601 Keystone Park Drive	77,595	—	—	77,595	1	2,313	100.0	100.0
Research Triangle	3,802,204	—	—	3,802,204	38	116,808	97.4	97.4
New York City
New York City
Megacampus: Alexandria Center ® for Life Science – New York City	742,586	—	—	742,586	3	67,864	98.7	98.7
430 and 450 East 29th Street
Alexandria Center ® for Life Science – Long Island City	179,188	—	—	179,188	1	5,670	45.7	45.7
30-02 48th Avenue
New York City	921,774	—	—	921,774	4	73,534	88.4	88.4
Texas
Austin
Megacampus: Intersection Campus	1,525,359	—	—	1,525,359	12	39,955	99.2	99.2
507 East Howard Lane, 13011 McCallen Pass, 13813 and 13929 Center Lake Drive, and 12535, 12545, 12555, and 12565 Riata Vista Circle
1001 Trinity Street and 1020 Red River Street	198,972	—	—	198,972	2	895	100.0	100.0
Austin	1,724,331	—	—	1,724,331	14	40,850	99.3	99.3
Greater Houston
Alexandria Center ® for Advanced Technologies at The Woodlands	120,828	—	73,298	194,126	1	3,172	41.5	25.8
8800 Technology Forest Place
Texas	1,845,159	—	73,298	1,918,457	15	44,022	95.5	91.8
Canada	888,189	—	139,311	1,027,500	11	19,661	95.9	82.9
Non-cluster/other markets	349,099	—	—	349,099	10	15,027	72.5	72.5
North America, excluding properties held for sale	39,165,855	2,176,718	2,180,558	43,523,131	381	2,079,932	94.6%	89.7%
Properties held for sale	600,870	—	—	600,870	10	13,056	39.6%	39.6%
Total – North America	39,766,725	2,176,718	2,180,558	44,124,001	391	$ 2,092,988

Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in Item 2 and “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional details.

Leasing activity

During the year ended December 31, 2024 , strong demand for our high-quality Class A/A+ properties translated into solid

leasing activity and rental rate growth in 2024 for our overall portfolio and our development and redevelopment pipeline.

• Executed a total o f 209 leases, with a weighted-average lease term of 8.9 years , for 5.1 million RSF ;

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

• Annual leasing activity of 3.9 million RSF for renewed and re-leased spaces; and

• Annual rental rate increases of 16.9% and 7.2% (cash ba sis) on renewed and re-leased space.

During the year ended December 31, 2024 , we granted tenant concessions/free rent averag ing 0.7 mo nths per annum with

respect to the 5.1 million RSF leased.

Lease structure

Our Same Properties total revenue growth was 2.7% during the year ended December 31, 2024 , and our Same Properties net

operating income and Same Properties net operating income increases (cash basis) for the year ended December 31, 2024 were 1.2%

and 4.6% , respectively . Rental rate increases for the year ended December 31, 2024 of 16.9% and 7.2% (cash basis) on 3.9 million

renewed/re-leased RSF are attributable to the sustained appeal of our properties, strong property management expertise of our team,

and effective operational strategies. Additionally, a favorable triple net lease structure with contractual annual rent escalations resulted

in both a consisten t Same Properties operating margin of 68% and Same Properties current-period average occupancy of 94.2% for the

year ended December 31, 2024 , an increase of 30 bps for the same-period prior-year average, across our 321 Same Properties

aggregating 31.7 million RSF . As of December 31, 2024 , approximately 92% 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. Additionally, approximatel y 97% o f

our leases (on an annual rental revenue basis) contained contractual annual rent escalations approximati ng 3% that were either fixed or

based on a consumer price index or another index, and approximat ely 92% of our leases (on an annual rental revenue basis) provided

for the recapture of certain capital expenditures.

Leasing activity (continued)

The following table summarizes our leasing activity at our properties for the years ended December 31, 2024 and 2023 :

	Year Ended December 31, — 2024		2023
	Including Straight-Line Rent	Cash Basis	Including Straight-Line Rent	Cash Basis
(Dollars per RSF)
Leasing activity:
Renewed/re-leased space (1)
Rental rate changes	16.9%	7.2%	29.4%	15.8%
New rates	$65.48	$64.18	$52.35	$50.82
Expiring rates	$56.01	$59.85	$40.46	$43.87
RSF	3,888,139		3,046,386
Tenant improvements/leasing commissions	$46.89	(2)	$26.09
Weighted-average lease term	8.5 years		8.7 years
Developed/redeveloped/previously vacant space leased (3)
New rates	$59.44	$57.34	$65.66	$59.74
RSF	1,165,815		1,259,686
Weighted-average lease term	10.0 years		13.8 years
Leasing activity summary (totals):
New rates	$64.16	$62.68	$56.09	$53.33
RSF	5,053,954		4,306,072
Weighted-average lease term	8.9 years		11.3 years
Lease expirations (1)
Expiring rates	$53.82	$57.24	$43.84	$45.20
RSF	5,005,638		5,027,773

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

(1) Excludes month-to-month leases aggregating 136,131 RSF and 86,092 RSF as of December 31, 2024 and 2023 , respectively. During the year ended

December 31, 2024 , we granted free rent concessions averaging 0.7 months per annum.

(2) Includes tenant improvements and leasing commissions for leases aggregating 319,708 RSF related to (i) a 10-year lease with an anchor tenant expanding into its

flagship building in our Greater Stanford submarket and (ii) a 10-year lease, with rental rate increases of 83.3% and 42.3% (cash basis), in our Torrey Pines

submarket with an investment-grade top 20 tenant. Excluding these leases, tenant improvements and leasing commissions per RSF for the year ended

December 31, 2024 was $32.83 , which is consistent with the five-year quarterly average of $29.98 per RSF. Tenant improvements and leasing commissions on

renewed and re-leased space executed during the year ended December 31, 2024 represented only 8.4% of total lease term rents, the second lowest percentage

of total lease term rents in the past five years.

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

Summary of contractual lease expirations

The following table summarizes the contractual lease expirations at our properties as of December 31, 2024 :

Year — 2025	3,708,195	10.0%	$ 45.91	8.2%
2026	2,826,993	7.7%	$ 50.73	6.9%
2027	3,302,598	8.9%	$ 53.80	8.6%
2028	3,944,440	10.7%	$ 49.78	9.5%
2029	2,385,914	6.5%	$ 51.30	5.9%
2030	3,144,561	8.5%	$ 43.11	6.5%
2031	3,433,958	9.3%	$ 54.76	9.1%
2032	1,005,689	2.7%	$ 58.96	2.9%
2033	2,585,813	7.0%	$ 47.77	5.9%
2034	3,304,105	8.9%	$ 66.90	10.6%
Thereafter	7,291,855	19.8%	$ 73.85	25.9%

Contractual lease expirations for properties classified as held for sale as of December 31, 2024 are excluded from the information on this page.

(1) Represents amounts in effect as of December 31, 2024 .

(2) Excludes month-to-month leases aggregating 136,131 RSF as of December 31, 2024 .

Summary of contractual lease expirations (continued)

The following tables present our lease expirations by market for 2025 and 2026 as of December 31, 2024 :

Market	2025 Contractual Lease Expirations (in RSF) — Leased	Negotiating/ Anticipating	Targeted for Future Development/ Redevelopment (1)	Remaining Expiring Leases (2)	Total (3)	Annual Rental Revenue (per RSF) (4)
Greater Boston	127,804	99,201	25,312	364,741	617,058	$ 42.40
San Francisco Bay Area	245,347	184,286	—	308,637	738,270	73.49
San Diego	144,673	18,813	278,606	202,285	644,377	20.58
Seattle	—	12,237	—	177,932	190,169	25.16
Maryland	51,593	—	—	141,349	192,942	26.28
Research Triangle	11,632	16,334	—	170,938	198,904	44.71
New York City	—	27,912	—	40,347	68,259	110.42
Texas	—	—	198,972	—	198,972	N/A
Canada	22,991	—	—	65,873	88,864	20.03
Non-cluster/other markets	—	—	—	2,300	2,300	40.17
Subtotal	604,040	358,783	502,890	1,474,402	2,940,115	41.78
Key 1Q25 lease expirations (5)	23,522	112,831	—	631,727	768,080	61.67
Total	627,562	471,614	502,890	2,106,129	3,708,195	$ 45.91
Percentage of expiring leases	17%	13%	14%	56%	100%
	2026 Contractual Lease Expirations (in RSF)					Annual Rental Revenue (per RSF) (4)
Market	Leased	Negotiating/ Anticipating	Targeted for Future Development/ Redevelopment	Remaining Expiring Leases (2)	Total
Greater Boston	46,858	9,874	—	391,196	447,928	$ 54.42
San Francisco Bay Area	1,619	4,753	—	511,665	518,037	66.72
San Diego	—	—	—	822,140	822,140	49.60
Seattle	—	18,205	—	102,551	120,756	43.62
Maryland	—	—	—	321,676	321,676	23.61
Research Triangle	—	19,753	—	115,221	134,974	45.64
New York City	—	104,157	—	71,470	175,627	93.58
Texas	—	—	—	—	—	—
Canada	—	247,743	—	—	247,743	22.24
Non-cluster/other markets	—	—	—	38,112	38,112	70.34
Total	48,477	404,485	—	2,374,031	2,826,993	$ 50.73
Percentage of expiring leases	2%	14%	0%	84%	100%

Contractual lease expirations for properties classified as held for sale as of December 31, 2024 are excluded from the information on this page.

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

leasing, to commence first-time conversion from non-laboratory space to laboratory space, or to commence future ground-up development. As of December 31, 2024 , the

weighted-average annual rental revenue and expiration date of these leases expiring in 2025 is $7.0 million and February 18, 2025 , respectively. Refer to “ Investments in

real estate ” under “ Definitions and reconciliations ” in Item 7 for additional details, including development and redevelopment square feet currently included in rental

properties.

(2) The largest remaining contractual lease expiration in 2025 is 98,741 RSF in our Sorrento Mesa submarket, where we are in early discussions to renew the tenant for a

short-term extension, and in 2026 is 163,648 RSF in our University Town Center submarket, where we have an ownership interest of 30.0% and are evaluating options to

re-lease or reposition the space from single tenancy to multi-tenancy.

(3) Excludes month-to-month leases aggregating 136,131 RSF as of December 31, 2024 . Refer to “Leasing activity” in Item 2 for additional details.

(4) Represents amounts in effect as of December 31, 2024 .

(5) Includes expected temporary vacancies aggregating 768,080 RSF in four submarkets with a weighted-average expiration date of January 21, 2025 and annual rental

revenue aggregating approximately $47 million with our share of this annual rental revenue aggregating $35 million comprising the following: (i) 182,054 RSF at Alexandria

Technology Square ® Megacampus in our Cambridge submarket, (ii) 234,249 RSF at 409 Illinois Street, where we have an ownership interest of 25.0% , in our Mission Bay

submarket, (iii) one property aggregating 104,531 RSF in our Research Triangle market, and (iv) two properties aggregating 247,246 RSF in our Austin submarket. We

expect downtime on the 768,080 RSF to range from 12 to 24 months on a weighted-average basis. Our guidance assumes these properties remain operating properties

and are included in our same property pool for the year ending December 31, 2025. As of December 31, 2024 , 23,522 RSF was leased, 112,831 R SF was under signed

letters of intent to re-lease, 527,196 RSF was involved in ongoing discussions for re-lease, and we expect to favorably resolve the remaining 104,531 RSF over the next

several quarters.

Investments in real estate

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

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

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

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

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

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

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

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

other activities preceding commencement of construction of aboveground building improvements.

Our investments in real estate consisted of the following as of December 31, 2024 (dollars in thousands):

		Development and Redevelopment
			Future Opportunities Subject to Market Conditions and Leasing
	Operating	Under Construction	Priority Anticipated	Future	Subtotal	Total
Square footage
Operating	39,165,855	—	—	—	—	39,165,855
New Class A/A+ development and redevelopment properties	—	4,357,276	2,134,948	23,696,280	30,188,504	30,188,504
Future development and redevelopment square feet currently included in rental properties (1)	—	—	(213,524)	(2,843,150)	(3,056,674)	(3,056,674)
Total square footage, excluding properties held for sale	39,165,855	4,357,276	1,921,424	20,853,130	27,131,830	66,297,685
Properties held for sale	600,870	—	—	2,390,856	2,390,856	2,991,726
Total square footage	39,766,725	4,357,276	1,921,424	23,243,986	29,522,686	69,289,411	(2)
Investments in real estate
Gross book value as of December 31, 2024 (3)	$ 28,878,752	$ 3,893,557	$ 510,372	$ 4,452,537	$ 8,856,466	$ 37,735,218

(1) Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional details, including future development and redevelopment square feet

currently included in rental properties.

(2) We expect to continue pursuing our strategy to fund a significant portion of our capital requirements for the year ending December 31, 2025 with dispositions and sales

of partial interests primarily focused on sales of properties and land parcels not integral to our Megacampus strategy .

(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 .

Acquisitions

Our real estate asset acquisitions during the year ended December 31, 2024 , consisted of the following (dollars in thousands):

Property	Submarket/Market	Date of Purchase	Number of Properties	Operating Occupancy	Square Footage
					Future Development (1)	Operating With Future Development/ Redevelopment (1)
Completed during the year ended December 31, 2024 :
285, 299, 307, and 345 Dorchester Avenue (60% interest in consolidated JV) (2)	Seaport Innovation District/ Greater Boston	1/30/24	—	N/A	1,040,000	—	$ 155,321
428 Westlake Avenue North	Lake Union/Seattle	10/1/24	1	100%	—	90,626	47,600
Other							46,490
Total 2024 acquisitions							$ 249,411

(1) We expect to provide total estimated costs and related yields for development and significant redevelopment projects in the future, subsequent to the commencement of construction.

(2) Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements in Item 15 for additional details.

Dispositions

Our completed dispositions of real estate assets during the year ended December 31, 2024 , consisted of the following (dollars in thousands, except for sales price per RSF):

Property	Submarket/Market	Date of Sale	Interest Sold	RSF	Capitalization Rate	Capitalization Rate (Cash Basis)	Sales Price		Seller Financing (1)	Sales Price per RSF	Gain on Sale of Real Estate (2)
Stabilized Properties
One Moderna Way	Route 128/Greater Boston	12/17/24	100%	722,130	8.5%	6.3%	$ 369,439			$ 512	$ —
1165 Eastlake Avenue East	Lake Union/Seattle	9/12/24	100%	100,086	4.7%	4.9%	149,985			$ 1,499	21,535
14225 Newbrook Drive	Northern Virginia/Maryland	10/15/24	100%	248,186	7.6%	7.4%	80,500			$ 324	37,074
6040 George Watts Hill Drive	Research Triangle/Research Triangle	12/10/24	100%	149,585	8.0%	7.1%	93,500			$ 625	5,004
Other							90,121				9,621
							783,545
Properties with vacancy or significant near-term capital requirements
215 First Street	Cambridge/Greater Boston	12/20/24	100%	369,520	(3)	(3)	245,539	(3)		(3)	—
150 Second Street, and 11 Hurley Street	Cambridge/Greater Boston			182,993
4755 and 4757 Nexus Center Drive and 4796 Executive Drive (4)	University Town Center/San Diego	12/30/24	100%	177,804	(4)	(4)	120,000	(4)	$ 79,166	$ 675	47,511
219 East 42nd Street	New York City/New York City	7/9/24	100%	349,947	N/A	N/A	60,000			$ 171	—
Other							51,106				392
							476,645
Land and other
99 A Street	Seaport Innovation District/ Greater Boston	3/8/24	100%	235,000	(5)	(5)	13,350				—
10048 and 10219 Meanley Drive and 10277 Scripps Ranch Boulevard	Sorrento Mesa/San Diego	12/20/24	100%	444,041	(5)	(5)	55,000		25,000		—
9444 Waples Street (50% consolidated JV)	Sorrento Mesa/San Diego	12/23/24	(6)	149,000	(6)	(6)	31,000	(6)			8,175	(6)
Other (7)			(7)				22,913	(7)			(7)
							122,263
Total 2024 dispositions							$ 1,382,453		$ 104,166		$ 129,312
Our share of 2024 dispositions, including amounts recognized in equity in earnings							$ 1,366,953				$ 127,615	(8)

(1) Refer to “Notes receivable” in Note 8 – “Other assets” to our consolidated financial statements in Item 15 for additional information.

(2) Refer to “Sales of real estate assets and impairment charges” in Note 3 – “Investments in real estate” to our consolidated financial statements in Item 15 for additional information.

(3) Represents properties that wer e 87% occupied as of September 30, 2024, with 61% o f the aggregate RSF, primarily located at 215 First Street, scheduled to expire by December 31, 2025. These properties were not core to our

Megacampus strategy due to their size, location, or existing use. They are also expected to require significant re-leasing capital over the next few years, including at 215 First Street, a historical building with infrastructure limitations with

challenging floor plates. Acquired in 2007, 215 First Street came with significant entitlements which were later used to develop new adjacent projects at Alexandria Center ® at Kendall Square. Since then, this property has served as a

reliable asset, providing primarily office space to our tenants. However, given the low occupancy and the significant reinvestment required for upgrades, we plan to recycle the capital generated by the disposition into our development and

redevelopment pipeline.

(4) Represents properties that wer e 65% occupied as of September 30, 2024, with 26% of the aggre gate RSF scheduled to expire by June 30, 2025.

(5) Represents the sale of land parcels.

(6) Represents 100% of the contractual sales price. We held a 50% interest in this property through a consolidated real estate joint venture, and our share of the sales price and gain on real estate is $15.5 million and $3.2 million , respectively.

(7) Represents the disposition of an unconsolidated real estate joint venture for which we recognized a gain on sale of real estate of $3.3 million , which is classified as equity in earnings of unconsolidated real estate joint ventures in our

consolidated statement of operations. Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements in Item 15 for additional information.

(8) Refer to footnotes 6 and 7.

New Class A/A+ development and redevelopment properties

ALEXANDRIA’S FUTURE GROWTH IN

ANNUAL NET OPERATING INCOME FROM

DEVELOPMENT AND REDEVELOPMENT DELIVERIES

$395 MILLION

Placed Into Service

Expected to Be Placed Into Service

2024	4Q24
$118M	$55M
1.5M RSF	602,593 RSF
98% Occupied

2025	1Q26 – 2Q28
$83M	$312M
89% Leased/Negotiating
Aggregating 4.4M RSF

(1)

(2)

(3)

Refer to “Net operating income” under “ Definitions and reconciliations ” in Item 7 for additional details including its reconciliation from the most directly comparable financial measures presented in accordance with GAAP.

(1) Our share of incremental annual net operating income from development and redevelopment projects expected to be placed into service primarily commencing from 1Q25 through 2Q28 is projected to be $334 million .

(2) Includes (i) 461,101 RSF that is expected to stabilize through 2025 and is 89% leased/negotiating and (ii) expected partial deliveries through 4Q25 from projects expected to stabilize in 2026 and beyond. 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 leased/negotiating percentage of development and redevelopment projects that are expected to stabilize during 2025.

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

500 North Beacon Street and 4 Kingsbury Avenue (1)	201 Brookline Avenue	840 Winter Street
Greater Boston/ Cambridge/Inner Suburbs	Greater Boston/Fenway	Greater Boston/Route 128
211,574 RSF	512,749 RSF	139,984 RSF
100% Occupancy	98% Occupancy	100% Occupancy
●	●	●

10935, 10945, and 10955 Alexandria Way (2)	4155 Campus Point Court	9808 Medical Center Drive
San Diego/Torrey Pines	San Diego/ University Town Center	Maryland/Rockville
93,492 RSF	171,102 RSF	95,061 RSF
100% Occupancy	100% Occupancy	69% Occupancy
●	●	●

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

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

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

The following table presents development and redevelopment of new Class A/A+ projects placed into service during the year ended December 31, 2024 (dollars in thousands):

Incremental Annual Net Operating Income Generated From 2024 Deliveries

Aggregated $118 Million , Including $55 Million in 4Q24

Property/Market/Submarket	4Q24 Delivery Date (1)	Our Ownership Interest	RSF Placed in Service — Prior to 1/1/24	1Q24	2Q24	3Q24	4Q24	Total		Total Project	Initial Stabilized		Initial Stabilized (Cash Basis)
										RSF	Investment
Development projects
99 Coolidge Avenue/Greater Boston/ Cambridge/Inner Suburbs	N/A	75.0%	43,568	72,846	—	—	—	116,414	100%	320,809	$ 468,000	7.1%		7.0%
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/Cambridge/Inner Suburbs	11/1/24	100%	—	100,624	37,913	—	73,037	211,574	100%	248,018	427,000	6.2		5.5
201 Brookline Avenue/Greater Boston/ Fenway	10/30/24	99.0%	451,967	—	—	—	60,782	512,749	98%	512,749	787,000	7.3		6.6
10935, 10945, and 10955 Alexandria Way/ San Diego/Torrey Pines	11/1/24	100%	—	—	—	—	93,492	93,492	100%	334,996	503,000	6.2		5.8
4155 Campus Point Court/San Diego/ University Town Center	11/7/24	55.0%	—	—	—	—	171,102	171,102	100%	171,102	184,000	8.0		6.4
1150 Eastlake Avenue East/Seattle/Lake Union	N/A	100%	278,282	—	2,079	31,270	—	311,631	100%	311,631	442,000	6.6		6.7
9810 Darnestown Road/Maryland/Rockville	N/A	100%	—	—	195,435	—	—	195,435	100%	195,435	135,000	7.1		6.2
9820 Darnestown Road/Maryland/Rockville	N/A	100%	—	—	—	250,000	—	250,000	100%	250,000	177,000	8.7		5.6
9808 Medical Center Drive/Maryland/ Rockville	12/31/24	100%	26,460	—	25,655	13,056	29,890	95,061	69%	95,061	114,000	5.4		5.4
Redevelopment projects
840 Winter Street/Greater Boston/Route 128	11/22/24	100%	—	—	—	—	139,984	139,984	100%	168,214	224,000	7.9	(3)	6.7	(3)
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco	N/A	50.0%	—	44,652	—	22,365	—	67,017	100%	326,706	487,000	5.0		5.1
Alexandria Center ® for Advanced Technologies – Monte Villa Parkway/ Seattle/Bothell	12/31/24	100%	65,086	115,598	—	—	34,306	214,990	90%	460,934	216,000	6.3		6.2
Canada	N/A	100%	44,862	9,725	23,900	—	—	78,487	100%	250,790	113,000	6.4		6.3
Weighted average/total	11/7/24		910,225	343,445	284,982	316,691	602,593	2,457,936		3,646,445	$ 4,277,000	6.7%		6.2%

(1) Represents the average delivery date for deliveries that occurred during the three months ended December 31, 2024 , weighted by annual rental revenue.

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

(3) Represents initial stabilized yields upon completion and delivery of the project during the three months ended December 31, 2024. However, we are actively negotiating with our existing anchor tenant to potentially relocate them to another

Alexandria property to accommodate their future growth, and if this occurs, our future returns on this asset could change as we backfill this building with a new tenant.

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

99 Coolidge Avenue	500 North Beacon Street and 4 Kingsbury Avenue (1)	311 Arsenal Street	401 Park Drive
Greater Boston/ Cambridge/Inner Suburbs	Greater Boston/ Cambridge/Inner Suburbs	Greater Boston/ Cambridge/Inner Suburbs	Greater Boston/Fenway
204,395 RSF	36,444 RSF	308,446 RSF	137,675 RSF
62% Leased/Negotiating	92% Leased/Negotiating	21% Leased/Negotiating	—% Leased/Negotiating
●	●	●	●

421 Park Drive	40, 50, and 60 Sylvan Road	1450 Owens Street	651 Gateway Boulevard
Greater Boston/Fenway	Greater Boston/Route 128	San Francisco Bay Area/ Mission Bay	San Francisco Bay Area/ South San Francisco
392,011 RSF	596,064 RSF	109,435 RSF	259,689 RSF
13% Leased/Negotiating	31% Leased/Negotiating (2)	—% Leased/Negotiating (3)	21% Leased/Negotiating
●	●	●	●

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

(2) 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.

(3) Image represents a multi-tenant project expanding our existing Alexandria Center ® for Science and Technology – Mission Bay Megacampus, where our joint venture partner will fund 100% of the construction cost until it attains an ownership

interest of 75% , after which it will contribute its respective share of additional capital. Additionally, during the three months ended December 31, 2024, we executed a letter of intent with a biomedical institution for the sale of a condominium

interest aggregating 103,361 RSF, or approximately 49 % of the development project. We expect to complete the transaction in 2025. Accordingly, we adjusted the development project RSF and its related book value to reflect 109,435 RSF,

with our ownership share expected to be 25% at completion of the project.

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

230 Harriet Tubman Way	269 East Grand Avenue	10935, 10945, and 10955 Alexandria Way (1)	4135 Campus Point Court
San Francisco Bay Area/ South San Francisco	San Francisco Bay Area/ South San Francisco	San Diego/Torrey Pines	San Diego/ University Town Center
285,346 RSF	107,250 RSF	241,504 RSF	426,927 RSF
100% Leased	—% Leased/Negotiating	100% Leased	100% Leased
●	●	●	●

10075 Barnes Canyon Road	701 Dexter Avenue North	8800 Technology Forest Place
San Diego/Sorrento Mesa	Seattle/Lake Union	Texas/Greater Houston
253,079 RSF	227,577 RSF	73,298 RSF
70% Leased/Negotiating	—% Leased/Negotiating	41% Leased/Negotiating
●	●	●

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

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

The following tables set forth a summary of our new Class A/A+ development and redevelopment properties under construction as of December 31, 2024 (dollars in thousands):

Property/Market/Submarket	Dev/Redev	Square Footage — In Service		CIP	Total	Percentage — Leased	Leased/ Negotiating	Initial		Stabilized
Under construction
2025 stabilization
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs	Dev	211,574		36,444	248,018	92%	92%		1Q24	2025
230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco	Dev	—		285,346	285,346	100	100		1Q25	1Q25
Canada	Redev	111,479		139,311	250,790	73	75		3Q23	2025
		323,053		461,101	784,154	89	89
2026 and beyond stabilization
One Hampshire Street/Greater Boston/Cambridge	Redev	—		104,956	104,956	—	—		2027	2028
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs	Redev	82,216	(2)	308,446	390,662	21	21		2027	2027
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs	Dev	116,414		204,395	320,809	40	62		4Q23	2026
401 Park Drive/Greater Boston/Fenway (3)	Redev	—		137,675	137,675	—	—		2026	2026
421 Park Drive/Greater Boston/Fenway	Dev	—		392,011	392,011	13	13		2026	2027
40, 50, and 60 Sylvan Road/Greater Boston/Route 128	Redev	—		596,064	596,064	31	31		2026	2027
Other/Greater Boston	Redev	—		453,869	453,869	—	—	(4)	2027	2027
1450 Owens Street/San Francisco Bay Area/Mission Bay	Dev	—		109,435	109,435	—	—	(5)	2026	2026
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco	Redev	67,017		259,689	326,706	21	21		1Q24	2027
269 East Grand Avenue/San Francisco Bay Area/South San Francisco	Redev	—		107,250	107,250	—	—		2026	2027
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines	Dev	93,492		241,504	334,996	100	100		4Q24	2026
4135 Campus Point Court/San Diego/University Town Center	Dev	—		426,927	426,927	100	100		2026	2026
10075 Barnes Canyon Road/San Diego/Sorrento Mesa	Dev	—		253,079	253,079	70	70		2025	2026
701 Dexter Avenue North/Seattle/Lake Union	Dev	—		227,577	227,577	—	—		2026	2027
8800 Technology Forest Place/Texas/Greater Houston	Redev	50,094		73,298	123,392	41	41		2Q23	2026
		409,233		3,896,175	4,305,408	35	37
		732,286		4,357,276	5,089,562	43%	45%
(1) Initial occupancy dates are subject to leasing and/or market conditions. Stabilized occupancy may vary depending on single tenancy versus multi-tenancy. Multi-tenant projects may increase in occupancy over a period of time. (2) We expect to redevelop an additional 25,312 RSF of space occupied as of December 31, 2024 into laboratory space upon expiration of the existing leases through the second half of 2025. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information. (3) During the three months ended December 31, 2024, we shifted the strategy of our 401 Park Drive redevelopment project to focus on the largest, most significant phase of the project. This phase aggregated 137,675 RSF and is expected to initially deliver and stabilize in 2026. Accordingly, we placed the less significant portion of the project that aggregated 22,284 RSF back into operations. (4) Represents a project focused on demand from our existing tenants in our adjacent properties/campuses that will address demand from other non-Alexandria properties/campuses. (5) Represents a multi-tenant project expanding our existing Alexandria Center ® for Science and Technology – Mission Bay Megacampus, where our joint venture partner will fund 100% of the construction cost until it attains an ownership interest of 75% , after which it will contribute its respective share of additional capital. During the three months ended December 31, 2024, we executed a letter of intent with a biomedical institution for the sale of a condominium interest aggregating 103,361 RSF, or approximately 49% of the development project, with the transaction expected to close in 2025. Accordingly, we adjusted the development project RSF and its related book value to reflect 109,435 RSF, with our ownership share expected to be 25% at completion of the project.

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

Property/Market/Submarket	Our Ownership Interest	At 100% — In Service	CIP	Cost to Complete		Total at Completion	Initial Stabilized	Initial Stabilized (Cash Basis)
Under construction
2025 stabilization
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs	100%	$ 378,021	$ 37,026	$ 11,953		$ 427,000	6.2%	5.5%
230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco	48.2%	—	404,591	105,409		510,000	7.4%	6.4%
Canada	100%	50,235	51,596	11,169		113,000	6.4%	6.3%
		428,256	493,213
2026 and beyond stabilization (1)
One Hampshire Street/Greater Boston/Cambridge	100%	—	164,957	TBD
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs	100%	60,649	240,342
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs	75.0%	136,635	196,917	134,448		468,000	7.1%	7.0%
401 Park Drive/Greater Boston/Fenway	100%	—	151,301	TBD
421 Park Drive/Greater Boston/Fenway	99.8%	—	463,079
40, 50, and 60 Sylvan Road/Greater Boston/Route 128	100%	—	449,484
Other/Greater Boston	100%	—	151,464
1450 Owens Street/San Francisco Bay Area/Mission Bay	25.1%	—	121,957
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco	50.0%	87,376	258,708	140,916		487,000	5.0%	5.1%
269 East Grand Avenue/San Francisco Bay Area/South San Francisco	100%	—	66,184	TBD
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines	100%	100,944	323,993	78,063		503,000	6.2%	5.8%
4135 Campus Point Court/San Diego/University Town Center	55.0%	—	347,039	176,961		524,000	6.6%	6.2%
10075 Barnes Canyon Road/San Diego/Sorrento Mesa	50.0%	—	183,733	137,267		321,000	5.5%	5.7%
701 Dexter Avenue North/Seattle/Lake Union	100%	—	234,908	TBD
8800 Technology Forest Place/Texas/Greater Houston	100%	59,794	46,278	5,928		112,000	6.3%	6.0%
		445,398	3,400,344
		$ 873,654	$ 3,893,557	$ 2,740,000	(2)	$ 7,510,000	(2)
Our share of investment (2)(3)		$ 800,000	$ 3,180,000	$ 2,400,000		$ 6,380,000
Refer to “ Initial stabilized yield (unlevered) ” under “ Definitions and reconciliations ” in Item 7 for additional information. (1) We expect to provide total estimated costs and related yields for each project with estimated stabilization in 2026 and beyond over the next several quarters. (2) Represents dollar amount rounded to the nearest $10 million and includes preliminary estimated amounts for projects listed as TBD. (3) Represents our share of investment based on our ownership percentage upon completion of development or redevelopment projects.

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

68% 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 December 31, 2024 (dollars in thousands):

Market Property/Submarket	Our Ownership Interest	Book Value	Square Footage
			Development and Redevelopment			Total (1)
				Future Opportunities Subject to Market Conditions and Leasing
			Under Construction	Priority Anticipated	Future
Greater Boston
Megacampus: Alexandria Center ® at One Kendall Square/Cambridge	100%	$ 164,957	104,956	—	—	104,956
One Hampshire Street
Megacampus: The Arsenal on the Charles/Cambridge/Inner Suburbs	100%	288,993	344,890	25,312	34,157	404,359
311 Arsenal Street, 500 North Beacon Street, and 4 Kingsbury Avenue
Megacampus: 480 Arsenal Way and 446, 458, 500, and 550 Arsenal Street, and 99 Coolidge Avenue/Cambridge/Inner Suburbs	(2)	285,870	204,395	—	902,000	1,106,395
446, 458, 500, and 550 Arsenal Street, and 99 Coolidge Avenue
Megacampus: Alexandria Center ® for Life Science – Fenway/Fenway	(3)	614,380	529,686	—	—	529,686
401 and 421 Park Drive
Megacampus: Alexandria Center ® for Life Science – Waltham/Route 128	100%	512,996	596,064	—	515,000	1,111,064
40, 50, and 60 Sylvan Road, and 35 Gatehouse Drive
Megacampus: Alexandria Center ® at Kendall Square/Cambridge	100%	204,128	—	—	174,500	174,500
100 Edwin H. Land Boulevard
Megacampus: Alexandria Technology Square ® /Cambridge	100%	7,907	—	—	100,000	100,000
Megacampus: 285, 299, 307, and 345 Dorchester Avenue/Seaport Innovation District	60.0%	288,527	—	—	1,040,000	1,040,000
10 Necco Street/Seaport Innovation District	100%	105,106	—	—	175,000	175,000
215 Presidential Way/Route 128	100%	6,816	—	—	112,000	112,000
Other development and redevelopment projects	(4)	405,145	453,869	—	1,365,496	1,819,365
		$ 2,884,825	2,233,860	25,312	4,418,153	6,677,325
Refer to “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional information. (1) Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties. (2) We have a 75.0% interest in 99 Coolidge Avenue aggregating 204,395 RSF and a 100% interest in 446, 458, 500, and 550 Arsenal Street aggregating 902,000 RSF. (3) We have a 100% interest in 401 Park Drive aggregating 137,675 RSF and a 99.8% interest in 421 Park Drive aggregating 392,011 RSF. (4) Includes a property in which we own a partial interest through a real estate joint venture.

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

Market Property/Submarket	Our Ownership Interest	Book Value		Square Footage
				Development and Redevelopment				Total (1)
						Future Opportunities Subject to Market Conditions and Leasing
				Under Construction		Priority Anticipated	Future
San Francisco Bay Area
Megacampus: Alexandria Center ® for Science and Technology – Mission Bay/ Mission Bay	25.1%	$ 121,957	(2)	109,435	(2)	—	—	109,435
1450 Owens Street
Alexandria Center ® for Life Science – Millbrae/South San Francisco	48.2%	568,776		285,346		198,188	150,213	633,747
230 Harriet Tubman Way, 201 and 231 Adrian Road, and 6 and 30 Rollins Road
Megacampus: Alexandria Technology Center ® – Gateway/South San Francisco	50.0%	285,334		259,689		—	291,000	550,689
651 Gateway Boulevard
Megacampus: Alexandria Center ® for Advanced Technologies – South San Francisco/South San Francisco	100%	72,839		107,250		—	90,000	197,250
211 (3) and 269 East Grand Avenue
Megacampus: Alexandria Center ® for Advanced Technologies – Tanforan/South San Francisco	100%	406,586		—		—	1,930,000	1,930,000
1122, 1150, and 1178 El Camino Real
Megacampus: Alexandria Center ® for Life Science – San Carlos/Greater Stanford	100%	455,849		—		—	1,497,830	1,497,830
960 Industrial Road, 987 and 1075 Commercial Street, and 888 Bransten Road
3825 and 3875 Fabian Way/Greater Stanford	100%	156,602		—		—	478,000	478,000
2100, 2200, 2300, and 2400 Geng Road/Greater Stanford	100%	37,264		—		—	240,000	240,000
Megacampus: 88 Bluxome Street/SoMa	100%	397,952		—		—	1,070,925	1,070,925
Other development and redevelopment projects	100%	—		—		—	56,924	56,924
		$ 2,503,159		761,720		198,188	5,804,892	6,764,800
Refer to “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional information. (1) Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties. (2) During the three months ended December 31, 2024, we executed a letter of intent with a biomedical institution for the sale of a condominium interest aggregating 103,361 RSF, or approximately 49% of the development project, with the transaction expected to close in 2025. Accordingly, we adjusted the development project RSF and its related book value to reflect 109,435 RSF, with our ownership share expected to be 25% at completion of the project. (3) We own a partial interest in this property through a real estate joint venture. Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements in Item 15 for additional details.

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

Market Property/Submarket	Our Ownership Interest	Book Value	Square Footage
			Development and Redevelopment			Total (1)
				Future Opportunities Subject to Market Conditions and Leasing
			Under Construction	Priority Anticipated	Future
San Diego
Megacampus: One Alexandria Square/Torrey Pines	100%	$ 382,913	241,504	—	125,280	366,784
10935 and 10945 Alexandria Way and 10975 and 10995 Torreyana Road
Megacampus: Campus Point by Alexandria/University Town Center	55.0%	492,221	426,927	333,414	634,043	1,394,384
10010 (2) , 10140 (2) , 10210, and 10260 Campus Point Drive and 4135, 4161, 4165, and 4224 Campus Point Court
Megacampus: SD Tech by Alexandria/Sorrento Mesa	50.0%	346,929	253,079	250,000	243,845	746,924
9805 Scranton Road and 10075 Barnes Canyon Road
11255 and 11355 North Torrey Pines Road/Torrey Pines	100%	153,104	—	153,000	62,000	215,000
Megacampus: 5200 Illumina Way/University Town Center	51.0%	17,443	—	—	451,832	451,832
9625 Towne Centre Drive/University Town Center	30.0%	837	—	—	100,000	100,000
Megacampus: Sequence District by Alexandria/Sorrento Mesa	100%	46,323	—	—	1,798,915	1,798,915
6260, 6290, 6310, 6340, 6350, and 6450 Sequence Drive
Scripps Science Park by Alexandria/Sorrento Mesa	100%	42,417	—	—	154,308	154,308
10256 and 10260 Meanley Drive
4075 Sorrento Valley Boulevard/Sorrento Valley	100%	19,130	—	—	144,000	144,000
Other development and redevelopment projects	(3)	76,843	—	—	475,000	475,000
		$ 1,578,160	921,510	736,414	4,189,223	5,847,147
Refer to “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional information. (1) Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties. (2) We have a 100% interest in this property. (3) Includes a property in which we own a partial interest through a real estate joint venture.

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

Market Property/Submarket	Our Ownership Interest	Book Value	Square Footage
			Development and Redevelopment			Total (1)
				Future Opportunities Subject to Market Conditions and Leasing
			Under Construction	Priority Anticipated	Future
Seattle
Megacampus: Alexandria Center ® for Life Science – South Lake Union/Lake Union	(2)	$ 516,743	227,577	869,000	188,400	1,284,977
601 and 701 Dexter Avenue North and 800 Mercer Street
1010 4th Avenue South/SoDo	100%	59,996	—	—	544,825	544,825
410 West Harrison Street/Elliott Bay	100%	—	—	—	91,000	91,000
Megacampus: Alexandria Center ® for Advanced Technologies – Canyon Park/ Bothell	100%	18,066	—	—	230,000	230,000
21660 20th Avenue Southeast
Other development and redevelopment projects	100%	144,644	—	—	706,087	706,087
		739,449	227,577	869,000	1,760,312	2,856,889
Maryland
Megacampus: Alexandria Center ® for Life Science – Shady Grove/Rockville	100%	22,593	—	—	296,000	296,000
9830 Darnestown Road
		22,593	—	—	296,000	296,000
Research Triangle
Megacampus: Alexandria Center ® for Advanced Technologies and Agtech – Research Triangle/Research Triangle	100%	106,906	—	180,000	990,000	1,170,000
4 and 12 Davis Drive
Megacampus: Alexandria Center ® for Life Science – Durham/Research Triangle	100%	158,277	—	—	2,060,000	2,060,000
Megacampus: Alexandria Center ® for NextGen Medicines/Research Triangle	100%	109,368	—	—	1,055,000	1,055,000
3029 East Cornwallis Road
Megacampus: Alexandria Center ® for Sustainable Technologies/Research Triangle	100%	53,941	—	—	750,000	750,000
120 TW Alexander Drive, 2752 East NC Highway 54, and 10 South Triangle Drive
100 Capitola Drive/Research Triangle	100%	—	—	—	65,965	65,965
Other development and redevelopment projects	100%	4,185	—	—	76,262	76,262
		$ 432,677	—	180,000	4,997,227	5,177,227
Refer to “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional information. (1) Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have inherent future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property. Refer to “ Investments in real estate ” under “ Definitions and reconciliations ” in Item 7 for additional information, including development and redevelopment square feet currently included in rental properties. (2) We have a 100% interest in 601 and 701 Dexter Avenue North aggregating 415,977 RSF and a 60% interest in the priority anticipated development project at 800 Mercer Street aggregating 869,000 RSF.

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

Market Property/Submarket	Our Ownership Interest	Book Value		Square Footage
				Development and Redevelopment				Total (1)
					Future Opportunities Subject to Market Conditions and Leasing
				Under Construction	Priority Anticipated	Future
New York City
Megacampus: Alexandria Center ® for Life Science – New York City/New York City	100%	$ 168,423		—	—	550,000	(2)	550,000
		168,423		—	—	550,000		550,000
Texas
Alexandria Center ® for Advanced Technologies at The Woodlands/Greater Houston	100%	49,118		73,298	—	116,405		189,703
8800 Technology Forest Place
1001 Trinity Street and 1020 Red River Street/Austin	100%	10,533		—	126,034	123,976		250,010
Other development and redevelopment projects	100%	56,798		—	—	344,000		344,000
		116,449		73,298	126,034	584,381		783,713
Canada	100%	51,596		139,311	—	371,743		511,054
Other development and redevelopment projects	100%	121,396		—	—	724,349		724,349
Total pipeline as of December 31, 2024 , excluding properties held for sale		8,618,727		4,357,276	2,134,948	23,696,280		30,188,504
Properties held for sale		237,739		—	—	2,390,856		2,390,856
Total pipeline as of December 31, 2024		$ 8,856,466	(3)	4,357,276	2,134,948	26,087,136		32,579,360

Refer to “Megacampus” under “ Definitions and reconciliations ” in Item 7 for additional information.

(1) Total square footage includes 3,056,674 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 7 for additional information, including development and redevelopment square feet currently included in rental properties.

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

option to ground lease a land parcel to develop a future world-class life science building within the Alexandria Center ® for Life Science – New York City Megacampus. Refer to “Legal proceedings” in Item 3 for additional details .

(3) Includes $3.9 billion of projects that are currently under construction .

ITEM 3. LEGAL PROCEEDINGS

In 2006, ARE-East River Science Park, LLC, a subsidiary of Alexandria Real Estate Equities, Inc., was granted an option to

incorporate a land parcel adjacent to and north of the Alexandria Center ® for Life Science – New York City (“ACLS-NYC”) campus

(“Option Parcel”) into the existing ground lease of that campus. The Option Parcel will allow ARE-East River Science Park, LLC to

develop a future world-class life science building within the ACLS-NYC campus. ARE-East River Science Park, LLC’s investment in pre-

construction costs related to the development of the Option Parcel, including costs related to design, engineering, environmental,

survey/title, and permitting and legal costs, aggrega ted $168.4 million as of December 31, 2024 .

On August 6, 2024, ARE-East River Science Park, LLC filed a lawsuit in the U.S. District Court for the Southern District of New York

against its landlord, New York City Health + Hospitals Corporation (“H+H”), and the New York City Economic Development Corporation

(“EDC”). On January 24, 2025, ARE-East River Science Park, LLC filed a First Amended Complaint. T he lawsuit alleges two principal

claims against H+H and EDC: fraud in the inducement, and, in the alternative, breach of contract in violation of the implied covenant of

good faith and fair dealing. As alleged in the complaint, ARE-East River Science Park, LLC’s claims arise from H+H’s and EDC’s

misrepresentations and concealment of material facts in connection with a floodwall, which H+H and EDC are seeking to require ARE-

East River Science Park, LLC to integrate into the development of the Option Parcel. ARE-East River Science Park, LLC alleges that

H+H’s and EDC’s misconduct have prevented it from commencing the development of the Option Parcel. In light of the pending

litigation, the closing date for our option and thus the commencement date for construction of the third tower at the campus are

presently indeterminate. Among other things, ARE-East River Science Park, LLC is seeking significant damages and equitable relief

from the court to confirm our understanding that the option is in full force and effect.

This matter exposes us to potential losses ranging from zero to the full amount of the investment in the project aggregating

$168.4 million as of December 31, 2024 , depending on any collection of damages and/or the ability to develop the project. We

performed a probability-weighted recoverability analysis based on initial estimates of various possible outcomes and determined no

impairment was present as of December 31, 2024 .

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES

OF EQUITY SECURITIES

Market Information

Our common stock is traded on the NYSE under the symbol “ARE.” On January 15, 2025 , the last reported sales price per

share of our common stock was $98.43 , and there were 562 holders of record of our common stock (excluding beneficial owners whose

shares are held in the name of Cede & Co.).

To maintain our qualification as a REIT, we must make annual distributions to stockholders of at least 90% of our taxable

income for the current taxable year, determined without regard to deductions for dividends paid and excluding any net capital gains.

Under certain circumstances, we may be required to make distributions in excess of cash flows available for distribution to meet these

distribution requirements. In such a case, we may borrow funds or may raise funds through the issuance of additional debt or equity

capital. No dividends can be paid on our common stock unless we have paid full cumulative dividends on our preferred stock. As of

December 31, 2024 , we had no outstanding shares of preferred stock. Future distributions on our common stock will be determined by,

and made at the discretion of, our Board of Directors and will depend on a number of factors, including actual cash available for

distribution to our stockholders, our financial condition and capital requirements, the annual distribution requirements under the REIT

provisions of the Internal Revenue Code, restrictions under Maryland law, and such other factors as our Board of Directors deems

relevant. We cannot assure our stockholders that we will make any future distributions.

Refer to “ Item 12. Security ownership of certain beneficial owners and management and related stockholder matters ” in this

annual report on Form 10-K for information on securities authorized for issuance under equity compensation plans.

Issuer Purchases of Equity Securities

From December 9, 2024 to December 31, 2024 , we repurchased 496,276 shares of our common stoc k aggregating

$50.1 million under the program. The repurchases were made on the open market pursuant to a trading plan established under Rule

10b5-1 of the Securities Exchange Act of 1934, as amended. As of December 31, 2024 , we had remaining authorization to repurchase

shares with an aggregate value up to $449.9 million .

The following table summarizes share repurchases executed under the program during the three months ended December 31,

2024 :

	Total Number of Shares Purchased	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans	Approximate Value of Shares That May Yet Be Purchased Under Plans
December 9, 2024 (1) - December 31, 2024	496,276	$ 100.95	496,276	$ 449,903,317

(1) O n December 9, 2024 , we announced that our Board of Directors authorized a share repurchase program allowing the repurchase of shares with an aggregate

value up to $500.0 million until December 31, 2025 in the open market, through privately negotiated transactions, or otherwise, in accordance with all applicable

securities laws and regulations, including Rule 10b-18 of the Exchange Act .

ITEM 6. [RESERVED]

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our consolidated financial statements and notes thereto under

“ Item 15. Exhibits and financial statement schedules ” in this annual report on Form 10-K. 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 such forward-looking statements, including, but not limited to, those described within this “ Item

Management’s discussion and analysis of financial condition and results of operations ” in this annual report on Form 10-K. We do not

undertake any responsibility to update any of these factors or to announce publicly any revisions to any of the forward-looking

statements contained in this or any other document, whether as a result of new information, future events, or otherwise.

As used in this annual report on Form 10-K, references to the “Company,” “Alexandria,” “ARE,” “we,” “us,” and “our” refer to

Alexandria Real Estate Equities, Inc. and its consolidated subsidiaries.

Executive summary

Operating results

	Year Ended December 31, — 2024	2023
Net income attributable to Alexandria’s common stockholders – diluted:
In millions	$ 309.6	$ 92.4
Per share	$ 1.80	$ 0.54
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted:
In millions	$ 1,629.1	$ 1,532.3
Per share	$ 9.47	$ 8.97

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 7 in this annual report on Form 10-K.

Continued operational excellence and solid results amid challenging macroeconomic environment

(As of December 31, 2024 , unless stated otherwise) — Occupancy of operating properties in North America	94.6%
Percentage of total annual rental revenue in effect from Megacampus platform	77%
Percentage of total annual rental revenue in effect from investment-grade or publicly traded large cap tenants	52%
Adjusted EBITDA margin for the three months ended December 31, 2024	72%
Percentage of leases containing annual rent escalations	97%
Weighted-average remaining lease term:
Top 20 tenants	9.3	years
All tenants	7.5	years
Sustained strength in tenant collections:
January 2025 tenant rents and receivables collected as of the date of this report	99.5%
Tenant rents and receivables for the three months ended December 31, 2024 collected as of the date of this report	99.9%

Continued solid leasing volume and rental rate increases

• Continued solid leasing volume aggregating 5.1 million RSF for the year ended December 31, 2024 , up 19% compared to our

2014–2020 average of 4.3 million RSF.

• Rental rate increases on lease renewals and re-leasing of space were 16.9% and 7.2% (cash basis) for the year ended

December 31, 2024 .

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

• Tenant improvements and leasing commissions on renewed and re-leased space executed during the year ended December

31, 2024 represented onl y 8.4% of to tal lease term rents, the second lowest percentage of total lease term rents in the past

five years.

	2024
Total leasing activity – RSF	5,053,954
Leasing of development and redevelopment space – RSF	493,341
Lease renewals and re-leasing of space:
RSF (included in total leasing activity above)	3,888,139
Rental rate increase	16.9%
Rental rate increase (cash basis)	7.2%

Continued solid net operating income and internal growth

• Total revenues o f $3.1 billion , up 8.0% , for the year ended December 31, 2024 , compared to $2.9 billion for the year ended

December 31, 2023 .

• N et operating income (cash basis) of $2.0 billion for the year ended December 31, 2024 , up $176.9 million , or 9.8% , compared

to the year ended December 31, 2023 .

• Same property net operating income growth of 1.2% and 4.6% (cash basis) for the year ended December 31, 2024 , compared

to the year ended December 31, 2023 .

• 97% of our leases contain contractual annual rent escalations approximating 3% .

Continued rigorous focus on management of general and administrative costs

• General and administrative expenses as a percentage of net operating income of 7.6% for the year ended

December 31, 2024 , compared to 9.8% for the year ended December 31, 2023 .

• We expect general and administrative cost savings of approximately $32 million in 2025, based on the midpoint of our

guidance, compared to 2024, from a variety of cost-control and efficiency initiatives, including:

• Personnel-related matters: reduction in headcount over the last two years and restructuring of compensation plans.

• Streamlining of business processes: systems upgrades, process improvements, and cost reduction in legal, technology,

and operational support services.

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

reinvestment

• Common stock dividend declared for the three months ended December 31, 2024 of $1.32 per common share, aggregating

$5.19 per common share for the year ended December 31, 2024 , u p 23 cents , or 5% , over the year ended December 31,

2023 .

• Dividend yield of 5.4% as of December 31, 2024 .

• Dividend payout ratio of 55% for the three months ended December 31, 2024 .

• Average annual dividend per-share growth of 5.4% from 2020 to 2024 .

• Significant net cash flows from operating activities after dividends retained for reinvestment aggregating $2.2 billion for the

years ended December 31, 2019 through 2024 .

Strong execution of Alexandria’s 2024 capital strategy

Our 2024 capital plan included $1.4 billion in funding from strategic dispositions that focused on a portfolio of diversified

assets, of which $1.1 billion was completed during the three months ended December 31, 2024. Refer to “Dispositions” in Item 2 in this

annual report Form 10-K for additional details.

(in millions)
During the nine months ended September 30, 2024	$ 239
During the three months ended December 31, 2024	1,128
Total 2024 dispositions	$ 1,367

As of the date of this report, our share of pending dispositions subject to negotiations aggregated $539.5 million . These

transactions represent approximately 32% of the $1.7 billion midpoint of our 2025 guidance range for dispositions and sales of partial

interests.

External growth and investments in real estate

Alexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $55 million and

$118 million , commencing during the three months and year ended December 31, 2024 , respectively, and is expected to deliver

incremental annual net operating income aggregating $395 million by the second quarter of 2028 .

• During the three months ended December 31, 2024 , we placed into service Megacampus development and redevelopment

projects aggregating 602,593 RSF that are 98% occupie d across multiple submarkets and delivered incremental annual net

operating income of $55 million . Key deliveries during the three months ended December 31, 2024 include:

• 171,102 RSF at 4155 Campus Point Court located on the Campus Point by Alexandria Megacampus in our University

Town Center submarket;

• 139,984 RSF at 840 Winter Street located on the Alexandria Center ® for Life Science – Waltham Megacampus in our

Route 128 submarket ; and

• 93,492 RSF at 10935, 10945, and 10955 Alexandria Way located on the One Alexandria Square Megacampus in our

Torrey Pines submarket .

• Annual net operating income (cash basis) is expected to increase by $70 million upon the burn-off of initial free rent, with a

weighted-average burn-off period of approximately three months, from recently delivered projects.

• 68% of RSF in our total development and redevelopment pipeline is within our Megacampus ecosystem s.

(dollars in millions)	Incremental Annual Net Operating Income		RSF	Occupancy Percentage
Placed into service:
Nine months ended September 30, 2024	$ 63		945,118	100%
Three months ended December 31, 2024	55		602,593	98
Total placed into service in 2024	$ 118		1,547,711	98%
Expected to be placed into service:
Fiscal year 2025	$ 83	(1)	4,357,276
First quarter of 2026 through second quarter of 2028	312
	$ 395

(1) Includes (i) 461,101 RSF that is expected to stabilize through 2025 and is 89% leased/negotiating and (ii) expected partial deliveries through fourth quarter of 2025

from projects expected to stabilize in 2026 and beyond . 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.

Trends that may affect our future results

In 2024 , we identified key market trends and uncertainties that had or may have a negative effect on our business. Although

we have mitigating strategies to minimize the risks posed by these trends and uncertainties, 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” in this annual report on Form 10-K for discussion of additional risks we face.

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

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

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

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

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

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

Boston, San Diego, and San Francisco, heightening competitive pressures and diluting pricing power in certain submarkets.

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

continuing to exert downward pressure on rental and occupancy rates. Our rental rates for renewed/re-leased space increased

by 16.9% , 29.4% , and 31.0% during years ended December 31, 2024 , 2023 , and 2022 , respectively, and we expect an

increase of 9.0% to 17.0% in 2025 . However, to remain competitive, retain existing tenants, or attract new tenants, we may

need to reduce our future rental rates below these projections and/or offer more tenant improvement allowances or additional

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

commissions per RSF and free rent related to our renewed/re-leased space:

	Tenant Improvements/ Leasing Commissions per RSF	Average Free Rent per Annum
2022	$ 27.83	0.3 months
2023	$ 26.09	0.6 months
2024	$ 46.89	0.7 months

As of December 31, 2024 , we anticipate that 4.4 million RSF of projects undergoing construction , whi ch are expected to be

placed into service from 2025 through the second quarter of 2028 , and will generate $395 million in future incremental annual

net operating income . These RSF are 45% leased or under lease negotiations as of December 31, 2024 . The realization of the

aforementioned risks could hinder our ability to secure tenants for the remaining unleased RSF related to these projects at the

expected rates, or at all, potentially leading to a shortfall in or delays in the commencement of the projected incremental

annual net operating income.

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

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

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

In 2025 , we expect to incur from $1.5 billion to $2.1 billion in construction spending.

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

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, particularly in an economic climate marked by ongoing uncertainties

around inflation and interest rates, in addition to those related to oversupply.

Although the U.S. Federal Reserve lowered the federal funds target range during 2024 to 4.25% – 4.50% from 5.25% –

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

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

forcing them to seek more expensive alternative funding options. Such challenges for buyers could lead to a rise in

properties available for sale, and could exert downward pressure on property valuations and elevate capitalization rates,

potentially adversely impacting the sales proceeds we expect from our real estate asset sales in 2025 .

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

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

real estate impairments. In 2024, these market conditions made it challenging to execute asset sales at anticipated

valuations within expected timelines. For more information about our sales of real estate, refer to “ Sales of real estate

assets and impairment charges ” in Note 3 – “Investments in real estate” to our consolidated financial statements in Item

15 in this annual report on Form 10-K. In 2025, we expect to complete dispositions and sales of partial interests from $1.2

billion to $2.2 billion . 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” in this annual report on Form 10-

The table below presents total dispositions, gain on sales of real estate, consideration in excess of book value, real estate

impairment, and a trend of increasing capitalization rates associated with dispositions and sales of partial interests in our

real estate assets in 2022 , 2023 , and 2024 (dollars in thousands). While the increase in capitalization rates presented in

the table can partly be attributed to the quality of core and non-core assets we sold during each period, capitalization rates

in general have increased in recent years, and there is no assurance that this upward trend will stabilize or reverse in the

future.

	Total Dispositions and Sales of Partial Interests	Gains on Sales of Real Estate	Consideration in Excess of Book Value	Real Estate Impairment	Capitalization Rates (1)	Capitalization Rates (cash basis) (1)
2022	$ 2,222,296	$ 537,918	$ 644,029	$ 64,969	4.5%	4.4%
2023	$ 1,314,414	$ 277,037	$ 7,792	$ 461,114	6.7%	5.9%
2024	$ 1,382,453	$ 129,312	$ —	$ 223,068	7.7%	6.5%

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

7 for additional information.

• Increased cost and limited availability of capital. In 2025 , we expect to issue approximately $600 million of unsecured

bonds, primarily to refinance our $600 million bonds maturing in April 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 $1.8 billion based on the midpoint of our 2025

guidance.

In addition, our uses of capital include ground lease prepayments aggregating $270.0 million . In July 2024, we executed

an amendment to our existing ground lease agreement at the Alexandria Technology Square ® Megacampus in our

Cambridge submarket to extend the term of the ground lease b y 24 years to 2088 . The amendment requires that we

prepay our entire rent obligation for the extended lease term aggregating $270.0 million in two equal installments . During

the three months ended December 31, 2024 , we made the first installment payment of $135.0 million , followed by the

second installment payment of $135.0 million on January 14, 2025 . We believe the lease extension significantly enhances

the long-term value of our investment in this critical Megacampus. However, the rent prepayment under this ground lease

also significantly impacted earnings due to the elevated cost of capital.

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

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

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

The table below reflects a trend of increasing interest rates related to our unsecured senior notes payable issued in 2022 ,

2023 , and 2024 (dollars in thousands). There is no assurance that this trend of increasing debt costs will not continue into

the future.

	Unsecured Senior Notes Payable Issued	Interest Rate (1)
2022	$ 1,800,000	3.38%
2023	$ 1,000,000	5.07%
2024	$ 1,000,000	5.57%

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

• Capitalized interest. In 2025 , our capitalized interest is expected to range from $340 million to $370 million and interest

expense from $165 million to $195 million . Our strategic focus is on prioritizing the completion of our highly leased

projects under construction. Additionally, we invest in our future pipeline with the goals of enhancing value and reducing

the timeline to allow for vertical construction. This is in response to our expectation of increased future demand for these

projects and is reflected in our expectation for capitalized interest. Refer to “ Capitalized interest ” under “ Definitions and

reconciliations ” in Item 7 in this annual report on Form 10-K for additional information.

However, the challenging macroeconomic environment, including the elevated supply of laboratory space, higher costs or

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

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

suspension of our construction projects. This could result in a decline in our 2025 capitalized interest below our current

projections and in a further increase in interest expense recognized in our consolidated statement of operations in 2025 .

The table below presents gross interest expense, capitalized interest, and interest expense during 2022 , 2023 , and 2024

(in thousands).

	Gross Interest Expense	Capitalized Interest	Interest Expense
2022	$ 372,848	$ (278,645)	$ 94,203
2023	$ 438,182	$ (363,978)	$ 74,204
2024	$ 516,799	$ (330,961)	$ 185,838

• 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 — could result in lower realized gains. Moreover, should

market conditions worsen, we may face challenges in selling these securities at optimal prices, potentially disrupting our

capital strategy.

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, lower realized

gains, and higher unrealized losses.

The table below reflects the volatility of our non-real estate investments in 2022 , 2023 , and 2024 (in thousands):

	Realized Gains (1)	Unrealized Losses	Total Investment Loss
2022	$ 80,435	$ (412,193)	$ (331,758)
2023	$ 6,078	$ (201,475)	$ (195,397)
2024	$ 59,124	$ (112,246)	$ (53,122)

(1) I ncludes impairment charges aggregating $58.1 million , $74.6 million , and $20.5 million f or the years ended December 31, 2024 , 2023 , and 2022 ,

respectively.

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

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

stabilized yields (unlevered) on new or existing construction projects, occupancy, EPS, FFO per share, our overall

business, and the market value of our common stock.

• Mitigating factors:

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

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

to entry. Despite a recent increase in the availability of laboratory space, Alexandria is expected 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. Our Megacampus ecosystems 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 the scale, strategic

design, and placement our Megacampus ecosystems provide are critical.

CEOs of life science companies typically anticipate rapid and exponential growth upon their companies’ achieving

scientific milestones. Our Megacampus ecosystems are designed for scalability, providing opportunities for our tenants to

grow within our Megacampus ecosystems, including through our future developments and redevelopments aggregating

29.5 million RSF , of which 68% is concentrated within our Megacampus ecosystem s. The strategic location of our

Megacampus ecosystems, which offer both high visibility and a clear path to growth, serves as a powerful motivator 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. Our Megacampus ecosystems provide a superior set of amenities, services, and access to transit

that offer our tenants valuable optionality. The collaborative, vibrant elements of our Megacampus ecosystems, coupled

with world-class amenities, enhance their confidence in using these spaces as effective recruiting tools. In contrast, a

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

provide operational space, but they fall short in offering the scale and strategic design that our Megacampus ecosystems

deliver.

Consequently, our external growth strategy focuses on the development of new Megacampus ecosystems and the

enhancement of existing ones, serving 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. Our Megacampus

facilities provide a comprehensive solution to life science tenants, one that is challenging to replicate due to the significant

time and capital required to replicate this model. We believe the focus on our Megacampus strategy will continue to

position us favorably compared to potential supply of new competitive laboratory spaces. This strategy is partially

responsible for our 2024 performance metrics listed below, which have been achieved despite the current challenging

macroeconomic environment:

• Our Megacampus properties account for 77% of our total annual rental revenue as of December 31, 2024 .

• Strong funds from operations per share – diluted, as adjusted, for 2024 of $9.47 .

• S ame property net operating income growth of 1.2% and 4.6% (cash basis) for the year ended December 31, 2024 .

• Solid occupancy o f 94.6% as of December 31, 2024 .

• Solid rental rate increases of 16.9% and 7.2% (c ash basis) for the year ended December 31, 2024 .

• Strong leasing volume aggregating 5.1 million RSF for the year ended December 31, 2024 , up 17% compared to our

2023 leasing volume.

• The weighted-average lease term for leases executed during 2024 was 8.9 years; and

• Our projects expected to stabilize in 2025 are 89% leased/negotiating .

• Operational excellence of our team. Alexandria provides and demonstrates operational excellence in direct asset

management and operations of our Labspace ® asset base. This high level of performance is crucial in helping to protect

billions of dollars’ worth of intensive infrastructure, specialized equipment, and invaluable tenant research and clinical

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

local, state, and federal regulatory bodies. Key compliance aspects include good manufacturing practice and Clinical

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

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

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

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.

• 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 longstanding 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:

• As of December 31, 2024 , 84% of our leasing activity during the last twelve months was generated from our existing

tenant base.

• As of December 31, 2024 , 92% of our top 20 tenants annual rental revenue is derived from investment-grade or

large-cap publicly traded companies.

• Solid occupancy of 94.6% as of December 31, 2024 ; and

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

of 2021 through December 31, 2024 .

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

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

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

philanthropic support for biomedical innovation. Our focus on high-quality Labspace ® assets in prime locations positions

us to effectively capitalize on these ongoing trends:

• The R&D expenditures by U.S. publicly traded life science companies have shown consistent growth since 2014,

nearly doubling 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 life science companies by private-venture capital,

which totaled over $40B in 2024, over 2.5x the capital deployed in 2014.

• FDA approvals of novel medicines continue to accelerate. Novel approvals by the FDA’s CDER division averaged 49

from 2020–2024, over double the average from 2005–2009.

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

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

position is highlighted by several key indicators:

• Our significant liquidity o f $5.7 billion as of December 31, 2024 provides us the flexibility to address our operational

needs and to pursue growth 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 guidance range for

2025 .

• $684.1 million in capital contributions to fund construction expected from our existing consolidated real estate

joint venture partners from January 1, 2025 through 2028 .

• $1.7 billion from dispositions and sales of partial interests in real estate assets at the midpoint of our guidance

range for 2025 .

• As of December 31, 2024 , our credit ratings from Moody’s Ratings and S&P Global Ratings were Baa1 and BBB+ ,

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

• As of December 31, 2024 , our fixed-rate debt represents 98.8% of our total deb t, which provides predictability in debt

servicing costs. Our fixed rate debt percentage has averaged 98.4% of total debt as of December 31 of each year

since 2020.

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

refinancing risks. As of December 31, 2024 , 32% of our debt matures in 2049 or later and only 14% of our debt

matures in the next three years.

• As of December 31, 2024 , the weighted-average remaining term of our debt is 12.7 years , demonstrating our

strategic approach to debt management and focus on maintaining manageable annual debt maturities.

• Our net debt and preferred stock to Adjusted EBITDA ratio was 5.2x for the three months ended December 31, 2024

annualized.

• Other mitigating factors

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

sector, particularly companies focused on AI, absorbed some of the market’s previously misguided office-to-lab

conversions, which are now being repurposed back into modern office environments. High ceilings, improved

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

This trend is expected to lead to the exit from the life science sector of inexperienced life science real estate

developers and expedite the resolution of the oversupply.

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

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

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

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

initiatives, we anticipate a reduction in general and administrative expenses of approximately $32 million , or 23% ,

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

ended December 31, 2024 . These projected 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.

These and other changes are projected to generate annual savings of approximately $32 million , or 23% , during the

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

December 31, 2024 , with a significant portion of these savings anticipated to potentially continue beyond 2025. As a

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

December 31, 2024 and 2023 wer e 7.6% and 9.8% , respectively .

Execution of capital strategy

2024 capital strategy

During 2024 , we continued to execute many of the long-term components of our capital strategy, as described below.

Maintained access to diverse sources of capital strategically important to our long-term capital structure

• Generated significant net cash flows from operating activities.

• In 2024 , we funded $497.8 million of our equity capital needs with net cash flows from operating activities after dividends

and distributions to the company's consolidated real estate joint venture partners, and excluding the impact of changes in

working capital.

• Successfully executed our 2024 capital strategy, driven primarily by strategic dispositions that focused on a portfolio of

diversified assets.

• In 2024 , dispositions from real estate generated $1.4 billion of capital for investment into our development and

redevelopment projects.

• In February 2024, we entered into a new ATM common stock offering program that allows us to sell up to an aggregate of

$1.5 billion of our common stock.

• During the three months ended June 30, 2024, we entered into new forward equity sales agreements aggregating

$28 million to sell 230 thousand share s of common stock under our ATM program at an average price per share of

$122.32 (before underwriting discounts).

• During the three months ended December 31, 2024 , we settled all outstanding forward equity sales agreements by

issuing 230 thousand shares of common stock at an average price per share of $120.93 and received net proceeds

of $27.8 million , before offering costs.

• As of the date of this report, the remaining aggregate amount available for future sales of common stock under our ATM

program was $1.47 billion .

• Ach ieved significant growth in annualized Adjusted EBITDA of $178.5 million , or 9% , for the three months ended December

31, 2024 , compared to the three months ended December 31, 2023 , which allowed us to:

• Opportunistically issue, on a leverage-neutral basis, unsecured senior notes payable aggregating $1.0 billion with a

weighted-average interest rate of 5.48% and a weighted-average maturity of 23.1 years ; and

• Maintain ou r net debt and preferred stock to Adjusted EBITDA ratio to 5.2x for the three months ended December 31,

2024 , annualized.

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

• As of December 31, 2024 , our credit ratings from Moody’s Ratings and S&P Global Ratings were Baa1 and BBB+ ,

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

• Net debt and preferred stock to Adjusted EBITDA of 5.2x and fi xed-charge coverage ratio of 4.3x for the three months ended

December 31, 2024 , annualized.

• Significant liquidity of $5.7 billion .

• 32% of our total debt matures in 2049 and beyond.

• 12.7 years weighted-average remaining term of debt .

• Since 2020 , an average of 98.4% of our year-end debt balances have been fixed rate .

• Total debt and preferred stock to gross assets of 28% .

• $684.1 million of expected capital contribution commitments from existing consolidated real estate joint venture partners to

fund construction from January 1, 2025 through 2028 .

Key capital metrics as of or for the year ended December 31, 2024

• $29.0 billion in total market capitalization.

• $16.8 billion in total equity capitalization.

• Non-real estate investments aggregating $1.5 billion :

• Unrealized gains presented in our consolidated balance sheet were $83.6 million , comprising gross unrealized gains and

losses aggregating $228.1 million and $144.5 million , respectively.

• I nvestment loss of $53.1 million for the year ended December 31, 2024 presented in our consolidated statement of operations

consisted o f $117.2 million of realized gains , $112.2 million of unrealized losses , and $58.1 million of impairment charges.

2025 capital strategy

During 2025 , we intend to continue to execute our capital strategy to further strengthen our credit profile, which will allow us to

further improve our cost of capital and continue our disciplined approach to capital allocation. Consistent with 2024 , our capital strategy

for 2025 includes the following elements:

• Allocate capital to Class A/A+ properties located in Megacampus ecosystems in AAA life science innovation clusters.

• Maintain prudent access to diverse sources of capital, which include net cash flows from operating activities after dividends,

incremental leverage-neutral debt supported by growth in Adjusted EBITDA, strategic value harvesting and asset recycling

through real estate disposition and partial interest sales, non-real estate investment sales, sales of equity, joint venture capital,

and other sources of capital.

• Continue to improve our credit profile.

• Maintain commitment to long-term capital to fund growth.

• Prudently ladder debt maturities and manage short-term variable-rate debt.

• Prudently manage non-real estate equity investments to support corporate-level investment strategies.

• Maintain a stable and flexible balance sheet with significant liquidity.

• Consider opportunistic repurchases, in privately negotiated transactions, of our common stock.

The anticipated delivery of significant incremental EBITDA from our development and redevelopment of new Class A/A+

properties is expected to enable us to continue to debt-fund a significant portion of our development and redevelopment projects on a

leverage-neutral basis. We expect to continue to maintain access to diverse sources of capital, including unsecured senior notes

payable and secured construction loans for our development and redevelopment projects from time to time. We expect to continue to

maintain a significant proportion of our net operating income on an unencumbered basis to allow for future flexibility for accessing both

unsecured and secured debt markets, although we expect traditional secured mortgage notes payable will remain a small component of

our capital structure. We intend to supplement our remaining capital needs with net cash flows from operating activities after dividends

and proceeds from real estate asset sales, partial interest sales, and equity capital. For further information, refer to “Projected results,

Sources of capital,” and “Uses of capital” in Item 7 in this annual report on Form 10-K. Our ability to meet our 2025 capital strategy

objectives and expectations will depend in part on capital market conditions, real estate market conditions, and other factors beyond our

control. Accordingly, there can be no assurance that we will be able to achieve these objectives and expectations. Refer to our

discussion of “ Forward-looking statements ” under Part I and “Item 1A. Risk factors” in this annual report on Form 10-K.

Operating summary

Same Property Net Operating Income Growth — Margins (1)		Rental Rate Growth: Renewed/Re-Leased Space — Favorable Lease Structure (2)
Operating	Adjusted EBITDA	Strategic Lease Structure by Owner and Operator of Collaborative Megacampus Ecosystems
70%	72%	Increasing cash flows
		Percentage of leases containing annual rent escalations	97 %
		Stable cash flows
Weighted-Average Lease Term of Executed Leases (3)		Percentage of triple net leases	92 %
		Lower capex burden
8.9 Years		Percentage of leases providing for the recapture of capital expenditures	92 %
Net Debt and Preferred Stock to Adjusted EBITDA (4)		Fixed-Charge Coverage Ratio (4)

4.0x to 4.5x

Refer to “ Same properties ” and “ Definitions and reconciliations ” in Item 7 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) For the three months ended December 31, 2024 .

(2) Percentages calculated based on our annual rental revenue in effect as of December 31, 2024 .

(3) Represents the weighted-average lease term of executed leases based on annual rental revenue for the 10-year period for the years ended December 31, 2015 through

2024 .

(4) Quarter annualized.

Industry and corporate responsibility leadership: catalyzing and leading the way for positive change to benefit human health

and society

• During 2024, we continued to advance our thought leadership and corporate responsibility initiatives and received broad

recognition for our operational excellence in asset management, design, development, leasing, real estate transactions, and

sustainability. Significant strategic efforts and achievements included the following:

• Alexandria was named one of the World’s Most Trustworthy Companies by Newsweek . This significant distinction builds on the

Company’s recognition by the publication as one of America’s Most Trustworthy Companies in 2023 and 2024. Alexandria is

one of only three S&P 500 REITs recognized in the real estate and housing category.

• Alexandria and its executive chairman and founder, Joel S. Marcus, were honored with the inaugural Bisnow Life Sciences

Icon & Influencer Award. This prestigious award highlights Mr. Marcus and the Company’s significant long-term contributions to

and lasting impact on the life science real estate sector and broader life science industry. Mr. Marcus accepted the award on

his own behalf and that of Alexandria at Bisnow’s International Life Sciences & Biotech Conference, where he was also the

keynote speaker.

• To prioritize the mental health crisis, Alexandria, in partnership with former congressman Patrick J. Kennedy and The Kennedy

Forum, held its second Alexandria Summit ® on Mental Health in Washington, DC. Alexandria convened a diverse set of key

decision makers, influential life science industry thought leaders, members of Congress, regulatory agency executives, and

other key policymakers to advance the development of novel, effective psychiatric therapies to address vast unmet need.

• Alexandria earned several 2024 local and regional TOBY (The Outstanding Building of the Year) Awards from BOMA (Building

Owners and Managers Association). The TOBY Awards are the commercial real estate industry’s highest recognition honoring

excellence in commercial building management and operations.

• In the BOMA Mid-Atlantic region, 60 Binney Street on the Alexandria Center ® at Kendall Square Megacampus won in the Life

Science category; and Building 1400 on the Alexandria Center ® at One Kendall Square Megacampus won in the Renovated

Building category.

• In BOMA San Francisco and the Pacific Southwest regions, the Alexandria Center ® for Life Science – San Carlos

Megacampus won in the Life Science category.

• In the BOMA Raleigh-Durham region, 8 Davis Drive on the Alexandria Center ® for Advanced Technologies and AgTech –

Research Triangle Megacampus won in the Life Science category.

• In our Greater Boston market, 325 Binney Street, a 462,100 RSF development on the Alexandria Center ® at One Kendall Square

Megacampus in Cambridge, earned LEED Platinum certification, the highest level of certification under the U.S. Green Building

Council’s Core and Shell rating system. Home to Moderna’s global headquarters and R&D center, the ultra-efficient building is

targeting LEED Zero Energy certification, reduced fossil fuel use through the implementation of a geothermal system, and 100%

renewable electricity, resulting in an estimated 97% reduction of GHG emissions relative to the MA 2020 Stretch Code baseline.

The building’s atrium, which is a light-filled collaboration space with a terraced garden and communal staircase, was celebrated for

design excellence in the Science & Research – Small (under 50,000 SF) category of the 2024 International Interior Design

Association New England (IIDA NE) Design Awards and also received the award program’s top honor, Best in Show.

• Additionally in Greater Boston, Alexandria won two 2023 Commercial Broker Association Achievement Awards: Life Science Deal

of the Year for our lease with Novo Nordisk at 60 Sylvan Road on the Alexandria Center ® for Life Science – Waltham Megacampus;

and Investment Sale of the Year – Urban for our strategic sale of partial interest in 15 Necco Street.

• In our San Francisco Bay Area market, Alexandria received a San Francisco Business Times ’ 2024 Real Estate Deal of the Year

Award for our lease with CARGO Therapeutics, a clinical-stage biotechnology company, at 835 Industrial Road on this

Megacampus.

• In our San Diego market, Alexandria GradLabs ® at 9880 Campus Point Drive, located on the Campus Point by Alexandria

Megacampus in our San Diego market, earned a 2024 International Institute for Sustainable Laboratories (I2SL) Lab Buildings and

Projects Award for Excellence in Energy Efficiency. The state-of-the-art building was designed to operate as a highly energy-

efficient research facility. In 2023, the LEED Platinum certified facility earned an I2SL Labs2Zero pilot Energy Score of 96 out of

100, indicating its operational energy performance is better than 96% of similar facilities.

• In our Seattle market, Alexandria was an honoree in the Water Stewardship category of the Puget Sound Business Journal ’s 2024

Environmental and Sustainability Awards and the winner of the Seattle 2030 District’s 2024 Vision Award for Energy in recognition

of our implementation of an innovative energy district at the Alexandria Center ® for Life Science – South Lake Union Megacampus

featuring one of the largest wastewater heat recovery systems in North America. This wastewater heat recovery system, which will

provide an alternative energy source to heat our buildings and enhance building resilience and operating performance,

demonstrates our continued focus on reducing GHG emissions in our laboratory facilities.

• In our Maryland market, we were awarded three 2024 NAIOP DC|MD Awards of Excellence for developments and enhancements

on the Alexandria Center ® for Life Science – Shady Grove Megacampus: 9810 and 9820 Darnestown Road for Best Life Science

Facility, 9800 Medical Center Drive for Best Amenity Space, and 9950 Medical Center Drive for Best Industrial/Flex.

• In our Research Triangle market, we earned the Top Life Sciences/Laboratory Lease in the Triangle Business Journal’ s 2024

SPACE Awards for our lease with Pairwise, a health-focused food and agriculture company, at 110 and 112 TW Alexander Drive on

the Alexandria Center ® for Sustainable Technologies Megacampus. The annual SPACE Awards recognize the Research Triangle’s

top commercial real estate developments and transactions.

• Alexandria received a 2024 Nareit Sustainable Design Impact Award for our groundbreaking approach to utilizing alternative

energy sources such as geothermal energy and wastewater heat recovery systems to reduce operational GHG in

Labspace ® development projects in our Greater Boston and Seattle markets.

• Our longstanding sustainability leadership and performance was reinforced by our achievements in the 2024 GRESB Real Estate

Assessment. We received the GRESB Green Star designation for the eighth consecutive year and an “A” disclosure score for the

seventh consecutive year, signifying best-in-class transparency regarding our sustainability practices and reporting.

Climate change

We cannot predict the rate at which climate change will progress. However, the physical effects of climate change may

potentially have a material adverse effect on our properties, operations, and business. For example, most of our properties are located

along the east and west coasts of the U.S. and some of our properties are located in close proximity to shorelines. To the extent that

climate change impacts weather patterns, our markets could experience severe weather, including hurricanes, severe winter storms,

wildfires, droughts, and coastal flooding due to increases in storm intensity and rising sea levels. Over time, these conditions could

result in declining demand for space at our properties, delays in construction and resulting increased construction costs, or our inability

to operate the buildings at all. Climate change and severe weather may also have indirect effects on our business by increasing the

cost of, or decreasing the availability of, property insurance on terms we find acceptable, and by increasing the costs of energy,

maintenance, repair of water and/or wind damage, and snow removal at our properties. We continue to evaluate our asset base for

potential exposure to the following climate-related risks: sea level rise and increases in heavy rain, flood, drought, extreme heat, and

wildfire.

We are monitoring considerations such as shifting market demands and regulation. Numerous states and municipalities have

adopted state and local laws and policies on climate change, including climate disclosures and emission reduction targets impacting the

building sector. For example, the State of California enacted legislation requiring certain companies to disclose GHG and climate-

related financial risk information. Further cities including Boston, Cambridge, New York, and Seattle have passed ordinances that set

limits on GHG emissions associated with building operations. Some municipalities, including the Cities of New York and San Francisco,

have also implemented legislation to eliminate the use of natural gas in new construction projects. Refer to “ We face possible risks and

costs associated with the effects of climate change and severe weather ” in “ Other factors ” within “ Item 1A. Risk factors ” in this annual

report on Form 10-K for additional information.

Our approach to assessing and mitigating physical climate-related risk through our climate resilience roadmap, and transition

risk through our GHG emissions mitigation strategy, are outlined below.

Climate resilience roadmap

We continue to assess potential physical risks associated with climate change, analyze climate data and property damage

losses associated with past weather events, and review the potential for future climate hazards such as water stress, precipitation

flooding, coastal flooding, wildfire, and heat stress. We also consider local climate change vulnerability assessments and resilience

planning efforts. Our climate resilience roadmap uses climate models and scenario analyses to identify potential future hazards at the

building level. Additionally, we conduct physical inspections to further assess resilience at certain properties, as appropriate, and to

determine whether additional mitigation is needed.

In our evaluation of physical risks, Alexandria considers two climate change scenarios for 2030 and 2050: (i) a high-emissions

scenario in which GHG emissions continue to increase with time (RCP 8.5 ); and (ii) an intermediate scenario in which GHG emissions

level off by 2050 and decline thereafter (RCP 4.5 ). RCP 8.5 generally predicts more significant future climate hazard impacts than RCP

4.5 .

After modeling the potential hazards out to year 2050, we undertake a physical inspection for sites that may have high

exposure to one or more climate hazards. We use this process to assess resilience to current and/or future stresses and to determine

whether additional mitigation is needed.

For a number of buildings, we are implementing augmented emergency preparedness plans and additional operating

procedures that include preparations for potential future events. For certain buildings, mitigation may include nominal capital

improvement work. We may find that other buildings require more significant planning and investment to incorporate more complex

resilience measures. Resilience measures under consideration at some of our properties are described below.

In our operating properties located in areas prone to flooding, we may consider options such as waterproofing the building

envelope up to the projected flood elevation, protecting critical building mechanical equipment, storing temporary flood barriers on site

to be deployed at building entrances prior to a flood event, and installing backflow preventers on stormwater/sewer utilities that

discharge from the building. At several properties, we are currently conducting conceptual studies to evaluate potential options for

consideration.

At a limited number of our operating properties located in areas prone to wildfire, we have begun a multiyear effort

to implement landscaping improvements that include the replacement of fire-prone materials and the installation of fire-resistant

vegetation.

For our development of new Class A/A+ properties, we will aim to design for climate resilience. In 2023, Alexandria

implemented resilient design guidelines to mitigate potential exposures to future climate conditions identified in existing climate models.

In accordance with such guidelines, we will endeavor to design buildings that incorporate materials, systems, and features to

100

manage predicted climate hazards and maintain building operability during and after a climate event. As feasible, we will consider

designs that accommodate potential expansion of cooling infrastructure to meet future building needs. In water-scarce areas, we will

consider planting drought-resistant vegetation and equipping buildings to capture, treat, and reuse available water from building

systems and precipitation events where feasible. In areas prone to wildfire, we will consider incorporating brush management practices

into landscape design and installing enhanced air filtration systems to support safe and healthy indoor air.

For acquisitions in our portfolio, we continue to use climate modeling as part of our due diligence in assessing potential risk

and to inform our financial modeling and transactional decisions.

As a part of Alexandria’s risk management program, we maintain all-risk property insurance at the portfolio level, including

properties under development, to help mitigate the risk of extreme weather events and potential impact from losses associated with

natural catastrophes, such as flood, wildfire, and wind events. We leverage our climate mitigation strategy with property insurance

carriers to help reduce our overall cost of risk. However, there can be no assurance that our insurance will cover all our potential losses

and that climate change and severe weather will not have a material adverse effect on our properties, operations, or business. For

additional information on our risk management strategies related to insurance coverage, refer to “ Our insurance may not adequately

cover all potential losses ” in “ Operating factors ” in “ Item 1A. Risk factors ” in this annual report on Form 10-K.

Greenhouse gas emissions mitigation strategy

Our GHG emissions mitigations framework is aligned with the sustainability goals of many of our innovative tenants. Our

framework directly focuses on reducing emissions from our operations through energy efficiency, electrification and use of alternative

energy, and renewable electricity. We indirectly focus on reducing emissions associated with construction activities by engaging with our

supply chain and targeting reductions in embodied carbon through procurement, as described below.

We are continuing to implement strategies to seek to reduce the emissions intensity of our operating assets: (i) we aim to

prioritize the energy efficiency and GHG emissions mitigation in our development projects, including through energy-efficient design,

electrification, and use of alternative energy; (ii) we further seek to reduce energy consumption in our operating asset base by

performing energy audits and by implementing energy conservation measures at certain properties; and (iii) we also continue to

advance our renewable electricity strategy with the recent completion of a large-scale solar farm in June 2024, which is now supplying

renewable power to meet 100% of the Greater Boston region‘s electricity load for Alexandria-paid accounts through a long-term power

purchase agreement based on 2023 consumption levels.

We aim to reduce emissions associated with construction activities. These activities may include such strategies as engaging

with our supply chain and targeting reductions in embodied carbon through procurement. Emissions within our indirect focus will require

significant innovation and cost-effective solutions by the construction industry to develop pathways for substantial emissions reduction.

Board of directors and leadership oversight

The Audit Committee oversees the management of the Company’s financial and other risks, including climate-related risks. At

the management level, Alexandria’s Sustainability Committee, which comprises members of the executive team and senior decision

makers spanning the Company’s real estate development, asset management, risk management, and sustainability teams, leads the

development and execution of our approach to climate-related risk.

Refer to “ Item 1A. Risk factors ” in this annual report on Form 10-K for discussion of the risks we face from climate change.

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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 this annual report on Form 10-K. 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 assets

classified as held for sale 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, acceleration of stock

compensation expense due to the resignations of executive officers, and initial and subsequent adjustments to the provision for

expected credit losses on financial instruments 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 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 7 in this annual report on Form 10-K. Key items included in net income attributable to Alexandria’s common

stockholders for the years ended December 31, 2024 and 2023 and the related per share amounts were as follows (in millions, except

per share amounts):

	Year Ended December 31, — 2024	2023	2024	2023
	Amount		Per Share – Diluted
Unrealized losses on non-real estate investments	$ (112.2)	$ (201.5)	$ (0.65)	$ (1.18)
Gain on sales of real estate (1)	129.3	277.0	0.75	1.62
Impairment of non-real estate investments	(58.1)	(74.6)	(0.34)	(0.44)
Impairment of real estate	(223.1)	(461.1)	(1.30)	(2.70)
Acceleration of stock compensation expense due to executive officer resignations	—	(20.3)	—	(0.12)
Provision for expected credit losses on financial instruments	0.4	—	—	—
Total	$ (263.7)	$ (480.5)	$ (1.54)	$ (2.82)

(1) 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 ” in Item 7.

Refer to Note 3 – “Investments in real estate” and Note 7 – “Investments” to our consolidated financial statements in Item 15

for additional information.

102

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 7 in this annual report on Form 10-K. The following table

presents information regarding our Same Properties as of December 31, 2024 and 2023 :

	December 31, — 2024	2023
Percentage change in net operating income over comparable period from prior year	1.2%	3.4%
Percentage change in net operating income (cash basis) over comparable period from prior year	4.6%	4.6%
Operating margin	68%	69%
Number of Same Properties	321	288
RSF	31,670,359	28,691,105
Occupancy – current-period average	94.2%	94.6%
Occupancy – same-period prior-year average	93.9%	95.4%

The following table reconciles the number of Same Properties to total properties for the year ended December 31, 2024 :

Development – under construction	Properties
99 Coolidge Avenue	1
500 North Beacon Street and 4 Kingsbury Avenue	2
1450 Owens Street	1
230 Harriet Tubman Way	1
10935, 10945, and 10955 Alexandria Way	3
10075 Barnes Canyon Road	1
421 Park Drive	1
4135 Campus Point Court	1
701 Dexter Avenue North	1
	12
Development – placed into service after January 1, 2023	Properties
751 Gateway Boulevard	1
15 Necco Street	1
325 Binney Street	1
9810 Darnestown Road	1
9820 Darnestown Road	1
1150 Eastlake Avenue East	1
4155 Campus Point Court	1
201 Brookline Avenue	1
9808 Medical Center Drive	1
	9
Redevelopment – under construction	Properties
40, 50, and 60 Sylvan Road	3
269 East Grand Avenue	1
651 Gateway Boulevard	1
401 Park Drive	1
8800 Technology Forest Place	1
311 Arsenal Street	1
One Hampshire Street	1
Canada	4
Other	2
	15

Redevelopment – placed into service after January 1, 2023	Properties
20400 Century Boulevard	1
140 First Street	1
2400 Ellis Road, 40 Moore Drive, and 14 TW Alexander Drive	3
9601 and 9603 Medical Center Drive	2
840 Winter Street	1
Alexandria Center ® for Advanced Technologies – Monte Villa Parkway	6
	14
Acquisitions after January 1, 2023	Properties
Other	6
	6
Unconsolidated real estate JVs	4
Properties held for sale	10
Total properties excluded from Same Properties	70
Same Properties	321
Total properties in North America as of December 31, 2024	391

103

Comparison of results for the year ended December 31, 2024 to the year ended December 31, 2023

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

Properties for the year ended December 31, 2024 , compared to the year ended December 31, 2023 (dollars in thousands). We provide

a comparison of the results for the year ended December 31, 2023 to the year ended December 31, 2022 , including a comparison of

the components of net operating income for our Same Properties and Non-Same Properties for the year ended December 31, 2023 ,

compared to the year ended December 31, 2022 , in “ Results of operations ” in Item 7 of our annual report on Form 10-K for the year

ended December 31, 2023 . Refer to “ Definitions and reconciliations ” in Item 7 in this annual report on Form 10-K 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.

	Year Ended December 31, — 2024	2023	$ Change	% Change
Income from rentals:
Same Properties	$ 1,685,654	$ 1,640,232	$ 45,422	2.8 %
Non-Same Properties	618,685	503,739	114,946	22.8
Rental revenues	2,304,339	2,143,971	160,368	7.5
Same Properties	612,600	598,442	14,158	2.4
Non-Same Properties	132,767	100,043	32,724	32.7
Tenant recoveries	745,367	698,485	46,882	6.7
Income from rentals	3,049,706	2,842,456	207,250	7.3
Same Properties	1,740	1,675	65	3.9
Non-Same Properties	64,948	41,568	23,380	56.2
Other income	66,688	43,243	23,445	54.2
Same Properties	2,299,994	2,240,349	59,645	2.7
Non-Same Properties	816,400	645,350	171,050	26.5
Total revenues	3,116,394	2,885,699	230,695	8.0
Same Properties	734,965	693,574	41,391	6.0
Non-Same Properties	174,300	165,606	8,694	5.2
Rental operations	909,265	859,180	50,085	5.8
Same Properties	1,565,029	1,546,775	18,254	1.2
Non-Same Properties	642,100	479,744	162,356	33.8
Net operating income	$ 2,207,129	$ 2,026,519	$ 180,610	8.9 %
Net operating income – Same Properties	$ 1,565,029	$ 1,546,775	$ 18,254	1.2 %
Straight-line rent revenue	(31,326)	(85,412)	54,086	(63.3)
Amortization of acquired below-market leases	(44,683)	(37,985)	(6,698)	17.6
Net operating income – Same Properties (cash basis)	$ 1,489,020	$ 1,423,378	$ 65,642	4.6 %

104

Income from rentals

Total income from rentals for the year ended December 31, 2024 increased by $207.3 million , or 7.3% , to $3.0 billion ,

compared to $2.8 billion for the year ended December 31, 2023 , as a result of increase in rental revenues and tenant recoveries, as

discussed below.

Rental revenues

Total rental revenues for the year ended December 31, 2024 increased by $160.4 million , or 7.5% , to $2.3 billion , compared to

$2.1 billion for the year ended December 31, 2023 . The increase was primarily due to an increase in rental revenues from our Non-

Same Properties related to 4.7 million RSF of development and redevelopment projects placed into service subsequent to January 1,

2023 and six operating properties aggregating 824,979 RSF acquire d subsequent to January 1, 2023 .

Rental revenues from our Same Properties for the year ended December 31, 2024 increased by $45.4 million , or 2.8% , to

$1.7 billion , compared to $1.6 billion for the year ended December 31, 2023 , primarily as a result of an increase in rental rates from

lease renewals and re-leasing of space since January 1, 2023 , and a 0.3% increase in the occupancy of our Same Properties to 94.2%

for the year ended December 31, 2024 from 93.9% for the year ended December 31, 2023 .

Tenant recoveries

Tenant recoveries for the year ended December 31, 2024 increased by $46.9 million , or 6.7% , to $745.4 million , compared to

$698.5 million for the year ended December 31, 2023 . This increase was partially from our Non-Same Properties related to our

development and redevelopment projects placed into service and properties acquired subsequent to January 1, 2023 , as discussed

above under “Rental revenues.”

Same Properties tenant recoveries for the year ended December 31, 2024 increased by $14.2 million , or 2.4% , to

$612.6 million , compared to $598.4 million for the year ended December 31, 2023 , primarily due to higher operating expenses during

the year ended December 31, 2024 , as discussed under “Rental operations” below. As of December 31, 2024 , 92% of ou r 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.

Rental operations

Total rental operating expenses for the year ended December 31, 2024 increased by $50.1 million , or 5.8% , to $909.3 million ,

compared to $859.2 million for the year ended December 31, 2023 . The increase was primarily due to incremental expenses related to

our Same Properties rental operating expenses, as discussed below.

Same Properties rental operating expenses increased by $41.4 million , or 6.0% , to $735.0 million during the year ended

December 31, 2024 , compared to $693.6 million for the year ended December 31, 2023 , primarily as the result of increases in: (i) costs

related to engineering, security, janitorial and other operating contracts of $9.6 million mainly due to higher rates, (ii) property taxes of

$8.6 million primarily due to increases from reassessments in values, and (iii) utilities expenses of $6.3 million and property insurance of

$1.9 million primarily due to higher rates.

Depreciation and amortization

Depreciation and amortization expense for the year ended December 31, 2024 increased by $108.9 million , or 10.0% , to

$1.2 billion , compared to $1.1 billion for the year ended December 31, 2023 . The increase was primarily due to additional depreciation

from development and redevelopment projects placed into service and properties acquired, as discussed above under “ Rental

revenues .”

General and administrative expenses

General and administrative expenses for the year ended December 31, 2024 decreased by $31.0 million , or 15.5% , to

$168.4 million , compared to $199.4 million for the year ended December 31, 2023 , p rimarily due to a reduction in compensation costs

including the impact from the resignations of two executive officers in the second half of 2023, and savings stemming from various

efficiency initiatives, including implementation of systems upgrades, process improvements, and smarter technology. As a percentage of

net operating income, our general and administrative expenses for the trailing twelve months ended December 31, 2024 and 2023 were

7.6% and 9.8% , respectively .

105

Interest expense

Interest expense for the years ended December 31, 2024 and 2023 consisted of the following (dollars in thousands):

Component	Year Ended December 31, — 2024	2023	Change
Gross interest	$ 516,799	$ 438,182	$ 78,617
Capitalized interest	(330,961)	(363,978)	33,017
Interest expense	$ 185,838	$ 74,204	$ 111,634
Average debt balance outstanding (1)	$ 12,583,339	$ 11,242,532	$ 1,340,807
Weighted-average annual interest rate (2)	4.1 %	3.9 %	0.2 %

(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 year ended December 31, 2024 , compared to the year ended December 31,

2023 , resulted from the following (dollars in thousands):

Component		Effective Date	Change
Increases in interest incurred due to:
Issuances of debt:
$500 million of unsecured senior notes payable due 2053	5.26%	February 2023	$ 3,226
$500 million of unsecured senior notes payable due 2035	4.88%	February 2023	2,984
$600 million of unsecured senior notes payable due 2054	5.71%	February 2024	29,634
$400 million of unsecured senior notes payable due 2036	5.38%	February 2024	18,483
Increases in construction borrowings and interest rates under secured notes payable	7.52%		3,882
Higher average outstanding balances and/or rate increases on borrowings under commercial paper program and unsecured senior line of credit			17,747
Other increase in interest			2,661
Change in gross interest			78,617
Decrease in capitalized interest			33,017
Total change in interest expense			$ 111,634

(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.

Impairment of real estate

D uring the year ended December 31, 2024 , we recognized real estate impairment charges aggregating $223.1 million , which

primarily consisted of the following:

• In October 2024, four properties at One Moderna Way in our Route 128 submarket met the criteria for c lassification as held for

sale when a single tenant, occupying 100% of these properties with a weighted-average remaining lease term of 18 years,

committed to purchasing them. Due to our important long-established relationship with this tenant and the strategic nature of

these properties, there were no other buyers to whom we would be willing to sell these properties. As a result, the sale of these

assets became probable and all criteria for classification as held for sale were met when the tenant’s commitment to acquire

these properties was confirmed in October 2024. Upon meeting the asset held for sale criteria, we recognized an impairment

charge of $40.9 million to reduce the carrying amounts of these properties to the expected sales price less costs to sell. In

D ecember 2024 , we completed the sale of these properties for a sales price of $369.4 million , with no incremental gain or loss

recognized.

• In October 2024, five operating properties aggregating 203,223 RSF and land parcels aggregating 1.5 million SF in our

Sorrento Mesa and University Town Center submarkets met the criteria for classification as held for sale. In October 2024,

after meeting all criteria for classification as held for sale, including (i) our commitment to sell these assets, (ii) Board of

Directors’ approval, and (iii) our determination that the sale of each property was probable within one year, we recognized

impairment charges aggregating $65.9 million to reduce the carrying amounts of these properties to the expected aggregate

sales price less costs to sell. Subsequent to October 2024, we had the following additional developments related to these

transactions:

106

• In December 2024, based on an executed purchase and sales agreement, we recognized an additional $36.9 million

impairment charge related to three operating properties aggregating 100,831 RSF and land parcels aggregating 1.0

million SF ( included in the aforementioned 203,223 RSF and 1.5 million S F, respectively) in our University Town Center

submarket to further reduce the carrying amounts of these properties to their estimated fair values less costs to sell of

approximately $200 million . As of December 31, 2024, these assets were classified as held for sale, and we expect to

complete the sales of these assets within 12 months.

• We continue to hold two operating properties aggregating 102,392 RSF (included in the aforementioned 203,223 RSF) in

our Sorrento Mesa submarket with a carrying amount of $18.2 million as held for sale as of December 31, 202 4. We

expect to complete the sale of these properties within 12 months.

• In December 2024, we completed the sale of land parcels aggregating 444,041 SF (included in the 1.5 million SF

discussed above) in our Sorrento Mesa submarket for a sales price of $55.0 million , with no gain or loss recognized in

earnings, to a buyer that is expected to develop residential properties on this site. As part of the transaction, we provided

$25.0 million of seller financing. This note receivable is classified within “Other assets” in our consolidated balance sheet.

Refer to Note 8 – “Other assets” to our consolidated financial statements for additional information.

• During the three months ended December 31, 2024, three properties aggregating 552,513 RSF in our Cambridge submarket

met the criteria for classification as held for sale upon our decision to dispose of them as a result of our determination that they

were not core to our Megacampus strategy due to their size, location, and existing use. Upon meeting the criteria for

classification as held for sale, we recognized an impairment charge of $6.3 million to reduce the carrying amounts of these

properties to their estimated fair values less costs to sell. In December 2024, we completed the sale of these properties for a

sales price of $245.5 million .

• In addition, we recognized impairment charges aggregating $30.8 million primarily consisting of the pre-acquisition costs

related to two potential acquisitions aggregating 1.4 million RSF of future development in our Greater Boston market. We

executed purchase agreements for these potential acquisitions with the total purchase price aggregating $366.8 million in 2020

and 2022 and initially expected to close these acquisitions after 2024. Our intent for each site included the demolition of

existing buildings upon expiration of the existing in-place leases and the development of life science properties. During the

three months ended June 30, 2024, due to the existing macroeconomic environment that negatively impacted the financial

outlook for these projects, we decided to no longer proceed with these acquisitions, resulting in the recognition of impairment

charges.

• In December 2024, we recognized an impairment charge of $13.7 million to reduce the carrying amount of a property

aggregating 45,615 RSF in our Seattle market to its estimated fair value less costs to sell of approximately $8 million , upon

meeting the criteria for classification as held for sale. We expect to sell this project within 12 months.

• In December 2024, we recognized an impairment charge of $6.1 million to reduce the carrying amount of a development

project aggregating 1.4 million SF in our Texas market to its estimated fair value less costs to sell of approximately $70 million ,

upon meeting the criteria for classification as held for sale. We expect to sell this project within 12 months.

During the year ended December 31, 2023 , we recognized real estate impairment charges aggregating $461.1 million

classified in impairment of real estate in our consolidated statement of operations, which primarily related to properties in non-strategic

locations that are not integral to our Megacampus strategy and were sold or were classified as held for sale as of December 31, 2023 .

Investment loss

During the year ended December 31, 2024 , we recognized an investment loss aggregating $53.1 million , which consisted of

$117.2 million of realized gains , $112.2 million of unrealized losses , and impairment charges of $58.1 million .

During the year ended December 31, 2023 , we recognized an investment loss aggregating $195.4 million , which consisted of

$6.1 million of realized gains and $201.5 million of unrealized losses .

For more information about our investments, refer to Note 7 – “Investments” to our consolidated financial statements in Item

15 in this annual report on Form 10-K. For our impairments accounting policy, refer to “ Investments ” in Note 2 – “Summary of significant

accounting policies” to our consolidated financial statements in Item 15 in this annual report on Form 10-K.

107

Gain on sales of real estate

During the year ended December 31, 2024 , we recognized $129.3 million of gains primarily related to the dispositions of seven

r eal estate asset s in our San Diego, Seattle, Maryland, and Research Triangle marke ts. The gains were classified in gain on sales of

real estate within our consolidated statement of operations for the year ended December 31, 2024 .

During the year ended December 31, 2023 , we recognized $277.0 million of gains related to the dispositions of 13 real estat e

assets. The gains were classified in gain on sales of real estate within our consolidated statement of operations for the year ended

December 31, 2023 .

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

“Investments in real estate” to our consolidated financial statements in Item 15 in this annual report on Form 10-K.

Other comprehensive loss

Total other comprehensive loss for the year ended December 31, 2024 aggregated $30.4 million , compared to total other

comprehensive income of $4.9 million for the year ended December 31, 2023 . The difference is primarily due to the foreign currency

translation related to our operations in Canada.

108

Summary of capital expenditures

Our construction spending for the year ended December 31, 2024 and projected spending for the year ending December 31,

2025 consisted of the following (in thousands):

	Year Ended December 31, 2024	Projected Midpoint for the Year Ending December 31, 2025
Construction of Class A/A+ properties:
Active construction projects
Under construction (1)	$ 1,791,097	$ 1,220,000
Future pipeline pre-construction
Primarily Megacampus expansion pre-construction work (entitlement, design, and site work)	426,948	500,000
Revenue- and non-revenue-enhancing capital expenditures	273,377	415,000	(2)
Construction spend (before contributions from noncontrolling interests or tenants)	2,491,422	2,135,000
Contributions from noncontrolling interests (consolidated real estate joint ventures)	(343,797)	(230,000)	(3)
Tenant-funded and -built landlord improvements	(129,153)	(155,000)
Total construction spending	$ 2,018,472	$ 1,750,000
2025 guidance range for construction spending		$1,450,000 – $2,050,000

(1) Includes projects under construction aggregating 4.4 million RSF that are expected to generate $395 million in incremental annual net operating income primarily

commencing from the first quarter of 2025 through the second quarter of 2028 .

(2) 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 $370 million at the midpoint of our guidance for 2025 construction .

(3) 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 2028 (in thousands):

Projected timing	Amount (1)
Fiscal year 2025	$ 230,000
2026 through 2028	454,086
Total	$ 684,086

(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 year ended December 31, 2024 and projected for the year ending December 31, 2025 (in thousands):

	Average Real Estate Basis Capitalized During the Year Ended December 31, 2024	2024		2025 (1)
Construction of Class A/A+ properties:
Active construction projects
Under construction	$ 2,924,369		36%	35%
Future pipeline pre-construction
Priority anticipated projects	508,108	(2)	6	50
Primarily Megacampus expansion pre-construction work (entitlement, design, and site work)	3,710,741	(2)	46
Smaller redevelopments and repositioning capital projects	981,589		12	15
	$ 8,124,807		100%	100%

(1) Based upon the midpoint of our guidance range for 2025 capitalization of interest.

(2) Average real estate basis capitalized related to our future pipeline pre-construction activities includes 29% from four key active and future Megacampus development

and redevelopment projects.

109

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, and funds from operations per share attributable to Alexandria’s

common stockholders – diluted, as adjusted, 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 ” included in the beginning of

Part I in this annual report on Form 10-K.

Projected 2025 Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted
Earnings per share (1)	$2.57 to $2.77
Depreciation and amortization of real estate assets	6.70
Allocation of unvested restricted stock awards	(0.04)
Funds from operations per share and funds from operations per share, as adjusted (2)	$9.23 to $9.43
Midpoint	$9.33

(1) Excludes unrealized gains or losses on non-real estate investments after December 31, 2024 that are required to be recognized in earnings and are excluded from funds

from operations per share, as adjusted.

(2) Refer to “ Definitions and reconciliations ” in Item 7 for additional information.

Key Assumptions (1) (Dollars in millions)	2025 Guidance
	Low	High
Occupancy percentage for operating properties in North America as of December 31, 2025	91.6%	93.2%
Lease renewals and re-leasing of space:
Rental rate changes	9.0%	17.0%
Rental rate changes (cash basis)	0.5%	8.5%
Same property performance:
Net operating income	(3.0)%	(1.0)%
Net operating income (cash basis)	(1.0)%	1.0%
Straight-line rent revenue	$ 111	$ 131
General and administrative expenses	$ 129	$ 144
Capitalization of interest	$ 340	$ 370
Interest expense	$ 165	$ 195
Realized gains on non-real estate investments (2)	$ 100	$ 130

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

Part I; “ Item 1A. Risk factors ”; and Item 7. To the extent our full-year earnings guidance is updated during the year, we will provide additional disclosure supporting

reasons for any significant changes to such guidance.

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

estate investments, if any. Refer to Note 7 – “Investments” to our consolidated financial statements in Item 15 for additional details.

Key Credit Metric Targets (1)
Net debt and preferred stock to Adjusted EBITDA – fourth quarter of 2025 annualized	Less than or equal to 5.2x
Fixed-charge coverage ratio – fourth quarter of 2025 annualized	4.0x to 4.5x

(1) Refer to “ Definitions and reconciliations ” in Item 7 for additional information.

110

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 consolidated financial statements in Item 15 in this annual report on Form 10-K for further discussion.

Consolidated Real Estate Joint Ventures — Property/Market/Submarket	Noncontrolling (1) Interest Share	Operating RSF at 100%
50 and 60 Binney Street/Greater Boston/Cambridge/Inner Suburbs	66.0%		532,395
75/125 Binney Street/Greater Boston/Cambridge/Inner Suburbs	60.0%		388,270
100 and 225 Binney Street and 300 Third Street/Greater Boston/Cambridge/Inner Suburbs	70.0%		870,106
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs	25.0%		116,414	(2)
15 Necco Street/Greater Boston/Seaport Innovation District	43.3%		345,996
285, 299, 307, and 345 Dorchester Avenue/Greater Boston/Seaport Innovation District	40.0%		—	(2)
Alexandria Center ® for Science and Technology – Mission Bay/San Francisco Bay Area/ Mission Bay (3)	75.0%		996,181
1450 Owens Street/San Francisco Bay Area/Mission Bay	74.9%	(4)	—	(2)
601, 611, 651 (2) , 681, 685, and 701 Gateway Boulevard/San Francisco Bay Area/South San Francisco	50.0%		851,991
751 Gateway Boulevard/San Francisco Bay Area/South San Francisco	49.0%		230,592
211 (2) and 213 East Grand Avenue/San Francisco Bay Area/South San Francisco	70.0%		300,930
500 Forbes Boulevard/San Francisco Bay Area/South San Francisco	90.0%		155,685
Alexandria Center ® for Life Science – Millbrae/San Francisco Bay Area/South San Francisco	51.8%		—	(2)
3215 Merryfield Row/San Diego/Torrey Pines	70.0%		170,523
Campus Point by Alexandria/San Diego/University Town Center (5)	45.0%		1,496,181
5200 Illumina Way/San Diego/University Town Center	49.0%		792,687
9625 Towne Centre Drive/San Diego/University Town Center	70.0%		163,648
SD Tech by Alexandria/San Diego/Sorrento Mesa (6)	50.0%		798,860
Pacific Technology Park/San Diego/Sorrento Mesa	50.0%		544,352
Summers Ridge Science Park/San Diego/Sorrento Mesa (7)	70.0%		316,531
1201 and 1208 Eastlake Avenue East/Seattle/Lake Union	70.0%		206,134
199 East Blaine Street/Seattle/Lake Union	70.0%		115,084
400 Dexter Avenue North/Seattle/Lake Union	70.0%		290,754
800 Mercer Street/Seattle/Lake Union	40.0%		—	(2)
Unconsolidated Real Estate Joint Ventures
Property/Market/Submarket	Our Ownership Share (8)	Operating RSF at 100%
1655 and 1725 Third Street/San Francisco Bay Area/Mission Bay	10.0%		586,208
1450 Research Boulevard/Maryland/Rockville	73.2%	(9)	42,679
101 West Dickman Street/Maryland/Beltsville	58.4%	(9)	135,949

Refer to “ Joint venture financial information ” under “ Definitions and reconciliations ” in Item 7 for additional details.

(1) In addition to the consolidated real estate joint ventures listed, various joint venture partners hold insignificant noncontrolling interests in three other real estate joint

ventures in North America.

(2) Represents a property currently under construction or in our 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 Street, 1500 and 1700 Owens Street, and 455 Mission Bay Boulevard South.

(4) During the year ended December 31, 2024 , our equity ownership decreased from 40.6% to 25.1% based on continued funding of construction costs by our joint venture

partner and a reallocation of equity to our joint venture partner of $30.2 million from us. The noncontrolling interest share of our joint venture partner is anticipated to

increase to 75% and ours to decrease to 25% as our partner contributes additional equity to fund the construction of the project.

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

(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 unconsolidated real estate joint ventures listed, we hold an interest in one insignificant unconsolidated real estate joint venture in North America.

(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.

111

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

31, 2024 (dollars in thousands):

		Stated Rate		Interest Rate (1)	At 100%		Our Share
Unconsolidated Joint Venture					Aggregate Commitment	Debt Balance (2)
1655 and 1725 Third Street (3)	3/10/25	4.50%		4.57%	$ 600,000	$ 599,930	10.0%
101 West Dickman Street	11/10/26	SOFR+1.95%	(4)	6.36%	26,750	18,884	58.4%
1450 Research Boulevard	12/10/26	SOFR+1.95%	(4)	6.42%	13,000	8,637	73.2%
					$ 639,750	$ 627,451

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

(2) Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2024 .

(3) The unconsolidated real estate joint venture is in the process of refinancing approximately $500 million of this debt with a new secured note payable, which is expected

to close in the first quarter of 2025. The remaining debt balance of approximately $100 million will be repaid through contributions from the joint venture partners. We

expect to contribute our share of approximately $10 million in the first quarter of 2025. As of December 31, 2024 , our investment in this unconsolidated real estate joint

venture was $10.6 million .

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

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 months and year ended December 31, 2024 (in thousands):

	Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures — December 31, 2024		Our Share of Unconsolidated Real Estate Joint Ventures — December 31, 2024
	Three Months Ended	Year Ended	Three Months Ended	Year Ended
Total revenues	$ 112,690	$ 448,476	$ 6,282	$ 15,754
Rental operations	(35,776)	(132,785)	(994)	(3,978)
	76,914	315,691	5,288	11,776
General and administrative	(644)	(2,912)	(79)	(159)
Interest	(361)	(1,114)	(841)	(3,648)
Depreciation and amortization of real estate assets	(34,986)	(129,711)	(1,061)	(4,238)
Gain on sales of real estate	5,025	5,025	3,328	3,328
Fixed returns allocated to redeemable noncontrolling interests (1)	202	805	—	—
	$ 46,150	$ 187,784	$ 6,635	$ 7,059
Straight-line rent and below-market lease revenue	$ (2,821)	$ 12,767	$ 159	$ 902
Funds from operations (2)	$ 76,111	$ 312,470	$ 4,368	$ 7,969

Refer to “ Joint venture financial information ” under “ Definitions and reconciliations ” in Item 7 for additional details.

(1) Represents an allocation of joint venture earnings to redeemable noncontrolling interests primarily in one property in our South San Francisco submarket. These

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

(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 7 for the definition and its reconciliation from the most directly comparable financial measure presented in accordance with GAAP.

	As of December 31, 2024 — Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures	Our Share of Unconsolidated Real Estate Joint Ventures
Investments in real estate	$ 4,240,036	$ 109,756
Cash, cash equivalents, and restricted cash	163,799	3,218
Other assets	416,997	10,019
Secured notes payable	(37,330)	(77,345)
Other liabilities	(274,083)	(5,775)
Redeemable noncontrolling interests	(19,972)	—
	$ 4,489,447	$ 39,873

During the years ended December 31, 2024 and 2023 , our consolidated real estate joint ventures distributed an aggregate of

$256.7 million and $244.1 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 consolidated financial statements in Item 15 in this annual

report on Form 10-K for additional information.

112

Investments

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

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

– “Investments” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information.

	December 31, 2024				Year Ended December 31, 2023
	Three Months Ended		Year Ended
Realized gains	$ 11,788	(1)	$ 59,124	(1)	$ 6,078	(2)
Unrealized losses	(79,776)	(3)	(112,246)	(4)	(201,475)	(5)
Investment loss	$ (67,988)		$ (53,122)		$ (195,397)

Investments	December 31, 2024 — Cost		Unrealized Gains	Unrealized Losses	Carrying Amount	December 31, 2023 — Carrying Amount
Publicly traded companies	$ 188,653		$ 24,262	$ (107,248)	$ 105,667	$ 159,566
Entities that report NAV	518,074		126,077	(34,285)	609,866	671,532
Entities that do not report NAV:
Entities with observable price changes	99,932		77,761	(2,956)	174,737	174,268
Entities without observable price changes	400,487		—	—	400,487	368,654
Investments accounted for under the equity method	N/A		N/A	N/A	186,228	75,498
December 31, 2024	$ 1,207,146	(6)	$ 228,100	$ (144,489)	$ 1,476,985	$ 1,449,518
December 31, 2023	$ 1,177,072		$ 320,445	$ (123,497)	$ 1,449,518

Public/Private Mix (Cost) Tenant/Non-Tenant Mix (Cost)

86%

Private

14%

Public

26%

Tenant

74%

Non-Tenant

(1) Consists of realized gains of $32.1 million and $117.2 million , partially offset by impairment charges of $20.3 million and $58.1 million during the three months and year

ended December 31, 2024 , respectively.

(2) Consists of realized gains of $80.6 million , offset by impairment charges of $74.6 million during the year ended December 31, 2023 .

(3) Consists of unrealized losses of $43.6 million primarily resulting from the decrease in fair values of our investments in publicly traded entities and $36.2 million resulting

from accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our realization of investments during the three months ended

December 31, 2024 .

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

year ended December 31, 2024 .

(5) Consists of unrealized losses of $111.6 million primarily resulting from the decrease in the fair value of our investments in privately held entities that report NAV and

$89.9 million resulting from accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our sales of investment s during the year

ended December 31, 2023 .

(6) Represents 2.8% of gross assets as of December 31, 2024 . Refer to “ Gross assets ” under “ Definitions and reconciliations ” in Item 7 for additional details.

113

Liquidity

Liquidity
	(in millions)
$5.7B	●
(In millions)
Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program	$ 5,000
Cash, cash equivalents, and restricted cash	560
Availability under our secured construction loan	46
Investments in publicly traded companies	106
Liquidity as of December 31, 2024	$ 5,712

We expect to meet certain long-term liquidity requirements, such as requirements for development, redevelopment, other

construction projects, capital improvements, tenant improvements, property acquisitions, equity repurchases, leasing costs, non-

revenue-enhancing capital expenditures, scheduled debt maturities, distributions to noncontrolling interests, and payment of dividends,

through net cash provided by operating activities, periodic asset sales, strategic real estate joint ventures, long-term secured and

unsecured indebtedness, borrowings under our unsecured senior line of credit, issuances under our commercial paper program, and

issuances of additional debt and/or equity securities.

We also expect to continue meeting our short-term liquidity and capital requirements, as further detailed in this section,

generally through our working capital and net cash provided by operating activities. We believe that the net cash provided by operating

activities will continue to be sufficient to enable us to make the distributions necessary to continue qualifying as a REIT.

For additional information on our liquidity requirements related to our contractual obligations and commitments, refer to

Note 5 – “Leases” and Note 10 – “Secured and unsecured senior debt” to our consolidated financial statements in Item 15 in this annual

report on Form 10-K.

Over the next several years, our balance sheet, capital structure, and liquidity objectives are as follows:

• Retain cash flows from operating activities after payment of dividends and distributions to noncontrolling interests for

investment in development and redevelopment projects and/or acquisitions;

• Maintain significant balance sheet liquidity;

• Improve credit profile and relative long-term cost of capital;

• Maintain diverse sources of capital, including sources from net cash provided by operating activities, unsecured debt,

secured debt, selective real estate asset sales, strategic real estate joint ventures, non-real estate investment sales, and

common stock;

• Maintain commitment to long-term capital to fund growth;

• Maintain prudent laddering of debt maturities;

• Maintain solid credit metrics;

• Prudently manage variable-rate debt exposure;

• Maintain a large unencumbered asset pool to provide financial flexibility;

• Fund common stock dividends and distributions to noncontrolling interests from net cash provided by operating activities;

• Manage a disciplined level of development and redevelopment projects as a percentage of our gross real estate assets;

and

• Maintain high levels of pre-leasing and percentage leased in development and redevelopment projects.

114

The following table presents the availability under our unsecured senior line of credit, net of amounts outstanding under our

commercial paper program; cash, cash equivalents, and restricted cash; availability under our secured construction loan; and

investments in publicly traded companies as of December 31, 2024 (in thousands):

Description	Stated Rate	Aggregate Commitments	Outstanding Balance (1)	Remaining Commitments/ Liquidity
Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program	SOFR+0.855%	$ 5,000,000	$ —	$ 5,000,000
Cash, cash equivalents, and restricted cash				559,847
Construction loan	SOFR+2.70%	$ 195,300	$ 149,322	45,706
Investments in publicly traded companies				105,667
Liquidity as of December 31, 2024				$ 5,711,220

(1) Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2024 .

Cash, cash equivalents, and restricted cash

As of December 31, 2024 and 2023 , we had $559.8 million and $660.8 million , respectively, of cash, cash equivalents, and

restricted cash. We expect existing cash, cash equivalents, and restricted cash, net cash provided by operating activities, proceeds

from real estate asset sales, sales of partial interests, strategic real estate joint ventures, non-real estate investment sales, borrowings

under our unsecured senior line of credit, issuances under our commercial paper program, issuances of unsecured senior notes

payable, borrowings under our secured construction loans, and issuances of common stock to continue to be sufficient to fund our

operating activities and cash commitments for investing and financing activities, such as regular quarterly dividends, distributions to

noncontrolling interests, scheduled debt repayments, acquisitions, and certain capital expenditures, including expenditures related to

construction activities and any common stock repurchases.

Cash flows

We report and analyze our cash flows based on operating activities, investing activities, and financing activities. The following

table summarizes changes in our cash flows for the years ended December 31, 2024 and 2023 (in thousands):

	Year Ended December 31, — 2024	2023	Change
Net cash provided by operating activities	$ 1,504,524	$ 1,630,550	$ (126,026)
Net cash used in investing activities	$ (1,510,695)	$ (2,500,619)	$ 989,924
Net cash (used in) provided by financing activities	$ (93,315)	$ 674,156	$ (767,471)

Operating activities

Cash flows provided by operating activities are primarily dependent upon the occupancy level of our asset base, the rental

rates of our leases, the collectibility of rent and recovery of operating expenses from our tenants, the timing of completion of

development and redevelopment projects, and the timing of acquisitions and dispositions of operating properties. Net cash provided by

operating activities for the year ended December 31, 2024 decreased by $126.0 million to $1.5 billion , compared to $1.6 billion for the

year ended December 31, 2023 . The decrease was primarily due to the ground lease prepayment of $135.0 million made in December

2024 f or a 24-year lease term extension to our existing ground lease agreement at the Alexandria Technology Square ® Megacampus in

our Cambridge submarket.

115

Investing activities

Cash used in investing activities for the years ended December 31, 2024 and 2023 consisted of the following (in thousands):

	Year Ended December 31, — 2024	2023	Increase (Decrease)
Sources of cash from investing activities:
Proceeds from sales of real estate	$ 1,220,206	$ 1,195,743	$ 24,463
Sales of and distributions from non-real estate investments	173,927	183,396	(9,469)
Change in escrow deposits	3,864	—	3,864
Return of capital from unconsolidated real estate joint ventures	2,916	—	2,916
	1,400,913	1,379,139	21,774
Uses of cash for investing activities:
Purchases of real estate	248,699	265,750	(17,051)
Additions to real estate	2,422,625	3,418,296	(995,671)
Change in escrow deposits	—	5,582	(5,582)
Investments in unconsolidated real estate joint ventures	3,927	658	3,269
Additions to non-real estate investments	236,357	189,472	46,885
	2,911,608	3,879,758	(968,150)
Net cash used in investing activities	$ 1,510,695	$ 2,500,619	$ (989,924)

The decrease in net cash used in investing activities for the year ended December 31, 2024 , compared to the year ended

December 31, 2023 , was primarily due to a decreased use of cash for additions to real estate. Refer to Note 3 – “Investments in real

estate” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information.

Financing activities

Cash flows (used in) provided by financing activities for the years ended December 31, 2024 and 2023 consisted of the

following (in thousands):

	Year Ended December 31, — 2024	2023	Change
Borrowings under secured notes payable	$ 29,919	$ 59,957	$ (30,038)
Repayments of borrowings under secured notes payable	(32)	(30)	(2)
Proceeds from issuance of unsecured senior notes payable	998,806	996,205	2,601
Borrowings under unsecured senior line of credit	—	1,245,000	(1,245,000)
Repayments of borrowings under unsecured senior line of credit	—	(1,245,000)	1,245,000
Proceeds from issuances under commercial paper program	13,010,600	9,234,000	3,776,600
Repayments of borrowings under commercial paper program	(13,110,600)	(9,134,000)	(3,976,600)
Payments of loan fees	(35,871)	(16,047)	(19,824)
Changes related to debt	892,822	1,140,085	(247,263)
Contributions from and sales of noncontrolling interests	306,473	547,391	(240,918)
Distributions to and purchases of noncontrolling interests	(308,636)	(245,091)	(63,545)
Proceeds from issuance of common stock	27,103	103,846	(76,743)
Repurchase of common stock	(50,107)	—	(50,107)
Dividends on common stock	(898,557)	(847,483)	(51,074)
Taxes paid related to net settlement of equity awards	(62,413)	(24,592)	(37,821)
Net cash (used in) provided by financing activities	$ (93,315)	$ 674,156	$ (767,471)

116

Capital resources

We expect that our principal liquidity needs for the year ending December 31, 2025 will be satisfied by the following multiple

sources of capital, as shown in the table below. There can be no assurance that our sources and uses of capital will not be materially

higher or lower than these expectations.

Key Sources and Uses of Capital (In millions)	2025 Guidance — Range		Midpoint
Sources of capital:
Reduction in debt	$ (40)	$ (340)	$ (190)
Net cash provided by operating activities after dividends	425	525	475
Dispositions and sales of partial interests (1)	1,200	2,200	1,700
Total sources of capital	$ 1,585	$ 2,385	$ 1,985
Uses of capital:
Construction	$ 1,450	$ 2,050	$ 1,750
Acquisitions and other opportunistic uses of capital (2)	—	200	100
Ground lease prepayment (3)	135	135	135
Total uses of capital	$ 1,585	$ 2,385	$ 1,985
Reduction in debt (included above):
Issuance of unsecured senior notes payable	$ 300	$ 900	$ 600
Repayment of secured notes payable	(600)	(600)	(600)
Unsecured senior line of credit, commercial paper program, and other	260	(640)	(190)
Net reduction in debt	$ (40)	$ (340)	$ (190)

(1) As of the date of this report, our share of pending dispositions subject to negotiations aggregated $539.5 million . These transactions represent approximately 32% of the

$1.7 billion midpoint of our 2025 guidance range for dispositions and sales of partial interests.

(2) On December 9, 2024 , we announced that our Board of Directors authorized a common stock repurchase program under which we may repurchase up to $500.0 million

of our common stock in the open market, in privately negotiated transactions, or otherwise through December 31, 2025 . In January 2025, we repurchased common

stock aggregating $150.0 million at an average price per share of $97.26 . As of the date of this report, the approximate value of shares authorized and remaining under

this program was $299.9 million .

(3) Refer to Note 19 – “Subsequent events” to our consolidated financial statements in Item 15 for additional information.

The key assumptions behind the sources and uses of capital in the table above include a favorable real estate transaction and

capital market environments, performance of our core operating properties, lease-up and delivery of current and future development

and redevelopment projects, and leasing activity. Our expected sources and uses of capital are subject to a number of variables and

uncertainties, including those discussed as “Forward-looking statements” under Part I; “ Item 1A. Risk factors ”; and “ Item 7.

Management’s discussion and analysis of financial condition and results of operations ” in this annual report on Form 10-K. We expect to

update our forecast for key sources and uses of capital on a quarterly basis.

117

Sources of capital

Net cash provided by operating activities after dividends

We expect to retain $425 million to $525 million of net cash flows from operating activities after payment of common stock

dividends and distributions to noncontrolling interests for the year ending December 31, 2025 . For purposes of this calculation, changes

in operating assets and liabilities are excluded as they represent timing differences. For the year ending December 31, 2025 , we expect

our recently delivered projects, our development and redevelopment projects expected to be delivered, contributions from Same

Properties, and recently acquired income-producing properties to contribute increases in income from rentals, net operating income,

and cash flows. We anticipate contractual near-term growth in annual net operating income (cash basis) of $70 million related to the

commencement of contractual rents on the projects recently placed into service that are near the end of their initial free rent period.

Refer to “ Cash flows ” in Item 7 in this annual report on Form 10-K for a discussion of cash flows provided by operating activities for the

year ended December 31, 2024 .

Debt

We expect to fund a portion of our capital needs for 2025 from issuances under our commercial paper program, issuances of

unsecured senior notes payable, borrowings under our unsecured senior line of credit, and/or borrowings under our secured

construction loan.

As of December 31, 2024 , our unsecured senior line of credit had aggregate commitments of $5.0 billion with an interest rate

of SOFR plus 0.855% , and in September 2024, we extended the maturity date from January 22, 2028 to January 22, 2030 . In addition

to the cost of borrowing, the unsecured senior line of credit is subject to an annual facility fee of 0.145% based on the aggregate

commitments outstanding . Based upon our ability to achieve certain annual sustainability targets, the interest rate and facility fee rate

are also subject to upward or downward adjustments of up to four basis points with respect to the interest rate and up to one basis point

with respect to the facility fee rate.

Based on certain sustainability metrics achieved in accordance with the terms of our unsecured senior line of credit

agreement, the borrowing rate was reduced for a one-year period by two basis points to SOFR plus 0.855% , from SOFR plus 0.875% ,

and the facility fee was reduced by 0.5 basis point to 0.145% from 0.15% . As of December 31, 2024 , we had no outstanding balance on

our unsecured senior line of credit.

Our commercial paper program provides us with the ability to issue up to $2.5 billion of commercial paper notes with a maturity

of generally 30 days or less and with a maximum maturity of 397 days from the date of issuance . Our commercial paper program is

backed by our unsecured senior line of credit, and at all times we expect to retain a minimum undrawn amount of borrowing capacity

under our unsecured senior line of credit equal to any outstanding balance under our commercial paper program. We use borrowings

under the program to fund short-term capital needs. The notes issued under our commercial paper program are sold under customary

terms in the commercial paper market. They are typically issued at a discount to par, representing a yield to maturity dictated by market

conditions at the time of issuance. In the event we are unable to issue commercial paper notes or refinance outstanding commercial

paper notes under terms equal to or more favorable than those under the unsecured senior line of credit, we expect to borrow under the

unsecured senior line of credit. The commercial paper notes sold during the year ended December 31, 2024 were issued at a weighted-

average yield to maturity of 5.30% . As of December 31, 2024 , we had no outstanding balance on our commercial paper program .

In February 2024, we issued $1.0 billion of unsecured senior notes payable with a weighted-average interest rate of 5.48%

and a weighted-average maturity of 23.1 years . The unsecured senior notes consisted of $400.0 million of 5.25% unsecured senior

notes due 2036 and $600.0 million of 5.625% unsecured senior notes due 2054 .

118

The following table presents our average debt outstanding and weighted-average interest rates during the year ended

December 31, 2024 (dollars in thousands):

	Year Ended December 31, 2024 — Average Debt Outstanding	Weighted-Average Interest Rate
Long-term fixed-rate debt	$ 12,049,708	3.77 %
Short-term variable-rate unsecured senior line of credit and commercial paper program debt	643,545	5.40
Blended-average interest rate	12,693,253	3.85
Loan fee amortization and annual facility fee related to unsecured senior line of credit	N/A	0.12
Total/weighted average	$ 12,693,253	3.97 %

Real estate dispositions and sales of partial interests

We expect to continue to focus on the disciplined execution of select sales of real estate. Future sales will provide an important

source of capital to fund a portion of pending and recently completed acquisitions, our development and redevelopment projects, and

opportunistic share repurchases, and also provide significant capital for growth. We may also consider additional sales of partial

interests in core Class A/A+ properties, development projects, and/or land. For the year ending December 31, 2025 , we expect real

estate dispositions and sales of partial interests in real estate assets to range from $1.2 billion to $2.2 billion . The amount of asset sales

necessary to meet our forecasted sources of capital will vary depending upon the amount of EBITDA associated with the assets sold.

Refer to Note 3 – “Investments in real estate,” Note 4 – “Consolidated and unconsolidated real estate joint ventures,” and

Note 15 – “Stockholders’ equity” to our consolidated financial statements in Item 15 and “Dispositions and sales of partial interests” in

Item 2 in this annual report on Form 10-K for additional information on our real estate dispositions.

As a REIT, we are generally subject to a 100% tax on the net income from real estate asset sales that the IRS characterizes as

“prohibited transactions.” We do not expect our sales will be categorized as prohibited transactions. However, unless we meet certain

“safe harbor” requirements, whether a real estate asset sale is a “prohibited transaction” will be based on the facts and circumstances

of the sale. Our real estate asset sales may not always meet such “safe harbor” requirements. Refer to “ Item 1A. Risk factors ” in this

annual report on Form 10-K for additional information about the “prohibited transaction” tax.

Common equity transactions

During the three months ended June 30, 2024, we entered into new forward equity sales agreements aggregating $28 million

to sell 230 thousand shares of common stock under our ATM program at an average price per share of $122.32 (before underwriting

discounts).

During the three months ended December 31, 2024 , we settled all outstanding forward equity sales agreements by issuing

230 thousand shares of common stock at an average price per share of $120.93 and received net proceeds of $27.8 million , before

offering costs . As of December 31, 2024 , the remaining aggregate amount available under our ATM program for future sales of common

stock was $1.47 billion .

Other sources

As a well-known seasoned issuer, we may, from time to time issue securities at our discretion based on our needs and market

conditions, including, as necessary, to balance our use of incremental debt capital.

Additionally, we, together with joint venture partners, hold interests in real estate joint ventures that we consolidate in our

financial statements. These existing joint ventures provide significant equity capital to fund a portion of our future construction spend,

and our joint venture partners may also contribute equity into these entities for financing-related activities. From January 1, 2025

through December 31, 2028 , we expect to receive capital contributions aggregating $684.1 million from existing consolidated real estate

joint venture partners to fund construction. During the year ending December 31, 2025 , contributions from noncontrolling interests from

existing joint venture partners are expected to aggregate $230.0 million .

119

Uses of capital

Summary of capital expenditures

One of our primary uses of capital relates to the development, redevelopment, pre-construction, and construction of properties.

W e currently have projects in our development and redevelopment pipeline aggregating 4.4 million RSF of Class A/A+ properties

undergoing construction and 1.9 million RSF of priority anticipated development and redevelopment projects . We incur capitalized

construction costs related to development, redevelopment, pre-construction, and other construction activities. We also incur additional

capitalized project costs, including interest, property taxes, insurance, and other costs directly related and essential to the development,

redevelopment, pre-construction, or construction of a project, during periods when activities necessary to prepare an asset for its

intended use are in progress. Refer to “New Class A/A+ development and redevelopment properties: current projects” in Item 2 and

“Summary of capital expenditures” in Item 7 in this annual report on Form 10-K for more information on our capital expenditures.

We capitalize interest cost as a cost of the project only during the period in which activities necessary to prepare an asset for

its intended use are ongoing, provided that expenditures for the asset have been made and interest cost has been incurred. Capitalized

interest for the years ended December 31, 2024 and 2023 of $331.0 million and $364.0 million , respectively, was classified in

investments in real estate in our consolidated balance sheets. The decrease in capitalized interest was related to a lower weighted-

average capitalized cost basis of $8.1 billion for the year ended December 31, 2024 , as compared to $9.5 billion for the year ended

December 31, 2023 , partially offset by an increase in weighted-average interest rate used to capitalize interest to 3.97% for the year

ended December 31, 2024 from 3.79% for the year ended December 31, 2023 .

Property taxes, insurance on real estate, and indirect project costs, such as construction, administration, legal fees, and office

costs that clearly relate to projects under development or construction, are capitalized as incurred during the period an asset is

undergoing activities to prepare it for its intended use. We capitalized payroll and other indirect costs related to development,

redevelopment, pre-construction, and construction projects, aggregating $100.9 million and $108.4 million , and property taxes,

insurance on real estate and indirect project costs aggregating $132.3 million and $129.1 million du ring the years ended December 31,

2024 and 2023 , respectively.

The decrease in our capitalized costs for the year ended December 31, 2024 , compared to the same period in 2023 , was

primarily driven by a reduction in the average real estate basis of our development and redevelopment pipeline following significant

deliveries in 2023 , most of which were placed into service during the fourth quarter of 2023. Pre-construction activities include

entitlements, permitting, design, site work, and other activities preceding commencement of construction of aboveground building

improvements. The advancement of pre-construction efforts is focused on reducing the time required to deliver projects to prospective

tenants. These critical activities add significant value for future ground-up development and are required for the vertical construction of

buildings. Should we cease activities necessary to prepare an asset for its intended use, the interest, taxes, insurance, and certain

other direct and indirect project costs related to the asset would be expensed as incurred. Expenditures for repairs and maintenance

are expensed as incurred.

Fluctuations in our development, redevelopment, and construction activities could result in significant changes to total

expenses and net income. For example, had we experienced a 10% reduction in development, redevelopment, and construction

activities without a corresponding decrease in indirect project costs, including interest and payroll, total expenses would have increased

by approximately $56.4 million for the year ended December 31, 2024 .

We use third-party brokers to assist in our leasing activity, who are paid on a contingent basis upon successful leasing. We are

required to capitalize initial direct costs related to successful leasing transactions that result directly from and are essential to the lease

transaction and would not have been incurred had that lease transaction not been successfully executed. During the year ended

December 31, 2024 , we capitalized total initial direct leasing costs of $91.8 million . Costs that we incur to negotiate or arrange a lease

regardless of its outcome, such as fixed employee compensation, tax, or legal advice to negotiate lease terms, and other costs, are

expensed as incurred.

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Real estate acquisitions and common stock repurchase program

On December 9, 2024 , we announced that our Board of Directors authorized a common stock repurchase program under

which we may repurchase up to $500.0 million of our common stock in the open market, in privately negotiated transactions, or

otherwise through December 31, 2025 . Share repurchases are expected to be funded on a leverage-neutral basis with net cash

provided by operating activities after dividends and proceeds from dispositions and sales of partial interests.

• In December 2024, we repurchased 496,276 shares of common stock.

• From January 1, 2025 through January 27, 2025 , we repurchased 1.5 million shares of additional common stock.

• As of the date of this report, cumulative repurchases under the program aggregated $200.1 million and 2.0 million shares of

common stock at an average price per share of $98.16 .

• As of the date of this report, the approximate value of shares authorized and remaining under this program was $299.9 million .

For the year ending December 31, 2025 , we expect real estate acquisitions and common stock repurchases to range from $—

to $200 million . Refer to “Acquisitions” in Note 3 – “Investments in real estate” and to Note 4 – “Consolidated and unconsolidated real

estate joint ventures” to our consolidated financial statements in Item 15 and “Acquisitions” in Item 2 in this annual report on Form 10-K

for information on our acquisitions.

Dividends

During the years ended December 31, 2024 and 2023 , we paid common stock dividends of $898.6 million and $847.5 million ,

respectively. The increase of $51.1 million in dividends paid on our common stock during the year ended December 31, 2024 ,

compared to the year ended December 31, 2023 , was primarily due to an increase in the number of common shares outstanding

subsequent to January 1, 2023 as a result of settled forward equity sales agreements, and an increase in the related dividends to $5.14

per common share paid during the year ended December 31, 2024 from $4.90 per common share paid during the year ended

December 31, 2023 .

Secured notes payable

Secured notes payable as of December 31, 2024 consisted of three notes secured by two properties . Our secured notes

payable typically require monthly payments of principal and interest and had a weighted-average interest rate of approximately 7.51% .

As of December 31, 2024 , the total book value of our investments in real estate securing debt was approximately $368.2 million . As of

December 31, 2024 , our secured notes payable, including unamortized discounts and deferred financing costs, comprised

approximately $587 thousand and $149.3 million of fixed-rate debt and unhedged variable-rate debt , respectively.

As of December 31, 2024 , our unconsolidated real estate joint venture in which we hold a 10% ownership interest, located at

1655 and 1725 Third Street in our Mission Bay submarket, has a $600.0 million secured loan outstanding maturing on March 10, 2025 .

The unconsolidated real estate joint venture is in the process of refinancing approximately $500 million of this debt with a new secured

note payable, which is expected to close in the first quarter of 2025. The remaining debt balance of approximately $100 million will be

repaid through contributions from the unconsolidated joint venture partners. We expect to contribute our share of approximately $10

million in the first quarter of 2025.

Unsecured senior notes payable and unsecured senior line of credit

The requirements of, and our actual performance with respect to, the key financial covenants under our unsecured senior

notes payable as of December 31, 2024 were as follows:

Covenant Ratios (1)	Requirement	December 31, 2024
Total Debt to Total Assets	Less than or equal to 60%	29%
Secured Debt to Total Assets	Less than or equal to 40%	0.4%
Consolidated EBITDA (2) to Interest Expense	Greater than or equal to 1.5x	11.0x
Unencumbered Total Asset Value to Unsecured Debt	Greater than or equal to 150%	330%

(1) All covenant ratio titles utilize terms as defined in the respective debt agreements.

(2) The calculation of consolidated EBITDA is based on the definitions contained in our loan agreements and is not directly comparable to the computation of EBITDA as

described in Exchange Act Release No. 47226.

In addition, the terms of the indentures, among other things, limit the ability of the Company, Alexandria Real Estate Equities,

L.P., and the Company’s subsidiaries to (i) consummate a merger, or consolidate, or sell all or substantially all of the Company’s assets

and (ii) incur certain secured or unsecured indebtedness.

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The requirements of, and our actual performance with respect to, the key financial covenants under our unsecured senior line

of credit as of December 31, 2024 were as follows:

Covenant Ratios (1)	Requirement	December 31, 2024
Leverage Ratio	Less than or equal to 60.0%	29.5%
Secured Debt Ratio	Less than or equal to 45.0%	0.3%
Fixed-Charge Coverage Ratio	Greater than or equal to 1.50x	3.91x
Unsecured Interest Coverage Ratio	Greater than or equal to 1.75x	10.38x

(1) All covenant ratio titles utilize terms as defined in the credit agreement.

Estimated interest payments

Estimated interest payments on our fixed-rate debt are calculated based upon contractual interest rates, including interest

payment dates and scheduled maturity dates. As of December 31, 2024 , 98.8% of our debt was fixed-rate debt . For additional

information regarding our debt, refer to Note 10 – “Secured and unsecured senior debt” to our consolidated financial statements in

Item 15 in this annual report on Form 10-K.

Ground lease obligations

Ground lease obligations as of December 31, 2024 included leases for 32 of our properties and accounted for approximately

8% of our total number of properties. Among these 32 properties, 17 properties are subject to ground leases with a weighted-average

remaining lease term of 41 years , including extension options that we are reasonably certain to exercise. These leases are with a sin gle

lessor in our Greater Stanford submarket with whom we have extended three ground leases over the past 10 years.

Our remaining 15 properties subject to ground leases are located across multiple submarkets and have remaining lease terms

ranging from approximately 46 to 82 years . The weighted-average remaining lease term of these ground leases is 71 years , including

extension options that we are reasonably certain to exercise.

In many cases, we seek to extend our ground leases well ahead of their scheduled contractual expirations. If we are

successful in extending ground leases, we could see significant up-front or increased recurring future payments to the ground lessor

and/or increased ground lease expense, which may require us to increase our capital funding needs.

Operating lease agreements

As of December 31, 2024 , the remaining contractual payments under ground and office lease agreements in which we are the

lessee aggregated $925.0 million and $24.4 million , respectively. As of December 31, 2024 , our operating lease liability, calculated as

the present value of the remaining payments aggregating $949.4 million under our operating lease agreements, including our extension

options that we are reasonably certain to exercise, was $507.1 million , which was classified in accounts payable, accrued expenses,

and other liabilities in our consolidated balance sheet. As of December 31, 2024 , the weighted-average remaining lease term of

operating leases in which we are the lessee was approximately 56 years , including extension options that we are reasonably certain to

exercise, and the weighted-average discount rate was 4.9% . Our corresponding operating lease right-of-use assets, adjusted for initial

direct leasing costs and other consideration exchanged with the landlord prior to the commencement of the lease, aggregated

$764.5 million . We classify the right-of-use asset in other assets in our consolidated balance sheets. Refer to “ Lease accounting ” in

Note 2 – “Summary of significant accounting policies” to our consolidated financial statements in Item 15 in this annual report on

Form 10-K for additional information.

Included in the aforementioned December 31, 2024 balances is the ground lease recorded in July 2024 upon our execution of

an amendment to our existing ground lease agreement at the Alexandria Technology Square ® Megacampus aggregating

1.2 million RSF in our Cambridge submarket , which extended the term by 24 years from January 1, 2065 to December 31, 2088 . The

amendment required that we prepay our entire rent obligation for the extended lease term aggregating $270.0 million in two equal

installments during the fourth quarter of 2024 and the first quarter of 2025 . During the three months ended December 31, 2024 , we

made the first installment payment aggregating $135.0 million . As of December 31, 2024 , the second installment payment aggregating

$135.0 million remained outstanding and was paid on January 14, 2025 . Alexandria Technology Square ® is a foundational Megacampus

in the heart of the global life science ecosystem in Cambridge and is the Greater Boston base of operations of key strategic tenants

such as GlaxoSmithKline plc, Novartis AG, Massachusetts Institute of Technology, and Mass General Brigham. Securing this ground

lease through December 2088 significantly enhances the long-term value of our investment in this critical Megacampus.

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Commitments

As of December 31, 2024 , remaining aggregate costs under contract for the construction of properties undergoing

development, redevelopment, and improvements under the terms of leases approximated $1.0 billion . We expect payments for these

obligations to occur over one to three years , subject to capital planning adjustments from time to time. We may have the ability to cease

the construction of certain projects, which would result in the reduction of our commitments. In addition, we have letters of credit and

performance obligations aggregating $29.5 million .

We are committed to funding approximately $399.2 million related to our non-real estate investments. These funding

commitments are primarily associated with our investments in privately held entities that report NAV and expire at various dates over

the next 12 years , with a weighted-average expiration of 8.2 years as of December 31, 2024 .

As of December 31, 2024 , the second installment payment related to the amendment of our existing ground lease agreement

at the Alexandria Technology Square ® Megacampus aggregating $135.0 million remained outstanding and was paid on January 14,

2025 . Refer to “Operating lease agreements” above for additional details.

Exposure to environmental liabilities

In connection with the acquisition of all of our properties, we have obtained Phase I environmental assessments to ascertain

the existence of any environmental liabilities or other issues. The Phase I environmental assessments of our properties have not

revealed any environmental liabilities that we believe would have a material adverse effect on our financial condition or results of

operations taken as a whole, nor are we aware of any material environmental liabilities that have occurred since the Phase I

environmental assessments were completed. In addition, we carry a policy of pollution legal liability insurance covering exposure to

certain environmental losses at substantially all of our properties.

Foreign currency translation gains and losses

The following table presents the change in accumulated other comprehensive loss attributable to Alexandria Real Estate

Equities, Inc.’s stockholders during the year ended December 31, 2024 primarily due to the changes in the foreign exchange rates for

our real estate investments in Canada (in thousands). We reclassify unrealized foreign currency translation gains and losses into net

income as we dispose of these holdings.

Balance as of December 31, 2023	Total — $ (15,896)
Other comprehensive loss before reclassifications	(29,719)
Reclassification adjustment for loss included in net income	(637)	(1)
Net other comprehensive loss	(30,356)
Balance as of December 31, 2024	$ (46,252)

(1) Primarily relates to the completion of the sale of one property in our Canada market during the three months ended December 31, 2024 and substantial liquidation of the

associated foreign entity.

Inflation

As of December 31, 2024 , approximately 92% of our leases (on an annual rental revenue basis) were triple net leases, which

require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and

other operating expenses (including increases thereto) in addition to base rent. Approximately 97% of our leases (on an annual rental

revenue basis) contained effective annual rent escalations approximating 3% that were either fixed or indexed base d on a consumer

price index or other indices. Accordingly, we do not believe that our cash flows or earnings from real estate operations are subject to

significant risks from inflation. A period of inflation, however, could cause an increase in the cost of our variable-rate borrowings,

including borrowings under our unsecured senior line of credit and commercial paper program, issuances of unsecured senior notes

payable, and borrowings under our secured construction loans, and secured loans held by our unconsolidated real estate joint ventures.

In addition, refer to “Item 1A. Risk factors” in this annual report on Form 10-K for a discussion about risks that inflation directly

or indirectly may pose to our business.

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Issuer and guarantor subsidiary summarized financial information

Alexandria Real Estate Equities, Inc. (the “Issuer”) has sold certain debt securities registered under the Securities Act of 1933,

as amended, that are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P. (the “LP” or the “Guarantor

Subsidiary”), an indirectly 100% owned subsidiary of the Issuer. The Issuer’s other subsidiaries, including, but not limited to, the

subsidiaries that own substantially all of its real estate (collectively, the “Combined Non-Guarantor Subsidiaries”), will not provide a

guarantee of such securities, including the subsidiaries that are partially or 100% owned by the LP. The following summarized financial

information presents on a combined basis, balance sheet information as of December 31, 2024 and 2023 , and results of operations and

comprehensive income for the years ended December 31, 2024 and 2023 for the Issuer and the Guarantor Subsidiary. The information

presented below excludes eliminations necessary to arrive at the information on a consolidated basis. In presenting the summarized

financial statements, the equity method of accounting has been applied to (i) the Issuer’s interests in the Guarantor Subsidiary, (ii) the

Guarantor Subsidiary’s interests in the Combined Non-Guarantor Subsidiaries, and (iii) the Combined Non-Guarantor Subsidiaries’

interests in the Guarantor Subsidiary, where applicable, even though all such subsidiaries meet the requirements to be consolidated

under GAAP. All assets and liabilities have been allocated to the Issuer and the Guarantor Subsidiary generally based on legal entity

ownership.

The following tables present combined summarized financial information as of December 31, 2024 and 2023 and for the years

ended December 31, 2024 and 2023 for the Issuer and Guarantor Subsidiary. Amounts provided do not represent our total consolidated

amounts (in thousands):

	December 31, — 2024	2023
Assets:
Cash, cash equivalents, and restricted cash	$ 103,993	$ 210,755
Other assets	153,913	115,373
Total assets	$ 257,906	$ 326,128
Liabilities:
Unsecured senior notes payable	$ 12,094,465	$ 11,096,028
Unsecured senior line of credit and commercial paper	—	99,952
Other liabilities	542,322	504,659
Total liabilities	$ 12,636,787	$ 11,700,639

	Year Ended December 31, — 2024	2023
Total revenues	$ 59,023	$ 54,230
Total expenses	(349,437)	(273,990)
Net loss	(290,414)	(219,760)
Net income attributable to unvested restricted stock awards	(13,394)	(11,195)
Net loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$ (303,808)	$ (230,955)

As of December 31, 2024 , 376 of our 391 properties were held indirectly by the REIT’s wholly owned consolidated subsidiary,

Alexandria Real Estate Equities, L.P.

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Critical accounting estimates

Our consolidated financial statements have been prepared in accordance with GAAP. The preparation of these financial

statements in conformity with GAAP requires us to make estimates, judgments, and assumptions that affect the reported amounts of

assets, liabilities, revenues, and expenses. We base these estimates, judgments, and assumptions on historical experience, current

trends, and various other factors that we believe to be reasonable under the circumstances.

We continually evaluate the estimates, judgments, and assumptions we use to prepare our consolidated financial statements .

C hanges in estimates, judgments, or assumptions could affect our financial position and our results of operations, which are used by

our stockholders, potential investors, industry analysts, and lenders in their evaluation of our performance.

Our critical accounting estimates are defined as accounting estimates or assumptions made in accordance with GAAP, which

involve a significant level of estimation uncertainty or subjectivity and have had or are reasonably likely to have a material impact on our

financial condition or results of operations. Our significant accounting policies, which utilize these critical accounting estimates, are

described in Note 2 – “Summary of significant accounting policies” to our consolidated financial statements in Item 15 in this annual

report on Form 10-K. Our critical accounting estimates are described below.

Recognition of real estate acquired

Generally, our acquisitions of real estate or in-substance real estate are accounted for as asset acquisitions and not business

combinations because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable

assets (i.e., land, buildings, and related intangible assets). The accounting model for asset acquisitions requires that the acquisition

consideration (including acquisition costs) be allocated to the individual assets acquired and liabilities assumed on a relative fair value

basis. Any excess (deficit) of the consideration transferred relative to the sum of the fair value of the assets acquired and liabilities

assumed is allocated to the individual assets and liabilities based on their relative fair values.

We assess the relative fair values of tangible and intangible assets and liabilities based on:

(i) Available comparable market information;

(ii) Estimated replacement costs; or

(iii) Discounted cash flow analysis/estimated net operating income and capitalization rates.

In certain instances, we may use multiple valuation techniques and estimate fair values based on an average of multiple

valuation results. We exercise judgement to determine key assumptions used in each valuation technique. For example, to estimate

future cash flows in the discounted cash flow analysis, we are required to use judgment and make a number of assumptions, including

those related to projected growth in rental rates and operating expenses, and anticipated trends and market/economic conditions. The

use of different assumptions in the discounted cash flow analysis can affect the amount of consideration allocated to the acquired

depreciable/amortizable asset, which in turn can impact our net income due to the recognition of the related depreciation/amortization

expense in our consolidated statements of operations.

We completed acquisitions of two properties for a total purchase price of $249.4 million during the year ended December 31,

2024 . These transactions were accounted for as asset acquisitions, and the purchase price of each was allocated based on the relative

fair values of the assets acquired and liabilities assumed. Refer to “Investments in real estate” in Note 2 – “Summary of significant

accounting policies” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information.

Impairment of long-lived assets

Impairment of real estate assets classified as held for sale

A property is classified as held for sale when all of the accounting criteria for a plan of sale have been met. These criteria are

described in “Investments in real estate” in Note 2 – “Summary of significant accounting policies” to our consolidated financial

statements in Item 15 in this annual report on Form 10-K. Upon classification as held for sale, we recognize an impairment charge, if

necessary, to lower the carrying amount of the real estate asset to its estimated fair value less cost to sell. The determination of fair

value can involve significant judgments and assumptions. We develop key assumptions based on the following available factors: (i)

contractual sales price, (ii) preliminary non-binding letters of intent, or (iii) other available comparable market information. If this

information is not available, we use estimated replacement costs or estimated cash flow projections that utilize estimated discount and

capitalization rates. These estimates are subject to uncertainty and therefore require significant judgment by us. We review all assets

held for sale each reporting period to determine whether the existing carrying amounts are fully recoverable in comparison to their

estimated fair values less costs to sell. Subsequently, as a result of our quarterly assessment, we may recognize an incremental

impairment charge for any decrease in the asset’s fair value less cost to sell. Conversely, we may recognize a gain for a subsequent

increase in fair value less cost to sell, limited to the cumulative net loss previously recognized.

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Impairment of other long-lived assets

For each reporting period, we review current activities and changes in the business conditions of all of our long-lived assets,

including our rental properties, CIP, land held for development, right-of-use assets related to operating leases in which we are the

lessee, and intangibles, to determine the existence of any triggering events or impairment indicators requiring an impairment analysis. If

triggering events or impairment indicators are identified, we review an estimate of the future undiscounted cash flows, including, if

necessary, a probability-weighted approach if multiple outcomes are under consideration.

Long-lived assets to be held and used, are individually evaluated for impairment when conditions exist that may indicate that

the carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not

recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.

Triggering events or impairment indicators for long-lived assets to be held and used, including our rental properties, CIP, land held for

development, and intangibles, are assessed by project and include significant fluctuations in estimated net operating income,

occupancy changes, significant near-term lease expirations, current and historical operating and/or cash flow losses, construction costs,

estimated completion dates, rental rates, and other market factors. We assess the expected undiscounted cash flows based upon

numerous factors, including, but not limited to, projected rental rates, exit capitalization rates, and construction costs for projects under

development, which are based on available market information, current and historical operating results, known trends, current market/

economic conditions that may affect the property, and our assumptions about the use of the asset, including, if necessary, a probability-

weighted approach if multiple outcomes are under consideration.

Upon determination that an impairment has occurred, a write-down is recognized to reduce the carrying amount to its

estimated fair value. If an impairment loss is not required to be recognized, the recognition of depreciation or amortization is adjusted

prospectively, as necessary, to reduce the carrying amount of the real estate to its estimated disposition value over the remaining period

that the asset is expected to be held and used. We may also adjust depreciation of properties that are expected to be disposed of or

redeveloped prior to the end of their useful lives.

The evaluation for impairment and calculation of the carrying amount of a long-lived asset to be held and used involves

consideration of factors and calculations that are different than the estimate of fair value of assets classified as held for sale. Because of

these two different models, it is possible for a long-lived asset previously classified as held and used to require the recognition of an

impairment charge upon classification as held for sale.

Impairment of non-real estate investments

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

industry . As a REIT, we generally limit our ownership percentage in the voting stock of each individual entity to less than 10% .

Our investments in privately held entities that do not report NAV per share require our evaluation for impairment when changes

in these entities’ conditions may indicate that an impairment exists. We closely monitor these investments throughout the year for new

developments, including operating results, prospects and results of clinical trials, new product initiatives, new collaborative agreements,

capital-raising events, and merger and acquisition activities. We evaluate these investees on the basis of a qualitative assessment for

indicators of impairment by monitoring the presence of the following triggering events or impairment indicators: (i) a significant

deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee; (ii) a significant adverse

change in the regulatory, economic, or technological environment of the investee, (iii) a significant adverse change in the general

market condition, including the research and development of technology and products that the investee is bringing or attempting to

bring to the market, (iv) significant concerns about the investee’s ability to continue as a going concern, and/or (v) a decision by

investors to cease providing support to reduce their financial commitment to the investee. If such indicators are present, we are required

to estimate the investment’s fair value and immediately recognize an impairment loss in an amount equal to the investment’s carrying

value in excess of its estimated fair value. As of each December 31, 2024 , 2023 , and 2022 , the carrying amounts of our investments in

privately held entities that do not report NAV per share accounted for 2% , 1% , and 2% of our total assets and aggregated

$575.2 million , $542.9 million , and $582.7 million , respectively. During the years ended December 31, 2024 , 2023 , and 2022 , we

recognized impairment charges aggregating 10% , 14% , and 4% , respectively, of the carrying amounts of our investments in privately

held entities that do not report NAV.

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Monitoring of tenant credit quality

We monitor, on an ongoing basis, the credit quality and any related material changes of our tenants by (i) monitoring the credit

rating of tenants that are rated by a nationally recognized credit rating agency, (ii) reviewing financial statements of the tenants that are

publicly available or that are required to be delivered to us pursuant to the applicable lease, (iii) monitoring news reports regarding our

tenants and their respective businesses and industries in which they conduct business, and (iv) monitoring the timeliness of lease

payments. We have a team of employees who, among them, have an extensive educational background or experience in biology,

chemistry, industrial biotechnology, agtech, and the life science industry, as well as knowledge in finance. This team is responsible for

timely assessment, monitoring, and communication of our tenants’ credit quality and any material changes therein. During the years

ended December 31, 2024 , 2023 , and 2022 , specific write-offs and increases to our general allowance related to deferred rent balances

of tenants recognized in our consolidated statements of operations have not exceeded 0.8% of our income from rentals for each

respective year. For additional information, refer to “ Monitoring of tenant credit quality ” in Note 2 – “Summary of significant accounting

policies” to our consolidated financial statements in Item 15 in this annual report on Form 10-K for additional information.

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Definitions and reconciliations

This section contains additional information on certain non-GAAP financial measures including reconciliations to the most

directly comparable financial measure calculated and presented in accordance with GAAP and the reasons why we use these

supplemental measures of performance and believe they provide useful information to investors, as well as the definitions of other

terms used in this annual report on Form 10-K.

Funds from operations and funds from operations, as adjusted, attributable to Alexandria Real Estate Equities, Inc.’s common

stockholders

GAAP-basis accounting for real estate assets utilizes historical cost accounting and assumes that real estate values diminish

over time. In an effort to overcome the difference between real estate values and historical cost accounting for real estate assets, the

Nareit Board of Governors established funds from operations as an improved measurement tool. Since its introduction, funds from

operations has become a widely used non-GAAP financial measure among equity REITs. We believe that funds from operations is

helpful to investors as an additional measure of the performance of an equity REIT. Moreover, we believe that funds from operations, as

adjusted, allows investors to compare our performance to the performance of other real estate companies on a consistent basis, without

having to account for differences recognized because of real estate acquisition and disposition decisions, financing decisions, capital

structure, capital market transactions, variances resulting from the volatility of market conditions outside of our control, or other

corporate activities that may not be representative of the operating performance of our properties.

The 2018 White Paper published by the Nareit Board of Governors (the “Nareit White Paper”) defines funds from operations as

net income (computed in accordance with GAAP), excluding gains or losses on sales of real estate, and impairments of real estate, plus

depreciation and amortization of operating real estate assets, and after adjustments for our share of consolidated and unconsolidated

partnerships and real estate joint ventures. Impairments represent the write-down of assets when fair value over the recoverability

period is less than the carrying value due to changes in general market conditions and do not necessarily reflect the operating

performance of the properties during the corresponding period.

We compute funds from operations, as adjusted, as funds from operations calculated in accordance with the Nareit White

Paper, excluding significant gains, losses, and impairments realized on non-real estate investments, unrealized gains or losses on non-

real estate investments, impairment of real estate primarily consisting of pre-acquisition costs incurred in connection with acquisitions

we decided to no longer pursue, gains or losses on early extinguishment of debt, provision for expected credit losses on financial

instruments, significant termination fees, acceleration of stock compensation expense due to the resignations of executive officers, deal

costs, the income tax effect related to such items, and the amount of such items that is allocable to our unvested restricted stock

awards. We compute the amount that is allocable to our unvested restricted stock awards using the two-class method. Under the two-

class method, we allocate net income (after amounts attributable to noncontrolling interests) to common stockholders and to unvested

restricted stock awards by applying the respective weighted-average shares outstanding during each quarter-to-date and year-to-date

period. This may result in a difference of the summation of the quarter-to-date and year-to-date amounts. Neither funds from operations

nor funds from operations, as adjusted, should be considered as alternatives to net income (determined in accordance with GAAP) as

indications of financial performance, or to cash flows from operating activities (determined in accordance with GAAP) as measures of

liquidity, nor are they indicative of the availability of funds for our cash needs, including our ability to make distributions.

The following table reconciles net income to funds from operations for the share of consolidated real estate joint ventures

attributable to noncontrolling interests and our share of unconsolidated real estate joint ventures for the three months and year ended

December 31, 2024 (in thousands):

	Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures — December 31, 2024		Our Share of Unconsolidated Real Estate Joint Ventures — December 31, 2024
	Three Months Ended	Year Ended	Three Months Ended	Year Ended
Net income	$ 46,150	$ 187,784	$ 6,635	$ 7,059
Depreciation and amortization of real estate assets	34,986	129,711	1,061	4,238
Gain on sales of real estate	(5,025)	(5,025)	(3,328)	(3,328)
Funds from operations	$ 76,111	$ 312,470	$ 4,368	$ 7,969

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

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

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

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

stockholders – diluted, as adjusted, and the related per share amounts for the years ended December 31, 2024 , 2023 , and 2022 (in

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

	Year Ended December 31, — 2024		2023	2022
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted	$ 309,555		$ 92,444	$ 513,268
Depreciation and amortization of real estate assets	1,191,524		1,080,529	988,363
Noncontrolling share of depreciation and amortization from consolidated real estate JVs	(129,711)		(115,349)	(107,591)
Our share of depreciation and amortization from unconsolidated real estate JVs	4,238		3,589	3,666
Gain on sales of real estate	(127,615)	(1)	(277,037)	(537,918)
Impairment of real estate – rental properties and land	192,455	(2)	450,428	20,899
Allocation to unvested restricted stock awards	(8,696)		(5,175)	(1,118)
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted (3)	1,431,750		1,229,429	879,569
Unrealized losses on non-real estate investments	112,246		201,475	412,193
Impairment of non-real estate investments	58,090	(4)	74,550	20,512
Impairment of real estate	30,613	(2)	10,686	44,070
Loss on early extinguishment of debt	—		—	3,317
Acceleration of stock compensation expense due to executive officer resignations	—		20,295	7,185
Provision for expected credit losses on financial instruments	(434)	(5)	—	—
Allocation to unvested restricted stock awards	(3,188)		(4,121)	(5,137)
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted	$ 1,629,077		$ 1,532,314	$ 1,361,709

(1) Includes our share of gain on real estate from one unconsolidated real estate joint venture and one consolidated real estate joint venture. Refer to Note 4 –

“Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements in Item 15 for additional information.

(2) Refer to “Sales of real estate assets and impairment charges” in Note 3 – “Investments in real estate” to our consolidated financial statements in Item 15 for additional

information.

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

(4) Primarily related to five non-real estate investments in privately held entities that do not report NAV. Refer to Note 7 – “Investments” to our consolidated financial

statements in Item 15 for additional information.

(5) Represents an adjustment to the provision for expected credit losses for a direct financing lease, as well as the initial recognition of a provision for expected credit losses

for two notes receivable issued in connection with dispositions completed during the three months ended December 31, 2024. Refer to Note 5 – “Leases” and Note 8 –

“Other assets” to our consolidated financial statements in Item 15 for additional information.

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(Per share)	Year Ended December 31, — 2024	2023	2022
Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted	$ 1.80	$ 0.54	$ 3.18
Depreciation and amortization of real estate assets	6.20	5.67	5.47
Gain on sales of real estate	(0.74)	(1.62)	(3.33)
Impairment of real estate – rental properties and land	1.12	2.64	0.13
Allocation to unvested restricted stock awards	(0.06)	(0.04)	(0.01)
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted	8.32	7.19	5.44
Unrealized losses on non-real estate investments	0.65	1.18	2.55
Impairment of non-real estate investments	0.34	0.44	0.13
Impairment of real estate	0.18	0.06	0.27
Loss on early extinguishment of debt	—	—	0.02
Acceleration of stock compensation expense due to executive officer resignations	—	0.12	0.04
Allocation to unvested restricted stock awards	(0.02)	(0.02)	(0.03)
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted	$ 9.47	$ 8.97	$ 8.42
Weighted-average shares of common stock outstanding – diluted (1)	172,071	170,909	161,659

(1) Refer to “ Weighted-average shares of common stock outstanding – diluted ” in this section for additional information.

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Adjusted EBITDA and Adjusted EBITDA margin

We use Adjusted EBITDA as a supplemental performance measure of our operations, for financial and operational decision-

making, and as a supplemental means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated

as earnings before interest, taxes, depreciation, and amortization (“EBITDA”), excluding stock compensation expense, gains or losses

on early extinguishment of debt, gains or losses on sales of real estate, impairments of real estate, provision for expected credit losses

on financial instruments, and significant termination fees. Adjusted EBITDA also excludes unrealized gains or losses and significant

realized gains or losses and impairments that result from our non-real estate investments. These non-real estate investment amounts

are classified in our consolidated statements of operations outside of total revenues.

We believe Adjusted EBITDA provides investors with relevant and useful information as it allows investors to evaluate the

operating performance of our business activities without having to account for differences recognized because of investing and

financing decisions related to our real estate and non-real estate investments, our capital structure, capital market transactions, and

variances resulting from the volatility of market conditions outside of our control. For example, we exclude gains or losses on the early

extinguishment of debt to allow investors to measure our performance independent of our indebtedness and capital structure. We

believe that adjusting for the effects of impairments and gains or losses on sales of real estate, significant impairments and realized

gains or losses on non-real estate investments, provision for expected credit losses on financial instruments, and significant termination

fees allows investors to evaluate performance from period to period on a consistent basis without having to account for differences

recognized because of investing and financing decisions related to our real estate and non-real estate investments or other corporate

activities that may not be representative of the operating performance of our properties.

In addition, we believe that excluding charges related to stock compensation and unrealized gains or losses facilitates for

investors a comparison of our business activities across periods without the volatility resulting from market forces outside of our control.

Adjusted EBITDA has limitations as a measure of our performance. Adjusted EBITDA does not reflect our historical expenditures or

future requirements for capital expenditures or contractual commitments. While Adjusted EBITDA is a relevant measure of performance,

it does not represent net income (loss) or cash flows from operations calculated and presented in accordance with GAAP, and it should

not be considered as an alternative to those indicators in evaluating performance or liquidity.

In order to calculate the Adjusted EBITDA margin, we divide Adjusted EBITDA by total revenues as presented in our

consolidated statements of operations. We believe that this supplemental performance measure provides investors with additional

useful information regarding the profitability of our operating activities.

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

reconciliation for Adjusted EBITDA on a forward-looking basis. This is due to the inherent difficulty of forecasting the timing and/or

amount of items that depend on market conditions outside of our control, including the timing of dispositions, capital events, and

financing decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-real estate

investments, impairment of real estate, impairment of non-real estate investments, and provision for expected credit losses on financial

instruments. Our attempt to predict these amounts may produce significant but inaccurate estimates, which would be potentially

misleading for our investors.

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The following table reconciles net income (loss), the most directly comparable financial measure calculated and presented in

accordance with GAAP, to Adjusted EBITDA and calculates the Adjusted EBITDA margin for the three months and years ended

December 31, 2024 and 2023 (dollars in thousands):

	Three Months Ended December 31, — 2024	2023	Year Ended December 31, — 2024	2023
Net (loss) income	$ (16,095)	$ (42,658)	$ 510,733	$ 280,994
Interest expense	55,659	31,967	185,838	74,204
Income taxes	1,855	1,322	6,678	5,887
Depreciation and amortization	330,108	285,246	1,202,380	1,093,473
Stock compensation expense	12,477	34,592	59,634	82,858
Gain on sales of real estate	(101,806)	(62,227)	(129,312)	(277,037)
Unrealized losses (gains) on non-real estate investments	79,776	(19,479)	112,246	201,475
Impairment of real estate	186,564	271,890	223,068	461,114
Impairment of non-real estate investments	20,266	23,094	58,090	74,550
Provision for expected credit losses on financial instruments	(434)	—	(434)	—
Adjusted EBITDA	$ 568,370	$ 523,747	$ 2,228,921	$ 1,997,518
Total revenues	$ 788,945	$ 757,216	$ 3,116,394	$ 2,885,699
Adjusted EBITDA margin	72%	69%	72%	69%

Annual rental revenue

Annual rental revenue represents the annualized fixed base rental obligations, calculated in accordance with GAAP, including

the amortization of deferred revenue related to tenant-funded and tenant-built landlord improvements, for leases in effect as of the end

of the period, related to our operating RSF. Annual rental revenue is presented using 100% of the annual rental revenue from our

consolidated properties and our share of annual rental revenue for our unconsolidated real estate joint ventures. Annual rental revenue

per RSF is computed by dividing annual rental revenue by the sum of 100% of the RSF of our consolidated properties and our share of

the RSF of properties held in unconsolidated real estate joint ventures. As of December 31, 2024 , approximately 92% of our leases (on

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

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

base rent. Annual rental revenue excludes these operating expenses recovered from our tenants. Amounts recovered from our tenants

related to these operating expenses, along with base rent, are classified in income from rentals in our consolidated statements of

operations.

Capitalization rates

Capitalization rates are calculated based on net operating income and net operating income (cash basis) annualized,

excluding lease termination fees, on stabilized operating assets for the quarter preceding the date on which the property is sold, or

near-term prospective net operating income.

Capitalized interest

We capitalize interest cost as a cost of a project during periods for which activities necessary to develop, redevelop, or

reposition a project for its intended use are ongoing, provided that expenditures for the asset have been made and interest cost has

been incurred. Activities necessary to develop, redevelop, or reposition a project include pre-construction activities such as

entitlements, permitting, design, site work, and other activities preceding commencement of construction of aboveground building

improvements. The advancement of pre-construction efforts is focused on reducing the time required to deliver projects to prospective

tenants. These critical activities add significant value for future ground-up development and are required for the vertical construction of

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buildings. If we cease activities necessary to prepare a project for its intended use, interest costs related to such project are expensed

as incurred.

Cash interest

Cash interest is equal to interest expense calculated in accordance with GAAP plus capitalized interest, less amortization of

loan fees and debt premiums (discounts). Refer to “ Fixed-charge coverage ratio ” in this section for a reconciliation of interest expense,

the most directly comparable financial measure calculated and presented in accordance with GAAP, to cash interest.

Class A/A+ properties and AAA locations

Class A/A+ properties are properties clustered in AAA locations that provide innovative tenants with highly dynamic and

collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity,

efficiency, creativity, and success. These properties are typically well-located, professionally managed, and well-maintained, offering a

wide range of amenities and featuring premium construction materials and finishes. Class A/A+ properties are generally newer or have

undergone substantial redevelopment and are generally expected to command higher annual rental rates compared to other classes of

similar properties. AAA locations are in close proximity to concentrations of specialized skills, knowledge, institutions, and related

businesses. It is important to note that our definition of property classification may not be directly comparable to other equity REITs.

Development, redevelopment, and pre-construction

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

Class A/A+ properties, as well as property enhancements identified during the underwriting of certain acquired properties. These efforts

are primarily concentrated in collaborative Megacampus™ ecosystems within AAA life science innovation clusters, as well as other