 | |
Table of Contents | |
December 31, 2025 | |
COMPANY HIGHLIGHTS | Page | Page | |||
Alexandria's Mission and Cluster Model .............................................. | |||||
EARNINGS PRESS RELEASE | |||||
Fourth Quarter and Year Ended December 31, 2025 Financial and Operating Results ................................................................................ | Consolidated Statements of Operations .......................................... | ||||
Guidance ................................................................................................... | Consolidated Balance Sheets ............................................................ | ||||
Dispositions and Sales of Partial Interests .......................................... | |||||
Earnings Call Information and About the Company ........................... | |||||
SUPPLEMENTAL INFORMATION | |||||
Company Profile ....................................................................................... | External Growth / Investments in Real Estate | ||||
Investor Information ................................................................................. | Investments in Real Estate ................................................................ | ||||
Financial and Asset Base Highlights ..................................................... | New Class A/A+ Development and Redevelopment Properties: | ||||
High-Quality and Diverse Client Base ................................................. | Recent Deliveries ........................................................................... | ||||
Internal Operating Metrics | Current Projects .............................................................................. | ||||
Key Operating Metrics ............................................................................. | Summary of Pipeline ...................................................................... | ||||
Same Property Performance .................................................................. | Construction Spending ........................................................................ | ||||
Leasing Activity ......................................................................................... | Capitalization of Interest ..................................................................... | ||||
Contractual Lease Expirations ............................................................... | Joint Venture Financial Information ................................................... | ||||
Top 20 Tenants ......................................................................................... | Balance Sheet Management | ||||
Summary of Properties and Occupancy .............................................. | Investments .......................................................................................... | ||||
Property Listing ........................................................................................ | Balance Sheet ...................................................................................... | ||||
Key Credit Metrics ............................................................................... | |||||
Summary of Debt ................................................................................. | |||||
Definitions and Reconciliations | |||||
Definitions and Reconciliations .......................................................... | |||||
CONFERENCE CALL INFORMATION: | ||
Tuesday, January 27, 2026 2:00 p.m. Eastern Time 11:00 a.m. Pacific Time | ||
(833) 366-1125 or (412) 902-6738 | ||
Ask to join the conference call for Alexandria Real Estate Equities, Inc. | ||
CONTACT INFORMATION: | ||
Alexandria Real Estate Equities, Inc. corporateinformation@are.com | ||
JOEL S. MARCUS Executive Chairman & Founder | ||
PETER M. MOGLIA Chief Executive Officer & Chief Investment Officer | ||
MARC E. BINDA Chief Financial Officer & Treasurer | ||
PAULA SCHWARTZ Managing Director, Rx Communications Group (917) 633-7790 | ||
ALEXANDRIA’S
PATH FORWARD
Maintain a Strong and
Flexible Balance Sheet,
Significant Liquidity,
and Targeted Leverage
Continue to Successfully
Manage G&A
Maintain Optionality for
Future Growth Focused on
Megacampus™ Investment
Reduce Capital Spend
and Funding Needs
Consider Flexible and
Opportunistic Share
Buyback Plan
Substantially Complete
Large-Scale Non-Core
Disposition Plan
Steadily Improve Occupancy
and Increase NOI, Focusing on
Leasing to All Sectors of Our
Tenant Base, Including the Most
Innovative Entities in a Rapidly
Changing Environment
(1)Source: U.S. House Committee on Energy and Commerce, “The 21st Century Cures Discussion Document White Paper,” January 27, 2015.
(2)Source: PhRMA, “Medicines in Development for Chronic Diseases: 2024 Report.”
(3)Source: Centers for Disease Control and Prevention, “Heart Disease Facts,” October 24, 2024. Represents the latest published data, which reflects the U.S. estimate for 2022.
(4)Source: National Cancer Institute, “Cancer Statistics,” updated May 7, 2025. Represents the latest published data, which reflects 2018–2021 data, not including 2020 due to lack of collection during COVID-19 pandemic.
(5)Source: Alzheimer’s Association, “2025 Alzheimer’s Disease Facts and Figures.” Represents the latest published data, which reflects the U.S. estimate for 2025.
ALEXANDRIA: THE MOST
TRUSTED BRAND IN LIFE
SCIENCE REAL ESTATE™
WE INVENTED IT.
WE DOMINATE IT.
ALEXANDRIA’S MEGACAMPUS™ PLATFORM REPRESENTS |
78% OF OUR ANNUAL RENTAL REVENUE |
LARGEST, HIGHEST-QUALITY ASSET BASE CLUSTERED IN THE KEY CENTERS OF LIFE SCIENCE INNOVATION |
SECTOR-LEADING CLIENT TENANT BASE |
HIGH-QUALITY CASH FLOWS |
PROVEN UNDERWRITING |
FORTRESS BALANCE SHEET |
LONG-TENURED, HIGHLY EXPERIENCED MANAGEMENT TEAM |
As of December 31, 2025. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
Alexandria Executes Lease Through 2041 With High-Credit Tenant
AstraZeneca for 171,239 RSF Mission-Critical Manufacturing Facility
in Maryland
This long-term lease at 700 Quince Orchard Road demonstrates AstraZeneca’s commitment to Maryland
and brings its aggregate footprint across multiple Alexandria cluster markets to over 600,000 RSF
ONSHORING PHARMA SUPPLY CHAINS &
ACCELERATING ACCESS TO TRANSFORMATIVE THERAPIES
→ | → | ||
AstraZeneca’s new Gaithersburg facility aims to accelerate the production of innovative medicines for cancer, rare, and chronic diseases | The investment builds upon AstraZeneca’s $300M investment in a cell therapy manufacturing facility at 9950 Medical Center Drive on the Alexandria Center® for Life Science – Shady Grove Megacampus™ | ||
→ | → | ||
AstraZeneca’s announced $2B(1) investment in Maryland includes substantial support for mission-critical manufacturing at 700 Quince Orchard Road | AstraZeneca has committed to invest $50B(2) in U.S.-based manufacturing and R&D by 2030 |
(1)Source: AstraZeneca, “ AstraZeneca plans $2 billion manufacturing investment in Maryland, supporting 2,600 jobs and catalyzing economic growth,” November 21, 2025.
(2)Source: AstraZeneca, “ AstraZeneca plans to invest $50 billion in America for medicines manufacturing and R&D,” July 21, 2025.
2025 Dispositions and Sales of Partial Interests Update
35 COMPLETED TRANSACTIONS(1) |
$1.8B TOTAL SALES(1) |
$642M TOTAL GAIN ON SALES OF REAL ESTATE(1) |
Stabilized
Properties
Land
Non-Stabilized Properties
2025 DISPOSITIONS AND SALES OF PARTIAL INTERESTS
BY REAL ESTATE CLASSIFICATION
(1)Refer to “2025 dispositions and sales of partial interests” in the Earnings Press Release for additional details.
Alexandria’s Long-Standing Track Record of Monetizing Embedded
Asset Value: 2019–2025 Dispositions and Partial Interest Sales
2019–2025 AGGREGATE $11B Total Sales(1) |
$3.9B Total Gains on Sales of Real Estate(2) |
$2.8B Total Impairments of Real Estate(2) |
2019–2025 DISPOSITIONS AND PARTIAL INTEREST SALES
(2)
(1)
(2)
(1)Represents aggregate sales from outright sales and sales of partial interests.
(2)Total gains and impairments represent our share and include any amounts related to sales of partial interests recognized in additional paid-in capital.
Alexandria’s Key Disposition In 4Q25 — 409 and 499 Illinois Street in Mission Bay
$767.1M | $180.3M (Our Share)(1) | SALES PRICE IN 4Q25 | |
$1,645 | SALES PRICE PER RSF | ||
$416.7M | $103.9M (Our Share) | GAIN ON SALE OF REAL ESTATE | |
$293.0M | ARE ORIGINAL PURCHASE PRICE (2011) | ||
40% | OCCUPANCY AS OF 3Q25 | ||
(1)Represents our share of the sales price, net of seller credits and sales costs.
ALEXANDRIA CONTINUES TO HAVE A STRONG AND FLEXIBLE
BALANCE SHEET WITH SIGNIFICANT LIQUIDITY
SIGNIFICANT LIQUIDITY | PERCENTAGE OF FIXED-RATE DEBT SINCE 2021(1) | |
$5.3B | 96.7% | |
REMAINING DEBT TERM (IN YEARS) | DEBT INTEREST RATE | |
12.1 | 3.91% | |
Longest Among S&P 500 REITs(3) |
ACHIEVED
4Q25 LEVERAGE(2)
5.7x
WEIGHTED AVERAGE
TOP 15%
BBB+
Negative
Baa1
Negative
CREDIT RATING RANKING AMONG
ALL PUBLICLY TRADED U.S. REITS(4)
As of December 31, 2025. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents the average quarterly percentage fixed-rate debt as of each quarter-end from January 1, 2021 through December 31, 2025.
(2)Represents net debt and preferred stock to Adjusted EBITDA for the fourth quarter annualized.
(3)Sources: S&P Global Market Intelligence, Bloomberg, or company filings (data not disclosed for SBAC, PSA, and WY) as of September 30, 2025, except for ARE, which is as of December 31, 2025.
(4)Top 15% ranking represents credit rating levels from S&P Global Ratings and Moody’s Ratings for publicly traded U.S. REITs, from Bloomberg Professional Services and Nareit, as of December 31, 2025.
12%
17%
(2)
As of December 31, 2025. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents non-core assets outside our Megacampus ecosystems.
(2)Excludes properties classified as held for sale, of which land parcels represent approximately 1% of total non-income producing assets.
CONTINUE TO SUCCESSFULLY MANAGE AND REDUCE G&A
Alexandria’s General and Administrative Expense Levels Outperform Other S&P 500 REITs
$76M |
Projected Cumulative G&A Savings in 2025 and 2026 Compared to 2024(1) |
5.6% | 11.3% | |
Alexandria 4Q25(2) | S&P 500 REIT Average 2023–3Q25 | |
(Excluding Alexandria)(3) |
GENERAL AND ADMINISTRATIVE EXPENSES AS A
PERCENTAGE OF NET OPERATING INCOME(4)
(1)Based on the midpoint of our guidance range for 2026 general and administrative expenses disclosed on January 26, 2026.
(2)Trailing twelve months ended December 31, 2025.
(3)Source for S&P 500 REIT data: S&P Global Market Intelligence. Represents the annual average of the years ended December 31, 2024 and 2023 and the trailing twelve months ended September 30, 2025.
(4)Refer to “Net operating income” under “Definitions and reconciliations” in the Supplemental Information for additional details.
Alexandria Real Estate Equities, Inc. Reports
4Q25 and 2025 Net Loss per Share – Diluted of $6.35 and $8.44, respectively; and
4Q25 and 2025 FFO per Share – Diluted, as Adjusted, of $2.16 and $9.01, respectively
PASADENA, Calif. – January 26, 2026 – Alexandria Real Estate Equities, Inc. (NYSE: ARE)
announced financial and operating results for the fourth quarter and year ended December 31,
2025.
Key highlights | ||||||||
YTD | ||||||||
Operating results | 4Q25 | 4Q24 | 2025 | 2024 | ||||
Net (loss) income attributable to Alexandria’s common stockholders – diluted: | ||||||||
In millions | $(1,081.8) | $(64.9) | $(1,438.0) | $309.6 | ||||
Per share | $(6.35) | $(0.38) | $(8.44) | $1.80 | ||||
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted: | ||||||||
In millions | $368.5 | $411.8 | $1,534.7 | $1,629.1 | ||||
Per share | $2.16 | $2.39 | $9.01 | $9.47 | ||||
A best-in-class REIT with a high-quality, diverse tenant base, strong margins, and long lease
terms
(As of December 31, 2025, unless stated otherwise) | |||
Occupancy of operating properties in North America | 90.9% | ||
Percentage of annual rental revenue in effect from Megacampus™ platform | 78% | ||
Percentage of annual rental revenue in effect from investment-grade or publicly traded large cap tenants | 53% | ||
Operating margin | 69% | ||
Adjusted EBITDA margin | 70% | ||
Percentage of leases containing annual rent escalations | 97% | ||
Weighted-average remaining lease term: | |||
Top 20 tenants | 9.7 | years | |
All tenants | 7.5 | years | |
Strong 4Q25 tenant collections: | |||
4Q25 tenant rents and receivables collected as of January 26, 2026 | 99.9% |
Strong and flexible balance sheet with significant liquidity; top 15% credit rating ranking among all
publicly traded U.S. REITs
•$20.75 billion in total market capitalization.
•$8.35 billion in total equity capitalization.
•Net debt and preferred stock to Adjusted EBITDA of 5.7x and fixed-charge coverage ratio of
3.7x for 4Q25 annualized.
•As of December 31, 2025
•Significant liquidity of $5.30 billion, or 3.7x of our debt maturities through 2028.
•Only 11% of our total debt matures through 2028.
•12.1 years weighted-average remaining term of debt, longest among S&P 500 REITs.
•Our fixed-rate debt represents 97.2% of our total debt, which provides predictability in debt
servicing costs. Since 2021, our quarter-end fixed-rate debt has averaged 96.7%.
•Total debt and preferred stock to gross assets of 31%.
Solid leasing volume
•Leasing volume of 1.2 million RSF during 4Q25.
•Leasing of previously vacant space aggregating 393,376 RSF, up 98%, over the quarterly
average over the last five quarters.
•Rental rates on renewals and re-leasing of space decreased by 9.9% and 5.2% (cash basis)
for 4Q25 and increased by 7.0% and 3.5% (cash basis) for 2025.
•82% of our leasing activity during the last twelve months was generated from our existing
tenant base.
4Q25 | 2025 | ||||
Lease renewals and re-leasing of space: | |||||
Rental rate changes | (9.9)% | 7.0% | |||
Rental rate changes (cash basis) | (5.2)% | 3.5% | |||
RSF | 821,289 | 2,543,473 | |||
Leasing of previously vacant space – RSF | 393,376 | 944,362 | |||
Leasing of development and redevelopment space – RSF | 6,279 | 704,821 | |||
Total leasing activity – RSF | 1,220,944 | 4,192,656 |
Dividend strategy to share net cash flows from operating activities with stockholders while
retaining a significant portion for reinvestment
•Common stock dividend declared of $0.72 per share for 4Q25, representing a 45% reduction
from the quarterly dividend declared of $1.32 for 3Q25.
•The decision to reduce the declared dividend per common share reflects our commitment to
maintaining the strength of our balance sheet, enhancing financial flexibility, and preserving
liquidity of approximately $410 million on an annual basis, which will be used to support our
2026 capital plan.
•Significant net cash flows provided by operating activities after dividends retained for
reinvestment aggregating $2.36 billion for the years ended December 31, 2021 through 2025.
•Dividend yield of 5.9% as of December 31, 2025 and dividend payout ratio of 33% for the
three months ended December 31, 2025.
Successful execution of Alexandria’s capital recycling strategy
We exceeded the midpoint of our 2025 guidance for dispositions and sales of partial interests
by completing $1.81 billion of funding, primarily from sales of non-core assets and land, as well
as sales to owner/users. During 4Q25, we completed $1.47 billion of dispositions.
(dollars in millions) | Sales Price | |
YTD 3Q25 | $341 | |
4Q25 | 1,471 | |
Total 2025 dispositions and sales of partial interests(1) | $1,812 |
Types of dispositions in 2025(1) | % of Sales Price | |
Land | 21% | |
Non-stabilized properties | 59 | |
Stabilized properties | 20 | |
Total 2025 dispositions | 100% |
(1)Excludes the exchange of partial interests in two consolidated real estate joint ventures, Pacific Technology
Park and 199 East Blaine Street, during the three months ended September 30, 2025. Refer to ”2025
dispositions and sales of partial interests” in this Earnings Press Release for additional details.
•As of December 31, 2025, the book value of our real estate assets designated as held for
sale aggregated $581.7 million. We expect to sell these assets in 2026.
| |
Fourth Quarter and Year Ended December 31, 2025 Financial and Operating Results (continued) | |
December 31, 2025 | |
Increased occupancy and leasing progress on temporary vacancy
Operating occupancy as of September 30, 2025 | 90.6% | ||
Assets with vacancy designated as held for sale or sold during 4Q25 | 0.5 | ||
Early termination of one lease aggregating 170,618 RSF at 259 East Grand Avenue in South San Francisco, originally set to expire in early 2027, which is already fully re-leased to a new tenant with occupancy expected to commence in 2H26 | (0.5) | (1) | |
Reclassification of 401 Park Avenue from redevelopment to operating upon our decision to pursue leasing as office space rather than convert to laboratory space | (0.3) | ||
Other changes in occupancy, primarily due to the commencement of leases during 4Q25 | 0.6 | ||
Operating occupancy as of December 31, 2025 | 90.9 | ||
Key vacant space leased with future delivery | 2.5 | (2) | |
Operating occupancy as of December 31, 2025, including leased but not yet delivered space | 93.4% | ||
(1)Refer to “Guidance” in the Earnings Press Release for key considerations on 1Q26 guidance.
(2)Represents temporary vacancies as of December 31, 2025 aggregating 899,259 RSF, primarily in the Greater
Boston, San Francisco Bay Area, and Seattle markets, that are leased and expected to be occupied upon
completion of building and/or tenant improvements. The weighted-average expected delivery date is
approximately August 2026 and the expected annual rental revenue is approximately $52 million.
Key operating metrics
Operating metrics | 4Q25 | 2025 | |||
(dollars in millions) | |||||
Net operating income (cash basis) | $1,985 | (1) | $1,978 | ||
(Decrease) Increase compared to 4Q24 and 2024 | (3.4)% | (2) | 0.1% | (2) | |
Same property performance: | |||||
Net operating income changes | (6.0)% | (3.5)% | |||
Net operating income changes (cash basis) | (1.7)% | 0.9% | |||
Occupancy – current-period average | 91.0% | 92.5% | |||
Occupancy – same-period prior-year average | 95.5% | 95.2% |
(1)Quarter annualized.
(2)Change in net operating income (cash basis) includes the impact of operating properties disposed of after
January 1, 2024. Excluding these dispositions, net operating income (cash basis) annualized for the three
months ended December 31, 2025 and for the year ended December 31, 2025 would have increased by 1.4%
and 6.2%, respectively, compared to the corresponding periods in 2024.
Continued successful management and reduction of general and administrative expenses
•General and administrative expenses as a percentage of net operating income for the year
ended December 31, 2025 were 5.6% — the lowest level in the past ten years for the
Company and approximately half the average of other S&P 500 REITs. In 2025, we realized
cost reductions of $51.3 million, or 30%, compared to 2024, primarily from cost-control and
efficiency initiatives. Some of these cost savings are temporary in nature, and we anticipate
that approximately half of the cost reduction achieved in 2025 will continue in 2026.
•Compared to the general and administrative expenses for the year ended December 31,
2024, we expect to achieve a savings of $76 million of cumulative general and
administrative expense in 2025 and 2026 based upon the midpoint of our guidance range
for 2026 general and administrative expenses.
Reduction of capital spend and funding needs
•During 4Q25, we reduced future construction funding requirements across our active pipeline
by: i) selling or designating as held for sale three projects and ii) pivoting one project to a
lower investment strategy; enabling us to redeploy future construction savings and sale
proceeds into opportunities aligned with our long‑term Megacampus™ strategy.
•We reduced the overall size of our future construction funding needs on current
development and redevelopment projects by more than $300 million over the next few
years.
•3% reduction in non-income-producing assets to 17% as a percentage of gross assets.
•We are evaluating business strategy for four additional projects.
Alexandria’s development and redevelopment pipeline delivered incremental annual net operating
income of $10 million commencing during 4Q25, with an additional $97 million of incremental
annual net operating income anticipated to deliver by 4Q26 primarily from projects that are 86%
leased/negotiating
•During 4Q25, we placed into service one development project aggregating 139,979 RSF that
is 100% occupied at 10075 Barnes Canyon Road in our Sorrento Mesa submarket and
delivered incremental annual net operating income of $10 million.
•Annual net operating income (cash basis) from recently delivered projects is expected to
increase by $26 million upon the burn-off of initial free rent, which has a weighted-average
remaining period of approximately six months.
•77% of the RSF in our total development and redevelopment pipeline is within our
Megacampus ecosystems.
Development and Redevelopment Projects | Incremental Annual Net Operating Income | RSF | Leased/ Negotiating Percentage | |||||
(dollars in millions) | ||||||||
Expected to be placed into service: | ||||||||
2026 | $97 | (1) | 699,933 | (2) | 86% | (3) | ||
2027- 2028 | 123 | 1,614,994 | 51% | |||||
$220 | ||||||||
Projects under business strategy evaluation: | ||||||||
2026-2028 | $113 | 1,248,227 | 8% | |||||
(1)Includes expected partial deliveries through 2026 from projects expected to stabilize in 2027-2028, including
speculative future leasing that is not yet fully committed. Refer to the initial and stabilized occupancy years
under “New Class A/A+ development and redevelopment properties: current projects” in the Supplemental
Information for additional details.
(2)Represents the RSF of projects expected to stabilize in 2026. Does not include RSF for partial deliveries
through 2026 from projects expected to stabilize in 2027-2028.
(3)Represents the current leased/negotiating percentage of development and redevelopment projects that are
expected to stabilize through 2026.
| |
Fourth Quarter and Year Ended December 31, 2025 Financial and Operating Results (continued) | |
December 31, 2025 | |
Key capital events
•On December 8, 2025, 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 through December 31, 2026. The new program replaces the prior repurchase
authorization for up to $500.0 million that was set to expire on December 31, 2025. During
4Q25, no shares were repurchased.
•In January 2026, we repaid $300.0 million of 4.30% unsecured senior notes payable upon
maturity. No gain or loss was incurred in connection with this repayment.
Investments
•As of December 31, 2025:
•Our non-real estate investments aggregated $1.50 billion.
•Unrealized gains presented in our consolidated balance sheet were $133.4 million,
comprising gross unrealized gains and losses aggregating $184.4 million and $51.1 million,
respectively.
•Investment loss of $3.9 million for 4Q25 presented in our consolidated statement of
operations consisted of $21.1 million of realized gains, $103.3 million from a significant
realized loss on one transaction, $98.5 million of unrealized gains, and $20.2 million of
impairment charges.
Guidance | |
December 31, 2025 | |
(Dollars in millions, except per share amounts) | |
Based on our current view of existing market conditions and assumptions for the year ending December 31, 2026, our guidance for 2026 that was initially provided on December 3, 2025 has been
reiterated as of January 26, 2026. Actual results may be materially higher or lower than these expectations. Our guidance for 2026 is subject to a number of variables and uncertainties, including, but not limited to,
leasing velocity and overall tenant demand, actions and changes in policy by the current U.S. administration related to the regulatory environment, life science funding, the U.S. Food and Drug Administration and
National Institutes of Health, trade, and other areas. For additional discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated, refer to our discussion of
“forward-looking statements” on page 7 of the Earnings Press Release as well as our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.
Key Assumptions | Low | High | ||
Occupancy percentage in North America as of December 31, 2026(2) | 87.7% | 89.3% | ||
Lease renewals and re-leasing of space: | ||||
Rental rate changes | (2.0)% | 6.0% | ||
Rental rate changes (cash basis) | (12.0)% | (4.0)% | ||
Same property performance: | ||||
Net operating income | (9.5)% | (7.5)% | ||
Net operating income (cash basis) | (9.5)% | (7.5)% | ||
Straight-line rent revenue | $65 | $95 | ||
General and administrative expenses | $134 | $154 | ||
Capitalization of interest(3) | $225 | $275 | ||
Interest expense | $230 | $280 | ||
Realized gains on non-real estate investments(4) | $60 | $90 |
Key Credit Metric Targets | ||
Net debt and preferred stock to Adjusted EBITDA – 4Q26 annualized | 5.6x to 6.2x | |
Fixed-charge coverage ratio – 4Q26 annualized | 3.6x to 4.1x |
Key Sources and Uses of Capital | Range | Midpoint | |||||
Sources of capital: | |||||||
Reduction in debt(5) | $(1,075) | $(2,275) | $(1,675) | ||||
Net cash provided by operating activities after dividends | 475 | 575 | 525 | ||||
Dispositions and sales of partial interests (refer to page 6)(6) | 2,100 | 3,700 | 2,900 | ||||
Total sources of capital | $1,500 | $2,000 | $1,750 | ||||
Uses of capital: | |||||||
Construction | $1,500 | $2,000 | $1,750 | ||||
Total uses of capital | $1,500 | $2,000 | $1,750 | ||||
Reduction in debt (included above): | |||||||
Repayment of unsecured notes payable with 2026 maturities(7) | $(650) | $(650) | $(650) | ||||
Unsecured senior line of credit, commercial paper, and other | (425) | (1,625) | (1,025) | ||||
Reduction in debt | $(1,075) | $(2,275) | $(1,675) | ||||
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details on key credit metrics.
(1)Refer to “Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s common stockholders” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(2)Our guidance for operating occupancy percentage in North America as of December 31, 2026 assumes an approximate 2% benefit related to a range of assets with vacancy that could potentially be sold during 2026 and/or qualify for
designation as held for sale by December 31, 2026 but that have not yet qualified for such designation as of December 31, 2025.
(3)Refer to “Capitalization of interest” in the Supplemental Information for additional details.
(4)Represents realized gains and losses included in funds from operations per share – diluted, as adjusted. Excludes unrealized gains and losses and significant impairments realized on non-real estate investments, if any. Refer to
“Investments” in the Supplemental Information for additional details.
(5)Our debt repayment goals include repaying existing short-term borrowings, including amounts outstanding on our commercial paper program, repaying our 2026 unsecured senior note payable maturities aggregating $650 million, and
potentially repaying other unsecured senior notes payable, including our 2027 maturity.
(6)We expect to achieve a weighted-average capitalization rate on our projected 2026 non-core operating dispositions (includes stabilized and non-stabilized properties and excludes land) in the 8.5%–9.5% range. We expect dispositions of
land to represent 25%–35% of our total dispositions and sales of partial interests for the year ending December 31, 2026. We expect the remaining balance to include approximately 25%–35% core assets and 35%–45% non-core assets.
As of January 26, 2026, our share of pending transactions subject to non-refundable deposits, signed letters of intent, or purchase and sale agreement negotiations aggregated $180.7 million.
(7)In January 2026, we repaid $300.0 million of 4.30% unsecured senior notes payable upon maturity, funded temporarily with borrowings under our commercial paper program. We expect to repay these temporary borrowings with proceeds
from future dispositions and sales of partial interests. No gain or loss was incurred in connection with this repayment.
Guidance (continued) |  |
December 31, 2025 | |
Key considerations for funds from operations and adjusted EBITDA for 1Q26
The following key considerations are expected to impact our quarterly funds from operations per share results in 1Q26. These items will also affect our Adjusted EBITDA beginning in
1Q26. As a result, we expect our net debt and preferred stock to Adjusted EBITDA ratio to temporarily increase in 1Q26 (on a quarter annualized basis) by approximately 1.0x to 1.5x higher
than our 4Q25 annualized ratio of 5.7x. We expect this ratio to trend downward through the remainder of 2026 as we make progress on our disposition and sales of partial interests program,
with a target net debt and preferred stock to Adjusted EBITDA ratio of 5.6x to 6.2x for 4Q26 annualized, which is unchanged from our initial 2026 guidance provided on December 3, 2025.
4Q25 Dispositions
•We completed $1.47 billion of dispositions during 4Q25. These dispositions had annual net operating income of $118 million (based on consolidated 3Q25 annualized results) with a
weighted-average disposition date of December 9, 2025. Refer to “2025 Dispositions and sales of partial interests” in the Earnings Press Release for additional details.
2026 key lease expirations with expected downtime
•There are key lease expirations primarily in our Greater Boston, San Francisco Bay Area, and San Diego markets, aggregating 1.2 million RSF, with a weighted‑average lease
expiration date in April 2026 and annual rental revenue of $71 million. These leases are expected to become vacant upon expiration, and we anticipate downtime on these spaces to
range from 6 to 24 months on a weighted‑average basis. 150,822 RSF has been leased or is under negotiations and we have identified prospective tenants or have early negotiations
for another 468,470 RSF. We expect a decline in net operating income of approximately $14 million for the three months ending March 31, 2026, compared to the three months ended
December 31, 2025, related to the portion of these leases that are scheduled to expire in 1Q26, which includes operating expenses that will not be recoverable once the spaces
become vacant. Refer to “Contractual lease expirations” in the Supplemental Information for additional details.
Certain items included in 4Q25 results not expected to reoccur in 1Q26
•During 4Q25, we terminated a lease at one property in our South San Francisco submarket aggregating 170,618 RSF, which had generated annual rental revenue of $11.4 million,
ahead of its contractual lease expiration in early 2027. The termination allowed us to re-lease 100% of the space to a new tenant, with occupancy expected to commence in 2H26
following the completion of tenant improvements. As a result of the termination, we recognized incremental rental revenue of $8.4 million during 4Q25, primarily from a termination
fee, net of the deferred rent balances written off.
•We recognized an asset management fee paid by our joint venture partner aggregating $7.0 million in connection with the disposition of 409 and 499 Illinois Street in 4Q25, which is
included in other income. Other income in 4Q25 was $25.5 million, or 3.4% of total revenues, compared to an average of $19.5 million, or 2.5% of total revenues, for the preceding
five quarters.
Potential tenant wind-downs
•Our 2026 guidance assumes reduction of rent in 2026 aggregating $20–$25 million (or approximately $6 million per quarter at the midpoint of the range) related to potential tenant
wind-downs and downtime without immediate backfill.
General and administrative expenses
•General and administrative expenses for the year ended December 31, 2025 was $117.0 million and $28.0 million for the fourth quarter of 2025. Our guidance range for 2026 general
and administrative expenses is $134 million to $154 million, with a midpoint of $144 million, or a quarterly average of approximately $36 million. Despite the anticipated increase in
general and administrative expenses in 2026 compared to 2025, the midpoint of our guidance range for 2026 of $144 million, represents a 14% reduction compared to 2024, and
cumulative anticipated savings aggregating $76 million for 2025 and 2026.
Realized gains on non-real estate investments
•Realized gains included in funds from operations per share – diluted, as adjusted, for the year ended December 31, 2025 were $115.7 million and $21.1 million for the fourth quarter
of 2025. Our guidance range for 2026 realized gains on non-real estate investments is $60 million to $90 million, with a midpoint of $75 million (or a quarterly average of
approximately $18.8 million). Refer to “Investments” in the Supplemental Information for additional details.
2025 Dispositions and Sales of Partial Interests | |
December 31, 2025 | |
(Dollars in thousands) | |
(1)Excludes a gain on sale of interest related to an unconsolidated real estate joint venture of $458 thousand, which is classified as equity in earnings of unconsolidated real estate joint ventures in our consolidated statement of operations.
(2)Represents a retail shopping center with future development opportunity. We originally acquired the property in 2021 with the intent to demolish the retail center and develop it into laboratory space. However, due to the project’s financial
outlook and the substantial capital that development would have required, we decided to recycle the capital generated by the disposition into our development and redevelopment pipeline.
(3)We held a 50% ownership interest at 601, 611, 651, 681, 685, and 701 Gateway Boulevard and a 51% interest at 751 Gateway Boulevard. At the time of sale, these properties had operating and redevelopment properties occupancy of
62%, with a weighted-average lease term of 5.1 years. Due to macroeconomic conditions in South San Francisco, including significant new supply, lower life science tenant demand, and ongoing challenges leasing both laboratory and
office space, we reassessed the project’s financial outlook and the substantial capital required to lease vacant space and to complete the redevelopment of 651 Gateway Boulevard and future development opportunities. As a result, we sold
the consolidated joint ventures for a gross price of $600.0 million ($560.4 million net of seller credits and sales costs), of which our share of the price (after seller credits) was $283.2 million.
(4)Represents the sale of a non-stabilized campus located outside of a Megacampus ecosystem. At the time of sale, the campus was 76% occupied, with a weighted-average remaining lease term of less than four years. Given our strategy to
invest into our Megacampus and the significant near‑term capital required to re‑stabilize the asset, we decided to reinvest the disposition proceeds into other projects with greater value-creation opportunities.
(5)Represents two life science buildings in which we held a 25% ownership interest. At the time of sale, the properties were 40% occupied, with a weighted-average remaining lease term of 8.3 years. These properties were sold by the joint
venture to an existing tenant following its exercise of a purchase right included in its lease agreement. The gross sales price was $767.1 million ($721.1 million net of seller credits and sales costs), of which our share of the price (after seller
credits) was $180.3 million. Our share of gain on sales of real estate was $103.9 million.
(6)Represents a non-stabilized property that was sold to a user.
(7)We provided seller financing of $33.0 million.
(8)Our share of dispositions completed during the three months ended December 31, 2025 had annual net operating income of $93 million (based on 3Q25 annualized results) with a weighted-average disposition date of December 9, 2025.
Total consolidated annual net operating income related to these dispositions, including our partners’ share, is $118 million (based on 3Q25 annualized results).
| |
Earnings Call Information and About the Company | |
December 31, 2025 | |
We will host a conference call on Tuesday, January 27, 2026, at 2:00 p.m. Eastern Time (“ET”)/11:00 a.m. Pacific Time (“PT”), which is open to the general public, to discuss our financial and operating
results for the fourth quarter and year ended December 31, 2025. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 2:00 p.m. ET/11:00 a.m. PT and ask the operator to join
the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the “For Investors” section. A replay of the call will be available for a limited time from 4:00 p.m. ET/1:00 p.m.
PT on Tuesday, January 27, 2026. The replay number is (855) 669-9658 or (412) 317-0088, and the access code is 4730896.
Additionally, a copy of this Earnings Press Release and Supplemental Information for the fourth quarter and year ended December 31, 2025 is available in the “For Investors” section of our website at
www.are.com or by following this link: https://www.are.com/fs/2025q4.pdf.
For any questions, please contact corporateinformation@are.com; Joel S. Marcus, executive chairman and founder; Peter M. Moglia, chief executive officer and chief investment officer; Marc E. Binda,
chief financial officer and treasurer; or Paula Schwartz, managing director of Rx Communications Group, at (917) 633-7790.
About the Company
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, 2025, Alexandria has a total market capitalization
of $20.75 billion and an asset base in North America that includes 35.9 million RSF of operating properties and 3.5 million RSF of Class A/A+ properties undergoing construction. Alexandria has a long-standing and
proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants’ ability to successfully recruit and retain world-class talent
and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business
model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For
more information on Alexandria, please visit www.are.com.
Forward-Looking Statements
This document includes “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.
Such forward-looking statements include, without limitation, statements regarding our projected 2026 earnings per share, projected 2026 funds from operations per share, projected 2026 funds from operations per
share, as adjusted, projected net operating income, and our projected sources and uses of capital. You can identify the forward-looking statements by their use of forward-looking words, such as “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. These forward-looking
statements are based on our current expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, as well as a
number of assumptions concerning future events. There can be no assurance that actual results will not be materially higher or lower than these expectations. These statements are subject to risks, uncertainties,
assumptions, and other important factors that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, without
limitation, our failure to obtain capital (debt, construction financing, and/or equity) or refinance debt maturities, lower than expected yields, increased interest rates and operating costs, adverse economic or real
estate developments in our markets, our failure to successfully place into service and lease any properties undergoing development or redevelopment and our existing space held for future development or
redevelopment (including new properties acquired for that purpose), our failure to successfully operate or lease acquired properties, decreased rental rates, increased vacancy rates or failure to renew or replace
expiring leases, defaults on or non-renewal of leases by tenants, adverse general and local economic conditions, an unfavorable capital market environment, decreased leasing activity or lease renewals, failure to
obtain LEED and other healthy building certifications and efficiencies, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission (“SEC”). Accordingly, you are cautioned
not to place undue reliance on such forward-looking statements. All forward-looking statements are made as of the date of this Earnings Press Release and Supplemental Information, and unless otherwise stated,
we assume no obligation to update this information and expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For
more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our
SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.
This document is not an offer to sell or a solicitation to buy securities of Alexandria Real Estate Equities, Inc. Any offers to sell or solicitations to buy our securities shall be made only by means of a
prospectus approved for that purpose. Unless otherwise indicated, the “Company,” “Alexandria,” “ARE,” “we,” “us,” and “our” refer to Alexandria Real Estate Equities, Inc. and our consolidated subsidiaries.
Alexandria®, Lighthouse Design® logo, Building the Future of Life-Changing Innovation®, That’s What’s in Our DNA®, Megacampus™, At the Vanguard and Heart of the Life Science Ecosystem™, Alexandria
Center®, Alexandria Technology Square®, Alexandria Technology Center®, and Alexandria Innovation Center® 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.
Consolidated Statements of Operations | |
December 31, 2025 | |
(Dollars in thousands, except per share amounts) | |
Three Months Ended | Year Ended | |||||||||||||
12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | ||||||||
Revenues: | ||||||||||||||
Income from rentals | $728,872 | $735,849 | $737,279 | $743,175 | $763,249 | $2,945,175 | $3,049,706 | |||||||
Other income | 25,542 | (1) | 16,095 | 24,761 | 14,983 | 25,696 | 81,381 | 66,688 | ||||||
Total revenues | 754,414 | 751,944 | 762,040 | 758,158 | 788,945 | 3,026,556 | 3,116,394 | |||||||
Expenses: | ||||||||||||||
Rental operations | 232,543 | 239,234 | 224,433 | 226,395 | 240,432 | 922,605 | 909,265 | |||||||
General and administrative | 28,020 | 29,224 | 29,128 | 30,675 | 32,730 | 117,047 | 168,359 | |||||||
Interest | 65,674 | 54,852 | 55,296 | 50,876 | 55,659 | 226,698 | 185,838 | |||||||
Depreciation and amortization | 322,063 | 340,230 | 346,123 | 342,062 | 330,108 | 1,350,478 | 1,202,380 | |||||||
Impairment of real estate | 1,717,188 | (2) | 323,870 | 129,606 | 32,154 | 186,564 | 2,202,818 | 223,068 | ||||||
Loss on early extinguishment of debt | — | 107 | — | — | — | 107 | — | |||||||
Total expenses | 2,365,488 | 987,517 | 784,586 | 682,162 | 845,493 | 4,819,753 | 2,688,910 | |||||||
Equity in (losses) earnings of unconsolidated real estate joint ventures | (304) | 201 | (9,021) | (507) | 6,635 | (9,631) | 7,059 | |||||||
Investment (loss) income | (3,890) | 28,161 | (30,622) | (49,992) | (67,988) | (56,343) | (53,122) | |||||||
Gain on sales of real estate | 619,914 | (2) | 9,366 | — | 13,165 | 101,806 | 642,445 | 129,312 | ||||||
Net (loss) income | (995,354) | (197,845) | (62,189) | 38,662 | (16,095) | (1,216,726) | 510,733 | |||||||
Net income attributable to noncontrolling interests | (85,521) | (2) | (34,909) | (44,813) | (47,601) | (46,150) | (212,844) | (187,784) | ||||||
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | (1,080,875) | (232,754) | (107,002) | (8,939) | (62,245) | (1,429,570) | 322,949 | |||||||
Net income attributable to unvested restricted stock awards | (965) | (2,183) | (2,609) | (2,660) | (2,677) | (8,417) | (13,394) | |||||||
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $(1,081,840) | $(234,937) | $(109,611) | $(11,599) | $(64,922) | $(1,437,987) | $309,555 | |||||||
Net (loss) income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders: | ||||||||||||||
Basic | $(6.35) | $(1.38) | $(0.64) | $(0.07) | $(0.38) | $(8.44) | $1.80 | |||||||
Diluted | $(6.35) | $(1.38) | $(0.64) | $(0.07) | $(0.38) | $(8.44) | $1.80 | |||||||
Weighted-average shares of common stock outstanding: | ||||||||||||||
Basic | 170,394 | 170,181 | 170,135 | 170,522 | 172,262 | 170,307 | 172,071 | |||||||
Diluted | 170,394 | 170,181 | 170,135 | 170,522 | 172,262 | 170,307 | 172,071 | |||||||
Dividends declared per share of common stock | $0.72 | $1.32 | $1.32 | $1.32 | $1.32 | $4.68 | $5.19 | |||||||
(1)Includes an asset management fee paid by our joint venture partner of $7.0 million, which was recognized in connection with the disposition of 409 and 499 Illinois Street. Refer to “2025 dispositions and sales of partial interests” in the
Earnings Press Release for additional details.
(2)Refer to footnote 1 and 2 in “Funds from operations and funds from operations per share” in the Earnings Press Release for additional details.
Consolidated Balance Sheets | |
December 31, 2025 | |
(In thousands) | |
12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | ||||||
Assets | ||||||||||
Investments in real estate | $28,689,996 | $31,743,917 | $32,160,600 | $32,121,712 | $32,110,039 | |||||
Investments in unconsolidated real estate joint ventures | 30,677 | 39,601 | 40,234 | 50,086 | 39,873 | |||||
Cash and cash equivalents | 549,062 | 579,474 | 520,545 | 476,430 | 552,146 | |||||
Restricted cash | 4,693 | 4,705 | 7,403 | 7,324 | 7,701 | |||||
Tenant receivables | 6,672 | 6,409 | 6,267 | 6,875 | 6,409 | |||||
Deferred rent | 1,179,403 | 1,257,378 | 1,232,719 | 1,210,584 | 1,187,031 | |||||
Deferred leasing costs | 458,311 | 505,241 | 491,074 | 489,287 | 485,959 | |||||
Investments | 1,501,249 | 1,537,638 | 1,476,696 | 1,479,688 | 1,476,985 | |||||
Other assets | 1,661,772 | 1,700,785 | 1,688,091 | 1,758,442 | 1,661,306 | |||||
Total assets | $34,081,835 | $37,375,148 | $37,623,629 | $37,600,428 | $37,527,449 | |||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||
Secured notes payable | $— | $— | $153,500 | $150,807 | $149,909 | |||||
Unsecured senior notes payable | 12,047,394 | 12,044,999 | 12,042,607 | 12,640,144 | 12,094,465 | |||||
Unsecured senior line of credit and commercial paper | 353,161 | 1,548,542 | 1,097,993 | 299,883 | — | |||||
Accounts payable, accrued expenses, and other liabilities | 2,397,073 | 2,432,726 | 2,360,840 | 2,281,414 | 2,654,351 | |||||
Dividends payable | 127,771 | 230,603 | 229,686 | 228,622 | 230,263 | |||||
Total liabilities | 14,925,399 | 16,256,870 | 15,884,626 | 15,600,870 | 15,128,988 | |||||
Commitments and contingencies | ||||||||||
Redeemable noncontrolling interests | 58,788 | 58,662 | 9,612 | 9,612 | 19,972 | |||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity: | ||||||||||
Common stock | 1,705 | 1,703 | 1,701 | 1,701 | 1,722 | |||||
Additional paid-in capital | 15,497,760 | 16,669,802 | 17,200,949 | 17,509,148 | 17,933,572 | |||||
Accumulated other comprehensive loss | (29,395) | (32,203) | (27,415) | (46,202) | (46,252) | |||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 15,470,070 | 16,639,302 | 17,175,235 | 17,464,647 | 17,889,042 | |||||
Noncontrolling interests | 3,627,578 | 4,420,314 | 4,554,156 | 4,525,299 | 4,489,447 | |||||
Total equity | 19,097,648 | 21,059,616 | 21,729,391 | 21,989,946 | 22,378,489 | |||||
Total liabilities, noncontrolling interests, and equity | $34,081,835 | $37,375,148 | $37,623,629 | $37,600,428 | $37,527,449 |
Funds From Operations and Funds From Operations per Share | |
December 31, 2025 | |
(In thousands) | |
The following table presents a reconciliation of net income (loss) attributable to Alexandria’s common stockholders, the most directly comparable financial measure presented in accordance
with U.S. generally accepted accounting principles (“GAAP”), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to
Alexandria’s common stockholders – diluted, and funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted, for the periods below:
Three Months Ended | Year Ended | |||||||||||||
12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | ||||||||
Net (loss) income attributable to Alexandria’s common stockholders – basic and diluted | $(1,081,840) | $(234,937) | $(109,611) | $(11,599) | $(64,922) | $(1,437,987) | $309,555 | |||||||
Depreciation and amortization of real estate assets | 319,865 | 338,182 | 343,729 | 339,381 | 327,198 | 1,341,157 | 1,191,524 | |||||||
Noncontrolling share of depreciation and amortization from consolidated real estate JVs | (39,942) | (45,327) | (36,047) | (33,411) | (34,986) | (154,727) | (129,711) | |||||||
Our share of depreciation and amortization from unconsolidated real estate JVs | 855 | 852 | 942 | 1,054 | 1,061 | 3,703 | 4,238 | |||||||
Gain on sales of real estate | (307,132) | (1) | (9,824) | — | (13,165) | (100,109) | (330,121) | (127,615) | ||||||
Impairment of real estate – rental properties and land | 1,439,303 | (2) | 323,870 | 131,090 | — | 184,532 | 1,894,263 | 192,455 | ||||||
Allocation to unvested restricted stock awards | (1,903) | (1,648) | (1,222) | (686) | (1,182) | (5,681) | (8,696) | |||||||
Funds from operations attributable to Alexandria’s common stockholders – diluted(3) | 329,206 | 371,168 | 328,881 | 281,574 | 311,592 | 1,310,607 | 1,431,750 | |||||||
Unrealized (gains) losses on non-real estate investments | (98,548) | (18,515) | 21,938 | 68,145 | 79,776 | (26,980) | 112,246 | |||||||
Significant realized losses on non-real estate investments | 103,329 | (4) | — | — | — | — | 103,329 | — | ||||||
Impairment of non-real estate investments | 20,181 | (5) | 25,139 | 39,216 | 11,180 | 20,266 | 95,716 | 58,090 | ||||||
Impairment of real estate | 12,619 | (2) | — | 7,189 | 32,154 | 2,032 | 51,962 | 30,613 | ||||||
Loss on early extinguishment of debt | — | 107 | — | — | — | 107 | — | |||||||
Acceleration of stock compensation expense due to executive officer resignation | 2,455 | (6) | — | — | — | — | 2,455 | — | ||||||
(Decrease) increase in provision for expected credit losses on financial instruments | (341) | — | — | 285 | (434) | (56) | (434) | |||||||
Allocation to unvested restricted stock awards | (363) | (74) | (794) | (1,329) | (1,407) | (2,476) | (3,188) | |||||||
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted | $368,538 | $377,825 | $396,430 | $392,009 | $411,825 | $1,534,664 | $1,629,077 | |||||||
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Excludes our partner’s share of gain on sale of real estate aggregating $312.8 million at our consolidated real estate joint venture at 409 and 499 Illinois Street.
(2)During 4Q25, we finalized the Company’s 2025 capital plan and established an initial 2026 capital plan to fund 2026 construction primarily through the sale of land and non-core real estate assets. As a result, we recognized the following
impairment charges to reduce the carrying amounts of certain assets to their estimated fair values less cost to sell:
Property | Submarket | Impairment (ARE Share) | Asset Type | |||
Assets designated as held for sale and sold in 4Q25: | ||||||
601, 611, 651, 681, 685, 701, and 751 Gateway Boulevard (50% and 51% consolidated JVs) | South San Francisco | $205,957 | Non-stabilized | |||
285, 299, 307, and 345 Dorchester Avenue (60% consolidated JV) | Seaport Innovation District | 149,720 | Land | |||
3029 East Cornwallis Road | Research Triangle | 82,540 | Land | |||
1290 and 1300 Rancho Conejo Boulevard and 2101 Corporate Center Drive | Non-cluster | 68,566 | Non-stabilized | |||
Assets designated as held for sale in 4Q25 and expected to be sold in 2026: | ||||||
88 Bluxome Street | SoMa | 333,446 | Land | |||
100 Edwin H. Land Boulevard | Cambridge | 156,370 | Land | |||
3825 and 3875 Fabian Way | Greater Stanford | 144,682 | Stabilized/land | |||
Montreal | Canada | 107,056 | Non-stabilized | |||
One Hampshire Street | Cambridge | 105,694 | Non-stabilized | |||
Other non-core assets designated as held for sale in 4Q25 | 97,891 | |||||
1,451,922 | ||||||
Noncontrolling interest’s share of impairment in real estate from consolidated real estate JVs | 265,266 | |||||
Consolidated impairment of real estate | $1,717,188 | |||||
(3)Calculated in accordance with standards established by the Nareit Board of Governors.
(4)In November 2025, we contributed certain publicly traded securities to an unconsolidated joint venture, which resulted in a realized loss of $103.3 million on one transaction that was previously reflected as unrealized losses within
investment income in our consolidated statement of operations. The unconsolidated joint venture sold these securities and distributed $39.9 million to us in December 2025.
(5)Primarily related to two non-real estate investments in privately held entities that do not report NAV.
(6)Relates to the resignation of an executive officer, Daniel J. Ryan, from his position as Co-President & Regional Marketing Director – San Diego.
Funds From Operations and Funds From Operations per Share (continued) | |
December 31, 2025 | |
(In thousands, except per share amounts) | |
The following table presents a reconciliation of net income (loss) per share attributable to Alexandria’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 per share attributable to Alexandria’s common
stockholders – diluted, and funds from operations per share attributable to Alexandria’s common stockholders – diluted, as adjusted, for the periods below. Per share amounts may not add due to
rounding.
Three Months Ended | Year Ended | |||||||||||||
12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | ||||||||
Net (loss) income per share attributable to Alexandria’s common stockholders – diluted | $(6.35) | $(1.38) | $(0.64) | $(0.07) | $(0.38) | $(8.44) | $1.80 | |||||||
Depreciation and amortization of real estate assets | 1.65 | 1.73 | 1.81 | 1.80 | 1.70 | 6.99 | 6.20 | |||||||
Gain on sales of real estate | (1.80) | (0.06) | — | (0.08) | (0.58) | (1.94) | (0.74) | |||||||
Impairment of real estate – rental properties and land | 8.45 | 1.90 | 0.77 | — | 1.07 | 11.12 | 1.12 | |||||||
Allocation to unvested restricted stock awards | (0.02) | (0.01) | (0.01) | — | — | (0.04) | (0.06) | |||||||
Funds from operations per share attributable to Alexandria’s common stockholders – diluted | 1.93 | 2.18 | 1.93 | 1.65 | 1.81 | 7.69 | 8.32 | |||||||
Unrealized (gains) losses on non-real estate investments | (0.58) | (0.11) | 0.13 | 0.40 | 0.46 | (0.16) | 0.65 | |||||||
Significant realized losses on non-real estate investments | 0.61 | — | — | — | — | 0.62 | — | |||||||
Impairment of non-real estate investments | 0.12 | 0.15 | 0.23 | 0.07 | 0.12 | 0.56 | 0.34 | |||||||
Impairment of real estate | 0.07 | — | 0.04 | 0.19 | 0.01 | 0.30 | 0.18 | |||||||
Acceleration of stock compensation expense due to executive officer resignation | 0.01 | — | — | — | — | 0.01 | — | |||||||
Allocation to unvested restricted stock awards | — | — | — | (0.01) | (0.01) | (0.01) | (0.02) | |||||||
Funds from operations per share attributable to Alexandria’s common stockholders – diluted, as adjusted | $2.16 | $2.22 | $2.33 | $2.30 | $2.39 | $9.01 | $9.47 | |||||||
Weighted-average shares of common stock outstanding – diluted | ||||||||||||||
Earnings per share – diluted | 170,394 | 170,181 | 170,135 | 170,522 | 172,262 | 170,307 | 172,071 | |||||||
Funds from operations – diluted, per share | 170,504 | 170,305 | 170,192 | 170,599 | 172,262 | 170,390 | 172,071 | |||||||
Funds from operations – diluted, as adjusted, per share | 170,504 | 170,305 | 170,192 | 170,599 | 172,262 | 170,390 | 172,071 | |||||||
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
SUPPLEMENTAL
INFORMATION
| |
Company Profile | |
December 31, 2025 | |
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, 2025, Alexandria has a total market capitalization of
$20.75 billion and an asset base in North America that includes 35.9 million RSF of
operating properties and 3.5 million RSF of Class A/A+ properties undergoing construction.
Alexandria has a long-standing and proven track record of developing Class A/A+
properties clustered in highly dynamic and collaborative Megacampus environments that
enhance our tenants’ ability to successfully recruit and retain world-class talent and inspire
productivity, efficiency, creativity, and success.
Alexandria also provides strategic capital to transformative life science
companies through our venture capital platform. We believe our unique business model
and diligent underwriting ensure a high-quality and diverse tenant base that results in
higher occupancy levels, longer lease terms, higher rental income, higher returns, and
greater long-term asset value. For more information on Alexandria, please visit
www.are.com.
Tenant base
Alexandria is known for our high-quality and diverse tenant base, with 53% of our
annual rental revenue being generated from tenants that are investment-grade rated or
publicly traded large cap companies. The quality, diversity, breadth, and depth of our
significant relationships with our tenants provide Alexandria with high-quality and stable
cash flows. Alexandria’s underwriting team and long-term industry relationships positively
distinguish us from all other publicly traded REITs and real estate companies.
Executive and senior management team
Alexandria’s executive and senior management team has unique experience and
expertise in creating, owning, and operating highly dynamic and collaborative
Megacampus real estate in key life science cluster locations to catalyze innovation. From
design to development to the management of our high-quality, sustainable real estate, as
well as our ongoing cultivation of collaborative environments with unique amenities and
events, the Alexandria team has a best-in-class reputation of excellence in life science real
estate. Alexandria’s highly experienced management team includes regional market
directors with leading reputations and long-standing relationships within the life science
communities in their respective innovation clusters. We believe that our experience,
expertise, reputation, and key relationships in the real estate and life science industries
provide Alexandria significant competitive advantages in attracting new business
opportunities.
Alexandria’s executive and senior management team consists of 59
individuals averaging 24 years of real estate experience, including 13 years
with Alexandria. Our executive management team alone averages 15 years
with Alexandria.
EXECUTIVE MANAGEMENT TEAM | ||
Joel S. Marcus | Peter M. Moglia | |
Executive Chairman & Founder | Chief Executive Officer & Chief Investment Officer | |
Hunter L. Kass | Hart Cole | |
Co-President & Regional Market Director – Greater Boston | Co-President & Co-Regional Market Director – Seattle | |
Marc E. Binda | Lawrence J. Diamond | |
Chief Financial Officer & Treasurer | Co-Chief Operating Officer & Regional Market Director – Maryland | |
Joseph Hakman | Jesse J. Nelson | |
Co-Chief Operating Officer & Chief Strategic Transactions Officer | EVP – Regional Market Director – San Francisco | |
Michael E. Boss | Bret E. Gossett | |
EVP – Co-Regional Market Director – San Diego | EVP – Co-Regional Market Director & Head of Leasing – San Diego | |
Blake L. Stevens | Joshua J. Mitchell | |
EVP – Regional Market Director – Research Triangle | EVP – Regional Market Director – New York | |
Hallie E. Kuhn | Jenna R. Foger | |
EVP – Capital Markets & Co-Lead – Life Science | EVP – Co-Lead – Life Science | |
Jackie B. Clem | Gary D. Dean | |
General Counsel & Secretary | EVP – Real Estate Legal Affairs | |
Andres R. Gavinet | Onn C. Lee | |
Chief Accounting Officer | EVP – Accounting | |
Kristina A. Fukuzaki-Carlson | Madeleine T. Alsbrook | |
EVP – Business Operations | EVP – Talent Management | |
Gregory C. Thomas | ||
EVP – Chief Technology Officer | ||
| |
Investor Information | |
December 31, 2025 | |
Corporate Headquarters | New York Stock Exchange Trading Symbol | Information Requests | |||
26 North Euclid Avenue | Common stock: ARE | Phone: | (626) 578-0777 | ||
Pasadena, California 91101 | Email: | corporateinformation@are.com | |||
www.are.com | Website: | investor.are.com | |||
Equity Research Coverage |
Alexandria is currently covered by the following research analysts. This list may be incomplete and is subject to change as firms initiate or discontinue coverage of our company. Please note that any opinions, estimates, or forecasts regarding our historical or predicted performance made by these analysts are theirs alone and do not represent opinions, estimates, or forecasts of Alexandria or our management. Alexandria does not by our reference or distribution of the information below imply our endorsement of or concurrence with any opinions, estimates, or forecasts of these analysts. Interested persons may obtain copies of analysts’ reports on their own as we do not distribute these reports. Several of these firms may, from time to time, own our stock and/or hold other long or short positions in our stock and may provide compensated services to us. |
BMO | CFRA | Green Street | RBC Capital Markets | |||
John Kim / Juan Sanabria | Nathan Schmidt | Dylan Burzinski | Michael Carroll | |||
(212) 885-4115 / (312) 845-4074 | (646) 517-1144 | (949) 640-8780 | (440) 715-2649 | |||
BNP Paribas Exane | Citigroup Global Markets Inc. | J.P. Morgan Securities LLC | Robert W. Baird & Co. Incorporated | |||
Nate Crossett / Monir Koummal | Nicholas Joseph / Seth Bergey | Anthony Paolone / Ray Zhong | Wesley Golladay / Nicholas Thillman | |||
(646) 342-1588 / (646) 342-1554 | (212) 816-1909 / (212) 816-2066 | (212) 622-6682 / (212) 622-5411 | (216) 737-7510 / (414) 298-5053 | |||
BofA Securities | Citizens | Jefferies | ||||
Farrell Granath / Jeff Spector | Aaron Hecht / Linda Fu | Joe Dickstein / Katie Elders | ||||
(646) 855-1351 / (646) 855-1363 | (415) 835-3963 / (415) 869-4411 | (212) 778-8771 / (917) 421-1968 | ||||
BTIG, LLC | Deutsche Bank AG | Mizuho Securities USA LLC | ||||
Tom Catherwood / Michael Tompkins | Tayo Okusanya / Samuel Ohiomah | Vikram Malhotra / Jyoti Yadav | ||||
(212) 738-6140 / (212) 527-3566 | (212) 250-9284 / (212) 250-0057 | (212) 282-3827 / (212) 471-2683 | ||||
Cantor Fitzgerald | Evercore ISI | Morgan Stanley & Co. LLC | ||||
Richard Anderson / Jeffrey Carr | Steve Sakwa / James Kammert | Ronald Kamdem / Derrick Metzler | ||||
(929) 441-6927 / (929) 709-0434 | (212) 446-9462 / (312) 705-4233 | (212) 296-8319 / (212) 761-3366 | ||||
Fixed Income Research Coverage | Rating Agencies | |||||
Barclays Capital Inc. | J.P. Morgan Securities LLC | Moody’s Ratings | S&P Global Ratings | |||
Srinjoy Banerjee / Ishaan Pandya | Mark Streeter / Tyler Schachner | (212) 553-0376 | Michael Souers | |||
(212) 526-3521 / (212) 526-2970 | (212) 834-5086 / (212) 834-2238 | (212) 438-2508 | ||||
CreditSights | Mizuho Securities USA LLC | |||||
Nicholas Moglia | Thierry Perrein | |||||
(212) 340-3886 | (212) 205-7665 | |||||
Financial and Asset Base Highlights | |
December 31, 2025 | |
(Dollars in thousands, except per share amounts) | |
Financial and Asset Base Highlights (continued) | |
December 31, 2025 | |
(Dollars in thousands, except annual rental revenue per occupied RSF amounts) | |
Three Months Ended (unless stated otherwise) | ||||||||||
12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | ||||||
Amounts included in funds from operations and non-revenue-enhancing capital expenditures | ||||||||||
Straight-line rent revenue | $14,096 | $18,821 | $18,536 | $22,023 | $17,653 | |||||
Amortization of acquired below-market leases | $5,889 | $6,456 | $10,196 | $15,222 | $15,512 | |||||
Amortization of deferred revenue related to tenant-funded and -built landlord improvements | $5,264 | $5,455 | $2,401 | $1,651 | $1,214 | |||||
Straight-line rent expense on ground leases | $116 | $114 | $87 | $149 | $1,021 | |||||
Cash payment for ground lease extension | $— | $— | $— | $(135,000) | $(135,000) | |||||
Stock compensation expense | $8,232 | $10,293 | $12,530 | $10,064 | $12,477 | |||||
Amortization of loan fees | $4,481 | $4,505 | $4,615 | $4,691 | $4,620 | |||||
Amortization of debt discounts | $327 | $325 | $335 | $349 | $333 | |||||
Non-revenue-enhancing capital expenditures: | ||||||||||
Building improvements | $4,372 | $3,948 | $4,622 | $3,789 | $4,313 | |||||
Tenant improvements and leasing commissions | $26,494 | $16,707 | $23,971 | $73,483 | $81,918 | |||||
Funds from operations attributable to noncontrolling interests | $77,922 | $80,236 | $80,860 | $81,012 | $76,111 | |||||
Operating statistics and related information (at end of period) | ||||||||||
Number of properties – North America | 340 | 375 | 384 | 386 | 391 | |||||
RSF – North America (including development and redevelopment projects under construction) | 39,449,372 | 42,887,964 | 43,699,922 | 43,687,343 | 44,124,001 | |||||
Total square footage – North America | 59,382,079 | 66,417,026 | 67,220,337 | 68,518,184 | 69,289,411 | |||||
Annual rental revenue per occupied RSF – North America | $59.97 | $58.94 | $58.68 | $58.38 | $56.98 | |||||
Occupancy of operating properties – North America | 90.9% | (1) | 90.6% | 90.8% | 91.7% | 94.6% | ||||
Occupancy of operating and redevelopment properties – North America | 86.9% | 85.8% | 86.2% | 86.9% | 89.7% | |||||
Weighted-average remaining lease term (in years) | 7.5 | 7.5 | 7.4 | 7.6 | 7.5 | |||||
Total leasing activity – RSF | 1,220,944 | 1,171,344 | 769,815 | 1,030,553 | 1,310,999 | |||||
Lease renewals and re-leasing of space – change in new rental rates over expiring rates: | ||||||||||
Rental rate changes | (9.9)% | 15.2% | 5.5% | 18.5% | 18.1% | |||||
Rental rate changes (cash basis) | (5.2)% | 6.1% | 6.1% | 7.5% | 3.3% | |||||
RSF (included in total leasing activity above) | 821,289 | 354,367 | 483,409 | 884,408 | 1,024,862 | |||||
Previously vacant leasing activity – RSF | 393,376 | 256,633 | 154,638 | 139,715 | 273,138 | |||||
Top 20 tenants: | ||||||||||
Annual rental revenue | $725,559 | $768,528 | $795,244 | $754,354 | $741,965 | |||||
Annual rental revenue from investment-grade or publicly traded large cap tenants | 84% | 90% | 89% | 87% | 92% | |||||
Weighted-average remaining lease term (in years) | 9.7 | 9.4 | 9.4 | 9.6 | 9.3 | |||||
Same property performance – percentage change over comparable quarter from prior year: | ||||||||||
Net operating income changes | (6.0)% | (2) | (6.0)% | (5.4)% | (3.1)% | 0.6% | ||||
Net operating income changes (cash basis) | (1.7)% | (2) | (3.1)% | 2.0% | 5.1% | 6.3% | ||||
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Refer to page 2 in the Earnings Press Release and “Summary of properties and occupancy” in the Supplemental Information for additional details.
(2)Refer to “Same property performance” in the Supplemental Information for additional details.
| |
High-Quality and Diverse Client Base | |
December 31, 2025 | |
Stable Cash Flows From Our High-Quality and Diverse Mix of Tenants | ||||
Investment-Grade or Publicly Traded Large Cap Tenants | ||||
84% | ||||
of ARE’s Top 20 Tenant Annual Rental Revenue | ||||
53% | ||||
of ARE’s Total Annual Rental Revenue | ||||
Life Science Product,
Service, and Device
Multinational
Pharmaceutical
Public
Biotechnology –
Approved or
Marketed
Other(1)
Advanced
Technologies(2)
Public
Biotechnology –
Preclinical or
Clinical Stage
Government
Institutions
Biomedical
Institutions(3)
Private
Biotechnology
Percentage of ARE’s Annual Rental Revenue
As of December 31, 2025. Annual rental revenue represents amounts in effect as of December 31, 2025. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details, including our methodology of calculating
annual rental revenue from unconsolidated real estate joint ventures.
(1)Represents the percentage of our annual rental revenue generated by professional services, finance, construction/real estate companies, and retail-related tenants.
(2)71% of our annual rental revenue from advanced technologies tenants is from investment-grade or publicly traded large cap tenants.
(3)82% of our annual rental revenue from biomedical institutions is from investment-grade or publicly traded large cap tenants.
| |
Key Operating Metrics | |
December 31, 2025 | |
Same Property Performance: Net Operating Income Changes | Rental Rate Growth: Renewed/Re-Leased Space | ||||||||||
Margins(1) | Favorable Lease Structure(2) | ||||||||||
Operating | Adjusted EBITDA | Strategic Lease Structure by Owner and Operator of Collaborative Megacampus Ecosystems | |||||||||
69% | 70% | Increasing cash flows | |||||||||
Percentage of leases containing annual rent escalations | 97% | ||||||||||
Stable cash flows | |||||||||||
Long-Duration Lease Terms(3) | Percentage of triple net leases | 92% | |||||||||
9.7 Years | 7.5 Years | Lower capex burden | |||||||||
Percentage of leases providing for the recapture of capital expenditures | 92% | ||||||||||
Top 20 Tenants | All Tenants | ||||||||||
(3.5)%
2024 | 2025 | |
Refer to “Same property performance” and “Definitions and reconciliations” in the Supplemental Information for additional details. “Definitions and reconciliations” contains the definition of “Net operating income” and its reconciliation
from the most directly comparable financial measure presented in accordance with GAAP.
(1)For the three months ended December 31, 2025.
(2)Percentages calculated based on our annual rental revenue in effect as of December 31, 2025.
(3)Represents the weighted-average remaining term based on annual rental revenue in effect as of December 31, 2025.
Same Property Performance | |
December 31, 2025 | |
(Dollars in thousands) | |
December 31, 2025 | December 31, 2025 | ||||||||||
Same Property Financial Data | Three Months Ended | Year Ended | Same Property Statistical Data | Three Months Ended | Year Ended | ||||||
Percentage change over comparable period from prior year: | Number of same properties | 286 | 282 | ||||||||
Net operating income changes | (6.0)% | (3.5)% | Rentable square feet | 30,622,240 | 29,774,548 | ||||||
Net operating income changes (cash basis) | (1.7)% | 0.9% | (1) | Occupancy – current-period average | 91.0% | 92.5% | |||||
Operating margin | 67% | 68% | Occupancy – same-period prior-year average | 95.5% | 95.2% | ||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||
2025 | 2024 | $ Change | % Change | 2025 | 2024 | $ Change | % Change | ||||||||||
Income from rentals: | |||||||||||||||||
Same properties | $425,975 | $451,251 | $(25,276) | (5.6)% | $1,687,734 | $1,732,019 | $(44,285) | (2.6)% | |||||||||
Non-same properties | 112,355 | 115,284 | (2,929) | (2.5) | 497,155 | 572,320 | (75,165) | (13.1) | |||||||||
Rental revenues | 538,330 | 566,535 | (28,205) | (5.0) | 2,184,889 | 2,304,339 | (119,450) | (5.2) | |||||||||
Same properties | 163,222 | 160,984 | 2,238 | 1.4 | 627,224 | 594,471 | 32,753 | 5.5 | |||||||||
Non-same properties | 27,320 | 35,730 | (8,410) | (23.5) | 133,062 | 150,896 | (17,834) | (11.8) | |||||||||
Tenant recoveries | 190,542 | 196,714 | (6,172) | (3.1) | 760,286 | 745,367 | 14,919 | 2.0 | |||||||||
Income from rentals | 728,872 | 763,249 | (34,377) | (4.5) | 2,945,175 | 3,049,706 | (104,531) | (3.4) | |||||||||
Same properties | 793 | 335 | 458 | 136.7 | 1,791 | 1,267 | 524 | 41.4 | |||||||||
Non-same properties | 24,749 | 25,361 | (612) | (2.4) | 79,590 | 65,421 | 14,169 | 21.7 | |||||||||
Other income | 25,542 | 25,696 | (154) | (0.6) | 81,381 | 66,688 | 14,693 | 22.0 | |||||||||
Same properties | 589,990 | 612,570 | (22,580) | (3.7) | 2,316,749 | 2,327,757 | (11,008) | (0.5) | |||||||||
Non-same properties | 164,424 | 176,375 | (11,951) | (6.8) | 709,807 | 788,637 | (78,830) | (10.0) | |||||||||
Total revenues | 754,414 | 788,945 | (34,531) | (4.4) | 3,026,556 | 3,116,394 | (89,838) | (2.9) | |||||||||
Same properties | 195,291 | 192,768 | 2,523 | 1.3 | 752,481 | 706,904 | 45,577 | 6.4 | |||||||||
Non-same properties | 37,252 | 47,664 | (10,412) | (21.8) | 170,124 | 202,361 | (32,237) | (15.9) | |||||||||
Rental operations | 232,543 | 240,432 | (7,889) | (3.3) | 922,605 | 909,265 | 13,340 | 1.5 | |||||||||
Same properties | 394,699 | 419,802 | (25,103) | (6.0) | 1,564,268 | 1,620,853 | (56,585) | (3.5) | |||||||||
Non-same properties | 127,172 | 128,711 | (1,539) | (1.2) | 539,683 | 586,276 | (46,593) | (7.9) | |||||||||
Net operating income | $521,871 | $548,513 | $(26,642) | (4.9)% | (2) | $2,103,951 | $2,207,129 | $(103,178) | (4.7)% | (2) | |||||||
Net operating income – same properties | $394,699 | $419,802 | $(25,103) | (6.0)% | $1,564,268 | $1,620,853 | $(56,585) | (3.5)% | |||||||||
Straight-line rent revenue | (5,296) | (21,637) | 16,341 | (75.5) | (25,078) | (94,232) | 69,154 | (73.4) | |||||||||
Amortization of acquired below-market leases and deferred revenue related to tenant-funded and -built landlord improvements | (9,503) | (11,504) | 2,001 | (17.4) | (36,763) | (37,512) | 749 | (2.0) | |||||||||
Net operating income – same properties (cash basis) | $379,900 | $386,661 | $(6,761) | (1.7)% | $1,502,427 | $1,489,109 | $13,318 | 0.9% | |||||||||
Refer to “Same property comparisons” under “Definitions and reconciliations” in the Supplemental Information for additional details, including a reconciliation of same properties to total properties. “Definitions and reconciliations” also
contains definitions of “Tenant recoveries” and “Net operating income” and their respective reconciliations from the most directly comparable financial measures presented in accordance with GAAP.
(1)Includes the impact of initial free rent concessions that burned off after January 1, 2024 for development and redevelopment projects that were placed into service in 2023, and accordingly are part of our same property pool for the
year ended December 31, 2025, including at 325 Binney Street in our Cambridge submarket and 15 Necco Street in our Seaport Innovation District submarket. Excluding the impact of these initial free rent concessions, same property
net operating income (cash basis) for the year ended December 31, 2025 would have decreased by 1.4%.
(2)Decrease in net operating income includes the impact of operating properties disposed of after January 1, 2024. Excluding these dispositions, net operating income for the three months ended December 31, 2025 and the year ended
December 31, 2025 would have decreased by 1.7%, and would have increased by 0.9%, respectively, compared to the corresponding periods in 2024.
Leasing Activity | |
December 31, 2025 | |
(Dollars per RSF) | |
Three Months Ended | Year Ended | Year Ended | ||||||||||||||||||||||
December 31, 2025 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
Including Straight-Line Rent | Cash Basis | Including Straight-Line Rent | Cash Basis | Including Straight-Line Rent | Cash Basis | |||||||||||||||||||
Leasing activity: | ||||||||||||||||||||||||
Renewed/re-leased space(1) | ||||||||||||||||||||||||
Rental rate changes | (9.9)% | (2) | (5.2)% | (2) | 7.0% | 3.5% | 16.9% | 7.2% | ||||||||||||||||
New rates | $38.58 | $42.11 | $52.71 | $53.66 | $65.48 | $64.18 | ||||||||||||||||||
Expiring rates | $42.82 | $44.44 | $49.27 | $51.87 | $56.01 | $59.85 | ||||||||||||||||||
RSF | 821,289 | 2,543,473 | 3,888,139 | |||||||||||||||||||||
Tenant improvements/leasing commissions | $32.26 | $55.34 | $46.89 | |||||||||||||||||||||
Weighted-average lease term | 5.9 years | 9.0 years | 8.5 years | |||||||||||||||||||||
Previously vacant/developed/redeveloped space leased(3) | ||||||||||||||||||||||||
New rates | $64.08 | $62.55 | $72.30 | $67.56 | $59.44 | $57.34 | ||||||||||||||||||
Previously vacant RSF | 393,376 | 944,362 | 672,474 | |||||||||||||||||||||
Developed/redeveloped RSF | 6,279 | 704,821 | 493,341 | |||||||||||||||||||||
Weighted-average lease term | 8.8 years | 13.8 years | 10.0 years | |||||||||||||||||||||
Leasing activity summary (totals): | ||||||||||||||||||||||||
New rates | $46.93 | $48.80 | $60.42 | $59.13 | $64.16 | $62.68 | ||||||||||||||||||
RSF | 1,220,944 | 4,192,656 | 5,053,954 | |||||||||||||||||||||
Weighted-average lease term | 7.6 years | 11.9 years | 8.9 years | |||||||||||||||||||||
Lease expirations(1) | ||||||||||||||||||||||||
Expiring rates | $44.66 | $46.13 | $54.22 | $55.56 | $53.82 | $57.24 | ||||||||||||||||||
RSF | 911,029 | 4,460,081 | 5,005,638 | |||||||||||||||||||||
Leasing activity includes 100% of results for properties in North America in which we have an investment.
(1)Excludes month-to-month leases aggregating 58,516 RSF and 136,131 RSF as of December 31, 2025 and 2024, respectively. During the year ended December 31, 2025, we granted free rent concessions averaging 1.5
months per annum.
(2)Includes (i) a one-year lease extension aggregating 247,743 RSF with an investment-grade-rated government institution tenant at an office property in Canada and (ii) a 7.4-year lease aggregating 83,354 RSF with an
anchor tenant at one property in our Sorrento Mesa submarket. At acquisition, the office property in Canada was originally targeted for a future change in use, but we instead renewed the existing tenant through the
beginning of 2027, with no incremental capital investment. We continue to evaluate business strategy for this property, including the potential sale of the asset, subject to market conditions. Excluding these leases, rental
rates for renewed and re-leased space for the three months ended December 31, 2025 increased by 4.6% and decreased by 5.0% (cash basis).
(3)Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in the Supplemental Information for additional details, including total project costs.
Leasing Activity – Tenant Mix | |
December 31, 2025 | |
Alexandria’s Leasing Volume Is Driven
by Our Diverse Tenant Mix
Life Science
Product, Service,
and Device
Life Science
Product, Service,
and Device
Multinational
Pharmaceutical
Public
Biotechnology
Multinational
Pharmaceutical
4Q25
2025
Private
Biotechnology
Public
Biotechnology
Other
Advanced
Technology
Other
Biomedical
Institutions
Private
Biotechnology
Advanced
Technology
Biomedical
Institutions
Contractual Lease Expirations | |
December 31, 2025 | |
Market | 2026 Contractual Lease Expirations (in RSF) | Annual Rental Revenue (per RSF)(1) | 2027 Contractual Lease Expirations (in RSF) | Annual Rental Revenue (per RSF)(1) | |||||||||||||||||||||||||
Leased | Negotiating/ Anticipating | Targeted for Future Development/ Redevelopment | Remaining Expiring Leases | Total(2) | Leased | Negotiating/ Anticipating | Targeted for Future Development/ Redevelopment | Remaining Expiring Leases | Total | ||||||||||||||||||||
Greater Boston | 144,451 | — | — | 248,627 | 393,078 | $44.01 | 50,649 | — | — | 179,430 | 230,079 | $94.88 | |||||||||||||||||
San Francisco Bay Area | 6,527 | 22,000 | — | 286,652 | 315,179 | 69.98 | 1,873 | — | — | 215,684 | 217,557 | 70.96 | |||||||||||||||||
San Diego | — | 49,791 | 52,620 | (3) | 153,477 | 255,888 | 54.62 | — | — | — | 339,716 | 339,716 | 43.71 | ||||||||||||||||
Seattle | 32,500 | — | — | 150,145 | 182,645 | 28.00 | 4,320 | 25,898 | — | 486,950 | 517,168 | 43.59 | |||||||||||||||||
Maryland | 171,239 | — | — | 173,729 | 344,968 | 29.48 | — | — | — | 261,550 | 261,550 | 27.38 | |||||||||||||||||
Research Triangle | 42,318 | 6,439 | — | 99,209 | 147,966 | 43.66 | 34,910 | — | — | 242,303 | 277,213 | 34.74 | |||||||||||||||||
New York City | 35,256 | — | — | 39,659 | 74,915 | 71.65 | — | — | — | 98,299 | 98,299 | 91.95 | |||||||||||||||||
Texas | — | — | — | — | — | — | — | — | — | 91,711 | 91,711 | 26.10 | |||||||||||||||||
Non-cluster/other markets | — | — | — | 24,567 | 24,567 | 59.21 | — | — | — | 11,418 | 11,418 | N/A | |||||||||||||||||
Subtotal | 432,291 | 78,230 | 52,620 | 1,176,065 | 1,739,206 | 47.11 | 91,752 | 25,898 | — | 1,927,061 | 2,044,711 | 50.43 | |||||||||||||||||
Key lease expirations with expected downtime | 140,986 | 9,836 | — | 1,010,637 | (4) | 1,161,459 | (4) | 61.14 | — | — | — | 1,176,123 | 1,176,123 | (5) | 61.61 | ||||||||||||||
Total | 573,277 | 88,066 | 52,620 | 2,186,702 | 2,900,665 | $52.73 | 91,752 | 25,898 | — | 3,103,184 | 3,220,834 | $54.52 | |||||||||||||||||
Percentage of expiring leases | 20% | 3% | 2% | 75% | 100% | 3% | 1% | 0% | 96% | 100% | |||||||||||||||||||
Contractual lease expirations for properties classified as held for sale as of December 31, 2025 are excluded from the information on this page.
(1)Represents amounts in effect as of December 31, 2025.
(2)Excludes month-to-month leases aggregating 58,516 RSF as of December 31, 2025.
(3)Relates to a single-tenant, 100% pre-leased development project aggregating 466,598 RSF that expands the existing Campus Point by Alexandria Megacampus. At the beginning of 2026, the tenant will vacate 52,620 RSF from an
existing building, which generated annual rental revenue of $4.1 million as of 4Q25, to allow for the demolition and development of the new, build-to-suit life science building at this site. Refer to “New Class A/A+ development and
redevelopment properties: current projects” in the Supplemental Information for additional details.
(4)Key lease expirations with expected downtime represent space expected to become vacant at lease expiration and re-leased to new tenants. We have identified prospects or have early discussions with prospective tenants for 468,470
RSF of the 1.0 million RSF listed under remaining expiring leases. We continue to evaluate business plans and re-leasing strategies for these projects to maximize occupancy and rental revenue. We expect downtime for 2026 key lease
expirations to be approximately 6 to 24 months on a weighted-average basis, and we expect these properties to remain operating properties.
Property or Campus | Submarket | RSF | % of Leased/ Negotiating | Weighted Average Expiration Date | Located on Megacampus | Annual Rental Revenue From Lease Expirations/ Known Vacancies | ||||||||
Alexandria Stanford Life Science District | Greater Stanford | 137,970 | —% | June 2026 | $12,899 | |||||||||
One Alexandria Square | Torrey Pines | 118,225 | 38 | January 2026 | X | 10,064 | ||||||||
Alexandria Center® at One Kendall Square | Cambridge | 92,775 | — | May 2026 | X | 7,783 | ||||||||
9625 Towne Centre Drive | University Town Center | 163,648 | — | January 2026 | 6,520 | |||||||||
5810/5820 Nancy Ridge Drive | Sorrento Mesa | 83,354 | 100 | January 2026 | 3,389 | |||||||||
Alexandria Center® at Kendall Square | Cambridge | 45,636 | — | January 2026 | X | 4,564 | ||||||||
Remaining | Various | 519,851 | 4 | May 2026 | (6) | 25,792 | ||||||||
1,161,459 | 13% | April 2026 | $71,011 | |||||||||||
(5)Represents key 2027 lease expirations with expected downtime primarily in our Greater Boston, San Francisco Bay Area, and San Diego markets aggregating 1.2 million RSF with a weighted-average expiration date in March 2027 and
annual rental revenue aggregating $72 million. Included in these expirations are seven leases aggregating 531,984 RSF and $42.3 million in annual rental revenue with four separate tenants that will relocate to our current active
development and redevelopment projects upon completion of their tenant improvements. On a combined basis, these tenants will expand their footprint within our portfolio by over 41%. Additionally, we have identified prospects or have
early discussions with prospective tenants for 302,028 RSF of the total 1.2 million RSF. We expect downtime to be approximately 9 to 24 months on a weighted-average basis, and we expect these properties to remain operating properties.
(6)Approximately 69% of the 519,851 RSF expiring leases are located on a Megacampus.
Top 20 Tenants | |
December 31, 2025 | |
(Dollars in thousands, except average market cap amounts) | |
84% of Top 20 Tenant Annual Rental Revenue Is From Investment-Grade
or Publicly Traded Large Cap Tenants(1)
Tenant | Remaining Lease Term(1) (in years) | Aggregate RSF | Annual Rental Revenue(1) | Percentage of Annual Rental Revenue(1) | Investment-Grade Credit Ratings | Average Market Cap (in billions) | |||||||||||||||||
Moody’s | S&P | ||||||||||||||||||||||
1 | Bristol-Myers Squibb Company | 5.6 | 1,344,987 | $116,140 | 6.1% | A2 | A | $102.64 | |||||||||||||||
2 | Eli Lilly and Company | 9.3 | 1,000,591 | 84,928 | 4.5 | Aa3 | A+ | $784.24 | |||||||||||||||
3 | Moderna, Inc. | 12.9 | 462,100 | 71,571 | 3.8 | — | — | $11.32 | |||||||||||||||
4 | Takeda Pharmaceutical Company Limited | 9.4 | 549,759 | 47,899 | 2.5 | Baa1 | BBB+ | $46.08 | |||||||||||||||
5 | Eikon Therapeutics, Inc.(2) | 13.1 | 311,806 | 40,005 | 2.1 | — | — | $— | |||||||||||||||
6 | AstraZeneca PLC | 6.1 | 440,087 | 39,413 | 2.1 | A1 | A+ | $237.13 | |||||||||||||||
7 | Illumina, Inc. | 5.8 | 792,687 | 29,977 | 1.6 | Baa3 | BBB | $15.91 | |||||||||||||||
8 | Novartis AG | 2.1 | 377,095 | 29,463 | 1.6 | Aa3 | AA- | $251.26 | |||||||||||||||
9 | United States Government | 4.6 | 414,499 | 29,243 | (3) | 1.5 | Aaa | AA+ | $— | ||||||||||||||
10 | Uber Technologies, Inc. | 56.8 | (4) | 1,009,188 | 27,831 | 1.5 | Baa1 | BBB | $176.44 | ||||||||||||||
11 | Boston Children's Hospital | 11.2 | 309,231 | 26,294 | 1.4 | Aa2 | AA | $— | |||||||||||||||
12 | Sanofi | 5.0 | 267,278 | 21,851 | 1.2 | Aa3 | AA | $125.29 | |||||||||||||||
13 | Alphabet Inc. | 2.4 | 418,600 | 21,837 | 1.1 | Aa2 | AA+ | $2,562.42 | |||||||||||||||
14 | New York University | 6.6 | 218,983 | 21,110 | 1.1 | Aa2 | AA- | $— | |||||||||||||||
15 | Cloud Software Group Holdings, Inc. | 0.7 | (5) | 216,278 | 20,553 | 1.1 | — | — | $— | ||||||||||||||
16 | Massachusetts Institute of Technology | 4.0 | 242,428 | 20,529 | 1.1 | Aaa | AAA | $— | |||||||||||||||
17 | Charles River Laboratories, Inc. | 9.7 | 242,693 | 20,207 | 1.1 | — | — | $7.97 | |||||||||||||||
18 | Merck & Co., Inc. | 8.0 | 308,356 | 19,610 | 1.0 | Aa3 | A+ | $219.09 | |||||||||||||||
19 | Vaxcyte, Inc. | 9.0 | 230,755 | 18,692 | 1.0 | — | — | $6.09 | |||||||||||||||
20 | Altos Labs, Inc.(6) | 15.3 | 158,990 | 18,406 | 1.0 | — | — | $— | |||||||||||||||
Total/weighted-average | 9.7 | (4) | 9,316,391 | $725,559 | 38.4% | ||||||||||||||||||
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 the
Supplemental Information for additional details, including our methodology of calculating annual rental revenue from unconsolidated real estate joint ventures and average market capitalization, respectively.
(1)Based on annual rental revenue in effect as of December 31, 2025.
(2)Eikon Therapeutics, Inc. is a private biotechnology company led by renowned biopharmaceutical executive Roger Perlmutter, formerly an executive vice president at Merck & Co., Inc. As of February 25, 2025, the company has raised over
$1.16 billion in private venture capital funding.
(3)Includes leases, which are not subject to annual appropriations, with governmental entities such as the NIH and the General Services Administration. Approximately 2% of the annual rental revenue derived from our leases with the United
States Government is cancellable prior to the lease expiration date.
(4)Includes (i) ground leases for land at 1455 and 1515 Third Street (two buildings aggregating 422,980 RSF) and (ii) leases at 1655 and 1725 Third Street (two buildings aggregating 586,208 RSF) in our Mission Bay submarket owned by
our unconsolidated real estate joint venture in which we have an ownership interest of 10%. Annual rental revenue is presented using 100% of the annual rental revenue from our consolidated properties and our share of annual rental
revenue from our unconsolidated real estate joint ventures. Excluding these ground leases, the weighted-average remaining lease term for our top 20 tenants was 7.9 years as of December 31, 2025.
(5)Represents one lease encompassing three properties located on the Alexandria Stanford Life Science District campus, which we acquired in 2022 and for which we are evaluating business strategy based on market conditions. This lease
with Cloud Software Group, Inc. (formerly known as TIBCO Software, Inc.) was in place when we acquired the properties, of which 137,970 RSF has lease expirations through 2026. Refer to “Contractual lease expirations” in the
Supplemental Information for additional details.
(6)Altos Labs, Inc. is a private biotechnology company led by Hal Barron, M.D., former Chief Scientific Officer of GlaxoSmithKline. Altos Labs is backed by a group of prominent long-term investors and has raised $3.0 billion in private
funding.
Summary of Properties and Occupancy | |
December 31, 2025 | |
(Dollars in thousands, except per RSF amounts) | |
Summary of properties
RSF | Number of Properties | Annual Rental Revenue | |||||||||||||||||
Market | Operating | Development | Redevelopment | Total | % of Total | Total | % of Total | Per RSF | |||||||||||
Greater Boston | 9,220,527 | 583,407 | 1,383,691 | 11,187,625 | 28% | 62 | $709,347 | 37% | $89.07 | ||||||||||
San Francisco Bay Area | 6,131,550 | 212,796 | 107,250 | 6,451,596 | 16 | 53 | 347,448 | 18 | 68.83 | ||||||||||
San Diego | 6,093,824 | 975,135 | — | 7,068,959 | 19 | 59 | 320,581 | 18 | 54.14 | ||||||||||
Seattle | 2,926,554 | 227,577 | — | 3,154,131 | 8 | 42 | 121,514 | 6 | 46.95 | ||||||||||
Maryland | 3,732,888 | — | — | 3,732,888 | 9 | 48 | 153,169 | 8 | 44.35 | ||||||||||
Research Triangle | 3,435,634 | — | — | 3,435,634 | 9 | 34 | 94,667 | 5 | 28.94 | ||||||||||
New York City | 729,461 | — | — | 729,461 | 2 | 2 | 66,085 | 3 | 93.96 | ||||||||||
Texas | 1,646,187 | — | 73,298 | 1,719,485 | 4 | 13 | 36,866 | 2 | 28.02 | ||||||||||
Non-cluster/other markets(1) | 414,216 | — | — | 414,216 | 1 | 7 | 12,379 | 1 | 32.75 | ||||||||||
Properties held for sale | 1,555,377 | — | — | 1,555,377 | 4 | 20 | 37,697 | 2 | 36.46 | ||||||||||
North America | 35,886,218 | 1,998,915 | 1,564,239 | 39,449,372 | 100% | 340 | $1,899,753 | 100% | $59.97 | ||||||||||
3,563,154 | |||||||||||||||||||
Summary of occupancy
Operating Properties | Operating and Redevelopment Properties | |||||||||||
Market | 12/31/25 | 9/30/25 | 12/31/24 | 12/31/25 | 9/30/25 | 12/31/24 | ||||||
Greater Boston | 86.4% | 86.8% | 94.8% | 75.1% | 73.6% | 80.8% | ||||||
San Francisco Bay Area | 90.9 | 90.4 | 93.3 | 89.4 | 86.4 | 89.1 | ||||||
San Diego | 97.2 | 95.2 | 96.3 | 97.2 | 95.2 | 96.3 | ||||||
Seattle | 88.4 | (2) | 90.1 | 92.4 | 88.4 | 90.1 | 92.4 | |||||
Maryland | 93.6 | 93.9 | 95.7 | 93.6 | 93.9 | 95.7 | ||||||
Research Triangle | 95.2 | 94.9 | 97.4 | 95.2 | 94.9 | 97.4 | ||||||
New York City | 96.4 | 98.3 | 88.4 | 96.4 | 98.3 | 88.4 | ||||||
Texas | 79.9 | 79.9 | 95.5 | 76.5 | 76.5 | 91.8 | ||||||
Subtotal | 90.9 | 90.8 | 94.8 | 86.9 | 85.9 | 90.0 | ||||||
Canada | N/A | (3) | 90.3 | 95.9 | N/A | 85.4 | 82.9 | |||||
Non-cluster/other markets | 91.2 | (1) | 69.6 | 72.5 | 91.2 | 69.6 | 72.5 | |||||
North America | 90.9% | (4) | 90.6% | 94.6% | 86.9% | 85.8% | 89.7% | |||||
(1)Includes one property aggregating 247,743 RSF previously included in our Canada market.
(2)Decline in occupancy primarily related to temporary vacancy from one lease expiration aggregating 50,552 RSF in our Bothell submarket. This space is already re-leased, with occupancy expected to commence in 1Q26.
(3)10 properties in Canada were designated as held for sale in 4Q25 and the remaining one property was reclassified into our non-cluster market.
(4)Includes temporary vacancies as of December 31, 2025 aggregating 899,259 RSF, or 2.5% of total operating RSF, primarily in the Greater Boston, San Francisco Bay Area, and Seattle markets, which are leased and expected
to be occupied upon completion of building and/or tenant improvements. The weighted-average expected delivery date is approximately August 2026 and the expected annual rental revenue is approximately $52 million.
Property Listing | |
December 31, 2025 | |
(Dollars in thousands) | |
Our Megacampus™ Properties Account for 78% of Our Annual Rental Revenue
Property Listing (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
Property Listing (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
Property Listing (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
Property Listing (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
Property Listing (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
Market / Submarket / Address | RSF | Number of Properties | Annual Rental Revenue | Occupancy Percentage | ||||||||||||||||
Operating | Operating and Redevelopment | |||||||||||||||||||
Operating | Development | Redevelopment | Total | |||||||||||||||||
New York City | ||||||||||||||||||||
New York City | ||||||||||||||||||||
Megacampus: Alexandria Center® for Life Science – New York City | 729,461 | — | — | 729,461 | 2 | $66,085 | 96.4% | 96.4% | ||||||||||||
430 and 450 East 29th Street | ||||||||||||||||||||
New York City | 729,461 | — | — | 729,461 | 2 | 66,085 | 96.4 | 96.4 | ||||||||||||
Texas | ||||||||||||||||||||
Austin | ||||||||||||||||||||
Megacampus: Intersection Campus | 1,525,359 | — | — | 1,525,359 | 12 | 33,694 | 83.0 | 83.0 | ||||||||||||
507 East Howard Lane, 13011 McCallen Pass, 13813 and 13929 Center Lake Drive, and 12535, 12545, 12555, and 12565 Riata Vista Circle | ||||||||||||||||||||
Austin | 1,525,359 | — | — | 1,525,359 | 12 | 33,694 | 83.0 | 83.0 | ||||||||||||
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 | 1,646,187 | — | 73,298 | 1,719,485 | 13 | 36,866 | 79.9 | 76.5 | ||||||||||||
Non-cluster/other markets | 414,216 | — | — | 414,216 | 7 | 12,379 | 91.2 | 91.2 | ||||||||||||
North America, excluding properties held for sale | 34,330,841 | 1,998,915 | 1,564,239 | 37,893,995 | 320 | 1,862,056 | 90.9% | 86.9% | ||||||||||||
Properties held for sale | 1,555,377 | — | — | 1,555,377 | 20 | 37,697 | 66.5% | 66.5% | ||||||||||||
Total – North America | 35,886,218 | 1,998,915 | 1,564,239 | 39,449,372 | 340 | $1,899,753 | ||||||||||||||
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and “Definitions and reconciliations” in the Supplemental Information for additional details.
Investments in Real Estate | |
December 31, 2025 | |
ALEXANDRIA’S DEVELOPMENT AND REDEVELOPMENT
DELIVERIES ARE EXPECTED TO PROVIDE INCREMENTAL
GROWTH IN ANNUAL NET OPERATING INCOME
Placed Into Service | Near-Term Deliveries | Intermediate- Term Deliveries | Evaluating Business Strategy | ||||||
2025 | 2026 | 2027–2028 | 2026-2028 | ||||||
$78M | $97M | $123M | $113M | ||||||
97% Occupied | 86% Leased/Negotiating | 51% Leased/Negotiating | 8% Leased/Negotiating | ||||||
852,764 RSF | 699,933 RSF | 1.6 million RSF | 1.2 million RSF | ||||||
(1)
(2)
(3)
(4)
(5)
Refer to “Net operating income” under “Definitions and reconciliations” in the Supplemental Information for additional details, including its reconciliation from the most directly comparable financial measure presented in accordance with GAAP.
(1)Excludes future incremental annual net operating income from recently delivered spaces aggregating 20,444 RSF that were vacant and/or unleased at delivery.
(2)Includes expected partial deliveries through 2026 from projects expected to stabilize in 2027-2028, including speculative future leasing that is not yet fully committed. Our share of incremental annual net operating income from projects
expected to be placed into service primarily commencing through 2026 is projected to be $74 million. Refer to the initial and stabilized occupancy years under “New Class A/A+ development and redevelopment properties: current
projects” in the Supplemental Information for additional details.
(3)Our share of incremental annual net operating income from projects expected to stabilize in 2027-2028 is projected to be $92 million.
(4)Represents the current leased/negotiating percentage of development and redevelopment projects that are expected to stabilize through 2026.
(5)Represents the RSF related to projects expected to stabilize in 2026. Does not include RSF for partial deliveries through 2026 from projects expected to stabilize in 2027-2028.
Investments in Real Estate | |
December 31, 2025 | |
(Dollars in thousands) | |
Development and Redevelopment | |||||||||||||||
Under Construction | |||||||||||||||
Operating | 2026 Stabilization | 2027- 2028 Stabilization | Evaluating Strategy | Future | Subtotal | Total | |||||||||
Square footage | |||||||||||||||
Operating | 34,330,841 | — | — | — | — | — | 34,330,841 | ||||||||
Future Class A/A+ development and redevelopment properties | — | 699,933 | 1,614,994 | 1,248,227 | 19,907,130 | 23,470,284 | 23,470,284 | ||||||||
Future development and redevelopment square feet currently included in rental properties(1) | — | — | (52,620) | — | (1,815,084) | (1,867,704) | (1,867,704) | ||||||||
Total square footage, excluding properties held for sale | 34,330,841 | 699,933 | 1,562,374 | 1,248,227 | 18,092,046 | 21,602,580 | 55,933,421 | ||||||||
Properties held for sale | 1,555,377 | — | — | — | 1,893,281 | 1,893,281 | 3,448,658 | ||||||||
Total square footage | 35,886,218 | 699,933 | 1,562,374 | 1,248,227 | 19,985,327 | 23,495,861 | 59,382,079 | ||||||||
Investments in real estate | |||||||||||||||
Gross book value as of December 31, 2025(2) | $27,767,849 | $777,861 | $1,382,807 | $1,020,344 | $3,868,660 | $7,049,672 | (3) | $34,817,521 | |||||||
Properties held for sale | 452,825 | — | — | — | 261,208 | 261,208 | 714,033 | ||||||||
Total gross investment in real estate, excluding properties held for sale | $27,315,024 | $777,861 | $1,382,807 | $1,020,344 | $3,607,452 | $6,788,464 | $34,103,488 | ||||||||
20%
17%
11% to 16%
Non-Income-Producing Assets(4) as a Percentage of Gross Assets
(1)Refer to “Investments in real estate” under “Definitions and reconciliations” in the Supplemental Information for additional details, including future development and redevelopment square feet currently included in rental properties.
(2)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. Refer to “Investments in real estate” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(3)Our share of investment in our development and redevelopment pipeline is $6.35 billion.
(4)Excludes properties classified as held for sale, of which land parcels represent approximately 1% of total non-income producing assets.
New Class A/A+ Development and Redevelopment Properties: Recent Deliveries | |
December 31, 2025 | |
99 Coolidge Avenue | 500 North Beacon Street and 4 Kingsbury Avenue(1) | |
Greater Boston/ Cambridge/Inner Suburbs | Greater Boston/ Cambridge/Inner Suburbs | |
129,413 RSF | 248,018 RSF | |
100% Occupancy | 92% Occupancy | |
 |  |
230 Harriet Tubman Way | 10935, 10945, and 10955 Alexandria Way(2) | 10075 Barnes Canyon Road | ||
San Francisco Bay Area/ South San Francisco | San Diego/Torrey Pines | San Diego/Sorrento Mesa | ||
285,346 RSF | 334,996 RSF | 171,469 RSF | ||
100% Occupancy | 100% Occupancy | 100% 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 | |
December 31, 2025 | |
(Dollars in thousands) | |
Incremental Annual Net Operating Income Generated From 2025 Deliveries
Aggregated $78 Million(1), Including $10 Million in 4Q25
Property/Market/Submarket | Our Ownership Interest | RSF Placed in Service | Occupancy Percentage(3) | Total Project | Unlevered Yields | |||||||||||||||||||||||||||
4Q25 Delivery Date(2) | Prior to 1/1/25 | 1Q25 | 2Q25 | 3Q25 | 4Q25 | Total | Initial Stabilized | Initial Stabilized (Cash Basis) | ||||||||||||||||||||||||
RSF | Investment | |||||||||||||||||||||||||||||||
Development projects | ||||||||||||||||||||||||||||||||
99 Coolidge Avenue/Greater Boston/ Cambridge/Inner Suburbs | N/A | 100% | 116,414 | — | — | 12,999 | — | 129,413 | 100% | 320,809 | $444,000 | 6.0% | 6.8% | |||||||||||||||||||
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/Cambridge/Inner Suburbs | N/A | 100% | 211,574 | — | — | 36,444 | — | 248,018 | 92% | 248,018 | 429,000 | 6.5 | 5.9 | |||||||||||||||||||
230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco | N/A | 48.6% | — | 285,346 | — | — | — | 285,346 | 100% | 285,346 | 476,000 | 7.5 | 6.2 | |||||||||||||||||||
10935, 10945, and 10955 Alexandria Way/ San Diego/Torrey Pines | N/A | 100% | 93,492 | — | 119,202 | 122,302 | — | 334,996 | 100% | 334,996 | 480,000 | 7.2 | 6.9 | |||||||||||||||||||
10075 Barnes Canyon Road/San Diego/ Sorrento Mesa | 12/18/25 | 50.0% | — | 17,718 | — | 13,772 | 139,979 | 171,469 | 100% | 253,079 | 321,000 | 5.5 | 5.7 | |||||||||||||||||||
Weighted average/total | 12/18/25 | 421,480 | 303,064 | 119,202 | 185,517 | 139,979 | 1,169,242 | 1,442,248 | $2,150,000 | 6.6% | 6.3% | |||||||||||||||||||||
Assets sold in 2025 or designated as held for sale in 4Q25: | ||||||||||||||||||||||||||||||||
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco(4) | N/A | N/A | 67,017 | — | 22,005 | — | — | 89,022 | N/A | |||||||||||||||||||||||
Canada(5) | N/A | N/A | 78,487 | 6,430 | 76,567 | — | — | 161,484 | N/A | |||||||||||||||||||||||
Refer to “New Class A/A+ development and redevelopment properties: current projects” in the Supplemental Information for additional details on the square footage in service and under construction, if applicable.
(1)Excludes future incremental annual net operating income from recently delivered spaces aggregating 20,444 RSF that were vacant and/or unleased at delivery.
(2)Represents the average delivery date for deliveries that occurred during the current quarter, weighted by annual rental revenue.
(3)Occupancy reflects total operating RSF placed in service as of each respective delivery date when the space was placed into service. Subsequent occupancy changes are not reflected.
(4)During December 2025, we sold our 50% controlling interest in a consolidated real estate joint venture at 651 Gateway Boulevard. Refer to “2025 Dispositions and sales of partial interests” in the Earnings Press Release for additional
details.
(5)As of December 31, 2025, our Canada project was designated as held for sale.
New Class A/A+ Development and Redevelopment Properties: Current Projects | |
December 31, 2025 | |
REDUCED FUTURE CONSTRUCTION COMMITMENTS
BY MORE THAN $300 MILLION
FROM FOUR PROJECTS
Submarket | As of 3Q25 | |||||||
Property | CIP RSF | Total Project Leased/ Negotiating | Project Status as of 4Q25 | |||||
Projects under construction as of 3Q25 | 4,239,762 | 43% | ||||||
Redevelopment projects removed from pipeline in 4Q25: | ||||||||
651 Gateway Boulevard | South San Francisco | (237,684) | 21% | Sold in 4Q25 | ||||
Canada | Canada | (56,314) | 78 | Held for sale as of 4Q25 | ||||
One Hampshire Street | Cambridge | (104,956) | — | Held for sale as of 4Q25 | ||||
401 Park Drive | Fenway | (137,675) | — | Reclassified to operating(1) | ||||
(536,629) | 32 | |||||||
Projects placed into service in 4Q25 | (139,979) | 100 | ||||||
Projects under construction as of 4Q25 | 3,563,154 | 46% | ||||||
(1)We plan to lease this property as office which will require less incremental capital.
New Class A/A+ Development and Redevelopment Properties: Current Projects (continued) | |
December 31, 2025 | |
99 Coolidge Avenue | 311 Arsenal Street | 50 and 60 Sylvan Road(1) | 1450 Owens Street | |||
Greater Boston/ Cambridge/Inner Suburbs | Greater Boston/ Cambridge/Inner Suburbs | Greater Boston/Route 128 | San Francisco Bay Area/ Mission Bay | |||
191,396 RSF | 333,758 RSF | 267,015 RSF | 212,796 RSF | |||
81% Leased/Negotiating | 7% Leased/Negotiating | 74% Leased/Negotiating | 49% Leased/Negotiating | |||
|  |  |  |
269 East Grand Avenue | 4135 Campus Point Court | Campus Point by Alexandria | 10075 Barnes Canyon Road | 701 Dexter Avenue North | ||||
San Francisco Bay Area/ South San Francisco | San Diego/ University Town Center | San Diego/ University Town Center | San Diego/Sorrento Mesa | Seattle/Lake Union | ||||
107,250 RSF | 426,927 RSF | 466,598 RSF | 81,610 RSF | 227,577 RSF | ||||
—% Leased/Negotiating | 100% Leased | 100% Leased | 68% Leased/Negotiating | 23% Leased/Negotiating | ||||
 |  |  | |  |
(1)Image represents 60 Sylvan Road on the Alexandria Center® for Life Science – Waltham Megacampus. The project is expected to capture demand in our Route 128 submarket.
New Class A/A+ Development and Redevelopment Properties: Current Projects (continued) | |
December 31, 2025 | |
Property/Market/Submarket | Located on Mega- campus | Dev/ Redev | Square Footage | Percentage | Occupancy(1) | |||||||||||||||||
In Service | CIP | Total | Leased | Leased/ Negotiating | Initial | Stabilized | ||||||||||||||||
Under construction | ||||||||||||||||||||||
2026 stabilization | ||||||||||||||||||||||
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs | X | Dev | 129,413 | 191,396 | 320,809 | 81% | 81% | 4Q23 | 4Q26 | |||||||||||||
4135 Campus Point Court/San Diego/University Town Center | X | Dev | — | 426,927 | 426,927 | 100 | 100 | 3Q26 | 3Q26 | |||||||||||||
10075 Barnes Canyon Road/San Diego/Sorrento Mesa | X | Dev | 171,469 | 81,610 | 253,079 | 68 | 68 | 1Q25 | 2H26 | |||||||||||||
300,882 | 699,933 | 1,000,815 | 86 | 86 | ||||||||||||||||||
2027-2028 stabilization | ||||||||||||||||||||||
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs | X | Redev | 56,904 | 333,758 | 390,662 | 7 | 7 | 2027 | 2027 | |||||||||||||
50 and 60 Sylvan Road/Greater Boston/Route 128 | X | Redev | — | 267,015 | 267,015 | 74 | 74 | 4Q26 | 2027 | |||||||||||||
1450 Owens Street/San Francisco Bay Area/Mission Bay | X | Dev | — | 212,796 | 212,796 | — | 49 | 2027 | 2027 | |||||||||||||
269 East Grand Avenue/San Francisco Bay Area/South San Francisco | X | Redev | — | 107,250 | 107,250 | — | — | 2H26 | 2027 | |||||||||||||
Campus Point by Alexandria/San Diego/University Town Center(2) | X | Dev | — | 466,598 | 466,598 | 100 | 100 | 2028 | 2028 | |||||||||||||
701 Dexter Avenue North/Seattle/Lake Union | X | Dev | — | 227,577 | 227,577 | 23 | 23 | 4Q26 | 2027 | |||||||||||||
56,904 | 1,614,994 | 1,671,898 | 45 | 51 | ||||||||||||||||||
Evaluating business strategy | ||||||||||||||||||||||
8800 Technology Forest Place/Texas/Greater Houston | Redev | 50,094 | 73,298 | 123,392 | 46 | 46 | 2Q23 | 4Q26 | ||||||||||||||
3000 Minuteman Road/Greater Boston/Other | X | Redev | — | 453,869 | 453,869 | — | — | 2027 | 2027 | |||||||||||||
40 Sylvan Road/Greater Boston/Route 128 | X | Redev | — | 329,049 | 329,049 | — | — | 2027 | 2027 | |||||||||||||
421 Park Drive/Greater Boston/Fenway | X | Dev | — | 392,011 | 392,011 | 13 | 13 | 2027 | 2028 | |||||||||||||
50,094 | 1,248,227 | 1,298,321 | 8 | 8 | ||||||||||||||||||
Total under construction | 407,880 | 3,563,154 | 3,971,034 | 43% | 46% | |||||||||||||||||
(1)Initial occupancy dates are subject to leasing and/or market conditions. Stabilized occupancy may vary depending on single tenancy versus multi-tenancy. Multi-tenant projects may increase in occupancy over time.
(2)Represents a single-tenant project that expands the existing Campus Point by Alexandria Megacampus, where we currently have a 56.4% interest. The project is fully leased to a longtime multinational pharmaceutical tenant that currently
occupies two buildings within the Megacampus: one building aggregating 52,620 RSF and another building aggregating 52,853 RSF. These buildings generated annual rental revenue of $7.5 million as of 4Q25. At the beginning of 2026, the
tenant will vacate the 52,620 RSF building, and during 2028, the tenant will vacate the 52,853 RSF building. We expect to fund the majority of future construction costs at the Megacampus until our ownership interest increases to 75%, after
which future capital would be contributed pro rata with our joint venture partner.
New Class A/A+ Development and Redevelopment Properties: Current Projects (continued) | |
| |
December 31, 2025 | |
(Dollars in thousands) | |
Our Ownership Interest | At 100% | Unlevered Yields | |||||||||||||||||
Property/Market/Submarket | In Service | CIP | Cost to Complete | Total at Completion | Initial Stabilized | Initial Stabilized (Cash Basis) | |||||||||||||
Under construction | |||||||||||||||||||
2026 stabilization with 86% leased/negotiating | |||||||||||||||||||
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs | 100% | $162,887 | $210,603 | $70,510 | $444,000 | 6.0% | 6.8% | ||||||||||||
4135 Campus Point Court/San Diego/University Town Center | 56.4% | — | 434,465 | 89,535 | 524,000 | 9.4% | 6.2% | ||||||||||||
10075 Barnes Canyon Road/San Diego/Sorrento Mesa | 50.0% | 123,133 | 132,793 | 65,074 | 321,000 | 5.5% | 5.7% | ||||||||||||
286,020 | 777,861 | ||||||||||||||||||
2027-2028 stabilization with 51% leased/negotiating(1) | |||||||||||||||||||
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs | 100% | 21,854 | 306,028 | TBD | |||||||||||||||
50 and 60 Sylvan Road/Greater Boston/Route 128 | 100% | — | 345,046 | ||||||||||||||||
1450 Owens Street/San Francisco Bay Area/Mission Bay | 25.0% | — | 247,271 | ||||||||||||||||
269 East Grand Avenue/San Francisco Bay Area/South San Francisco | 100% | — | 119,546 | ||||||||||||||||
Campus Point by Alexandria/San Diego/University Town Center(2) | 56.4% | — | 62,790 | 597,210 | 660,000 | 7.3% | 6.5% | ||||||||||||
701 Dexter Avenue North/Seattle/Lake Union | 100% | — | 302,126 | TBD | |||||||||||||||
21,854 | 1,382,807 | ||||||||||||||||||
Evaluating business strategy with 8% leased/negotiating | |||||||||||||||||||
8800 Technology Forest Place/Texas/Greater Houston | 100% | 60,938 | 46,578 | 4,484 | 112,000 | 6.3% | 6.0% | ||||||||||||
3000 Minuteman Road/Greater Boston/Other | 100% | — | 163,966 | TBD | |||||||||||||||
40 Sylvan Road/Greater Boston/Route 128 | 100% | — | 225,791 | ||||||||||||||||
421 Park Drive/Greater Boston/Fenway | 100% | — | 584,009 | ||||||||||||||||
60,938 | 1,020,344 | ||||||||||||||||||
Total under construction | $368,812 | $3,181,012 | $2,110,000 | (3) | $5,660,000 | (3) | |||||||||||||
Our share of investment(3)(4) | $310,000 | $2,710,000 | $1,710,000 | $4,730,000 | |||||||||||||||
Refer to “Initial stabilized yield (unlevered)” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)We expect to provide total estimated costs and related yields for each project over the next several quarters.
(2)Refer to footnote 2 on the prior page for additional details.
(3)Represents dollar amount rounded to the nearest $10 million and includes preliminary estimated amounts for projects listed as TBD.
(4)Represents our share of investment based on our current ownership percentage upon completion of development or redevelopment projects. Our share of investment will be adjusted as our ownership percentage increases at the Campus
Point project.
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline | |
December 31, 2025 | |
(Dollars in thousands) | |
77% of Our Total Development and Redevelopment Pipeline RSF
Is Within Our Megacampus™ Ecosystems
Market Property/Submarket | Our Ownership Interest | Book Value | Square Footage | |||||||||
Development and Redevelopment | ||||||||||||
Under Construction | Future | Total(1) | ||||||||||
Greater Boston | ||||||||||||
Megacampus: The Arsenal on the Charles/Cambridge/Inner Suburbs | 100% | $318,404 | 333,758 | 34,157 | 367,915 | |||||||
311 Arsenal Street | ||||||||||||
Megacampus: 480 Arsenal Way and 446, 458, and 500 Arsenal Street, and 99 Coolidge Avenue/ Cambridge/Inner Suburbs | 100% | 234,388 | 191,396 | 560,000 | 751,396 | |||||||
446, 458, and 500 Arsenal Street, and 99 Coolidge Avenue | ||||||||||||
Megacampus: Alexandria Center® for Life Science – Fenway/Fenway | 100% | 584,009 | 392,011 | — | 392,011 | |||||||
421 Park Drive | ||||||||||||
Megacampus: Alexandria Center® for Life Science – Waltham/Route 128 | 100% | 635,997 | 596,064 | 515,000 | 1,111,064 | |||||||
40, 50, and 60 Sylvan Road, and 35 Gatehouse Drive | ||||||||||||
Megacampus: 30, 200, and 3000 Minuteman Road/Other | 100% | 222,659 | 453,869 | 608,541 | 1,062,410 | |||||||
3000 Minuteman Road | ||||||||||||
Megacampus: Alexandria Technology Square®/Cambridge | 100% | 8,631 | — | 100,000 | 100,000 | |||||||
10 Necco Street/Seaport Innovation District | 100% | 107,099 | — | 175,000 | 175,000 | |||||||
215 Presidential Way/Route 128 | 100% | 6,816 | — | 112,000 | 112,000 | |||||||
Other development and redevelopment projects | 100% | 162,935 | — | 740,000 | 740,000 | |||||||
$2,280,938 | 1,967,098 | 2,844,698 | 4,811,796 | |||||||||
Refer to “Megacampus™” under “Definitions and reconciliations” in the Supplemental Information for additional details. (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 the Supplemental Information for additional details, including development and redevelopment square feet currently included in rental properties. | ||||||||||||
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
Market Property/Submarket | Our Ownership Interest | Book Value | Square Footage | |||||||||
Development and Redevelopment | ||||||||||||
Under Construction | Future | Total(1) | ||||||||||
Texas | ||||||||||||
Alexandria Center® for Advanced Technologies at The Woodlands/Greater Houston | 100% | $49,691 | 73,298 | 116,405 | 189,703 | |||||||
8800 Technology Forest Place | ||||||||||||
1001 Trinity Street and 1020 Red River Street/Austin | 100% | 135,868 | — | 250,010 | 250,010 | |||||||
Other development and redevelopment projects | 100% | 60,241 | — | 344,000 | 344,000 | |||||||
245,800 | 73,298 | 710,415 | 783,713 | |||||||||
Other development and redevelopment projects | 100% | 47,504 | — | 597,743 | 597,743 | |||||||
Total pipeline as of December 31, 2025, excluding properties held for sale | 6,788,464 | 3,563,154 | 19,907,130 | 23,470,284 | ||||||||
Properties held for sale | 261,208 | — | 1,893,281 | 1,893,281 | ||||||||
Total pipeline as of December 31, 2025 | $7,049,672 | (2) | 3,563,154 | 21,800,411 | 25,363,565 | |||||||
Refer to “Megacampus™” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Total square footage includes 1.9 million 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 the Supplemental Information for additional details, including development and redevelopment square feet currently included in rental properties.
(2)Includes $3.18 billion of projects that are currently under construction.
Construction Spending | |
December 31, 2025 | |
(Dollars in thousands) | |
Construction spending | Projected Guidance Midpoint for Year Ending December 31, 2026 | Year Ended December 31, 2025 | Year Ended December 31, 2024 | ||||||||
Construction of Class A/A+ properties: | |||||||||||
Active construction projects | |||||||||||
Includes development and redevelopment under construction(1) | $ | 1,445,000 | $ | 1,216,572 | $ | 1,791,097 | |||||
Future pipeline pre-construction | |||||||||||
Primarily Megacampus expansion pre-construction work (entitlement, design, and site work) | 210,000 | (2) | 275,971 | 426,948 | |||||||
Revenue- and non-revenue-enhancing capital expenditures(3) | 510,000 | (4) | 324,293 | 273,377 | |||||||
Construction spending (before contributions from noncontrolling interests or tenants) | 2,165,000 | 1,816,836 | 2,491,422 | ||||||||
Contributions from noncontrolling interests (consolidated real estate joint ventures) | (100,000) | (5) | (193,936) | (343,798) | |||||||
Tenant-funded and -built landlord improvements | (315,000) | (178,651) | (129,152) | ||||||||
Total construction spending | $ | 1,750,000 | $ | 1,444,249 | $ | 2,018,472 | |||||
2026 guidance range for construction spending | $1,500,000 – $2,000,000 | ||||||||||
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Includes smaller conversions to laboratory space through redevelopment.
(2)Approximately 75% represents capitalized costs.
(3)Represents revenue- and non-revenue-enhancing capital expenditures before contributions from noncontrolling interests and tenant-funded and tenant-built landlord improvements.
(4)The top two revenue- and non-revenue-enhancing capital expenditure projects in 2026 represent approximately 55% of the total spending within this category. The first project relates to a property located at the Alexandria Center® for
Advanced Technologies – South San Francisco Megacampus in our South San Francisco submarket, which is leased to a new tenant and is undergoing its first major renovation in 12 years. The second project relates to a property at the
Alexandria Technology Square® Megacampus in our Cambridge submarket, which is undergoing its first major renovation in 16 years.
(5)Represents contractual capital commitments from existing real estate joint venture partners to fund construction.
Capitalization of Interest | |
December 31, 2025 | |
(Dollars in thousands) | |
Leased/ Negotiating | Average Real Estate Basis Capitalized During 2025 | Percentage of Total Average Real Estate Basis Capitalized | |||||||
Key Categories of Real Estate Basis Capitalized | |||||||||
Construction of Class A/A+ properties: | |||||||||
Development and redevelopment of projects under construction: | |||||||||
2026 stabilization | 86% | $590,069 | 7% | ||||||
2027-2028 stabilization | 51% | 1,308,800 | 16 | ||||||
Evaluating business strategy | 8% | 878,661 | 11 | ||||||
Repositioning and smaller redevelopment projects | 1,187,460 | (1) | 15 | ||||||
Future pipeline projects with critical pre-construction milestones during 2026: | |||||||||
Megacampus projects | 2,078,801 | (2) | 25 | ||||||
Non-Megacampus projects | 987,518 | (2) | 12 | ||||||
Assets sold in 2025 or designated as held for sale as of 4Q25(3) | 1,115,707 | 14 | |||||||
Total average real estate basis capitalized(4) | $8,147,016 | 100% | |||||||
Under construction – evaluating business
strategy – $878.7 million
Repositioning and smaller redevelopment
projects(1) – $1.19 billion
Under construction – 2026 stabilization –
$590.1 million (86% leased/negotiating)
Future projects with critical milestones in 2026 –
Megacampus projects(2) – $2.08 billion
Under construction – 2027-2028 stabilization –
$1.31 billion (51% leased/negotiating)
Future projects with critical milestones in 2026 –
Non-Megacampus projects – $987.5 million
Assets sold in 2025 or designated as
held for sale as of 4Q25 – $1.12 billion
Percentage of Total Average Real Estate Basis Capitalized During 2025
(1)Includes the real estate basis related to the 899,259 RSF of vacant space as of December 31, 2025 that is leased with future delivery. The weighted-average expected delivery date is approximately August 2026.
(2)Approximately 74% of future pipeline projects are expected to reach anticipated pre-construction milestones, including various phases of entitlement, design, site work, and other activities necessary to begin aboveground
vertical construction, on a weighted-average real estate investment basis by May 2026. At each milestone date, we will evaluate whether to proceed with additional pre-construction and/or construction activities based on leasing
demand and/or market conditions, pause future investments, or consider the potential dispositions of real estate assets.
(3)The weighted-average date as of which capitalization of interest ceased was in early December 2025.
(4)In addition to capitalized interest, we incur additional capitalized project costs, including property taxes, insurance, payroll, and other costs directly related and essential to the construction of Class A/A+ properties. If we cease
activities necessary to prepare a project for its intended use, costs related to such project are expensed as incurred. Annualized capitalized operating expenses and payroll represent approximately 2% and 1%, respectively, of
the total average real estate basis subject to capitalization for 2025.
| |
Joint Venture Financial Information | |
December 31, 2025 | |
Refer to “Joint venture financial information” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)In addition to the real estate joint ventures listed, we have one consolidated real estate joint venture in the Greater Boston market in which a partner holds a $49.6 million redeemable noncontrolling interest earning a fixed return as
of December 31, 2025.
(2)Represents a property currently under construction or in our future development and redevelopment pipeline. Refer to the sections under “New Class A/A+ development and redevelopment properties” in the Supplemental
Information for additional details.
(3)Includes 1450, 1500, and 1700 Owens Street and 455 Mission Bay Boulevard South.
(4)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4135, 4155, 4161, 4165, 4224, and 4242 Campus Point Court.
(5)The noncontrolling interest share of our real estate joint venture partner is anticipated to decrease to 25%, as we expect to fund the majority of future construction costs at the campus until our ownership interest increases to 75%,
after which future capital would be contributed pro rata with our partner. Refer to “New Class A/A+ development and redevelopment properties: current projects” in the Supplemental Information for additional details.
(6)Includes 9605, 9645, 9675, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road.
(7)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.
(8)In addition to the real estate joint ventures listed, we hold an interest in two insignificant unconsolidated real estate joint ventures.
(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.
Joint Venture Financial Information (continued) | |
December 31, 2025 | |
(In thousands) | |
As of December 31, 2025 | ||||||||
Noncontrolling Interest Share of Consolidated Real Estate JVs | Our Share of Unconsolidated Real Estate JVs | |||||||
Investments in real estate | $ | 3,317,283 | $ | 83,974 | ||||
Cash, cash equivalents, and restricted cash | 139,397 | 1,853 | ||||||
Other assets | 402,602 | 10,238 | ||||||
Secured notes payable | — | (60,864) | ||||||
Other liabilities | (172,916) | (4,524) | ||||||
Redeemable noncontrolling interests | (58,788) | — | ||||||
$ | 3,627,578 | $ | 30,677 | |||||
Noncontrolling Interest Share of Consolidated Real Estate JVs | Our Share of Unconsolidated Real Estate JVs | ||||||||||||||
December 31, 2025 | December 31, 2025 | ||||||||||||||
Three Months Ended | Year Ended | Three Months Ended | Year Ended | ||||||||||||
Total revenues | $ | 114,339 | $ | 467,580 | $ | 2,656 | $ | 10,619 | |||||||
Rental operations | (36,231) | (145,209) | (1,040) | (4,048) | |||||||||||
78,108 | 322,371 | 1,616 | 6,571 | ||||||||||||
General and administrative | (823) | (3,016) | (32) | (133) | |||||||||||
Interest | (62) | (967) | (1,058) | (4,176) | |||||||||||
Depreciation and amortization of real estate assets | (39,942) | (154,727) | (855) | (3,703) | |||||||||||
Impairment of real estate | (265,266) | (1) | (265,266) | — | (8,673) | ||||||||||
Gain on sale of real estate of consolidated JV | 312,807 | (2) | 312,807 | — | — | ||||||||||
Gain on sale of interest of unconsolidated JV | — | — | 25 | 483 | |||||||||||
Fixed returns allocated to redeemable noncontrolling interests(3) | 699 | 1,642 | — | — | |||||||||||
$ | 85,521 | $ | 212,844 | $ | (304) | $ | (9,631) | ||||||||
Straight-line rent and below-market lease revenue | $ | 2,723 | $ | 19,580 | $ | 139 | $ | 645 | |||||||
Funds from operations(4) | $ | 77,922 | $ | 320,030 | $ | 526 | $ | 2,262 | |||||||
Refer to “Joint venture financial information” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Relates to our partners’ share of impairment charges recognized in connection with real estate properties held by consolidated joint ventures at 601, 611, 651, 681, 685, 701, and 751 Gateway Boulevard and 285, 299, 307, and
345 Dorchester Avenue. Refer to “2025 dispositions and sales of partial interests” in the Earnings Press Release for additional details.
(2)Relates to our partner’s share of the gain on sale of real estate recognized upon the disposition of the properties at 409 and 499 Illinois Street.
(3)Represents an allocation of joint venture earnings to redeemable noncontrolling interests for properties in the Greater Boston and San Francisco Bay Area markets. These redeemable noncontrolling interests earn a fixed return on
their investment rather than participate in the operating results of the properties.
(4)Refer to “Funds from operations and funds from operations per share” in the Earnings Press Release and “Definitions and reconciliations” in the Supplemental Information for additional details.
Investments | |
December 31, 2025 | |
(Dollars in thousands) | |
We hold investments in publicly traded companies and privately held entities primarily involved in the life science industry. The tables below summarize components of our investment income
(loss) and non-real estate investments. Refer to “Investments” under “Definitions and reconciliations” in the Supplemental Information for additional details.
December 31, 2025 | Year Ended December 31, 2024 | ||||||||
Three Months Ended | Year Ended | ||||||||
Realized (losses) gains: | |||||||||
Realized gains | $21,072 | $115,722 | $117,214 | ||||||
Impairment of non-real estate investments | (20,181) | (1) | (95,716) | (58,090) | |||||
Significant realized loss | (103,329) | (2) | (103,329) | (2) | — | ||||
(102,438) | (83,323) | 59,124 | |||||||
Unrealized gains (losses) | 98,548 | (3) | 26,980 | (4) | (112,246) | (5) | |||
Investment loss | $(3,890) | $(56,343) | $(53,122) | ||||||
December 31, 2025 | December 31, 2024 | |||||||||
Investments | Cost | Unrealized Gains | Unrealized Losses | Carrying Amount | Carrying Amount | |||||
Publicly traded companies | $54,752 | $44,319 | $(4,143) | $94,928 | $105,667 | |||||
Entities that report NAV | 460,160 | 89,514 | (37,298) | 512,376 | 609,866 | |||||
Entities that do not report NAV: | ||||||||||
Entities with observable price changes | 82,252 | 50,601 | (9,615) | 123,238 | 174,737 | |||||
Entities without observable price changes | 413,324 | — | — | 413,324 | 400,487 | |||||
Investments accounted for under the equity method | N/A | N/A | N/A | 357,383 | 186,228 | |||||
December 31, 2025 | $1,010,488 | (6) | $184,434 | $(51,056) | $1,501,249 | $1,476,985 | ||||
December 31, 2024 | $1,207,146 | $228,100 | $(144,489) | $1,476,985 | ||||||
Public/Private Mix (Cost) | Tenant/Non-Tenant Mix (Cost) | |
18%
Tenant
4%
Public
82%
Non-Tenant
96%
Private
(1)Primarily related to two non-real estate investments in privately held entities that do not report NAV.
(2)In November 2025, we contributed certain publicly traded securities to an unconsolidated joint venture, which resulted in a realized loss of $103.3 million on one transaction that was previously reflected as unrealized losses within
investment income in our consolidated statement of operations. The unconsolidated joint venture sold these securities and distributed $39.9 million to us in December 2025.
(3)Consists of unrealized gains of $24.2 million primarily resulting from the increase in fair values of our investments in privately held entities that report NAV and $74.3 million resulting from accounting reclassifications of unrealized losses
recognized in prior periods into realized losses upon our realization of investments during the three months ended December 31, 2025.
(4)Primarily relates to the increase in fair values of our investments in publicly traded entities during the year ended December 31, 2025.
(5)Primarily relates to the accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our realization of investments during the year ended December 31, 2024.
(6)Represents 2.5% of gross assets as of December 31, 2025. Refer to “Gross assets” under “Definitions and reconciliations” in the Supplemental Information for additional details.
| |
Balance Sheet | |
December 31, 2025 | |
ALEXANDRIA CONTINUES TO HAVE A STRONG AND FLEXIBLE
BALANCE SHEET WITH SIGNIFICANT LIQUIDITY
SIGNIFICANT LIQUIDITY | PERCENTAGE OF FIXED-RATE DEBT SINCE 2021(1) | |
$5.3B | 96.7% | |
REMAINING DEBT TERM (IN YEARS) | DEBT INTEREST RATE | |
12.1 | 3.91% | |
Longest Among S&P 500 REITs(3) |
ACHIEVED
4Q25 LEVERAGE(2)
5.7x
WEIGHTED AVERAGE
TOP 15%
BBB+
Negative
Baa1
Negative
CREDIT RATING RANKING AMONG
ALL PUBLICLY TRADED U.S. REITS(4)
As of December 31, 2025. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents the average quarterly percentage fixed-rate debt as of each quarter-end from January 1, 2021 through December 31, 2025.
(2)Represents net debt and preferred stock to Adjusted EBITDA for the fourth quarter annualized.
(3)Sources: S&P Global Market Intelligence, Bloomberg, or company filings (data not disclosed for SBAC, PSA, and WY) as of September 30, 2025, except for ARE, which is as of December 31, 2025.
(4)Top 15% ranking represents credit rating levels from S&P Global Ratings and Moody’s Ratings for publicly traded U.S. REITs, from Bloomberg Professional Services and Nareit, as of December 31, 2025.
| |
Key Credit Metrics | |
December 31, 2025 | |
5.6x to 6.2x
3.6x to 4.1x
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Quarter annualized.
Summary of Debt | |
December 31, 2025 | |
(Dollars in millions) | |
Weighted-Average Remaining Term of 12.1 Years
(1)In January 2026, we repaid $300.0 million of 4.30% unsecured senior notes payable upon maturity. No gain or loss was incurred in connection with this repayment.
(2)Refer to footnotes 2 through 4 on page 52 under “Fixed-rate and variable-rate debt” for additional details.
Summary of Debt (continued) | |
December 31, 2025 | |
ALEXANDRIA HAS THE LONGEST WEIGHTED-AVERAGE REMAINING DEBT TERM
AMONG S&P 500 REITS AT OVER 2X THE AVERAGE DEBT TERM FOR THESE REITS
5.9 Years
Average Debt Term
of S&P 500 REITs
as of September 30, 2025
WEIGHTED-AVERAGE REMAINING DEBT TERM (IN YEARS)
Sources: S&P Global Market Intelligence, Bloomberg, or company filings (data not disclosed for SBAC, PSA, and WY) as of September 30, 2025, except for ARE, which is as of December 31, 2025.
Summary of Debt (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
Fixed-rate and variable-rate debt | Fixed-Rate Debt | Variable-Rate Debt | Total | Percentage | Weighted-Average | |||||||
Interest Rate(1) | Remaining Term (in years) | |||||||||||
Unsecured senior notes payable | $12,047,394 | $— | $12,047,394 | 97.2% | 3.90% | 12.3 | ||||||
Unsecured senior line of credit(2) and commercial paper program(3) | — | 353,161 | 353,161 | 2.8 | 4.33 | 4.1 | (4) | |||||
Total/weighted average | $12,047,394 | $353,161 | $12,400,555 | 100.0% | 3.91% | 12.1 | (4) | |||||
Percentage of total debt | 97.2% | 2.8% | 100.0% | |||||||||
(1)Represents the weighted-average interest rate as of the end of the applicable period, including expense/income related to the amortization of loan fees, amortization of debt premiums (discounts), and other bank fees.
(2)As of December 31, 2025, we had no outstanding balance on our unsecured senior line of credit.
(3)The commercial paper program provides us with the ability to issue up to $2.50 billion of commercial paper notes that bear interest at short-term fixed rates and can generally be issued with a maturity of 30 days or less and with
a maximum maturity of 397 days from the date of issuance. Borrowings under the program are used to fund short-term capital needs and are back-stopped by our unsecured senior line of credit. In the event we are unable to
issue commercial paper notes or refinance outstanding borrowings under terms equal to or more favorable than those under our unsecured senior line of credit, we expect to borrow under the unsecured senior line of credit at
SOFR+0.855%. As of December 31, 2025, we had $353.2 million of commercial paper notes outstanding.
(4)We calculate the weighted-average remaining term of our commercial paper notes by using the maturity date of our unsecured senior line of credit. Using the maturity date of our outstanding commercial paper notes, the
consolidated weighted-average maturity of our debt is 12.0 years. The commercial paper notes sold during the year ended December 31, 2025 were issued at a weighted-average yield to maturity of 4.48% and had a weighted-
average maturity term of 19 days.
Average Debt Outstanding | Weighted-Average Interest Rate | ||||||||
December 31, 2025 | December 31, 2025 | ||||||||
Three Months Ended | Year Ended | Three Months Ended | Year Ended | ||||||
Long-term fixed-rate debt | $12,121,545 | $12,248,039 | 3.88% | 3.87% | |||||
Short-term variable-rate unsecured senior line of credit and commercial paper program debt | 2,318,358 | 1,281,104 | 4.28 | 4.55 | |||||
Blended-average interest rate | 14,439,903 | 13,529,143 | 3.94 | 3.93 | |||||
Loan fee amortization and annual facility fee related to unsecured senior line of credit | N/A | N/A | 0.13 | 0.13 | |||||
Total/weighted average | $14,439,903 | $13,529,143 | 4.07% | 4.06% | |||||
Summary of Debt (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
Debt covenants | Unsecured Senior Notes Payable | Unsecured Senior Line of Credit | ||||||
Debt Covenant Ratios(1) | Requirement | December 31, 2025 | Requirement | December 31, 2025 | ||||
Total Debt to Total Assets | ≤ 60% | 32% | ≤ 60.0% | 33.5% | ||||
Secured Debt to Total Assets | ≤ 40% | —% | ≤ 45.0% | —% | ||||
Consolidated EBITDA to Interest Expense | ≥ 1.5x | 7.8x | ≥ 1.50x | 3.41x | ||||
Unencumbered Total Asset Value to Unsecured Debt | ≥ 150% | 302% | N/A | N/A | ||||
Unsecured Interest Coverage Ratio | N/A | N/A | ≥ 1.75x | 7.63x | ||||
(1)All covenant ratio titles utilize terms as defined in the respective debt and credit agreements. 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.
Unconsolidated real estate joint ventures’ debt | At 100% | |||||||||||||||||
Unconsolidated Joint Venture | Maturity Date | Stated Rate | Interest Rate(1) | Aggregate Commitment | Debt Balance(2) | Our Share | ||||||||||||
101 West Dickman Street | 10/29/26 | SOFR+1.95% | (3) | 5.74% | $26,750 | $19,136 | 58.4% | |||||||||||
1655 and 1725 Third Street | 2/10/35 | 6.37% | 6.44% | 500,000 | 496,881 | 10.0% | ||||||||||||
$526,750 | $516,017 | |||||||||||||||||
(1)Includes interest expense and amortization of loan fees.
(2)Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2025.
(3)This loan is subject to a fixed SOFR floor of 0.75%.
Summary of Debt (continued) | |
December 31, 2025 | |
(Dollars in thousands) | |
Debt | Stated Rate | Interest Rate(1) | Maturity Date(2) | Principal Payments Remaining for the Periods Ending December 31, | Principal | Unamortized (Deferred Financing Cost), (Discount)/ Premium | Total | |||||||||||||||||||
2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | |||||||||||||||||||||
Unsecured senior line of credit and commercial paper program(3) | (3) | 4.33% | (3) | 1/22/30 | (3) | $— | $— | $— | $— | $353,500 | $— | $353,500 | $(339) | $353,161 | ||||||||||||
Unsecured senior notes payable | 4.30% | 4.50 | 1/15/26 | (4) | 300,000 | — | — | — | — | — | 300,000 | (36) | 299,964 | |||||||||||||
Unsecured senior notes payable | 3.80% | 3.96 | 4/15/26 | 350,000 | — | — | — | — | — | 350,000 | (162) | 349,838 | ||||||||||||||
Unsecured senior notes payable | 3.95% | 4.13 | 1/15/27 | — | 350,000 | — | — | — | — | 350,000 | (555) | 349,445 | ||||||||||||||
Unsecured senior notes payable | 3.95% | 4.07 | 1/15/28 | — | — | 425,000 | — | — | — | 425,000 | (888) | 424,112 | ||||||||||||||
Unsecured senior notes payable | 4.50% | 4.60 | 7/30/29 | — | — | — | 300,000 | — | — | 300,000 | (805) | 299,195 | ||||||||||||||
Unsecured senior notes payable | 2.75% | 2.87 | 12/15/29 | — | — | — | 400,000 | — | — | 400,000 | (1,655) | 398,345 | ||||||||||||||
Unsecured senior notes payable | 4.70% | 4.81 | 7/1/30 | — | — | — | — | 450,000 | — | 450,000 | (1,686) | 448,314 | ||||||||||||||
Unsecured senior notes payable | 4.90% | 5.05 | 12/15/30 | — | — | — | — | 700,000 | — | 700,000 | (3,947) | 696,053 | ||||||||||||||
Unsecured senior notes payable | 3.375% | 3.48 | 8/15/31 | — | — | — | — | — | 750,000 | 750,000 | (3,704) | 746,296 | ||||||||||||||
Unsecured senior notes payable | 2.00% | 2.12 | 5/18/32 | — | — | — | — | — | 900,000 | 900,000 | (6,043) | 893,957 | ||||||||||||||
Unsecured senior notes payable | 1.875% | 1.97 | 2/1/33 | — | — | — | — | — | 1,000,000 | 1,000,000 | (6,240) | 993,760 | ||||||||||||||
Unsecured senior notes payable | 2.95% | 3.07 | 3/15/34 | — | — | — | — | — | 800,000 | 800,000 | (6,477) | 793,523 | ||||||||||||||
Unsecured senior notes payable | 4.75% | 4.88 | 4/15/35 | — | — | — | — | — | 500,000 | 500,000 | (4,500) | 495,500 | ||||||||||||||
Unsecured senior notes payable | 5.50% | 5.66 | 10/1/35 | — | — | — | — | — | 550,000 | 550,000 | (6,316) | 543,684 | ||||||||||||||
Unsecured senior notes payable | 5.25% | 5.38 | 5/15/36 | — | — | — | — | — | 400,000 | 400,000 | (3,767) | 396,233 | ||||||||||||||
Unsecured senior notes payable | 4.85% | 4.93 | 4/15/49 | — | — | — | — | — | 300,000 | 300,000 | (2,756) | 297,244 | ||||||||||||||
Unsecured senior notes payable | 4.00% | 3.91 | 2/1/50 | — | — | — | — | — | 700,000 | 700,000 | 9,844 | 709,844 | ||||||||||||||
Unsecured senior notes payable | 3.00% | 3.08 | 5/18/51 | — | — | — | — | — | 850,000 | 850,000 | (10,842) | 839,158 | ||||||||||||||
Unsecured senior notes payable | 3.55% | 3.63 | 3/15/52 | — | — | — | — | — | 1,000,000 | 1,000,000 | (13,228) | 986,772 | ||||||||||||||
Unsecured senior notes payable | 5.15% | 5.26 | 4/15/53 | — | — | — | — | — | 500,000 | 500,000 | (7,373) | 492,627 | ||||||||||||||
Unsecured senior notes payable | 5.625% | 5.71 | 5/15/54 | — | — | — | — | — | 600,000 | 600,000 | (6,470) | 593,530 | ||||||||||||||
Unsecured debt weighted-average interest rate/ subtotal | 3.91 | 650,000 | 350,000 | 425,000 | 700,000 | 1,503,500 | 8,850,000 | 12,478,500 | (77,945) | 12,400,555 | ||||||||||||||||
Weighted-average interest rate/total | 3.91% | $650,000 | $350,000 | $425,000 | $700,000 | $1,503,500 | $8,850,000 | $12,478,500 | $(77,945) | $12,400,555 | ||||||||||||||||
Balloon payments | $650,000 | $350,000 | $425,000 | $700,000 | $1,503,500 | $8,850,000 | $12,478,500 | $— | $12,478,500 | |||||||||||||||||
Principal amortization | — | — | — | — | — | — | — | (77,945) | (77,945) | |||||||||||||||||
Total debt | $650,000 | $350,000 | $425,000 | $700,000 | $1,503,500 | $8,850,000 | $12,478,500 | $(77,945) | $12,400,555 | |||||||||||||||||
Fixed-rate debt | $650,000 | $350,000 | $425,000 | $700,000 | $1,150,000 | $8,850,000 | $12,125,000 | $(77,606) | $12,047,394 | |||||||||||||||||
Variable-rate debt | — | — | — | — | 353,500 | — | 353,500 | (339) | 353,161 | |||||||||||||||||
Total debt | $650,000 | $350,000 | $425,000 | $700,000 | $1,503,500 | $8,850,000 | $12,478,500 | $(77,945) | $12,400,555 | |||||||||||||||||
Weighted-average stated rate on maturing debt | 4.03% | 3.95% | 3.95% | 3.50% | 4.71% | 3.66% | ||||||||||||||||||||
(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.
(2)Reflects any extension options that we control.
(3)Refer to footnotes 2 through 4 under “Fixed-rate and variable-rate debt” in “Summary of debt” for additional details.
(4)In January 2026, we repaid our 4.30% unsecured senior notes payable upon maturity. No gain or loss was incurred in connection with this repayment.
| |
Definitions and Reconciliations | |
December 31, 2025 | |
This section contains additional details for sections throughout the Supplemental Information and the accompanying Earnings Press Release, as well as explanations and reconciliations of certain non-
GAAP financial measures and the reasons why we use these supplemental measures of performance and believe they provide useful information to investors. Additional detail can be found in our most recent
annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, as well as other documents filed with or furnished to the SEC from time to time.
Adjusted EBITDA and Adjusted EBITDA margin
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:
Three Months Ended | |||||||||
(Dollars in thousands) | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | ||||
Net (loss) income | $(995,354) | $(197,845) | $(62,189) | $38,662 | $(16,095) | ||||
Interest expense | 65,674 | 54,852 | 55,296 | 50,876 | 55,659 | ||||
Income taxes | 1,851 | 3,737 | 1,020 | 1,145 | 1,855 | ||||
Depreciation and amortization | 322,063 | 340,230 | 346,123 | 342,062 | 330,108 | ||||
Stock compensation expense | 8,232 | 10,293 | 12,530 | 10,064 | 12,477 | ||||
Loss on early extinguishment of debt | — | 107 | — | — | — | ||||
Gain on sales of real estate | (619,914) | (9,366) | — | (13,165) | (101,806) | ||||
Unrealized (gains) losses on non-real estate investments | (98,548) | (18,515) | 21,938 | 68,145 | 79,776 | ||||
Significant realized losses on non-real estate investments | 103,329 | — | — | — | — | ||||
Impairment of real estate | 1,717,188 | 323,870 | 129,606 | 32,154 | 186,564 | ||||
Impairment of non-real estate investments | 20,181 | 25,139 | 39,216 | 11,180 | 20,266 | ||||
Increase (decrease) in provision for expected credit losses on financial instruments | (341) | — | — | 285 | (434) | ||||
Adjusted EBITDA | $524,361 | $532,502 | $543,540 | $541,408 | $568,370 | ||||
Total revenues | $754,414 | $751,944 | $762,040 | $758,158 | $788,945 | ||||
Adjusted EBITDA margin | 70% | 71% | 71% | 71% | 72% | ||||
We use Adjusted EBITDA as a supplemental performance measure of our operations, for
financial and operational decision-making, and as a supplemental means of evaluating period-to-period
comparisons on a consistent basis. Adjusted EBITDA is calculated as earnings before interest, taxes,
depreciation, and amortization (“EBITDA”), excluding stock compensation expense, gains or losses on
early extinguishment of debt, gains or losses on sales of real estate, impairments of real estate, changes
in provision for expected credit losses on financial instruments, and significant termination fees. Adjusted
EBITDA also excludes unrealized gains or losses and significant realized gains or losses and
impairments that result from our non-real estate investments. These non-real estate investment amounts
are classified in our consolidated statements of operations outside of total revenues.
We believe Adjusted EBITDA provides investors with relevant and useful information as it
allows investors to evaluate the operating performance of our business activities without having to
account for differences recognized because of investing and financing decisions related to our real
estate and non-real estate investments, our capital structure, capital market transactions, and variances
resulting from the volatility of market conditions outside of our control. For example, we exclude gains or
losses on the early extinguishment of debt to allow investors to measure our performance independent
of our indebtedness and capital structure. We believe that adjusting for the effects of impairments and
gains or losses on sales of real estate, significant impairments and realized gains or losses on non-real
estate investments, changes in provision for expected credit losses on financial instruments, and
significant termination fees allows investors to evaluate performance from period to period on a
consistent basis without having to account for differences recognized because of investing and financing
decisions related to our real estate and non-real estate investments or other corporate activities that
may not be representative of the operating performance of our properties.
In addition, we believe that excluding charges related to stock compensation and unrealized
gains or losses facilitates for investors a comparison of our business activities across periods without the
volatility resulting from market forces outside of our control. Adjusted EBITDA has limitations as a
measure of our performance. Adjusted EBITDA does not reflect our historical expenditures or future
requirements for capital expenditures or contractual commitments. While Adjusted EBITDA is a relevant
measure of performance, it does not represent net income (loss) or cash flows from operations
calculated and presented in accordance with GAAP, and it should not be considered as an alternative to
those indicators in evaluating performance or liquidity.
In order to calculate the Adjusted EBITDA margin, we divide Adjusted EBITDA by total
revenues as presented in our consolidated statements of operations. We believe that this supplemental
performance measure provides investors with additional useful information regarding the profitability of
our operating activities.
We are not able to forecast the net income of future periods without unreasonable effort and
therefore do not provide a reconciliation for Adjusted EBITDA on a forward-looking basis. This is due to
the inherent difficulty of forecasting the timing and/or amount of items that depend on market conditions
outside of our control, including the timing of dispositions, capital events, and financing decisions, as
well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-
real estate investments, impairments of real estate, impairments of non-real estate investments, and
changes in provision for expected credit losses on financial instruments. Our attempt to predict these
amounts may produce significant but inaccurate estimates, which would potentially be misleading for our
investors.
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Annual rental revenue
Annual rental revenue represents the annualized fixed base rental obligations, calculated in
accordance with GAAP. It includes 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, 2025, 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
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 the definition
of fixed-charge coverage ratio for a reconciliation of interest expense, the most directly comparable
financial measure calculated and presented in accordance with GAAP, to cash interest.
Class A/A+ properties and AAA locations
Class A/A+ properties are properties clustered in AAA locations that provide innovative
tenants with highly dynamic and collaborative environments that enhance their ability to successfully
recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. These
properties are typically well-located, professionally managed, and well-maintained, offering a wide range
of amenities and featuring premium construction materials and finishes. Class A/A+ properties are
generally newer or have undergone substantial redevelopment and are generally expected to command
higher annual rental rates compared to other classes of similar properties. AAA locations are in close
proximity to concentrations of specialized skills, knowledge, institutions, and related businesses. It is
important to note that our definition of property classification may not be directly comparable to other
equity REITs.
Credit ratings
Represents the credit ratings assigned by S&P Global Ratings or Moody’s Ratings as of
December 31, 2025. A credit rating is not a recommendation to buy, sell, or hold securities and may be
subject to revision or withdrawal at any time.
Development, redevelopment, and pre-construction
A key component of our business model is our disciplined allocation of capital to the
development and redevelopment of new Class A/A+ properties, as well as property enhancements
identified during the underwriting of certain acquired properties. These efforts are primarily concentrated
in collaborative Megacampus™ ecosystems within AAA life science innovation clusters, as well as other
strategic locations that support innovation and growth. These projects are generally focused on
providing high-quality, generic, and reusable spaces that meet the real estate requirements of a wide
range of tenants. Upon completion, each development or redevelopment project is expected to generate
increases in rental income, net operating income, and cash flows. Our development and redevelopment
projects are generally in locations that are highly desirable to high-quality entities, which we believe
results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater
long-term asset value.
Development projects generally consist of the ground-up development of generic and
reusable laboratory facilities. Redevelopment projects consist of the permanent change in use of
acquired office, warehouse, or shell space into laboratory space. We generally will not commence new
development projects for aboveground construction of new Class A/A+ laboratory space without first
securing significant pre-leasing for such space, except when there is solid market demand for high-
quality Class A/A+ properties.
Pre-construction activities include entitlements, permitting, design, site work, and other
activities preceding commencement of construction of aboveground building improvements. The
advancement of pre-construction efforts is focused on reducing the time required to deliver projects to
prospective tenants. These critical activities add significant value for future ground-up development and
are required for the vertical construction of buildings. Ultimately, these projects will provide high-quality
facilities and are expected to generate significant revenue and cash flows.
Development, redevelopment, and pre-construction spending also includes the following
costs: (i) amounts to bring certain acquired properties up to market standard and/or other costs identified
during the acquisition process (generally within two years of acquisition) and (ii) permanent conversion
of space for highly flexible, move-in-ready laboratory space to foster the growth of promising early- and
growth-stage life science companies.
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Development, redevelopment, and pre-construction (continued)
Revenue-enhancing and repositioning capital expenditures represent spending to reposition
or significantly change the use of a property, including through improvement in the asset quality from
Class B to Class A/A+.
Non-revenue-enhancing capital expenditures represent costs required to maintain the current
revenues of a stabilized property, including the associated costs for renewed and re-leased space.
Dividend payout ratio (common stock)
Dividend payout ratio (common stock) is the ratio of the absolute dollar amount of dividends
on our common stock (shares of common stock outstanding on the respective record dates multiplied by
the related dividend per share) to funds from operations attributable to Alexandria’s common
stockholders – diluted, as adjusted.
Dividend yield
Dividend yield for the quarter represents the annualized quarter dividend divided by the
closing common stock price at the end of the quarter.
Space Intentionally Blank | |
Fixed-charge coverage ratio
Fixed-charge coverage ratio is a non-GAAP financial measure representing the ratio of
Adjusted EBITDA to cash interest and fixed charges. We believe that this ratio is useful to investors as a
supplemental measure of our ability to satisfy fixed financing obligations and preferred stock dividends.
Cash interest is equal to interest expense calculated in accordance with GAAP plus capitalized interest,
less amortization of loan fees and debt premiums (discounts).
The following table reconciles interest expense, the most directly comparable financial
measure calculated and presented in accordance with GAAP, to cash interest and computes fixed-
charge coverage ratio:
Three Months Ended | |||||||||
(Dollars in thousands) | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | ||||
Adjusted EBITDA | $524,361 | $532,502 | $543,540 | $541,408 | $568,370 | ||||
Interest expense | $65,674 | $54,852 | $55,296 | $50,876 | $55,659 | ||||
Capitalized interest | 81,845 | 86,091 | 82,423 | 80,065 | 81,586 | ||||
Amortization of loan fees | (4,481) | (4,505) | (4,615) | (4,691) | (4,620) | ||||
Amortization of debt discounts | (327) | (325) | (335) | (349) | (333) | ||||
Cash interest and fixed charges | $142,711 | $136,113 | $132,769 | $125,901 | $132,292 | ||||
Fixed-charge coverage ratio: | |||||||||
– quarter annualized | 3.7x | 3.9x | 4.1x | 4.3x | 4.3x | ||||
– trailing 12 months | 4.0x | 4.1x | 4.3x | 4.4x | 4.5x | ||||
We are not able to forecast the net income of future periods without unreasonable effort and
therefore do not provide a reconciliation for fixed-charge coverage ratio on a forward-looking basis. This
is due to the inherent difficulty of forecasting the timing and/or amount of items that depend on market
conditions outside of our control, including the timing of dispositions, capital events, and financing
decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or
losses on non-real estate investments, impairments of real estate, impairments of non-real estate
investments, and changes in provision for expected credit losses on financial instruments. Our attempt
to predict these amounts may produce significant but inaccurate estimates, which would potentially be
misleading for our investors.
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s
common stockholders
GAAP-basis accounting for real estate assets utilizes historical cost accounting and assumes
that real estate values diminish over time. In an effort to overcome the difference between real estate
values and historical cost accounting for real estate assets, the Nareit Board of Governors established
funds from operations as an improved measurement tool. Since its introduction, funds from operations
has become a widely used non-GAAP financial measure among equity REITs. We believe that funds
from operations is helpful to investors as an additional measure of the performance of an equity
REIT. Moreover, we believe that funds from operations, as adjusted, allows investors to compare our
performance to the performance of other real estate companies on a consistent basis, without having to
account for differences recognized because of real estate acquisition and disposition decisions,
financing decisions, capital structure, capital market transactions, variances resulting from the volatility
of market conditions outside of our control, or other corporate activities that may not be representative of
the operating performance of our properties.
The 2018 White Paper published by the Nareit Board of Governors (the “Nareit White Paper”)
defines funds from operations as net income (computed in accordance with GAAP), excluding gains or
losses on sales of real estate, and impairments of real estate, plus depreciation and amortization of
operating real estate assets, and after adjustments for our share of consolidated and unconsolidated
partnerships and real estate joint ventures. Impairments represent the write-down of assets when fair
value over the recoverability period is less than the carrying value due to changes in general market
conditions and do not necessarily reflect the operating performance of the properties during the
corresponding period.
We compute funds from operations, as adjusted, as funds from operations calculated in
accordance with the Nareit White Paper, excluding significant gains, losses, and impairments realized
on non-real estate investments, unrealized gains or losses on non-real estate investments, impairments
of real estate primarily consisting of right-of-use assets and pre-acquisition costs related to projects that
we decided to no longer pursue, gains or losses on early extinguishment of debt, changes in the
provision for expected credit losses on financial instruments, significant termination fees, acceleration of
stock compensation expense due to the resignations of executive officers, deal costs, the income tax
effect related to such items, and the amount of such items that is allocable to our unvested restricted
stock awards. We compute the amount that is allocable to our unvested restricted stock awards with
nonforfeitable dividends using the two-class method. Under the two-class method, we allocate net
income (after amounts attributable to noncontrolling interests) to common stockholders and to unvested
restricted stock awards with nonforfeitable dividends by applying the respective weighted-average
shares outstanding during each quarter-to-date and year-to-date period. This may result in a difference
of the summation of the quarter-to-date and year-to-date amounts. Neither funds from operations nor
funds from operations, as adjusted, should be considered as alternatives to net income (determined in
accordance with GAAP) as indications of financial performance, or to cash flows from operating
activities (determined in accordance with GAAP) as measures of liquidity, nor are they indicative of the
availability of funds for our cash needs, including our ability to make distributions.
We are not able to forecast the net income of future periods without unreasonable effort and
therefore do not provide a reconciliation for funds from operations 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 components such as gain on sales of real estate, unrealized gains or losses on
non-real estate investments, impairments of real estate, impairments of non-real estate investments,
and changes in provision for expected credit losses on financial instruments. Our attempt to predict
these amounts may produce significant but inaccurate estimates, which would potentially be misleading
for our investors.
Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s
common stockholders (continued)
The following table reconciles net income (loss) to funds from operations for the share of
consolidated real estate joint ventures attributable to noncontrolling interests and our share of
unconsolidated real estate joint ventures:
Noncontrolling Interest Share of Consolidated Real Estate JVs | Our Share of Unconsolidated Real Estate JVs | ||||||
December 31, 2025 | December 31, 2025 | ||||||
(In thousands) | Three Months Ended | Year Ended | Three Months Ended | Year Ended | |||
Net income (loss) | $85,521 | $212,844 | $(304) | $(9,631) | |||
Depreciation and amortization of real estate assets | 39,942 | 154,727 | 855 | 3,703 | |||
Gain on sale of real estate of consolidated JV | (312,807) | (312,807) | — | — | |||
Gain on sale of interest of unconsolidated JV | — | — | (25) | (483) | |||
Impairment of real estate | 265,266 | 265,266 | — | 8,673 | |||
Funds from operations | $77,922 | $320,030 | $526 | $2,262 | |||
Gross assets
Gross assets are calculated as total assets plus accumulated depreciation:
(In thousands) | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | ||||
Total assets | $34,081,835 | $37,375,148 | $37,623,629 | $37,600,428 | $37,527,449 | ||||
Accumulated depreciation | 6,127,525 | 6,416,745 | 6,146,378 | 5,886,561 | 5,625,179 | ||||
Gross assets | $40,209,360 | $43,791,893 | $43,770,007 | $43,486,989 | $43,152,628 | ||||
Incremental annual net operating income on development and redevelopment projects
Incremental annual net operating income represents the amount of net operating income, on
an annual basis, expected to be realized upon a project being placed into service and achieving full
occupancy. Incremental annual net operating income is calculated as the initial stabilized yield multiplied
by the project’s total cost at completion.
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Initial stabilized yield (unlevered)
Initial stabilized yield is calculated as the estimated amounts of net operating income at
stabilization divided by our investment in the property. For this calculation, we exclude any tenant-
funded and tenant-built landlord improvements from our investment in the property. Our initial stabilized
yield excludes the benefit of leverage. Our cash rents related to our development and redevelopment
projects are generally expected to increase over time due to contractual annual rent escalations. Our
estimates for initial stabilized yields, initial stabilized yields (cash basis), and total costs at completion
represent our initial estimates at the commencement of the project. We expect to update this information
upon completion of the project, or sooner if there are significant changes to the expected project yields
or costs.
•Initial stabilized yield reflects rental income, including contractual rent escalations and any rent
concessions over the term(s) of the lease(s), calculated on a straight-line basis, and any
amortization of deferred revenue related to tenant-funded and tenant-built landlord improvements.
•Initial stabilized yield (cash basis) reflects cash rents at the stabilization date after initial rental
concessions, if any, have elapsed and our total cash investment in the property.
Investment-grade or publicly traded large cap tenants
Investment-grade or publicly traded large cap tenants represent tenants that are investment-
grade rated or publicly traded companies with an average daily market capitalization greater than $10
billion for the twelve months ended December 31, 2025, as reported by Bloomberg Professional
Services. Credit ratings from Moody’s Ratings and S&P Global Ratings reflect credit ratings of the
tenant’s parent entity, and there can be no assurance that a tenant’s parent entity will satisfy the tenant’s
lease obligation upon such tenant’s default. We monitor the credit quality and related material changes
of our tenants. Material changes that cause a tenant’s market capitalization to decrease below $10
billion, which are not immediately reflected in the twelve-month average, may result in their exclusion
from this measure.
Space Intentionally Blank | |
Investments
We hold investments in publicly traded companies and privately held entities primarily
involved in the life science industry. We recognize, measure, present, and disclose these investments as
follows:
Statements of Operations | ||||||
Balance Sheet | Gains and Losses | |||||
Carrying Amount | Unrealized | Realized | ||||
Difference between proceeds received upon disposition and historical cost | ||||||
Publicly traded companies | Fair value | Changes in fair value | ||||
Privately held entities without readily determinable fair values that: | ||||||
Report NAV | Fair value, using NAV as a practical expedient | Changes in NAV, as a practical expedient to fair value | ||||
Do not report NAV | Cost, adjusted for observable price changes and impairments(1) | Observable price changes(1) | Impairments to reduce costs to fair value, which result in an adjusted cost basis and the differences between proceeds received upon disposition and adjusted or historical cost | |||
Equity method investments | Contributions, adjusted for our share of the investee’s earnings or losses, less distributions received, reduced by other-than-temporary impairments | Our share of unrealized gains or losses reported by the investee | Our share of realized gains or losses reported by the investee, and other-than- temporary impairments | |||
(1)An observable price is a price observed in an orderly transaction for an identical or similar investment of the same
issuer. Observable price changes result from, among other things, equity transactions for the same issuer with
similar rights and obligations executed during the reporting period, including subsequent equity offerings or other
reported equity transactions related to the same issuer.
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Investments in real estate
The following table reconciles our investments in real estate as of December 31, 2025:
(In thousands) | Investments in Real Estate | ||
Gross investments in real estate | $34,817,521 | ||
Less: accumulated depreciation | (6,127,525) | ||
Investments in real estate | $28,689,996 |
The following table presents our new Class A/A+ development and redevelopment pipeline,
excluding properties held for sale, as a percentage of gross assets and as a percentage of annual rental
revenue as of December 31, 2025:
Percentage of | ||||||
(Dollars in thousands) | Book Value | Gross Assets | Annual Rental Revenue | |||
Projects under active construction | $3,181,012 | 8% | —% | |||
Future development projects(1) and land parcels primarily located in Megacampuses | 3,607,452 | 9 | 1 | |||
Total Class A/A+ development and redevelopment pipeline, excluding properties held for sale | 6,788,464 | 17 | 1 | |||
Properties held for sale – land parcels | 261,208 | 1 | — | |||
Total Class A/A+ development and redevelopment pipeline | $7,049,672 | 18% | 1% | |||
(1)Includes projects with existing buildings that are generating or can generate operating cash flows. Also includes
development rights associated with existing operating campuses.
Space Intentionally Blank | |
Investments in real estate (continued)
The square footage presented in the table below is classified as operating as of December 31,
2025. These lease expirations or vacant space at recently acquired properties represent future
opportunities for which we have the intent, subject to market conditions and leasing, to commence first-
time conversion from non-laboratory space to laboratory space, or to commence future ground-up
development:
Dev/ Redev | RSF of Lease Expirations Targeted for Development and Redevelopment | |||||||||
Property/Submarket | 2026 | 2027 | Thereafter(1) | Total | ||||||
Under construction project: | ||||||||||
Campus Point by Alexandria/University Town Center | Dev | 52,620 | — | — | 52,620 | |||||
Future projects: | ||||||||||
446, 458, and 500 Arsenal Street/Cambridge/Inner Suburbs | Dev | — | — | 116,623 | 116,623 | |||||
3000 Minuteman Road/Greater Boston | Redev | — | — | 167,549 | 167,549 | |||||
1122 and 1150 El Camino Real/South San Francisco | Dev | — | — | 375,232 | 375,232 | |||||
2100 and 2200 Geng Road/Greater Stanford | Dev | — | — | 62,526 | 62,526 | |||||
960 Industrial Road/Greater Stanford | Dev | — | — | 112,590 | 112,590 | |||||
Campus Point by Alexandria/University Town Center | Dev | — | — | 96,805 | 96,805 | |||||
Sequence District by Alexandria/Sorrento Mesa | Dev/ Redev | — | — | 555,754 | 555,754 | |||||
410 West Harrison Street/Elliott Bay | Dev | — | — | 17,205 | 17,205 | |||||
Other/Seattle | Dev | — | — | 63,057 | 63,057 | |||||
Canada | Redev | — | — | 247,743 | 247,743 | |||||
— | — | 1,815,084 | 1,815,084 | |||||||
Total | 52,620 | — | 1,815,084 | 1,867,704 | ||||||
(1)Includes vacant square footage as of December 31, 2025.
Space Intentionally Blank | |
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Joint venture financial information
We present components of balance sheet and operating results information related to our real
estate joint ventures, which are not presented, or intended to be presented, in accordance with GAAP.
We present the proportionate share of certain financial line items as follows: (i) for each real estate joint
venture that we consolidate in our financial statements, which are controlled by us through contractual
rights or majority voting rights, but of which we own less than 100%, we apply the noncontrolling interest
economic ownership percentage to each financial item to arrive at the amount of such cumulative
noncontrolling interest share of each component presented; and (ii) for each real estate joint venture that
we do not control and do not consolidate, which are instead controlled jointly or by our joint venture
partners through contractual rights or majority voting rights, we apply our economic ownership
percentage to each financial item to arrive at our proportionate share of each component presented.
The components of balance sheet and operating results information related to our real estate
joint ventures do not represent our legal claim to those items. For each entity that we do not wholly own,
the joint venture agreement generally determines what equity holders can receive upon capital events,
such as sales or refinancing, or in the event of a liquidation. Equity holders are normally entitled to their
respective legal ownership of any residual cash from a joint venture only after all liabilities, priority
distributions, and claims have been repaid or satisfied.
We believe that this information can help investors estimate the balance sheet and operating
results information related to our partially owned entities. Presenting this information provides a
perspective not immediately available from consolidated financial statements and one that can
supplement an understanding of the joint venture assets, liabilities, revenues, and expenses included in
our consolidated results.
The components of balance sheet and operating results information related to our real estate
joint ventures are limited as an analytical tool as the overall economic ownership interest does not
represent our legal claim to each of our joint ventures’ assets, liabilities, or results of operations. In
addition, joint venture financial information may include financial information related to the
unconsolidated real estate joint ventures that we do not control. We believe that in order to facilitate for
investors a clear understanding of our operating results and our total assets and liabilities, joint venture
financial information should be examined in conjunction with our consolidated statements of operations
and balance sheets. Joint venture financial information should not be considered an alternative to our
consolidated financial statements, which are presented and prepared in accordance with GAAP.
Space Intentionally Blank | |
Megacampus™
A Megacampus ecosystem is a cluster campus that consists of approximately 1 million RSF or
greater, including operating, active development/redevelopment, and land RSF less operating RSF
expected to be demolished. We consider Megacampuses that include a minimum of 750,000 operating
RSF to be Established Megacampuses. These Megacampuses have realized the scale and flexibility
that deliver strategic optionality to our tenants. We present certain metrics related to our Established
Megacampuses because we believe they facilitate a more robust understanding of certain of our
operating trends.
The following table reconciles our annual rental revenue and development and redevelopment
pipeline RSF, excluding properties classified as held for sale, as of December 31, 2025:
(Dollars in thousands) | Annual Rental Revenue | Development and Redevelopment Pipeline RSF | ||
Megacampus | $1,451,391 | 16,735,429 | ||
Core and non-core | 410,665 | 4,867,151 | ||
Total | $1,862,056 | 21,602,580 | ||
Megacampus as a percentage of annual rental revenue and of total development and redevelopment pipeline RSF | 78% | 77% |
Net cash provided by operating activities after dividends
Net cash provided by operating activities after dividends is reduced by distributions to
noncontrolling interests, excludes liquidating distributions from asset sales, and excludes changes in
operating assets and liabilities as they represent timing differences.
Space Intentionally Blank | |
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Net debt and preferred stock to Adjusted EBITDA
Net debt and preferred stock to Adjusted EBITDA is a non-GAAP financial measure that we
believe is useful to investors as a supplemental measure of evaluating our balance sheet leverage. Net
debt and preferred stock is equal to the sum of total consolidated debt less cash, cash equivalents, and
restricted cash, plus preferred stock outstanding as of the end of the period. Refer to the definition of
Adjusted EBITDA and Adjusted EBITDA margin for further information on the calculation of Adjusted
EBITDA.
The following table reconciles debt to net debt and preferred stock and computes the ratio to
Adjusted EBITDA:
(Dollars in thousands) | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | |||||
Secured notes payable | $— | $— | $153,500 | $150,807 | $149,909 | |||||
Unsecured senior notes payable | 12,047,394 | 12,044,999 | 12,042,607 | 12,640,144 | 12,094,465 | |||||
Unsecured senior line of credit and commercial paper | 353,161 | 1,548,542 | 1,097,993 | 299,883 | — | |||||
Unamortized deferred financing costs | 74,314 | 76,383 | 78,574 | 80,776 | 77,649 | |||||
Cash and cash equivalents | (549,062) | (579,474) | (520,545) | (476,430) | (552,146) | |||||
Restricted cash | (4,693) | (4,705) | (7,403) | (7,324) | (7,701) | |||||
Preferred stock | — | — | — | — | — | |||||
Net debt and preferred stock | $11,921,114 | $13,085,745 | $12,844,726 | $12,687,856 | $11,762,176 | |||||
Adjusted EBITDA: | ||||||||||
– quarter annualized | $2,097,444 | $2,130,008 | $2,174,160 | $2,165,632 | $2,273,480 | |||||
– trailing 12 months | $2,141,811 | $2,185,820 | $2,208,226 | $2,218,722 | $2,228,921 | |||||
Net debt and preferred stock to Adjusted EBITDA: | ||||||||||
– quarter annualized | 5.7x | 6.1x | 5.9x | 5.9x | 5.2x | |||||
– trailing 12 months | 5.6x | 6.0x | 5.8x | 5.7x | 5.3x | |||||
We are not able to forecast the net income of future periods without unreasonable effort and
therefore do not provide a reconciliation for net debt and preferred stock to Adjusted EBITDA on a
forward-looking basis. This is due to the inherent difficulty of forecasting the timing and/or amount of
items that depend on market conditions outside of our control, including the timing of dispositions,
capital events, and financing decisions, as well as quarterly components such as gain on sales of real
estate, unrealized gains or losses on non-real estate investments, impairments of real estate,
impairments of non-real estate investments, and changes in provision for expected credit losses on
financial instruments. Our attempt to predict these amounts may produce significant but inaccurate
estimates, which would potentially be misleading for our investors.
Net operating income, net operating income (cash basis), and operating margin
The following table reconciles net income (loss) to net operating income and net operating
income (cash basis) and computes operating margin:
Three Months Ended | Year Ended | |||||||
(Dollars in thousands) | 12/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | ||||
Net (loss) income | $(995,354) | $(16,095) | $(1,216,726) | $510,733 | ||||
Equity in losses (earnings) of unconsolidated real estate joint ventures | 304 | (6,635) | 9,631 | (7,059) | ||||
General and administrative expenses | 28,020 | 32,730 | 117,047 | 168,359 | ||||
Interest expense | 65,674 | 55,659 | 226,698 | 185,838 | ||||
Depreciation and amortization | 322,063 | 330,108 | 1,350,478 | 1,202,380 | ||||
Impairment of real estate | 1,717,188 | 186,564 | 2,202,818 | 223,068 | ||||
Loss on early extinguishment of debt | — | — | 107 | — | ||||
Gain on sales of real estate | (619,914) | (101,806) | (642,445) | (129,312) | ||||
Investment loss | 3,890 | 67,988 | 56,343 | 53,122 | ||||
Net operating income | 521,871 | 548,513 | 2,103,951 | 2,207,129 | ||||
Straight-line rent revenue | (14,096) | (17,653) | (73,476) | (143,329) | ||||
Amortization of deferred revenue related to tenant- funded and -built landlord improvements | (5,264) | (1,214) | (14,771) | (1,543) | ||||
Amortization of acquired below-market leases | (5,889) | (15,512) | (37,763) | (85,679) | ||||
Provision for expected credit losses on financial instruments | (341) | (434) | (56) | (434) | ||||
Net operating income (cash basis) | $496,281 | $513,700 | $1,977,885 | $1,976,144 | ||||
Net operating income (cash basis) – annualized | $1,985,124 | $2,054,800 | $1,977,885 | $1,976,144 | ||||
Net operating income (from above) | $521,871 | $548,513 | $2,103,951 | $2,207,129 | ||||
Total revenues | $754,414 | $788,945 | $3,026,556 | $3,116,394 | ||||
Operating margin | 69% | 70% | 70% | 71% | ||||
Net operating income is a non-GAAP financial measure calculated as net income (loss), the
most directly comparable financial measure calculated and presented in accordance with GAAP,
excluding equity in the earnings of our unconsolidated real estate joint ventures, general and
administrative expenses, interest expense, depreciation and amortization, impairments of real estate,
gains or losses on early extinguishment of debt, gains or losses on sales of real estate, and investment
income or loss. We believe net operating income provides useful information to investors regarding our
financial condition and results of operations because it primarily reflects those income and expense
items that are incurred at the property level. Therefore, we believe net operating income is a useful
measure for investors to evaluate the operating performance of our consolidated real estate assets. Net
operating income on a cash basis is net operating income adjusted to exclude the effect of straight-line
rent, amortization of acquired above- and below-market lease revenue, amortization of deferred revenue
related to tenant-funded and tenant-built landlord improvements, and changes in the provision for
expected credit losses on financial instruments required by GAAP. We believe that net operating income
on a cash basis is helpful to investors as an additional measure of operating performance because it
eliminates straight-line rent revenue and the amortization of acquired above- and below-market leases
and tenant-funded and tenant-built landlord improvements.
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Net operating income, net operating income (cash basis), and operating margin (continued)
Furthermore, we believe net operating income is useful to investors as a performance
measure of our consolidated properties because, when compared across periods, net operating income
reflects trends in occupancy rates, rental rates, and operating costs, which provide a perspective not
immediately apparent from net income or loss. Net operating income can be used to measure the initial
stabilized yields of our properties by calculating net operating income generated by a property divided by
our investment in the property. Net operating income excludes certain components from net income in
order to provide results that are more closely related to the results of operations of our properties. For
example, interest expense is not necessarily linked to the operating performance of a real estate asset
and is often incurred at the corporate level rather than at the property level. In addition, depreciation and
amortization, because of historical cost accounting and useful life estimates, may distort comparability of
operating performance at the property level. Impairments of real estate have been excluded in deriving
net operating income because we do not consider impairments of real estate to be property-level
operating expenses. Impairments of real estate relate to changes in the values of our assets and do not
reflect the current operating performance with respect to related revenues or expenses. Our
impairments of real estate represent the write-down in the value of the assets to the estimated fair value
less cost to sell. These impairments result from investing decisions or a deterioration in market
conditions. We also exclude realized and unrealized investment gain or loss, which results from
investment decisions that occur at the corporate level related to non-real estate investments in publicly
traded companies and certain privately held entities. Therefore, we do not consider these activities to be
an indication of operating performance of our real estate assets at the property level. Our calculation of
net operating income also excludes charges incurred from changes in certain financing decisions, such
as losses on early extinguishment of debt and changes in provision for expected credit losses on
financial instruments, as these charges often relate to corporate strategy. Property operating expenses
included in determining net operating income primarily consist of costs that are related to our operating
properties, such as utilities, repairs, and maintenance; rental expense related to ground leases;
contracted services, such as janitorial, engineering, and landscaping; property taxes and insurance; and
property-level salaries. General and administrative expenses consist primarily of accounting and
corporate compensation, corporate insurance, professional fees, rent, and supplies that are incurred as
part of corporate office management. We calculate operating margin as net operating income divided by
total revenues.
We believe that in order to facilitate for investors a clear understanding of our operating
results, net operating income should be examined in conjunction with net income or loss as presented in
our consolidated statements of operations. Net operating income should not be considered as an
alternative to net income or loss as an indication of our performance, nor as an alternative to cash flows
as a measure of our liquidity or our ability to make distributions.
We are not able to forecast the net income of future periods without unreasonable effort and
therefore do not provide a reconciliation for net operating income on a forward-looking basis. This is due
to the inherent difficulty of forecasting the timing and/or amount of items that depend on market
conditions outside of our control, including the timing of dispositions, capital events, and financing
decisions, as well as components such as gain on sales of real estate, unrealized gains or losses on
non-real estate investments, impairments of real estate, impairments of non-real estate investments,
and changes in provision for expected credit losses on financial instruments. Our attempt to predict
these amounts may produce significant but inaccurate estimates, which would potentially be misleading
for our investors.
Operating statistics
We present certain operating statistics related to our properties, including number of
properties, RSF, occupancy percentage, leasing activity, and contractual lease expirations as of the end
of the period. We believe these measures are useful to investors because they facilitate an
understanding of certain trends for our properties. We compute the number of properties, RSF,
occupancy percentage, leasing activity, and contractual lease expirations at 100%, excluding RSF at
properties classified as held for sale, for all properties in which we have an investment, including
properties owned by our consolidated and unconsolidated real estate joint ventures. For operating
metrics based on annual rental revenue, refer to the definition of annual rental revenue herein.
Same property comparisons
As a result of changes within our total property portfolio during the comparative periods
presented, including changes from assets acquired or sold, properties placed into development or
redevelopment, and development or redevelopment properties recently placed into service, the
consolidated total income from rentals, as well as rental operating expenses in our operating results, can
show significant changes from period to period. In order to supplement an evaluation of our results of
operations over a given quarterly or annual period, we analyze the operating performance for all
consolidated properties that were fully operating for the entirety of the comparative periods presented,
referred to as same properties. We separately present quarterly and year-to-date same property results
to align with the interim financial information required by the SEC in our management’s discussion and
analysis of our financial condition and results of operations. These same properties are analyzed
separately from properties acquired subsequent to the first day in the earliest comparable quarterly or
year-to-date period presented, properties that underwent development or redevelopment at any time
during the comparative periods, unconsolidated real estate joint ventures, properties classified as held
for sale, and corporate entities (legal entities performing general and administrative functions), which are
excluded from same property results. Additionally, termination fees, if any, are excluded from the results
of same properties.
Space Intentionally Blank | |
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Same property comparisons (continued)
The following table reconciles the number of same properties to total properties for the year
ended December 31, 2025:
Redevelopment – placed into | |||||||
Development – under construction | Properties | service after January 1, 2024 | Properties | ||||
99 Coolidge Avenue | 1 | 840 Winter Street | 1 | ||||
1450 Owens Street | 1 | Alexandria Center® for Advanced Technologies – Monte Villa Parkway | 6 | ||||
10075 Barnes Canyon Road | 1 | ||||||
421 Park Drive | 1 | 7 | |||||
4135 Campus Point Court | 1 | Acquisitions after January 1, 2024 | Properties | ||||
701 Dexter Avenue North | 1 | Other | 2 | ||||
Campus Point by Alexandria | — | 2 | |||||
6 | Unconsolidated real estate JVs | 3 | |||||
Development – placed into | Properties held for sale | 20 | |||||
service after January 1, 2024 | Properties | Total properties excluded from same properties | 58 | ||||
1150 Eastlake Avenue East | 1 | ||||||
9810 Darnestown Road | 1 | Same properties | 282 | ||||
9820 Darnestown Road | 1 | Total properties in North America as of December 31, 2025 | 340 | ||||
4155 Campus Point Court | 1 | ||||||
201 Brookline Avenue | 1 | ||||||
9808 Medical Center Drive | 1 | ||||||
230 Harriet Tubman Way | 1 | ||||||
500 North Beacon Street and 4 Kingsbury Avenue | 2 | ||||||
10935, 10945, and 10955 Alexandria Way | 3 | ||||||
12 | |||||||
Redevelopment – under construction | Properties | ||||||
40, 50, and 60 Sylvan Road | 3 | ||||||
269 East Grand Avenue | 1 | ||||||
8800 Technology Forest Place | 1 | ||||||
311 Arsenal Street | 1 | ||||||
Other | 2 | ||||||
8 | |||||||
Stabilized occupancy date
The stabilized occupancy date represents the estimated date on which a development or
redevelopment project is expected to reach occupancy of 95% or greater.
Tenant recoveries
Tenant recoveries represent revenues comprising reimbursement of real estate taxes,
insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses
and earned in the period during which the applicable expenses are incurred and the tenant’s obligation
to reimburse us arises.
We classify rental revenues and tenant recoveries generated through the leasing of real
estate assets within revenues in income from rentals in our consolidated statements of operations. We
provide investors with a separate presentation of rental revenues and tenant recoveries in “Same
property performance” in this Supplemental Information because we believe it promotes investors’
understanding of our operating results. We believe that the presentation of tenant recoveries is useful to
investors as a supplemental measure of our ability to recover operating expenses under our triple net
leases, including recoveries of utilities, repairs and maintenance, insurance, property taxes, common
area expenses, and other operating expenses, and of our ability to mitigate the effect to net income for
any significant variability to components of our operating expenses.
The following table reconciles income from rentals to tenant recoveries:
Total equity capitalization
Total equity capitalization is equal to the outstanding shares of common stock multiplied by the
closing price on the last trading day at the end of each period presented.
Total market capitalization
Total market capitalization is equal to the sum of total equity capitalization and total debt.
| |
Definitions and Reconciliations (continued) | |
December 31, 2025 | |
Unencumbered net operating income as a percentage of total net operating income
Unencumbered net operating income as a percentage of total net operating income is a non-
GAAP financial measure that we believe is useful to investors as a performance measure of the results
of operations of our unencumbered real estate assets as it reflects those income and expense items that
are incurred at the unencumbered property level. Unencumbered net operating income is derived from
assets classified in continuing operations, which are not subject to any mortgage, deed of trust, lien, or
other security interest, as of the period for which income is presented.
The following table summarizes unencumbered net operating income as a percentage of total
net operating income:
Three Months Ended | |||||||||
(Dollars in thousands) | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | ||||
Unencumbered net operating income | $521,871 | $512,710 | $535,766 | $530,691 | $547,921 | ||||
Encumbered net operating income | — | — | 1,841 | 1,072 | 592 | ||||
Total net operating income | $521,871 | $512,710 | $537,607 | $531,763 | $548,513 | ||||
Unencumbered net operating income as a percentage of total net operating income | 100.0% | 100.0% | 99.7% | 99.8% | 99.9% | ||||
Weighted-average interest rate for capitalization of interest
The weighted-average interest rate required for calculating capitalization of interest pursuant
to GAAP represents a weighted-average rate as of the end of the applicable period, based on the rates
applicable to borrowings outstanding during the period, including expense/income related to interest rate
hedge agreements, amortization of loan fees, amortization of debt premiums (discounts), and other bank
fees. A separate calculation is performed to determine our weighted-average interest rate for
capitalization for each month. The rate will vary each month due to changes in variable interest rates,
outstanding debt balances, the proportion of variable-rate debt to fixed-rate debt, the amount and terms
of interest rate hedge agreements, and the amount of loan fee and premium (discount) amortization.
Space Intentionally Blank | |
Weighted-average shares of common stock outstanding – diluted
From time to time, we enter into capital market transactions, including forward equity sales
agreements (“Forward Agreements”), to fund acquisitions, to fund construction of our development and
redevelopment projects, and for general working capital purposes. While the Forward Agreements are
outstanding, we are required to consider the potential dilutive effect of our Forward Agreements under
the treasury stock method. Under this method, we also include the dilutive effect of unvested restricted
stock awards (“RSAs”) with forfeitable dividends in the calculation of diluted shares.
The weighted-average shares of common stock outstanding used in calculating EPS – diluted,
FFO per share – diluted, and FFO per share – diluted, as adjusted, during each period are calculated as
follows. Also shown are the weighted-average unvested shares associated with unvested RSAs with
nonforfeitable dividends used in calculating amounts allocable to these awards pursuant to the two-class
method for each of the respective periods presented below.
Three Months Ended | Year Ended | ||||||||||||
(In thousands) | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | ||||||
Basic shares for earnings per share | 170,394 | 170,181 | 170,135 | 170,522 | 172,262 | 170,307 | 172,071 | ||||||
Unvested RSAs with forfeitable dividends | — | — | — | — | — | — | — | ||||||
Diluted shares for earnings per share | 170,394 | 170,181 | 170,135 | 170,522 | 172,262 | 170,307 | 172,071 | ||||||
Basic shares for funds from operations per share and funds from operations per share, as adjusted | 170,394 | 170,181 | 170,135 | 170,522 | 172,262 | 170,307 | 172,071 | ||||||
Unvested RSAs with forfeitable dividends | 110 | 124 | 57 | 77 | — | 83 | — | ||||||
Diluted shares for funds from operations per share and funds from operations per share, as adjusted | 170,504 | 170,305 | 170,192 | 170,599 | 172,262 | 170,390 | 172,071 | ||||||
Weighted-average unvested RSAs with nonforfeitable dividends used in calculating the allocations of net income, funds from operations, and funds from operations, as adjusted | 1,570 | 1,917 | 1,998 | 2,053 | 2,417 | 1,883 | 2,779 | ||||||