 | |
Table of Contents | |
March 31, 2026 | |
COMPANY HIGHLIGHTS | Page | Page | |||
Alexandria's Mission and Cluster Model .............................................. | |||||
EARNINGS PRESS RELEASE | |||||
First Quarter Ended March 31, 2026 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 | Under Construction ........................................................................ | ||||
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, April 28, 2026 2:00 p.m. Eastern Time 11:00 a.m. Pacific Time | ||
(833) 366-1125 (U.S./Canada) (412) 902-6738 (International) | ||
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:
HIGHLY IMPACTFUL,
CONSEQUENTIAL COMPANY &
THE MOST TRUSTED BRAND IN
LIFE SCIENCE REAL ESTATE
WE INVENTED IT. WE DOMINATE IT.
HIGHEST-QUALITY AND LARGEST ASSET BASE CLUSTERED IN MISSION-CRITICAL MEGACAMPUSES IN THE KEY CENTERS OF LIFE SCIENCE AND TECHNOLOGY INNOVATION | ||
LEADING CLIENT TENANT BASE WITHIN THE LIFE SCIENCE REAL ESTATE SECTOR | ||
HIGH-QUALITY, LONG-TERM CASH FLOWS | ||
PROVEN UNDERWRITING EXPERTISE | ||
STRONG AND FLEXIBLE BALANCE SHEET | ||
LONG-TENURED, HIGHLY EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SECTOR EXPERTISE | ||
ALEXANDRIA’S MEGACAMPUS™ PLATFORM REPRESENTS |
78% OF OUR ANNUAL RENTAL REVENUE |
As of March 31, 2026. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(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.
THE HEALTH OF THE HIGHLY REGULATED LIFE SCIENCE INDUSTRY
IS DEPENDENT ON FOUR CRITICAL PILLARS
DRUG APPROVALS DECELERATED SLIGHTLY IN 1Q26 COMPARED TO
10-YEAR QUARTERLY AVERAGE
Source: U.S. Food and Drug Administration, April 2026. YTD 2026 as of March 31, 2026. Novel therapies approved by the FDA (Center for Drug Evaluation and Research) include new molecular entities and new biologics defined as
products containing active moieties that have not previously been approved by the FDA.
(1)Source: Capital IQ.
(2)Source: State Street. XBI constituents as of November 13, 2025. Near-commercial refers to companies with products in Phase III or registrational trials.
ALEXANDRIA’S PATH FORWARD: 1Q26 UPDATE
Maintain a Strong and Flexible Balance Sheet, Significant Liquidity, and Targeted Leverage: On Track for Annualized 4Q26 Leverage(1) of 5.6x to 6.2x |
Reduce Capital Spend and Funding Needs: 242,408 RSF Letters of Intent Executed for Lower-Investment Alternatives at Two Redevelopment Projects |
Substantially Complete Large-Scale Core, Non-Core, And Sales of Partial Interests Disposition Plan: $2.33 billion in Process or Pending(2) |
Steadily Improve Occupancy and Increase NOI, Focusing on Leasing to All Sectors of Our Tenant Base: 3.2% Future Benefit to Occupancy from 1.1 million RSF of Leased Space Not Yet Delivered as of 1Q26(3) |
Continue to Successfully Manage G&A: $7.4 million, or 18%, in 1Q26 G&A Savings Compared to 2024 Quarterly Average |
Maintain Optionality for Future Growth Focused on MegacampusTM Investment: 77% of Our Pipeline is Within Our Megacampus Ecosystems(4) |
Consider Flexible and Opportunistic Share Buyback Plan: Continuing to Evaluate Share Buyback Plan |
(1)Refer to “Net debt and preferred stock to adjusted EBITDA” in “Definitions and reconciliations” in the Supplemental Information for additional details.
(2)Includes dispositions and sales of partial interests: (i) $2.3 million completed, (ii) $149.1 million of pending transactions subject to non-refundable deposits, signed letters of intent, and/or purchase and sale agreement
negotiations, and (iii) $2.18 billion identified and in process.
(3)Anticipated delivery of 1.1 million RSF of vacant space that was leased but not yet delivered as of March 31, 2026, which has a weighted-average expected delivery date of approximately September 2026, and is expected to
generate annual rental revenue of approximately $68 million.
(4)As of March 31, 2026.
ALEXANDRIA CONTINUES TO HAVE A STRONG AND FLEXIBLE
BALANCE SHEET WITH SIGNIFICANT LIQUIDITY
SIGNIFICANT LIQUIDITY | PERCENTAGE OF FIXED-RATE DEBT SINCE 2022(2) | ||
$4.2B | 96.4% | ||
REMAINING DEBT TERM (IN YEARS) | DEBT INTEREST RATE | ||
10.0 | 4.06% | ||
Longest Among S&P 500 REITs(3) | |||
4Q26 ANNUALIZED GUIDANCE | |||
5.6x to 6.2x | 3.6x to 4.1x | ||
NET DEBT AND PREFERRED STOCK TO ADJUSTED EBITDA | FIXED-CHARGE COVERAGE RATIO | ||
TOP 15%
CREDIT RATING RANKING
AMONG ALL PUBLICLY TRADED
U.S. REITS(1)
BBB+
Negative
WEIGHTED AVERAGE
Baa1
Negative
As of March 31, 2026. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Top 15% ranking represents credit rating levels from S&P Global Ratings and Moody’s Ratings for publicly traded U.S. REITs, from Bloomberg Professional Services and Nareit, as of March 31, 2026.
(2)Represents the average quarterly percentage fixed-rate debt as of each quarter-end from January 1, 2022 through March 31, 2026.
(3)Sources: S&P Global Market Intelligence, Bloomberg, or company filings as of December 31, 2025, except for ARE, which is as of March 31, 2026.
Weighted-Average Remaining Debt Term of 10.0 Years
9%
OF
TOTAL
DEBT
21%
OF TOTAL DEBT
(1)
(2)
Debt Maturities by Year
($ in millions)
As of March 31, 2026.
(1)In April 2026, we repaid $350.0 million of 3.80% unsecured senior notes payable upon maturity using short-term borrowings, which we expect to retire in 2026 with future proceeds from our dispositions and sales of partial
interests. No gain or loss was incurred in connection with this repayment.
(2)Refer to footnotes 2 through 4 on page 50 under “Fixed-rate and variable-rate debt” in the Supplemental Information for additional details. We expect our commercial paper outstanding balance to be less than $350.0 million by
the end of 2026.
LEASING VOLUME BY RSF
647,356
Renewals & Re-leasing
Development & Redevelopment
Previously Vacant
(1)
Refer to “Leasing activity” in the Supplemental Information for additional details.
(1)The projected 2Q26 leasing RSF is an estimate based on our current assessment of a range of potential leasing outcomes, subject to ongoing negotiations. These assumptions are inherently uncertain, and some or all of the
contemplated transactions may not be executed by June 30, 2026, or at all. Accordingly, actual results may differ materially from this estimate. Refer to the “Forward-Looking Statements” on page 8 of the Earnings Press Release
for additional details.
ALEXANDRIA’S LEASING VOLUME IS DRIVEN BY OUR DIVERSE TENANT MIX
72% of our leasing activity during 1Q26 was generated from our existing tenant base
(1)
1Q26 | 2025 | ||
(1)Includes one lease aggregating 47,719 RSF at 480 Arsenal Street in our Cambridge/Inner Suburbs submarket, which was signed with an entertainment studio user to accommodate their expansion needs and secure a long-term
extension.
Alexandria’s Key Disposition In 4Q25 — 409 and 499 Illinois Street in Mission Bay
Record $1,645 Price Per RSF, the Highest Ever Achieved in San Francisco(1)
$1,645 | SALES PRICE PER RSF | ||
$767.1M | $180.3M (Our Share)(2) | SALES PRICE IN 4Q25 | |
$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 the highest price per RSF in San Francisco history for sales of comparable institutional office or laboratory assets.
(2)Represents our share of the sales price, net of seller credits and transaction costs.
(1)
2026 DISPOSITIONS AND SALES OF PARTIAL INTERESTS
(2)
(1)
$2.9B
Sales
Amount
August 2026
Weighted-Average
Projected
Disposition Date
(3)
Refer to “Dispositions and sales of partial interests” in the Earnings Press Release for additional details.
(1)Based on the midpoint of 2026 guidance for dispositions and partial interest sales. Actual results may differ significantly.
(2)Dispositions and sales of partial interests identified and in process.
(3)Includes $2.3 million of completed and $149.1 million of pending dispositions subject to non-refundable deposits, signed letters of intent, and/or purchase and sale agreement negotiations.
PROJECTED REDUCTION IN NON-INCOME-PRODUCING AND
NON-CORE ASSETS
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Excludes properties classified as held for sale as of each date presented. Land parcels classified as held for sale represented approximately 1% of total non-income-producing assets as of December 31, 2024 and 2025.
(2)Represents non-core assets outside of our Megacampus ecosystems.
CONTINUING SUCCESSFUL REDUCTION AND MANAGEMENT OF
G&A EXPENSES
$76M |
Projected Cumulative G&A Savings in 2025 and 2026 Relative to 2024(1) |
6.0% | 14.3% | |
Alexandria 1Q26(2) | S&P 500 REIT(3) Average 2023–2025 (excluding Alexandria) | |
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.
(2)Trailing twelve months ended March 31, 2026.
(3)Source for S&P 500 REIT data: S&P Global Market Intelligence.
(4)Refer to “Net operating income” under “Definitions and reconciliations” in the Supplemental Information for additional details.
ALEXANDRIA’S OPERATIONAL EXCELLENCE IN ASSET MANAGEMENT,
DESIGN, DEVELOPMENT, AND SUSTAINABILITY
Alexandria Real Estate Equities, Inc. Reports
1Q26 Net Income per Share – Diluted of $2.10; and
1Q26 FFO per Share – Diluted, as Adjusted, of $1.73
PASADENA, Calif. – April 27, 2026 – Alexandria Real Estate Equities, Inc. (NYSE: ARE)
announced financial and operating results for the first quarter ended March 31, 2026.
Key highlights | |||
Operating results | 1Q26 | 1Q25 | |
Net income (loss) attributable to Alexandria’s common stockholders – diluted: | |||
In millions | $358.9 | $(11.6) | |
Per share | $2.10 | $(0.07) | |
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted: | |||
In millions | $295.9 | $392.0 | |
Per share | $1.73 | $2.30 | |
A best-in-class REIT with a high-quality, diverse tenant base, strong margins, and long lease
terms
(As of March 31, 2026, unless stated otherwise) | |||
Occupancy of operating properties | 87.7% | ||
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 | 55% | ||
Operating margin | 67% | ||
Adjusted EBITDA margin | 66% | ||
Percentage of leases containing annual rent escalations | 97% | ||
Weighted-average remaining lease term: | |||
Top 20 tenants | 9.9 | years | |
All tenants | 7.5 | years | |
Strong 1Q26 tenant collections(1): | |||
1Q26 rents and receivables collected as of April 27, 2026 | 99.9% | ||
(1)Refer to “Tenant Collections” under “Definitions and reconciliations” in the Supplemental Information for additional details. | |||
Strong and flexible balance sheet with significant liquidity; top 15% credit rating ranking among all
publicly traded U.S. REITs
•$20.44 billion in total market capitalization.
•$7.92 billion in total equity capitalization.
•Net debt and preferred stock to Adjusted EBITDA of 6.8x and fixed-charge coverage ratio of
3.4x for 1Q26 annualized, with 4Q26 annualized targets of 5.6x to 6.2x and 3.6x to 4.1x,
respectively.
•We expect improvement in our quarter annualized net debt and preferred stock to Adjusted
EBITDA ratio in 2H26 as we complete dispositions and sales of partial interests.
•As of March 31, 2026:
•Significant liquidity of $4.17 billion, or 3.7x of our debt maturities through 2028.
•Only 9% of our total debt matures through 2028.
•10.0-year weighted-average remaining debt term, the longest among S&P 500 REITs.
•Total debt and preferred stock to gross assets of 31%.
Solid leasing of development and redevelopment space
•Leasing volume of 647,356 RSF during 1Q26.
•1Q26 leasing of development and redevelopment space aggregating 117,935 RSF, up
135%, from the prior five-quarter average, excluding a build-to-suit lease executed in July
2025 with a long-standing multinational pharmaceutical tenant.
•From April 1, 2026 through April 27, 2026, we have executed leases and/or letters of
intent aggregating 276,188 RSF related to our development and redevelopment pipeline.
•72% of our leasing activity during 1Q26 was generated from our existing tenant base.
Leasing Activity in RSF: | 1Q26 | ||
Leasing of development and redevelopment space | 117,935 | ||
Leasing of previously vacant space | 148,734 | ||
Lease renewals and re-leasing of space | 380,687 | ||
647,356 | |||
Lease renewals and re-leasing of space: | |||
Rental rate changes | (15.0)% | ||
Rental rate changes (cash basis) | (15.8)% |
•Excluding the impact of one lease aggregating 47,719 RSF at 480 Arsenal Street in our
Cambridge/Inner Suburbs submarket, rental rates for renewed and re-leased space for 1Q26
would have decreased by 10.1% and 9.1% (cash basis). The space at 480 Arsenal Street
was re-leased to an entertainment studio user to accommodate their expansion needs and
secure a long-term extension. In addition, the reorientation of this building layout provides
flexibility to market the remaining available space to a broader range of user demand.
Ongoing execution of Alexandria’s capital recycling strategy
We plan to continue funding a significant portion of our capital requirements for the year ending
December 31, 2026 through dispositions of land, non-core assets, and core assets (primarily
sales of partial interests).
(dollars in millions) | Sales Price | % | ||
Completed and pending transactions subject to non-refundable deposits, signed letters of intent, and/or sale agreement negotiations as of April 27, 2026 | $151 | 5% | ||
Identified and in process | 2,181 | 75% | ||
Additional projected | 568 | 20% | ||
2026 guidance midpoint for dispositions and sales of partial interests | $2,900 |
| |
First Quarter Ended March 31, 2026 Financial and Operating Results (continued) | |
March 31, 2026 | |
Occupancy and leasing progress on temporary vacancy
Operating occupancy as of December 31, 2025 | 90.9% | ||
Reduction in occupancy related to previously disclosed 1Q26 key lease expirations | (1.9) | (1) | |
Other changes in occupancy | (1.3) | (2) | |
Operating occupancy as of March 31, 2026 | 87.7 | ||
Vacant space leased but not yet delivered | 3.2 | (3) | |
Operating occupancy as of March 31, 2026, including vacant space leased but not yet delivered | 90.9% | ||
(1)Represents previously disclosed key lease expirations aggregating 657,492 RSF, with a weighted-average
lease expiration date of January 2026 and prior annual rental revenue of approximately $41.6 million. These
vacant spaces are currently 48% leased or under negotiation and the remaining 52% is being actively
marketed for re-lease.
(2)Includes i) 139,408 RSF, or 0.4%, resulting from spaces vacated by tenants winding down operations, which
are being actively marketed for re-lease and ii) delivery of 50,531 vacant RSF, or 0.2%, at our 10075 Barnes
Canyon Road development project located at our SD Tech by Alexandria Megacampus.
(3)Represents temporary vacancies aggregating 1.1 million 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 September 2026, with
expected annual rental revenue of approximately $68 million.
Key operating metrics
Operating metrics | 1Q26 | ||
(dollars in millions) | |||
Net operating income (cash basis) | $1,672 | (1) | |
Decrease compared to 1Q25 | (15.2)% | (2) | |
Same property performance: | |||
Net operating income changes | (11.9)% | (3) | |
Net operating income changes (cash basis) | (11.7)% | (3) | |
Occupancy – current-period average | 88.9% | ||
Occupancy – same-period prior-year average | 94.0% |
(1)Quarter annualized.
(2)Change in net operating income (cash basis) reflects the impact of operating properties disposed of after
January 1, 2025. Excluding these dispositions, net operating income (cash basis), annualized, for the three
months ended March 31, 2026, would have decreased by 8.9%.
(3)The quarter-over-quarter decline was due to a decrease in same property occupancy, primarily driven by the
previously disclosed 2026 key lease expirations aggregating 657,492 RSF that became vacant during 1Q26,
with a weighted-average lease expiration date of January 2026, and by vacancy in 4Q25 at one property
aggregating 170,618 RSF at Alexandria Center® for Advanced Technologies – South San Francisco in our
South San Francisco submarket. We expect our same property performance to improve in 2H26, primarily due
to changes in same property occupancy, including the anticipated delivery of 1.1 million RSF of vacant space
that was leased but not yet delivered as of March 31, 2026, which has a weighted-average expected delivery
date of approximately September 2026, and is expected to generate annual rental revenue of approximately
$68 million.
Continued successful reduction and management of general and administrative expenses
•General and administrative expenses for 1Q26 aggregated $34.7 million, which represents a
decrease of $7.4 million, or 18%, compared to the quarterly average for 2024. For the trailing
twelve months ended March 31, 2026, our general and administrative expenses as a
percentage of net operating income were 6.0%, approximately half the average of other S&P
500 REITs for 2023-2025.
•In 2025, we achieved general and administrative expense reduction of $51.3 million, or 30%,
compared to 2024, primarily as a result of cost-control and efficiency initiatives. Some of
these cost savings were temporary, and we anticipate that approximately half of the cost
reduction achieved in 2025 will continue in 2026.
Reduction of capital spend and funding needs
•We are evaluating the business and financial strategy for certain projects aggregating 1.6
million RSF to reduce future construction funding requirements within our active pipeline.
•Driven by demand for our Megacampuses and access to amenities at our 311 Arsenal
Street and 3000 Minuteman Road redevelopment projects, we executed letters of intent
aggregating 242,408 RSF in April 2026. These letters of intent are for lower-cost alternative
uses for all or a portion of these projects, including advanced technology. If we are
successful in executing these potential leases, we expect to evaluate whether all or a
portion of these projects will be placed back into operation without the need to further
redevelop.
•Non-income-producing assets are 17% as a percentage of gross assets, a reduction of 3%
since 4Q24; targeting a further reduction to 11% to 16% by 4Q26.
Alexandria’s development and redevelopment pipeline is anticipated to deliver $92 million of
incremental annual net operating income by 4Q26 primarily from projects that are 93% leased/
negotiating
•Annual net operating income (cash basis) from recently delivered projects is expected to
increase by $25 million upon the burn-off of initial free rent, which has a weighted-average
remaining period of approximately four 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: | ||||||||
2Q26 – 4Q26 | $92 | (1) | 601,589 | (2) | 93% | (3) | ||
2027 – 2028 | 93 | 1,258,004 | 68% | |||||
$185 | ||||||||
(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: under construction” 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 the 601,589 RSF of development and redevelopment
projects that are expected to stabilize in 2026.
| |
First Quarter Ended March 31, 2026 Financial and Operating Results (continued) | |
March 31, 2026 | |
Key capital events
•In February 2026, we completed tender offers to repurchase an aggregate debt principal
amount of $1.33 billion across a portion of our outstanding 4.00% Senior Notes due 2050,
3.00% Senior Notes due 2051, and 3.55% Senior Notes due 2052. Cash consideration paid
was $952.2 million. In connection with the debt repurchase, we recognized a gain on early
extinguishment of debt of $366.4 million, including the write-off of unamortized debt issuance
costs and other transaction-related costs.
•We funded the repurchase as follows:
•$750.0 million through the issuance of 5.25% unsecured senior notes due 2036; and
•Approximately $200 million through short-term borrowings under our commercial paper
program, which will be repaid through planned dispositions and sales of partial interests
included in our 2026 guidance.
•The repurchase reduced debt and improved leverage by approximately 0.2x.
•This transaction did not have a significant impact to our funds from operations per share
diluted, as adjusted, interest expense, or fixed-charge coverage ratio.
•Following this transaction, our weighted-average remaining term of debt as of 1Q26 is
10.0 years, which continues to be the longest among S&P 500 REITs.
•In January 2026 and April 2026, we repaid, upon maturity, $300.0 million of 4.30% unsecured
senior notes payable and $350.0 million of 3.80% unsecured senior notes payable,
respectively. These repayments were funded temporarily with borrowings under our
commercial paper program, which will be repaid through planned dispositions and sales of
partial interests included in our 2026 guidance. No gain or loss was incurred in connection
with these repayments.
•Under our common stock repurchase program authorized in December 2025, we may
repurchase up to $500.0 million of our common stock through December 31, 2026. As of
March 31, 2026, no shares have been repurchased.
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 1Q26, consistent with the preceding
quarter. The declared dividend per common share reflects our commitment to maintaining the
strength of our balance sheet, enhancing financial flexibility, preserving liquidity, and sharing
cash flows with our stockholders.
•Significant net cash provided by operating activities, as adjusted, retained for reinvestment
aggregating $2.60 billion for the years ended December 31, 2022 through 2025 and the
midpoint of our 2026 guidance range.
•Dividend yield of 6.2% as of March 31, 2026 and dividend payout ratio of 42% for the three
months ended March 31, 2026.
Investments
•As of March 31, 2026:
•Our non-real estate investments aggregated $1.54 billion.
•Unrealized gains presented in our consolidated balance sheet were $125.9 million,
comprising gross unrealized gains and losses aggregating $191.5 million and $65.6 million,
respectively.
•Investment loss of $4.6 million for 1Q26 presented in our consolidated statement of
operations consisted of $18.2 million of realized gains, $10.3 million of unrealized losses, and
$12.4 million of impairment charges.
2026 Guidance | |
March 31, 2026 | |
(Dollars in millions, except per share amounts) | |
Guidance for 2026 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2026. There can be no assurance that actual results will
not be materially higher or lower than these expectations. Our guidance for 2026 is subject to a number of variables and uncertainties. Refer to our discussion of “forward-looking statements” on page 8 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.
Projected 2026 Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted | As of 4/27/26 | As of 1/26/26 | Key Changes | |||||||
Funds from operations per share, as adjusted(1) | $6.30 to $6.50 | $6.25 to $6.55 | No change to midpoint; range narrowed by 10 cents | |||||||
Midpoint | $6.40 | $6.40 | ||||||||
Key Credit Metrics Targets | As of 4/27/26 | As of 1/26/26 | Key Changes | |||
Net debt and preferred stock to Adjusted EBITDA – 4Q26 annualized | 5.6x to 6.2x | 5.6x to 6.2x | No Change | |||
Fixed-charge coverage ratio – 4Q26 annualized | 3.6x to 4.1x | 3.6x to 4.1x | ||||
As of 4/27/26 | As of 1/26/26 Midpoint | |||||||||||
Key Sources and Uses of Capital | Range | Midpoint | Certain Completed Items | |||||||||
Sources of capital: | ||||||||||||
Reduction in debt | $(1,075) | $(2,275) | $(1,675) | See below | $(1,675) | |||||||
Net cash provided by operating activities, as adjusted | 475 | 575 | 525 | 525 | ||||||||
Dispositions and sales of partial interests (refer to page 7)(2) | 2,100 | 3,700 | 2,900 | (2) | 2,900 | |||||||
Total sources of capital | $1,500 | $2,000 | $1,750 | $1,750 | ||||||||
Uses of capital: | ||||||||||||
Construction | $1,500 | $2,000 | $1,750 | $1,750 | ||||||||
Total uses of capital | $1,500 | $2,000 | $1,750 | $1,750 | ||||||||
Reduction in debt (included above): | ||||||||||||
Repayment of unsecured notes payable with 2026 maturities(3) | $(650) | $(650) | $(650) | $(650) | $(650) | |||||||
Tender offers for partial principal repayments of unsecured senior notes payable(4) | (952) | (952) | (952) | $(952) | — | |||||||
Issuance of unsecured senior notes payable(4) | 750 | 750 | 750 | $750 | — | |||||||
Unsecured senior line of credit, commercial paper, and other | (223) | (1,423) | (823) | (1,025) | ||||||||
Reduction in debt | $(1,075) | $(2,275) | $(1,675) | $(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)We expect our dispositions and sales of partial interests for the year ending December 31, 2026 to consist of land, non-core assets, and core assets (primarily sales of partial interests). As of April 27, 2026, our share of pending dispositions
subject to non-refundable deposits, signed letters of intent, or purchase and sale agreement negotiations aggregated $149.1 million. We have an additional $2.18 billion of dispositions and sales of partial interests identified and in process.
(3)In January 2026 and April 2026, we repaid, upon maturity, $300.0 million of 4.30% unsecured senior notes payable and $350.0 million of 3.80% unsecured senior notes payable, respectively. These repayments were funded temporarily with
borrowings under our commercial paper program, which will be repaid through planned dispositions and sales of partial interests included in our 2026 guidance. No gain or loss was incurred in connection with these repayments.
(4)In February 2026, we completed tender offers to repurchase debt principal aggregating $1.33 billion across a portion of our outstanding 4.00% Senior Notes due 2050, 3.00% Senior Notes due 2051, and 3.55% Senior Notes due 2052 for
$952.2 million and recognized a gain on early extinguishment of debt of $366.4 million, including the write-off of unamortized debt issuance costs and other transaction-related costs. The tender offers were primarily funded through the
issuance of $750.0 million unsecured senior notes payable, due 2036, with an interest rate of 5.25%. Refer to “Key capital events” in the Earnings Press Release for additional details.
Refer to “Key assumptions” on the following page.
2026 Guidance (continued) | |
March 31, 2026 | |
(Dollars in millions) | |
As of 4/27/26 | As of 1/26/26 | Key Changes to Midpoint | |||||||||
Key Assumptions | Low | High | Low | High | |||||||
Occupancy of operating properties as of December 31, 2026 | 86.2% | (1) | 87.8% | (1) | 87.7% | 89.3% | 150 bps reduction(2) | ||||
Same property performance: | |||||||||||
Net operating income changes | (10.5)% | (1) | (8.5)% | (1) | (9.5)% | (7.5)% | 100 bps reduction(2) | ||||
Net operating income changes (cash basis) | (10.5)% | (1) | (8.5)% | (1) | (9.5)% | (7.5)% | 100 bps reduction(2) | ||||
Lease renewals and re-leasing of space: | |||||||||||
Rental rate changes | (9.0)% | (1.0)% | (2.0)% | 6.0% | 700 bps reduction(3) | ||||||
Rental rate changes (cash basis) | (15.0)% | (7.0)% | (12.0)% | (4.0)% | 300 bps reduction(3) | ||||||
Straight-line rent revenue | $55 | $85 | $65 | $95 | $10 million reduction(3) | ||||||
General and administrative expenses | $134 | $154 | $134 | $154 | No Change | ||||||
Capitalization of interest | $225 | $265 | $225 | $275 | $5 million reduction(4) | ||||||
Interest expense | $240 | $280 | $230 | $280 | $5 million increase(4) | ||||||
Realized gains on non-real estate investments(5) | $60 | $90 | $60 | $90 | No Change | ||||||
(1)Our guidance for operating occupancy percentage as of December 31, 2026 and for same property performance net operating income changes assumes an approximate 1% and 2% benefit, respectively, related to a range of assets with
vacancy that could potentially be sold during 2026 and/or qualify for classification as held for sale by December 31, 2026, but that had not yet met such criteria as of March 31, 2026. Refer to the chart below for key drivers of the changes to
certain key projected operating metrics and assumptions included in our 2026 guidance.
(2)Decline primarily relates to changes to a range of properties that could potentially be sold during 2026 that were assumed in our prior guidance. Refer to the chart below.
(3)Decline primarily related to the re-lease of two spaces subject to tenant wind-downs. Refer to the chart below.
(4)The $5 million reduction and corresponding $5 million increase to the midpoints of our guidance ranges for 2026 capitalized interest and 2026 interest expense, respectively, are primarily driven by the anticipated earlier completion of
certain milestones on several projects. Refer to the discussion of 4Q26 funds from operations per share – diluted, as adjusted and “Capitalized interest” item on the following page, and “Capitalization of interest” in the Supplemental
Information for additional details.
(5)Represents realized gains and losses included in funds from operations per share – diluted, as adjusted. Excludes unrealized gains and losses and significant gains and impairments realized on non-real estate investments, if any. Refer to
“Investments” in the Supplemental Information for additional details.
Occupancy of Operating Properties | Same Property Performance | Lease Renewals and Re-leasing of Space | Straight-Line Rent Revenue | ||||||||||||||
Key Drivers of Changes to Certain 2026 Projected Operating Metrics and Assumptions | As of December 31, 2026 | Benefit From Potential Held For Sale Assets(1) | Net Operating Income Changes | Net Operating Income Changes (Cash Basis) | Benefit From Potential Held For Sale Assets(1) | Rental Rate Changes | Rental Rate Changes (Cash Basis) | ||||||||||
Guidance ranges as of 1/26/26 | 87.7% to 89.3% | 2% | (9.5)% to (7.5)% | (9.5)% to (7.5)% | 3% | (2.0)% to 6.0% | (12.0)% to (4.0)% | $65M to $95M | |||||||||
Changes to range of properties that could potentially be sold during 2026 that were assumed in prior 2026 guidance(1) | (1.3) | (1) | (1.0) | (1.0) | (1) | — | — | — | |||||||||
Primarily related to the re-lease of two spaces subject to tenant wind-downs(2) | (0.2) | — | — | — | — | (7.0) | (3.0) | (10) | (3) | ||||||||
Total changes to 2026 guidance midpoints | (1.5) | (1) | (1.0) | (1.0) | (1) | (7.0) | (3.0) | (10) | |||||||||
Guidance ranges as of 4/27/26 | 86.2% to 87.8% | 1% | (10.5)% to (8.5)% | (10.5)% to (8.5)% | 2% | (9.0)% to (1.0)% | (15.0)% to (7.0)% | $55M to $85M | |||||||||
(1)Our prior guidance for occupancy percentage as of December 31, 2026 and 2026 same property performance net operating income changes assumed a benefit of approximately 2% and 3%, respectively, related to a range of assets with
vacancy that could potentially be sold in 2026 and/or qualify for classification as held for sale by December 31, 2026 but had not yet met such criteria as of December 31, 2025. Our updated guidance for these metrics assumes a reduced
benefit of approximately 1% and 2%, respectively, related to a range of assets with vacancy that could potentially be sold during 2026 and/or qualify for classification as held for sale by December 31, 2026, primarily due to our revised
expectation that we may no longer sell as many assets with significant vacancy driven, in part, by positive leasing prospects for certain spaces that are currently vacant.
(2)Includes the impacts of i) one lease aggregating 81,220 RSF in our Torrey Pines submarket, for which we proactively addressed a tenant wind-down by terminating the existing lease and executing a new lease in April 2026 with a growth-
stage life science company advancing next-generation therapeutics to accommodate their expansion needs within our portfolio, with expected delivery in early 2027 following the completion of tenant improvements, and ii) one lease
aggregating 47,719 RSF at 480 Arsenal Street in our Cambridge/Inner Suburbs submarket, with the space re-leased in 1Q26. Refer to "Leasing activity" in the Supplemental Information for additional details.
(3)Primarily attributable to the write-off of a deferred rent receivable in April 2026 of approximately $5 million in connection with the lease termination and a payment of $10.5 million from a tenant in our Torrey Pines submarket discussed in
footnote 2 above.
2026 Guidance (continued) | |
March 31, 2026 | |
4Q26 funds from operations per share – diluted, as adjusted
•On December 3, 2025, we provided guidance for our projected 4Q26 funds from operations per share – diluted, as adjusted, to be within
$1.40–$1.50
a range of $1.40 to $1.60 as part of our path forward. The decline in our quarterly FFO from 1Q26 to 4Q26 is due, in part, to projected
dispositions and partial interest sales of land, non-core, and core properties aggregating $2.9 billion at our guidance midpoint, currently
with a weighted-average projected completion date in August 2026.
•As of April 27, 2026, we continue to refine this guidance and currently expect to be within a range of $1.40 to $1.50. The updated range
reflects an assumption for lower capitalized interest, and a corresponding increase in interest expense, in 4Q26 due to earlier than
anticipated completion of construction/pre-construction milestones on several projects (refer to the “Capitalized interest” item below for
additional details).
1) Potential tenant wind-downs
•Our 2026 guidance includes a $25 million to $30 million reduction in funds from operations for potential tenant wind-downs, of which
approximately $6 million was recognized in 1Q26.
•Based upon current market conditions, we estimate at least a similar level of reduction in funds from operations may be necessary
through 2026 and beyond.
2) Development-related other income
•During 1Q26, we recognized development fees and other related revenues of approximately $2.5 million, most of which are expected to
cease by the end of 2026 as we complete the respective projects.
3) Development and redevelopment projects under business and financial strategy evaluation
•We have five development and redevelopment projects for which the business and financial strategies continue to be evaluated, including whether to continue construction of laboratory improvements,
pause construction, pursue lower-investment construction alternatives (including a pivot to advanced technology use), or disposition. Refer to “New Class A/A+ development and redevelopment properties:
under construction” in the Supplemental Information for additional details.
◦If we elect to continue to pursue construction of laboratory improvements for these projects, the earliest deliveries of these projects are in 2028.
◦If we elect to pursue lower-investment construction alternatives (including a pivot to advanced technology use), these projects could deliver earlier than 2028. The incremental capital required for
alternative use construction, and corresponding rental rates earned, is generally lower compared to laboratory improvements.
4) Capitalized interest
•For the three months ended March 31, 2026, average real estate basis capitalized of $6.86 billion comprised the following:
•$2.64 billion of active development and redevelopment of projects under construction that are expected to stabilize through 2028 and are 77% leased and repositioning projects;
•$1.28 billion of development and redevelopment projects for which we are evaluating the business and financial strategy with weighted-average critical key construction milestones by March 2027;
•$1.16 billion of land with weighted-average critical key pre-construction milestones by August 2026;
•$567.6 million of land with weighted-average critical key pre-construction milestones by April 2027; and
•$1.22 billion of land with critical key pre-construction milestones through 2028 and beyond.
•At each milestone date, we evaluate, on an asset-by-asset basis, whether to (i) proceed with additional pre-construction and/or construction activities based on leasing demand and/or market conditions,
(ii) pause future investments, or (iii) consider the potential dispositions of these real estate assets. If we cease activities necessary to prepare a project for its intended use, costs related to such project,
including interest, payroll, property taxes, insurance, and other costs directly related and essential to the construction of Class A/A+ properties, 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 1Q26.
•We expect average real estate basis capitalized to decrease from $6.86 billion for 1Q26 to a range from $3.8 billion to $5.3 billion for 4Q26, driven by potential dispositions, deliveries of development and
redevelopment, and pauses in construction/pre-construction activities. The estimated range for 4Q26 represents a $200 million reduction (at the midpoint) in the projected range from $4.0 billion to $5.5
billion initially disclosed on December 3, 2025. Refer to "Capitalization of interest" in the Supplemental Information for additional details.
5) Key lease expirations
•We estimate 1.5 million RSF of leases expiring in 2027, with approximately $97.4 million of annual rental revenue, to have 6 to 24 months of downtime on a weighted-average basis. These expirations
have a weighted-average contractual lease expiration date of February 2027. 2027 expirations increased from the prior quarter primarily due to one expiration of a 232,902 RSF single-tenant lease at our
Alexandria Center® for Life Science – Waltham Megacampus with approximately $27.0 million of annual rental revenue, for which we no longer expect the tenant to renew. While our initial acquisition
underwriting assumed this tenant would eventually relocate to another submarket, the relocation by the tenant is expected to occur earlier than previously anticipated. Refer to “Contractual lease
expirations” in the Supplemental Information for additional details.
6) Construction spending
•We are currently evaluating our future construction spending estimates beyond 2026, and a number of factors could cause our preliminary estimates for the period beyond 2026 to change as we refine our
estimates over the course of the year. We estimate our annual construction spending beyond 2026 could decline by approximately $500 million, subject to market conditions, and is expected to primarily
focus on, i) construction spending required to complete our development and redevelopment projects that are expected to stabilize through 2028 and are 77% leased, and ii) revenue- and non-revenue-
enhancing capital expenditures, in order to secure leasing of vacant space and renewals and re-leasing of space at our operating properties.
We expect to introduce 2027 guidance and related assumptions at our Investor Day on December 2, 2026, consistent with our historical practice.
Dispositions and Sales of Partial Interests | |
March 31, 2026 | |
(Dollars in thousands) | |
Price (Our Share) | Gain on Sales of Real Estate | ||||
Property | |||||
Completed in April 2026 | $2,250 | $— | |||
Our share of pending transactions subject to non-refundable deposits, signed letters of intent, and/or purchase and sale agreement negotiations | 149,106 | ||||
Completed and pending 2026 dispositions as of April 27, 2026 | 151,356 | ||||
Dispositions and sales of partial interests identified and in process | 2,181,275 | ||||
Additional projected | 567,369 | ||||
$2,900,000 | |||||
2026 guidance range for dispositions and sales of partial interests | $2,100,000 – $3,700,000 | ||||
Midpoint | $2,900,000 | ||||
Weighted-average projected disposition and sales of partial interests date | August 2026 | ||||
| |
Earnings Call Information and About the Company | |
March 31, 2026 | |
We will host a conference call on Tuesday, April 28, 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 first quarter ended March 31, 2026. 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,
April 28, 2026. The replay number is (855) 669-9658 or (412) 317-0088, and the access code is 8933833.
Additionally, a copy of this Earnings Press Release and Supplemental Information for the first quarter ended March 31, 2026 is available in the “For Investors” section of our website at www.are.com or by
following this link: https://www.are.com/fs/2026q1.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 March 31, 2026, Alexandria has a total market capitalization of
$20.44 billion and an asset base that includes 35.8 million RSF of operating properties and 3.4 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 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 | |
March 31, 2026 | |
(Dollars in thousands, except per share amounts) | |
Three Months Ended | ||||||||||
3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||||
Revenues: | ||||||||||
Income from rentals | $653,013 | (1) | $728,872 | $735,849 | $737,279 | $743,175 | ||||
Other income | 18,009 | (2) | 25,542 | (3) | 16,095 | 24,761 | 14,983 | |||
Total revenues | 671,022 | 754,414 | 751,944 | 762,040 | 758,158 | |||||
Expenses: | ||||||||||
Rental operations | 224,142 | 232,543 | 239,234 | 224,433 | 226,395 | |||||
General and administrative | 34,685 | 28,020 | 29,224 | 29,128 | 30,675 | |||||
Interest | 64,584 | 65,674 | 54,852 | 55,296 | 50,876 | |||||
Depreciation and amortization | 305,441 | 322,063 | 340,230 | 346,123 | 342,062 | |||||
Impairment of real estate | 5,499 | 1,717,188 | 323,870 | 129,606 | 32,154 | |||||
Total expenses | 634,351 | 2,365,488 | 987,410 | 784,586 | 682,162 | |||||
Equity in (losses) earnings of unconsolidated real estate joint ventures | (147) | (304) | 201 | (9,021) | (507) | |||||
Investment (loss) income | (4,582) | (3,890) | 28,161 | (30,622) | (49,992) | |||||
Gain (loss) on early extinguishment of debt | 366,435 | — | (107) | — | — | |||||
Gain on sales of real estate | — | 619,914 | 9,366 | — | 13,165 | |||||
Net income (loss) | 398,377 | (995,354) | (197,845) | (62,189) | 38,662 | |||||
Net income attributable to noncontrolling interests | (36,724) | (85,521) | (34,909) | (44,813) | (47,601) | |||||
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 361,653 | (1,080,875) | (232,754) | (107,002) | (8,939) | |||||
Net income attributable to unvested restricted stock awards | (2,779) | (965) | (2,183) | (2,609) | (2,660) | |||||
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $358,874 | $(1,081,840) | $(234,937) | $(109,611) | $(11,599) | |||||
Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders: | ||||||||||
Basic | $2.10 | $(6.35) | $(1.38) | $(0.64) | $(0.07) | |||||
Diluted | $2.10 | $(6.35) | $(1.38) | $(0.64) | $(0.07) | |||||
Weighted-average shares of common stock outstanding: | ||||||||||
Basic | 170,598 | 170,394 | 170,181 | 170,135 | 170,522 | |||||
Diluted | 170,867 | 170,394 | 170,181 | 170,135 | 170,522 | |||||
Dividends declared per share of common stock | $0.72 | $0.72 | $1.32 | $1.32 | $1.32 | |||||
(1)The decline from 4Q25 is primarily attributable to: i) the disposition of operating properties subsequent to October 1, 2025, ii) previously disclosed 2026 key lease expirations aggregating 657,492 RSF, that became vacant during 1Q26, with
a weighted-average lease expiration date of January 2026 and prior annual rental revenue of approximately $41.6 million, and iii) rental revenue of $11.4 million recognized during 4Q25, primarily related to a termination fee, net of the
deferred rent balances written off, at a property in our South San Francisco submarket that is now vacant and has been fully re-leased, with occupancy expected to commence in 3Q26.
(2)During 1Q26, we recognized certain development fees and other related revenues included in other income aggregating approximately $2.5 million, most of which we expect to cease by the end of 2026 as we complete the related projects.
(3)Includes an asset management fee of $7.0 million recognized in 4Q25, which was paid by our joint venture partner in connection with the disposition of 409 and 499 Illinois Street in the Mission Bay submarket.
Consolidated Balance Sheets | |
March 31, 2026 | |
(In thousands) | |
3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||||
Assets | ||||||||||
Investments in real estate | $28,830,116 | $28,689,996 | $31,743,917 | $32,160,600 | $32,121,712 | |||||
Investments in unconsolidated real estate joint ventures | 30,520 | 30,677 | 39,601 | 40,234 | 50,086 | |||||
Cash and cash equivalents | 418,720 | 549,062 | 579,474 | 520,545 | 476,430 | |||||
Restricted cash | 4,665 | 4,693 | 4,705 | 7,403 | 7,324 | |||||
Tenant receivables | 7,362 | 6,672 | 6,409 | 6,267 | 6,875 | |||||
Deferred rent | 1,200,047 | 1,179,403 | 1,257,378 | 1,232,719 | 1,210,584 | |||||
Deferred leasing costs | 456,405 | 458,311 | 505,241 | 491,074 | 489,287 | |||||
Investments | 1,536,419 | 1,501,249 | 1,537,638 | 1,476,696 | 1,479,688 | |||||
Other assets | 1,683,143 | 1,661,772 | 1,700,785 | 1,688,091 | 1,758,442 | |||||
Total assets | $34,167,397 | $34,081,835 | $37,375,148 | $37,623,629 | $37,600,428 | |||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||
Secured notes payable | $— | $— | $— | $153,500 | $150,807 | |||||
Unsecured senior notes payable | 11,166,009 | 12,047,394 | 12,044,999 | 12,042,607 | 12,640,144 | |||||
Unsecured senior line of credit and commercial paper | 1,353,986 | 353,161 | 1,548,542 | 1,097,993 | 299,883 | |||||
Accounts payable, accrued expenses, and other liabilities | 2,154,782 | 2,397,073 | 2,432,726 | 2,360,840 | 2,281,414 | |||||
Dividends payable | 128,880 | 127,771 | 230,603 | 229,686 | 228,622 | |||||
Total liabilities | 14,803,657 | 14,925,399 | 16,256,870 | 15,884,626 | 15,600,870 | |||||
Commitments and contingencies | ||||||||||
Redeemable noncontrolling interests | 9,234 | 58,788 | 58,662 | 9,612 | 9,612 | |||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity: | ||||||||||
Common stock | 1,707 | 1,705 | 1,703 | 1,701 | 1,701 | |||||
Additional paid-in capital | 15,763,321 | 15,497,760 | 16,669,802 | 17,200,949 | 17,509,148 | |||||
Accumulated other comprehensive loss | (30,936) | (29,395) | (32,203) | (27,415) | (46,202) | |||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 15,734,092 | 15,470,070 | 16,639,302 | 17,175,235 | 17,464,647 | |||||
Noncontrolling interests | 3,620,414 | 3,627,578 | 4,420,314 | 4,554,156 | 4,525,299 | |||||
Total equity | 19,354,506 | 19,097,648 | 21,059,616 | 21,729,391 | 21,989,946 | |||||
Total liabilities, noncontrolling interests, and equity | $34,167,397 | $34,081,835 | $37,375,148 | $37,623,629 | $37,600,428 |
Funds From Operations and Funds From Operations per Share | |
March 31, 2026 | |
(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 | ||||||||||
3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||||
Net income (loss) attributable to Alexandria’s common stockholders – basic and diluted | $358,874 | $(1,081,840) | $(234,937) | $(109,611) | $(11,599) | |||||
Depreciation and amortization of real estate assets | 303,296 | 319,865 | 338,182 | 343,729 | 339,381 | |||||
Noncontrolling share of depreciation and amortization from consolidated real estate JVs | (29,473) | (39,942) | (45,327) | (36,047) | (33,411) | |||||
Our share of depreciation and amortization from unconsolidated real estate JVs | 914 | 855 | 852 | 942 | 1,054 | |||||
Gain on sales of real estate | — | (307,132) | (9,824) | — | (13,165) | |||||
Impairment of real estate – rental properties and land | 5,499 | (1) | 1,439,303 | 323,870 | 131,090 | — | ||||
Allocation to unvested restricted stock awards | (2,181) | (1,903) | (1,648) | (1,222) | (686) | |||||
Funds from operations attributable to Alexandria’s common stockholders – diluted(2) | 636,929 | 329,206 | 371,168 | 328,881 | 281,574 | |||||
Unrealized losses (gains) on non-real estate investments | 10,332 | (98,548) | (18,515) | 21,938 | 68,145 | |||||
Significant realized losses on non-real estate investments | — | 103,329 | — | — | — | |||||
Impairment of non-real estate investments | 12,448 | (3) | 20,181 | 25,139 | 39,216 | 11,180 | ||||
Impairment of real estate | — | 12,619 | — | 7,189 | 32,154 | |||||
(Gain) loss on early extinguishment of debt | (366,435) | (4) | — | 107 | — | — | ||||
Acceleration of stock compensation expense due to executive officer resignation | — | 2,455 | — | — | — | |||||
(Decrease) increase in provision for expected credit losses on financial instruments | — | (341) | — | — | 285 | |||||
Allocation to unvested restricted stock awards | 2,674 | (363) | (74) | (794) | (1,329) | |||||
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted | $295,948 | $368,538 | $377,825 | $396,430 | $392,009 | |||||
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Primarily represents an incremental impairment charge recognized in 1Q26 in connection with the amendment of the sales agreement for our Canada portfolio, which was classified as held for sale as of December 31, 2025.
(2)Calculated in accordance with standards established by the Nareit Board of Governors.
(3)Primarily related to two non-real estate investments in privately held entities that do not report NAV.
(4)In February 2026, we completed tender offers to repurchase debt principal aggregating $1.33 billion across a portion of our outstanding 4.00% Senior Notes due 2050, 3.00% Senior Notes due 2051, and 3.55% Senior Notes due 2052 for
$952.2 million. The gain includes the write-off of unamortized debt issuance costs and other transaction-related costs.
Funds From Operations and Funds From Operations per Share (continued) | |
March 31, 2026 | |
(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 | ||||||||||
3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||||
Net income (loss) per share attributable to Alexandria’s common stockholders – diluted | $2.10 | $(6.35) | $(1.38) | $(0.64) | $(0.07) | |||||
Depreciation and amortization of real estate assets | 1.61 | 1.65 | 1.73 | 1.81 | 1.80 | |||||
Gain on sales of real estate | — | (1.80) | (0.06) | — | (0.08) | |||||
Impairment of real estate – rental properties and land | 0.03 | 8.45 | 1.90 | 0.77 | — | |||||
Allocation to unvested restricted stock awards | (0.01) | (0.02) | (0.01) | (0.01) | — | |||||
Funds from operations per share attributable to Alexandria’s common stockholders – diluted | 3.73 | 1.93 | 2.18 | 1.93 | 1.65 | |||||
Unrealized losses (gains) on non-real estate investments | 0.06 | (0.58) | (0.11) | 0.13 | 0.40 | |||||
Significant realized losses on non-real estate investments | — | 0.61 | — | — | — | |||||
Impairment of non-real estate investments | 0.07 | 0.12 | 0.15 | 0.23 | 0.07 | |||||
Impairment of real estate | — | 0.07 | — | 0.04 | 0.19 | |||||
(Gain) loss on early extinguishment of debt | (2.14) | — | — | — | — | |||||
Acceleration of stock compensation expense due to executive officer resignation | — | 0.01 | — | — | — | |||||
Allocation to unvested restricted stock awards | 0.01 | — | — | — | (0.01) | |||||
Funds from operations per share attributable to Alexandria’s common stockholders – diluted, as adjusted | $1.73 | $2.16 | $2.22 | $2.33 | $2.30 | |||||
Weighted-average shares of common stock outstanding – diluted | ||||||||||
Earnings per share – diluted | 170,867 | 170,394 | 170,181 | 170,135 | 170,522 | |||||
Funds from operations – diluted, per share | 170,867 | 170,504 | 170,305 | 170,192 | 170,599 | |||||
Funds from operations – diluted, as adjusted, per share | 170,867 | 170,504 | 170,305 | 170,192 | 170,599 | |||||
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
SUPPLEMENTAL
INFORMATION
| |
Company Profile | |
March 31, 2026 | |
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 March 31, 2026, Alexandria has a total market capitalization of
$20.44 billion and an asset base that includes 35.8 million RSF of operating properties and
3.4 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 55% 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 70
individuals averaging 23 years of real estate experience, including 13 years
with Alexandria. Our executive management team alone averages 16 years
with Alexandria.
EXECUTIVE MANAGEMENT TEAM | ||
Joel S. Marcus | Peter M. Moglia | |
Executive Chairman & Founder | Chief Executive Officer & Chief Investment Officer | |
Marc E. Binda | Hunter L. Kass | |
Chief Financial Officer & Treasurer | Co-President & Regional Market Director – Greater Boston | |
Hart Cole | Joseph Hakman | |
Co-President & Co-Regional Market Director – Seattle | Co-Chief Operating Officer & Chief Strategic Transactions Officer | |
Lawrence J. Diamond | Blake L. Stevens | |
Co-Chief Operating Officer & Regional Market Director – Maryland | EVP – Regional Market Director – Research Triangle | |
Bret E. Gossett | Jesse J. Nelson | |
EVP – Co-Regional Market Director & Head of Leasing – San Diego | EVP – Regional Market Director – San Francisco | |
Joshua J. Mitchell | Michael E. Boss | |
EVP – Regional Market Director – New York | EVP – Co-Regional Market Director – San Diego | |
Hallie E. Kuhn | Jenna R. Foger | |
EVP – Capital Markets & Co-Lead – Life Science | EVP – Co-Lead – Life Science | |
Jackie B. Clem | Andres R. Gavinet | |
General Counsel & Secretary | Chief Accounting Officer | |
Onn C. Lee | Kristina A. Fukuzaki-Carlson | |
EVP – Accounting | EVP – Business Operations | |
Madeleine T. Alsbrook | Gregory C. Thomas | |
EVP – Talent Management | EVP – Chief Technology Officer | |
Gary D. Dean | ||
EVP – Real Estate Legal Affairs | ||
| |
Investor Information | |
March 31, 2026 | |
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 | Goldman Sachs | Morgan Stanley & Co. LLC | |||
John Kim / Juan Sanabria | Nathan Schmidt | Julien Blouin / Ryan Treais | Ronald Kamdem / Derrick Metzler | |||
(212) 885-4115 / (312) 845-4074 | (646) 517-1144 | (415) 393-7638 / (415) 249-7061 | (212) 296-8319 / (212) 761-3366 | |||
BNP Paribas Exane | Citigroup Global Markets Inc. | Green Street | RBC Capital Markets | |||
Nate Crossett / Monir Koummal | Nicholas Joseph / Seth Bergey | Dylan Burzinski | Michael Carroll / Henry Newell | |||
(646) 342-1588 / (646) 342-1554 | (212) 816-1909 / (212) 816-2066 | (949) 640-8780 | (440) 715-2649 / (440) 715-2651 | |||
BofA Securities | Citizens | J.P. Morgan Securities LLC | Robert W. Baird & Co. Incorporated | |||
Farrell Granath / Julieta Michelin | Aaron Hecht / Linda Fu | Anthony Paolone | Wesley Golladay / Nicholas Thillman | |||
(646) 855-1351 / (646) 855-1898 | (415) 835-3963 / (415) 869-4411 | (212) 622-6682 | (216) 737-7510 / (414) 298-5053 | |||
BTIG, LLC | Deutsche Bank AG | Jefferies | ||||
Tom Catherwood / Michael Tompkins | Tayo Okusanya / Samuel Ohiomah | Joe Dickstein / Katie Elders | ||||
(212) 738-6140 / (212) 527-3566 | (212) 250-9284 / (212) 250-0057 | (212) 778-8771 / (917) 421-1968 | ||||
Cantor Fitzgerald | Evercore ISI | Mizuho Securities USA LLC | ||||
Richard Anderson / Jeffrey Carr | Steve Sakwa / James Kammert | Vikram Malhotra / Jyoti Yadav | ||||
(929) 441-6927 / (929) 709-0434 | (212) 446-9462 / (312) 705-4233 | (212) 282-3827 / (212) 471-2683 | ||||
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 | |
March 31, 2026 | |
(Dollars in thousands, except per share amounts) | |
Financial and Asset Base Highlights (continued) | |
March 31, 2026 | |
(Dollars in thousands, except annual rental revenue per occupied RSF amounts) | |
Three Months Ended (unless stated otherwise) | ||||||||||
3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||||
Amounts included in funds from operations and non-revenue-enhancing capital expenditures | ||||||||||
Straight-line rent revenue | $17,862 | $14,096 | $18,821 | $18,536 | $22,023 | |||||
Amortization of acquired below-market leases | $5,615 | $5,889 | $6,456 | $10,196 | $15,222 | |||||
Amortization of deferred revenue related to tenant-funded and -built landlord improvements | $5,405 | $5,264 | $5,455 | $2,401 | $1,651 | |||||
Straight-line rent expense on ground leases | $155 | $116 | $114 | $87 | $149 | |||||
Cash payment for ground lease extension | $— | $— | $— | $— | $(135,000) | |||||
Stock compensation expense | $11,032 | $8,232 | $10,293 | $12,530 | $10,064 | |||||
Amortization of loan fees | $4,428 | $4,481 | $4,505 | $4,615 | $4,691 | |||||
Amortization of debt discounts | $320 | $327 | $325 | $335 | $349 | |||||
Non-revenue-enhancing capital expenditures: | ||||||||||
Building improvements | $3,357 | $4,372 | $3,948 | $4,622 | $3,789 | |||||
Tenant improvements and leasing commissions | $22,811 | $26,494 | $16,707 | $23,971 | $73,483 | |||||
Funds from operations attributable to noncontrolling interests | $66,197 | $77,922 | $80,236 | $80,860 | $81,012 | |||||
Operating statistics and related information (at end of period) | ||||||||||
Number of properties | 339 | 340 | 375 | 384 | 386 | |||||
RSF (including development and redevelopment projects under construction) | 39,260,168 | 39,449,372 | 42,887,964 | 43,699,922 | 43,687,343 | |||||
Total square footage | 59,377,267 | 59,382,079 | 66,417,026 | 67,220,337 | 68,518,184 | |||||
Annual rental revenue per occupied RSF | $59.91 | $59.97 | $58.94 | $58.68 | $58.38 | |||||
Occupancy of operating properties | 87.7% | (1) | 90.9% | 90.6% | 90.8% | 91.7% | ||||
Occupancy of operating and redevelopment properties | 84.1% | 86.9% | 85.8% | 86.2% | 86.9% | |||||
Weighted-average remaining lease term (in years) | 7.5 | 7.5 | 7.5 | 7.4 | 7.6 | |||||
Total leasing activity – RSF | 647,356 | 1,220,944 | 1,171,344 | 769,815 | 1,030,553 | |||||
Lease renewals and re-leasing of space – change in new rental rates over expiring rates: | ||||||||||
Rental rate changes | (15.0)% | (2) | (9.9)% | 15.2% | 5.5% | 18.5% | ||||
Rental rate changes (cash basis) | (15.8)% | (2) | (5.2)% | 6.1% | 6.1% | 7.5% | ||||
RSF (included in total leasing activity above) | 380,687 | 821,289 | 354,367 | 483,409 | 884,408 | |||||
Previously vacant leasing activity – RSF | 148,734 | 393,376 | 256,633 | 154,638 | 139,715 | |||||
Developed/redeveloped leasing activity – RSF | 117,935 | 6,279 | 560,344 | 131,768 | 6,430 | |||||
Top 20 tenants: | ||||||||||
Annual rental revenue | $725,681 | $725,559 | $768,528 | $795,244 | $754,354 | |||||
Annual rental revenue from investment-grade or publicly traded large cap tenants | 87% | 84% | 90% | 89% | 87% | |||||
Weighted-average remaining lease term (in years) | 9.9 | 9.7 | 9.4 | 9.4 | 9.6 | |||||
Same property performance – percentage change over comparable quarter from prior year: | ||||||||||
Net operating income changes | (11.9)% | (3) | (6.0)% | (6.0)% | (5.4)% | (3.1)% | ||||
Net operating income changes (cash basis) | (11.7)% | (3) | (1.7)% | (3.1)% | 2.0% | 5.1% | ||||
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 “Leasing activity” in the Supplemental Information for additional details.
(3)Refer to “Same property performance” in the Supplemental Information for additional details.
| |
High-Quality and Diverse Client Base | |
March 31, 2026 | |
Stable Cash Flows From Our High-Quality and Diverse Mix of Tenants | ||||
Investment-Grade or Publicly Traded Large Cap Tenants | ||||
87% | ||||
of ARE’s Top 20 Tenant Annual Rental Revenue | ||||
Weighted Average Remaining Term(3) | ||||
9.9 Years | ||||
of ARE’s Top 20 Tenants | ||||
55% | ||||
of ARE’s Total Annual Rental Revenue | ||||
(1)
(2)
(4)
Percentage of Alexandria’s Annual Rental Revenue
As of March 31, 2026. Annual rental revenue represents amounts in effect as of March 31, 2026. 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)76% of our annual rental revenue from advanced technologies tenants is from investment-grade or publicly traded large cap tenants.
(3)Based on annual rental revenue in effect as of March 31, 2026.
(4)81% of our annual rental revenue from biomedical institutions is from investment-grade or publicly traded large cap tenants.
| |
Key Operating Metrics | |
March 31, 2026 | |
Same Property Performance: Net Operating Income Changes | Rental Rate Changes: Renewed/Re-Leased Space | ||||||||||
Margins(3) | Favorable Lease Structure(4) | ||||||||||
Operating | Adjusted EBITDA | Strategic Lease Structure by Owner and Operator of Collaborative Megacampus Ecosystems | |||||||||
67% | 66% | Increasing cash flows | |||||||||
Percentage of leases containing annual rent escalations | 97% | ||||||||||
Stable cash flows | |||||||||||
Long-Duration Lease Terms(5) | Percentage of triple net leases | 91% | |||||||||
9.9 Years | 7.5 Years | Lower capex burden | |||||||||
Percentage of leases providing for the recapture of capital expenditures | 92% | ||||||||||
Top 20 Tenants | All Tenants | ||||||||||
(2)
(2)
(1)
(1)
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”, “Adjusted EBITDA”
and its reconciliation from the most directly comparable financial measure presented in accordance with GAAP.
(1)Refer to footnote 1 under “Same property performance” in the Supplemental Information for additional details.
(2)Refer to footnote 2 under “Leasing Activity” in the Supplemental Information for additional details.
(3)For the three months ended March 31, 2026.
(4)Percentages calculated based on our annual rental revenue in effect as of March 31, 2026.
(5)Represents the weighted-average remaining term based on annual rental revenue in effect as of March 31, 2026.
Same Property Performance | |
March 31, 2026 | |
(Dollars in thousands) | |
Same Property Financial Data | Three Months Ended March 31, 2026 | Same Property Statistical Data | Three Months Ended March 31, 2026 | |||||
Percentage change over comparable period from prior year: | Number of same properties | 294 | ||||||
Net operating income changes | (11.9)% | (1) | Rentable square feet | 31,965,127 | ||||
Net operating income changes (cash basis) | (11.7)% | (1) | Occupancy – current-period average | 88.9% | (1) | |||
Operating margin | 65% | Occupancy – same-period prior-year average | 94.0% |
Three Months Ended March 31, | |||||||||
2026 | 2025 | $ Change | % Change | ||||||
Income from rentals: | |||||||||
Same properties | $431,442 | $473,233 | $(41,791) | (8.8)% | |||||
Non-same properties | 43,344 | 78,879 | (35,535) | (45.1) | |||||
Rental revenues | 474,786 | 552,112 | (77,326) | (14.0) | |||||
Same properties | 166,149 | 165,419 | 730 | 0.4 | |||||
Non-same properties | 12,078 | 25,644 | (13,566) | (52.9) | |||||
Tenant recoveries | 178,227 | 191,063 | (12,836) | (6.7) | |||||
Income from rentals | 653,013 | 743,175 | (90,162) | (12.1) | |||||
Same properties | 250 | 303 | (53) | (17.5) | |||||
Non-same properties | 17,759 | 14,680 | 3,079 | 21.0 | |||||
Other income | 18,009 | 14,983 | 3,026 | 20.2 | |||||
Same properties | 597,841 | 638,955 | (41,114) | (6.4) | |||||
Non-same properties | 73,181 | 119,203 | (46,022) | (38.6) | |||||
Total revenues | 671,022 | 758,158 | (87,136) | (11.5) | |||||
Same properties | 208,056 | 196,587 | 11,469 | 5.8 | |||||
Non-same properties | 16,086 | 29,808 | (13,722) | (46.0) | |||||
Rental operations | 224,142 | 226,395 | (2,253) | (1.0) | |||||
Same properties | 389,785 | 442,368 | (52,583) | (11.9) | |||||
Non-same properties | 57,095 | 89,395 | (32,300) | (36.1) | |||||
Net operating income | $446,880 | $531,763 | $(84,883) | (16.0)% | |||||
Net operating income – same properties | $389,785 | $442,368 | $(52,583) | (11.9)% | |||||
Straight-line rent revenue | (13,114) | (15,469) | 2,355 | (15.2) | |||||
Amortization of acquired below-market leases and deferred revenue related to tenant-funded and -built landlord improvements | (10,063) | (11,558) | 1,495 | (12.9) | |||||
Net operating income – same properties (cash basis) | $366,608 | $415,341 | $(48,733) | (11.7)% | |||||
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)The quarter-over-quarter decline was due to a decrease in same property occupancy, primarily driven by the previously disclosed 2026 key lease expirations aggregating 657,492 RSF that became vacant during 1Q26, with a
weighted-average lease expiration date of January 2026, and by vacancy in 4Q25 at one property aggregating 170,618 RSF at Alexandria Center® for Advanced Technologies – South San Francisco in our South San Francisco
submarket. We expect our same property performance to improve in 2H26, primarily due to changes in same property occupancy, including the anticipated delivery of 1.1 million RSF of vacant space that was leased but not yet
delivered as of March 31, 2026, which has a weighted-average expected delivery date of approximately September 2026, and is expected to generate annual rental revenue of approximately $68 million.
Leasing Activity | |
March 31, 2026 | |
(Dollars per RSF) | |
Three Months Ended | Year Ended | |||||||||||||||
March 31, 2026 | December 31, 2025 | |||||||||||||||
Including Straight-Line Rent | Cash Basis | Including Straight-Line Rent | Cash Basis | |||||||||||||
Leasing activity: | ||||||||||||||||
Renewed/re-leased space(1) | ||||||||||||||||
Rental rate changes | (15.0)% | (2) | (15.8)% | (2) | 7.0% | 3.5% | ||||||||||
New rates | $49.88 | $53.43 | $52.71 | $53.66 | ||||||||||||
Expiring rates | $58.67 | $63.42 | $49.27 | $51.87 | ||||||||||||
RSF | 380,687 | 2,543,473 | ||||||||||||||
Tenant improvements/leasing commissions | $59.92 | (2) | $55.34 | |||||||||||||
Weighted-average lease term | 8.4 years | 9.0 years | ||||||||||||||
Previously vacant/developed/redeveloped space leased | ||||||||||||||||
New rates | $53.34 | $52.10 | $72.30 | $67.56 | ||||||||||||
Previously vacant RSF | 148,734 | 944,362 | ||||||||||||||
Developed/redeveloped RSF(3) | 117,935 | 704,821 | (4) | |||||||||||||
Weighted-average lease term | 14.0 years | 13.8 years | ||||||||||||||
Leasing activity summary (totals): | ||||||||||||||||
New rates | $51.30 | $52.88 | $60.42 | $59.13 | ||||||||||||
RSF | 647,356 | 4,192,656 | ||||||||||||||
Weighted-average lease term | 12.0 years | 11.9 years | ||||||||||||||
Lease expirations(1) | ||||||||||||||||
Expiring rates | $56.43 | $62.28 | $54.22 | $55.56 | ||||||||||||
RSF | 1,340,809 | (5) | 4,460,081 | |||||||||||||
Leasing activity includes 100% of results for properties in North America in which we have an investment.
(1)Excludes month-to-month leases aggregating 103,632 RSF and 58,516 RSF as of March 31, 2026 and December 31, 2025, respectively. During the trailing twelve months ended March 31, 2026, we granted free rent
concessions averaging 2.0 months per annum.
(2)Includes the impact of one lease aggregating 47,719 RSF at 480 Arsenal Street in our Cambridge/Inner Suburbs submarket, which was signed with an entertainment studio user to accommodate their expansion needs and
secure a long-term extension. The reorientation of the building layout needed to accommodate the tenant also provides flexibility to market the remaining available space to a broader range of user demand. Excluding this
lease, rental rates for renewed and re-leased space for the three months ended March 31, 2026 would have decreased by 10.1% and 9.1% (cash basis) and tenant improvements and leasing commissions would have
been $46.18 per RSF.
(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.
(4)Includes the largest life science lease in company history, executed in July 2025 with a long-standing multinational pharmaceutical tenant. The 16-year expansion build-to-suit lease aggregates 466,598 RSF and is located
at the Campus Point by Alexandria Megacampus in our University Town Center submarket. Excluding this lease, developed/redeveloped space for the year ended December 31, 2025 was 238,223 RSF.
(5)Includes previously disclosed 2026 key lease expirations aggregating 657,492 RSF that became vacant during 1Q26, with a weighted-average lease expiration date of January 2026.
Contractual Lease Expirations | |
March 31, 2026 | |
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 | Remaining Expiring Leases | Total(2) | Leased | Negotiating/ Anticipating | Remaining Expiring Leases | Total | ||||||||||||||||
Greater Boston | 119,822 | 11,894 | 110,339 | 242,055 | $42.93 | 50,375 | 24,386 | 110,518 | 185,279 | $67.27 | |||||||||||||
San Francisco Bay Area | 4,908 | 21,671 | 115,876 | 142,455 | 74.74 | 1,873 | 8,927 | 183,000 | 193,800 | 72.78 | |||||||||||||
San Diego | — | — | 104,945 | 104,945 | 57.70 | — | 62,415 | 335,515 | 397,930 | 45.00 | |||||||||||||
Seattle | 10,553 | 12,908 | 39,002 | 62,463 | 24.74 | 9,435 | 93,839 | 305,254 | 408,528 | 47.30 | |||||||||||||
Maryland | 8,155 | — | 48,302 | 56,457 | 26.82 | — | — | 191,188 | 191,188 | 30.63 | |||||||||||||
Research Triangle | 41,518 | 11,913 | 19,783 | 73,214 | 43.58 | 30,696 | — | 283,614 | 314,310 | 34.13 | |||||||||||||
New York City | — | — | 36,501 | 36,501 | 103.49 | — | — | 100,787 | 100,787 | 97.97 | |||||||||||||
Texas | — | — | — | — | — | — | 65,551 | 26,160 | 91,711 | 26.10 | |||||||||||||
Non-cluster/other markets | — | — | 20,213 | 20,213 | 57.70 | — | — | — | — | — | |||||||||||||
Subtotal | 184,956 | 58,386 | 494,961 | 738,303 | 51.86 | 92,379 | 255,118 | 1,536,036 | 1,883,533 | 49.28 | |||||||||||||
Key lease expirations with expected downtime | 17,271 | 81,642 | 648,470 | 747,383 | (3) | 59.77 | — | — | 1,484,464 | 1,484,464 | (4) | 65.64 | |||||||||||
Total | 202,227 | 140,028 | 1,143,431 | 1,485,686 | $55.84 | 92,379 | 255,118 | 3,020,500 | 3,367,997 | $56.51 | |||||||||||||
Percentage of expiring leases | 14% | 9% | 77% | 100% | 3% | 8% | 89% | 100% | |||||||||||||||
Contractual lease expirations for properties classified as held for sale as of March 31, 2026 are excluded from the information on this page.
(1)Amounts in effect as of March 31, 2026.
(2)Excludes month-to-month leases aggregating 103,632 RSF as of March 31, 2026.
(3)Represents 2026 key lease expirations with expected downtime aggregating 747,383 RSF with a weighted-average expiration date of June 2026 and annual rental revenue aggregating $44.7 million as of March 31, 2026. This includes i)
137,316 RSF generating $13.3 million of annual rental revenues at Alexandria Stanford Life Science District, where we are evaluating a redevelopment for advanced technology space, ii) 108,136 RSF generating $8.1 million of annual
rental revenues at Alexandria Center® at One Kendall Square, where expected downtime is primarily driven by tenant relocations to other ARE-developed properties, and iii) 99,271 RSF generating $7.9 million of annual rental revenues at
Alexandria Center® for Life Science – Eastlake, where the tenant is also relocating to another ARE-developed property. Additionally, we have identified prospective tenants or are in early discussions for 111,983 RSF in our Greater Boston
and San Francisco Bay Area markets. We continue to evaluate business plans and re-leasing strategies for these projects to maximize occupancy and rental revenue. We expect weighted-average downtime to be approximately 6 to 24
months.
(4)Represents space with an annual rental revenue of $97.4 million, with a weighted-average lease expiration date of February 2027, and a weighted-average downtime of approximately 6 to 24 months. Of the expiring 1.5 million RSF, we
have identified prospective tenants or are in early discussions for 532,585 RSF. Compared to 4Q25, 2027 key lease expirations increased primarily due to a 232,902-RSF lease expiration with a single tenant at our Alexandria Center® for
Life Science – Waltham Megacampus with $27.0 million of annual rental revenue, for which we no longer expect the tenant to renew on a short-term basis. Other key considerations of this expiring 1.5 million RSF include:
Located on Megacampuses
(based on RSF)
Laboratory Space
(based on RSF)
Top 20 Tenants | |
March 31, 2026 | |
(Dollars in thousands, except average market cap amounts) | |
87% 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 | 5.9 | 1,226,762 | $107,021 | 5.8% | A2 | A | $102.78 | |||||||||||||||
2 | Eli Lilly and Company | 9.2 | 1,053,592 | 92,049 | 5.0 | Aa3 | A+ | $826.64 | |||||||||||||||
3 | Moderna, Inc. | 12.7 | 462,100 | 71,571 | 3.9 | — | — | $12.41 | |||||||||||||||
4 | AstraZeneca PLC | 5.9 | 611,326 | 55,480 | 3.0 | A1 | A+ | $255.26 | |||||||||||||||
5 | Takeda Pharmaceutical Company Limited | 10.6 | 386,111 | 41,673 | 2.3 | Baa1 | BBB+ | $48.85 | |||||||||||||||
6 | Eikon Therapeutics, Inc.(2) | 13.2 | 299,638 | 38,907 | 2.1 | — | — | $0.72 | |||||||||||||||
7 | Illumina, Inc. | 5.6 | 792,687 | 29,977 | 1.6 | Baa3 | BBB | $16.58 | |||||||||||||||
8 | United States Government | 4.4 | 414,499 | 29,334 | (3) | 1.6 | Aaa | AA+ | $— | ||||||||||||||
9 | Uber Technologies, Inc. | 56.5 | (4) | 1,009,188 | 27,865 | 1.5 | Baa1 | BBB | $178.56 | ||||||||||||||
10 | Boston Children's Hospital | 11.0 | 309,231 | 26,294 | 1.4 | Aa2 | AA | $— | |||||||||||||||
11 | Novartis AG | 2.2 | (5) | 321,743 | 25,111 | 1.4 | Aa3 | AA- | $273.55 | ||||||||||||||
12 | Sanofi | 4.8 | 267,278 | 22,045 | 1.2 | Aa3 | AA | $119.93 | |||||||||||||||
13 | Alphabet Inc. | 2.1 | 418,600 | 21,837 | 1.2 | Aa2 | AA+ | $2,946.34 | |||||||||||||||
14 | New York University | 6.3 | 218,983 | 21,073 | 1.1 | Aa2 | AA- | $— | |||||||||||||||
15 | Massachusetts Institute of Technology | 3.8 | 242,428 | 20,529 | 1.1 | Aaa | AAA | $— | |||||||||||||||
16 | Charles River Laboratories, Inc. | 9.4 | 238,938 | 20,045 | 1.1 | — | — | $8.11 | |||||||||||||||
17 | Merck & Co., Inc. | 7.8 | 308,356 | 19,610 | 1.1 | Aa3 | A+ | $231.19 | |||||||||||||||
18 | Vaxcyte, Inc. | 8.8 | 230,755 | 18,672 | 1.0 | — | — | $5.47 | |||||||||||||||
19 | Altos Labs, Inc.(6) | 15.0 | 158,990 | 18,407 | 1.0 | — | — | $— | |||||||||||||||
20 | Amgen Inc. | 9.7 | 317,157 | 18,181 | 1.0 | Baa1 | BBB+ | $167.68 | |||||||||||||||
Total/weighted-average | 9.9 | (4) | 9,288,362 | $725,681 | 39.4% | ||||||||||||||||||
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 March 31, 2026.
(2)Eikon Therapeutics, Inc. is a public biotechnology company led by Roger Perlmutter, a biopharmaceutical executive who previously served as an executive vice president of Merck & Co., Inc. As of December 31, 2025, the company held
$336 million in cash and marketable securities.
(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 8.1 years as of March 31, 2026.
(5)Includes one lease at 100 Technology Square at Alexandria Technology Square® Megacampus in our Cambridge submarket aggregating 255,441 RSF, which generates annualized rental revenue of $21.0 million and expires in March
2028. We are actively marketing the space for re-lease.
(6)Altos Labs, Inc. is a private biotechnology company led by Hal Barron, M.D., former Chief Scientific Officer and President, R&D at GlaxoSmithKline. Altos Labs launched with $3.0 billion in private funding in 2022, and is backed by a group
of prominent investors.
Summary of Properties and Occupancy | |
March 31, 2026 | |
(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 | 9,338,588 | 566,673 | 1,361,372 | 11,266,633 | 29% | 63 | $697,286 | 38% | $89.09 | ||||||||||
San Francisco Bay Area | 6,083,765 | 212,657 | 84,157 | 6,380,579 | 16 | 52 | 332,008 | 18 | 69.11 | ||||||||||
San Diego | 6,225,980 | 893,525 | — | 7,119,505 | 18 | 61 | 295,434 | 15 | 53.67 | ||||||||||
Seattle | 2,846,292 | 227,577 | — | 3,073,869 | 8 | 39 | 120,494 | 7 | 48.21 | ||||||||||
Maryland | 3,676,566 | — | — | 3,676,566 | 9 | 47 | 153,371 | 8 | 45.94 | ||||||||||
Research Triangle | 3,435,988 | — | — | 3,435,988 | 9 | 36 | 89,401 | 5 | 27.74 | ||||||||||
New York City | 727,674 | — | — | 727,674 | 2 | 2 | 66,510 | 4 | 95.46 | ||||||||||
Texas | 1,651,094 | — | 66,350 | 1,717,444 | 4 | 13 | 37,887 | 2 | 28.04 | ||||||||||
Non-cluster/other markets(1) | 417,523 | — | — | 417,523 | 1 | 7 | 10,903 | 1 | 30.36 | ||||||||||
Properties held for sale | 1,444,387 | — | — | 1,444,387 | 4 | 19 | 32,567 | 2 | 31.27 | ||||||||||
North America | 35,847,857 | 1,900,432 | 1,511,879 | 39,260,168 | 100% | 339 | $1,835,861 | 100% | $59.91 | ||||||||||
3,412,311 | |||||||||||||||||||
Summary of occupancy
Operating Properties | Operating and Redevelopment Properties | |||||||||||
Market | 3/31/26 | 12/31/25 | 3/31/25 | 3/31/26 | 12/31/25 | 3/31/25 | ||||||
Greater Boston | 83.8% | (2) | 86.4% | 91.8% | 73.1% | 75.1% | 78.4% | |||||
San Francisco Bay Area | 87.6 | (2) | 90.9 | 90.3 | 86.4 | 89.4 | 86.3 | |||||
San Diego | 88.4 | (2) | 97.2 | 94.3 | 88.4 | 97.2 | 94.3 | |||||
Seattle | 87.8 | 88.4 | 91.5 | 87.8 | 88.4 | 91.5 | ||||||
Maryland | 92.3 | (3) | 93.6 | 94.1 | 92.3 | 93.6 | 94.1 | |||||
Research Triangle | 93.8 | (4) | 95.2 | 93.4 | 93.8 | 95.2 | 93.4 | |||||
New York City | 95.8 | 96.4 | 87.6 | 95.8 | 96.4 | 87.6 | ||||||
Texas | 81.8 | 79.9 | 82.1 | 78.7 | 76.5 | 78.9 | ||||||
Subtotal | 87.8 | 90.9 | 91.8 | 84.0 | 86.9 | 87.1 | ||||||
Canada | N/A | (1) | N/A | (1) | 94.6 | N/A | N/A | 82.4 | ||||
Non-cluster/other markets | 86.0 | 91.2 | 73.0 | 86.0 | 91.2 | 73.0 | ||||||
North America | 87.7% | (5) | 90.9% | 91.7% | 84.1% | 86.9% | 86.9% | |||||
(1)10 properties in Canada were classified as held for sale in 4Q25 and the remaining one property in Canada is now included in our non-cluster market.
(2)Decline in occupancy since December 31, 2025 was primarily attributable to previously disclosed key lease expirations with expected downtime, including:
•Greater Boston: 45,636 RSF at Alexandria Center® at Kendall Square in our Cambridge submarket and 52,467 RSF in our Route 128 submarket.
•San Francisco Bay Area: 78,962 RSF at Alexandria Stanford Life Science District in our Greater Stanford submarket, where we are evaluating a redevelopment for advanced technology use, and 42,299 RSF in our South
San Francisco submarket which is currently under early-stage negotiations.
•San Diego:
•163,648 RSF at a property in our University Town Center submarket, for which we have executed a letter of intent to re-lease the entire premises;
•118,225 RSF at One Alexandria Square in our Torrey Pines submarket. Of this space, 58,282 RSF has already been re-leased, with occupancy expected to phase in commencing in 4Q26; and
•83,354 RSF at 5810 and 5820 Nancy Ridge Drive in our Sorrento Mesa submarket which has been re-leased, with occupancy expected to commence in 4Q26.
(3)Decline in occupancy was primarily driven by the expiration of one private biotechnology lease aggregating 30,161 RSF in our Rockville submarket.
(4)Decline in occupancy was primarily due to 30,667 RSF of vacancy from a tenant winding down operations in the Research Triangle submarket.
(5)Includes temporary vacancies as of March 31, 2026 aggregating 1.1 million RSF, or 3.2% 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 September 2026, with expected annual rental revenue of approximately $68 million.
Property Listing | |
March 31, 2026 | |
(Dollars in thousands) | |
Our Megacampus Properties Account for 78% of Our Annual Rental Revenue
Property Listing (continued) | |
March 31, 2026 | |
(Dollars in thousands) | |
Property Listing (continued) | |
March 31, 2026 | |
(Dollars in thousands) | |
Property Listing (continued) | |
March 31, 2026 | |
(Dollars in thousands) | |
Property Listing (continued) | |
March 31, 2026 | |
(Dollars in thousands) | |
Property Listing (continued) | |
March 31, 2026 | |
(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 | 727,674 | — | — | 727,674 | 2 | $66,510 | 95.8% | 95.8% | ||||||||||||
430 and 450 East 29th Street | ||||||||||||||||||||
New York City | 727,674 | — | — | 727,674 | 2 | 66,510 | 95.8 | 95.8 | ||||||||||||
Texas | ||||||||||||||||||||
Austin | ||||||||||||||||||||
Megacampus: Intersection Campus | 1,523,318 | — | — | 1,523,318 | 12 | 34,135 | 84.9 | 84.9 | ||||||||||||
507 East Howard Lane, 13011 McCallen Pass, 13813 and 13929 Center Lake Drive, and 12535, 12545, 12555, and 12565 Riata Vista Circle | ||||||||||||||||||||
Austin | 1,523,318 | — | — | 1,523,318 | 12 | 34,135 | 84.9 | 84.9 | ||||||||||||
Greater Houston | ||||||||||||||||||||
Alexandria Center® for Advanced Technologies at The Woodlands | 127,776 | — | 66,350 | 194,126 | 1 | 3,752 | 44.6 | 29.4 | ||||||||||||
8800 Technology Forest Place | ||||||||||||||||||||
Texas | 1,651,094 | — | 66,350 | 1,717,444 | 13 | 37,887 | 81.8 | 78.7 | ||||||||||||
Non-cluster/other markets | 417,523 | — | — | 417,523 | 7 | 10,903 | 86.0 | 86.0 | ||||||||||||
North America, excluding properties held for sale | 34,403,470 | 1,900,432 | 1,511,879 | 37,815,781 | 320 | 1,803,294 | 87.7% | 84.1% | ||||||||||||
Properties held for sale | 1,444,387 | — | — | 1,444,387 | 19 | 32,567 | 72.1% | 72.1% | ||||||||||||
Total – North America | 35,847,857 | 1,900,432 | 1,511,879 | 39,260,168 | 339 | $1,835,861 | ||||||||||||||
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 | |
March 31, 2026 | |
INCREMENTAL ANNUAL NET OPERATING INCOME
GROWTH EXPECTED FROM ALEXANDRIA’S
DEVELOPMENT AND REDEVELOPMENT DELIVERIES
Near-Term Deliveries | Intermediate-Term Deliveries | |||
2Q26–4Q26 | 2027–2028 | |||
$92M | $93M | |||
93% Leased/Negotiating | 68% Leased/Negotiating | |||
601,589 RSF | 1.3 million RSF | |||
(1)
(2)
(3)
(4)
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)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 commencing through 2026 is projected to be $70 million. Refer to the initial and stabilized occupancy years under “New Class A/A+ development and redevelopment properties: under construction” in
the Supplemental Information for additional details.
(2)Our share of incremental annual net operating income from projects expected to stabilize in 2027-2028 is projected to be $60 million.
(3)Represents the current leased/negotiating percentage of development and redevelopment projects that are expected to stabilize through 2026.
(4)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 | |
March 31, 2026 | |
(Dollars in thousands) | |
Development and Redevelopment | |||||||||||||||
Under Construction | |||||||||||||||
Operating | 2Q26–4Q26 Stabilization | 2027–2028 Stabilization | Evaluating Strategy | Future | Subtotal | Total | |||||||||
Square footage | |||||||||||||||
Operating | 34,403,470 | — | — | — | — | — | 34,403,470 | ||||||||
Future Class A/A+ development and redevelopment properties | — | 601,589 | 1,258,004 | 1,552,718 | 20,014,546 | 23,426,857 | 23,426,857 | ||||||||
Future development and redevelopment square feet currently included in rental properties(1) | — | — | — | — | (1,516,872) | (1,516,872) | (1,516,872) | ||||||||
Total square footage, excluding properties held for sale | 34,403,470 | 601,589 | 1,258,004 | 1,552,718 | 18,497,674 | 21,909,985 | 56,313,455 | ||||||||
Properties held for sale | 1,444,387 | — | — | — | 1,619,425 | 1,619,425 | 3,063,812 | ||||||||
Total square footage | 35,847,857 | 601,589 | 1,258,004 | 1,552,718 | 20,117,099 | 23,529,410 | 59,377,267 | ||||||||
Investments in real estate | |||||||||||||||
Gross book value as of March 31, 2026(2) | $28,135,300 | $629,966 | $1,130,851 | $1,356,515 | $3,971,142 | $7,088,474 | (3) | $35,223,774 | |||||||
Properties held for sale | 423,335 | — | — | — | 230,905 | 230,905 | 654,240 | ||||||||
Total gross investment in real estate, excluding properties held for sale | $27,711,965 | $629,966 | $1,130,851 | $1,356,515 | $3,740,237 | $6,857,569 | $34,569,534 | ||||||||
20%
Development/ Redevelopment Under Construction |
Land/Future Development |
17%
11%–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 as of March 31, 2026 is $6.45 billion.
(4)Excludes properties classified as held for sale, of which land parcels represented approximately 1% of total non-income-producing assets as of December 31, 2024 and 2025.
New Class A/A+ Development and Redevelopment Properties: Recent Deliveries | |
March 31, 2026 | |
(Dollars in thousands) | |
99 Coolidge Avenue | 10075 Barnes Canyon Road | 8800 Technology Forest Place | ||
Greater Boston/ Cambridge/Inner Suburbs | San Diego/Sorrento Mesa | Texas/Greater Houston | ||
146,147 RSF | 253,079 RSF | 57,042 RSF | ||
100% Occupancy | 80% Occupancy | 100% Occupancy | ||
 |  |  |
Property/Market/Submarket | Our Ownership Interest | RSF Placed in Service | Occupancy Percentage(2) | Total Project | Unlevered Yields | |||||||||||||||||||||
1Q26 Delivery Date(1) | Prior to 1/1/26 | 1Q26 | Total | Initial Stabilized | Initial Stabilized (Cash Basis) | |||||||||||||||||||||
RSF | Investment | |||||||||||||||||||||||||
Development projects | ||||||||||||||||||||||||||
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs | 1/27/26 | 100% | 129,413 | 16,734 | 146,147 | 100% | 320,809 | $444,000 | 6.0% | 6.8% | ||||||||||||||||
10075 Barnes Canyon Road/San Diego/Sorrento Mesa | 3/31/26 | 50.0% | 171,469 | 81,610 | (3) | 253,079 | 80% | 253,079 | 314,000 | 5.5 | 5.7 | |||||||||||||||
Redevelopment projects | ||||||||||||||||||||||||||
8800 Technology Forest Place/Texas/Greater Houston | 2/5/26 | 100% | 50,094 | 6,948 | 57,042 | 100% | 123,392 | 112,000 | 6.3 | 6.0 | ||||||||||||||||
Weighted average/total | 1/28/26 | 350,976 | 105,292 | 456,268 | 697,280 | $870,000 | 5.9% | 6.3% | ||||||||||||||||||
Refer to “New Class A/A+ development and redevelopment properties: under construction” in the Supplemental Information for additional details on the square footage in service and under construction, if applicable.
(1)Represents the average delivery date for deliveries that occurred during the current quarter, weighted by annual rental revenue.
(2)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.
(3)Includes 50,531 RSF that were vacant and/or unleased at delivery.
New Class A/A+ Development and Redevelopment Properties: Under Construction | |
March 31, 2026 | |
99 Coolidge Avenue | 50 and 60 Sylvan Road(1) | 1450 Owens Street | ||
Greater Boston/ Cambridge/Inner Suburbs | Greater Boston/Route 128 | San Francisco Bay Area/ Mission Bay | ||
174,662 RSF | 267,015 RSF | 212,657 RSF | ||
84% Leased/Negotiating | 74% Leased/Negotiating | 51% Leased/Negotiating | ||
|  |  |
269 East Grand Avenue | 4135 Campus Point Court | 10200 Campus Point Drive | 701 Dexter Avenue North | |||
San Francisco Bay Area/ South San Francisco | San Diego/ University Town Center | San Diego/ University Town Center | Seattle/Lake Union | |||
84,157 RSF | 426,927 RSF | 466,598 RSF | 227,577 RSF | |||
40% Leased/Negotiating | 100% Leased | 100% Leased | 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: Under Construction (continued) | |
March 31, 2026 | |
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 | ||||||||||||||||||||||
2Q26–4Q26 stabilization | ||||||||||||||||||||||
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs | X | Dev | 146,147 | 174,662 | 320,809 | 84% | 84% | 4Q23 | 4Q26 | |||||||||||||
4135 Campus Point Court/San Diego/University Town Center | X | Dev | — | 426,927 | 426,927 | 100 | 100 | 3Q26 | 3Q26 | |||||||||||||
146,147 | 601,589 | 747,736 | 93 | 93 | ||||||||||||||||||
2027–2028 stabilization | ||||||||||||||||||||||
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 | — | 212,657 | 212,657 | 51 | 51 | 2027 | 2027 | |||||||||||||
269 East Grand Avenue/San Francisco Bay Area/South San Francisco | X | Redev | — | 84,157 | 84,157 | 40 | 40 | 2H26 | 2027 | |||||||||||||
10200 Campus Point Drive/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 | 3Q26 | 2027 | |||||||||||||
— | 1,258,004 | 1,258,004 | 68 | 68 | ||||||||||||||||||
Total | 146,147 | 1,859,593 | 2,005,740 | 77% | 77% | |||||||||||||||||
Evaluating business and financial strategy with earliest potential lab delivery in 2028(3) | ||||||||||||||||||||||
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs | X | Redev | 56,904 | 333,758 | 390,662 | 9% | 28% | |||||||||||||||
421 Park Drive/Greater Boston/Fenway | X | Dev | — | 392,011 | 392,011 | 13 | 13 | |||||||||||||||
40 Sylvan Road/Greater Boston/Route 128 | X | Redev | — | 329,049 | 329,049 | — | — | |||||||||||||||
3000 Minuteman Road/Greater Boston/Other | X | Redev | — | 431,550 | 431,550 | — | 37 | |||||||||||||||
8800 Technology Forest Place/Texas/Greater Houston | Redev | 57,042 | 66,350 | 123,392 | 46 | 46 | ||||||||||||||||
113,946 | 1,552,718 | 1,666,664 | 9% | 23% | ||||||||||||||||||
(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 57.2% ownership interest. The project is fully leased to a longtime multinational pharmaceutical tenant that
currently occupies one building within the Megacampus aggregating 52,853 RSF, which generated annual rental revenue of $4.1 million as of 1Q26. The tenant is expected to vacate this building during 2028. 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.
(3)We are evaluating multiple options, including whether to continue construction of laboratory improvements, pause construction, pursue lower-investment construction alternatives (including a pivot to advanced technology use), or
disposition, based upon future leasing interest. Under a lower-investment scenario, we would expect lower rent and tenant improvement requirements, and we would evaluate whether all or a portion of the property would be placed back
into operation. If the properties are completed as laboratory/office, we do not expect significant deliveries until 2028 at the earliest.
New Class A/A+ Development and Redevelopment Properties: Under Construction (continued) | |
| |
March 31, 2026 | |
(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 | |||||||||||||||||||
2Q26–4Q26 stabilization with 93% leased/negotiating | |||||||||||||||||||
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs | 100% | $203,361 | $185,307 | $55,332 | $444,000 | 6.0% | 6.8% | ||||||||||||
4135 Campus Point Court/San Diego/University Town Center | 57.2% | — | 444,659 | 79,341 | 524,000 | 9.8% | 6.2% | ||||||||||||
203,361 | 629,966 | ||||||||||||||||||
2027–2028 stabilization with 68% leased/negotiating(1) | |||||||||||||||||||
50 and 60 Sylvan Road/Greater Boston/Route 128 | 100% | — | 360,504 | TBD | |||||||||||||||
1450 Owens Street/San Francisco Bay Area/Mission Bay | 25.0% | — | 251,678 | ||||||||||||||||
269 East Grand Avenue/San Francisco Bay Area/South San Francisco | 100% | — | 121,604 | ||||||||||||||||
10200 Campus Point Drive/San Diego/University Town Center(2) | 57.2% | — | 76,310 | 583,690 | 660,000 | 7.3% | 6.5% | ||||||||||||
701 Dexter Avenue North/Seattle/Lake Union | 100% | — | 320,755 | TBD | |||||||||||||||
— | 1,130,851 | ||||||||||||||||||
Total | $203,361 | $1,760,817 | $1,020,000 | (3) | $2,990,000 | (3) | |||||||||||||
Our share of investment(3)(4) | $200,000 | $1,350,000 | $680,000 | $2,230,000 | |||||||||||||||
Evaluating business and financial strategy with earliest potential lab delivery in 2028(5) | |||||||||||||||||||
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs | 100% | $28,081 | $310,025 | TBD | |||||||||||||||
421 Park Drive/Greater Boston/Fenway | 100% | — | 606,090 | ||||||||||||||||
40 Sylvan Road/Greater Boston/Route 128 | 100% | — | 229,568 | ||||||||||||||||
3000 Minuteman Road/Greater Boston/Other | 100% | — | 168,783 | ||||||||||||||||
8800 Technology Forest Place/Texas/Greater Houston | 100% | 65,564 | 42,049 | ||||||||||||||||
$93,645 | $1,356,515 | ||||||||||||||||||
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.
(5)Refer to footnote 3 on the prior page for additional details.
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline | |
March 31, 2026 | |
(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 | Development and Redevelopment Square Footage | ||||||||
Under Construction | Future | Total(1) | |||||||||
Greater Boston | |||||||||||
Megacampus: The Arsenal on the Charles/Cambridge/Inner Suburbs | 100% | $322,671 | 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% | 209,508 | 174,662 | 560,000 | 734,662 | ||||||
446, 458, and 500 Arsenal Street, and 99 Coolidge Avenue | |||||||||||
Megacampus: Alexandria Center® for Life Science – Fenway/Fenway | 100% | 606,090 | 392,011 | — | 392,011 | ||||||
421 Park Drive | |||||||||||
Megacampus: Alexandria Center® for Life Science – Waltham/Route 128 | 100% | 655,867 | 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% | 194,127 | 431,550 | 350,000 | 781,550 | ||||||
3000 Minuteman Road | |||||||||||
Megacampus: Alexandria Technology Square®/Cambridge | 100% | 8,858 | — | 100,000 | 100,000 | ||||||
10 Necco Street/Seaport Innovation District | 100% | 107,101 | — | 175,000 | 175,000 | ||||||
215 Presidential Way/Route 128 | 100% | 6,816 | — | 112,000 | 112,000 | ||||||
Other development and redevelopment projects | 100% | 165,576 | — | 740,000 | 740,000 | ||||||
$2,276,614 | 1,928,045 | 2,586,157 | 4,514,202 | ||||||||
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 intend 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) | |
March 31, 2026 | |
(Dollars in thousands) | |
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued) | |
March 31, 2026 | |
(Dollars in thousands) | |
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued) | |
March 31, 2026 | |
(Dollars in thousands) | |
Market Property/Submarket | Our Ownership Interest | Book Value | Development and Redevelopment Square Footage | ||||||||
Under Construction | Future | Total(1) | |||||||||
Texas | |||||||||||
Alexandria Center® for Advanced Technologies at The Woodlands/Greater Houston | 100% | $45,105 | 66,350 | 116,405 | 182,755 | ||||||
8800 Technology Forest Place | |||||||||||
1001 Trinity Street and 1020 Red River Street/Austin | 100% | 137,652 | — | 250,010 | 250,010 | ||||||
Other development and redevelopment projects | 100% | 60,808 | — | 344,000 | 344,000 | ||||||
243,565 | 66,350 | 710,415 | 776,765 | ||||||||
Other development and redevelopment projects | 100% | 47,503 | — | 597,743 | 597,743 | ||||||
Total pipeline as of March 31, 2026, excluding properties held for sale | 6,857,569 | 3,412,311 | 20,014,546 | 23,426,857 | |||||||
Properties held for sale | 230,905 | — | 1,619,425 | 1,619,425 | |||||||
Total pipeline as of March 31, 2026 | $7,088,474 | (2) | 3,412,311 | 21,633,971 | 25,046,282 | ||||||
Refer to “Megacampus” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Total square footage includes 1.5 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 $3.12 billion of projects that are currently under construction.
Construction Spending | |
March 31, 2026 | |
(Dollars in thousands) | |
Construction spending | Projected Guidance Midpoint for Year Ending December 31, 2026 | Three Months Ended March 31, 2026 | Year Ended December 31, 2025 | ||||||||
Construction of Class A/A+ properties: | |||||||||||
Active construction projects | |||||||||||
Development and redevelopment under construction(1) | $ | 1,445,000 | $ | 184,054 | $ | 1,216,572 | |||||
Future pipeline pre-construction | |||||||||||
Primarily Megacampus expansion pre-construction work (entitlement, design, and site work) | 210,000 | (2) | 56,610 | 275,971 | |||||||
Revenue- and non-revenue-enhancing capital expenditures(3) | 510,000 | (4) | 164,382 | 324,293 | |||||||
Construction spending (before contributions from noncontrolling interests or tenants) | 2,165,000 | 405,046 | 1,816,836 | ||||||||
Contributions from noncontrolling interests (consolidated real estate joint ventures) | (100,000) | (5) | (23,804) | (193,936) | |||||||
Tenant-funded and -built landlord improvements | (315,000) | (2,694) | (178,651) | ||||||||
Total construction spending | $ | 1,750,000 | $ | 378,548 | $ | 1,444,249 | |||||
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 58% 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 two properties at
the Alexandria Technology Square® Megacampus in our Cambridge submarket, which are undergoing their first major renovation in 16 years.
(5)Represents contractual capital commitments from existing real estate joint venture partners to fund construction.
Capitalization of Interest | |
March 31, 2026 | |
(Dollars in thousands) | |
Leased/ Negotiating | Average Real Estate Basis Capitalized | |||||||
Key Categories of Real Estate Basis Capitalized | Three Months Ended March 31, 2026 | Percentage | ||||||
Construction of Class A/A+ properties: | ||||||||
Development and redevelopment of projects under construction and repositioning projects: | ||||||||
2026 stabilization | 93% | $330,399 | ||||||
2027–2028 stabilization | 68% | 768,594 | ||||||
Evaluating business and financial strategy(1) | 23% | 1,277,710 | ||||||
Repositioning and smaller redevelopment projects(2) | 1,538,022 | |||||||
3,914,725 | 57% | |||||||
Land/future development projects with critical key pre-construction milestones through: | ||||||||
2026(3) | 1,159,948 | |||||||
2027(3) | 567,606 | |||||||
2028 and beyond(4) | 1,217,819 | |||||||
2,945,373 | 43 | |||||||
Total average real estate basis capitalized(5) | $6,860,098 | 100% | ||||||
Substantial Reduction in Land Drives Decrease in Average Real Estate Basis Capitalized
$8.1B
$6.8B
Development/Redevelopment Under Construction and Repositioning Projects |
Land/Future Development |
$3.8B – $5.3B
Average Real Estate Basis Capitalized
(1)Includes projects aggregating 1.6 million RSF for which we are evaluating business and financial strategy and that are expected to reach anticipated construction or delivery milestones, on a weighted-average real estate investment basis,
by March 2027. We are evaluating multiple options, including whether to continue construction of laboratory improvements, pause construction, pursue lower-investment construction alternatives (including a pivot to advanced technology
use), or disposition. Upon achievement of these milestones, if we choose not to pursue future construction or other activities, capitalized interest and other project costs may no longer qualify for capitalization.
(2)Includes the real estate basis related to the 1.1 million RSF of vacant space as of March 31, 2026 that is leased with future delivery. The weighted-average expected delivery date is approximately September 2026.
(3)Includes future pipeline projects that are expected to reach anticipated pre-construction milestones, including various phases of entitlement, design, site work, and other activities necessary to begin aboveground vertical construction, on a
weighted-average real estate investment basis by August 2026 and April 2027, for the 2026 and 2027 milestones, respectively. 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 for potential disposition.
(4)Includes future Megacampus development projects at Alexandria Center® for Advanced Technologies – Tanforan in our South San Francisco submarket and Alexandria Center® for Life Science – San Carlos in our Greater Stanford
submarket, which represents approximately 68% of the total average capitalized real estate basis with 2028 and beyond milestones during the three months ended March 31, 2026. These projects are located at transit-friendly sites with
future access to exceptional amenities.
(5)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 1Q26.
| |
Joint Venture Financial Information | |
March 31, 2026 | |
Refer to “Joint venture financial information” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Includes 1450, 1500, and 1700 Owens Street and 455 Mission Bay Boulevard South.
(2)Includes properties 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 10200, 10290, and 10300 Campus Point Drive and 4135, 4155, 4165, 4224, and 4242 Campus Point Court.
(4)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: under construction” in the Supplemental Information for additional details.
(5)Includes 9605, 9645, 9675, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road.
(6)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.
(7)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) | |
March 31, 2026 | |
(In thousands) | |
As of March 31, 2026 | ||||||||
Noncontrolling Interest Share of Consolidated Real Estate JVs | Our Share of Unconsolidated Real Estate JVs | |||||||
Investments in real estate | $ | 3,261,264 | $ | 88,793 | ||||
Cash, cash equivalents, and restricted cash | 111,509 | 1,648 | ||||||
Other assets | 411,563 | 10,686 | ||||||
Secured notes payable | — | (60,821) | ||||||
Other liabilities | (154,688) | (9,786) | ||||||
Redeemable noncontrolling interests | (9,234) | — | ||||||
$ | 3,620,414 | $ | 30,520 | |||||
Three Months Ended March 31, 2026 | |||||||
Noncontrolling Interest Share of Consolidated Real Estate JVs | Our Share of Unconsolidated Real Estate JVs | ||||||
Total revenues | $ | 97,212 | $ | 3,006 | |||
Rental operations | (30,677) | (1,191) | |||||
66,535 | 1,815 | ||||||
General and administrative | (622) | (22) | |||||
Interest | (63) | (1,026) | |||||
Depreciation and amortization of real estate assets | (29,473) | (914) | |||||
Fixed returns allocated to redeemable noncontrolling interest(1) | 347 | — | |||||
$ | 36,724 | $ | (147) | ||||
Straight-line rent and below-market lease revenue | $ | 2,981 | $ | 197 | |||
Funds from operations(2) | $ | 66,197 | $ | 767 | |||
Refer to “Joint venture financial information” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents an allocation of joint venture earnings to redeemable noncontrolling interest for a property in the San Francisco Bay Area market. This redeemable noncontrolling interest earns a fixed return on their investment rather
than participate in the operating results of the property.
(2)Refer to “Funds from operations and funds from operations per share” in the Earnings Press Release and “Definitions and reconciliations” in the Supplemental Information for additional details.
Investments | |
March 31, 2026 | |
(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.
Three Months Ended March 31, 2026 | Year Ended December 31, 2025 | |||||
Realized gains (losses): | ||||||
Realized gains | $18,198 | $115,722 | ||||
Impairment of non-real estate investments | (12,448) | (1) | (95,716) | |||
Significant realized loss | — | (103,329) | ||||
5,750 | (83,323) | |||||
Unrealized (losses) gains | (10,332) | (2) | 26,980 | (3) | ||
Investment loss | $(4,582) | $(56,343) | ||||
March 31, 2026 | December 31, 2025 | |||||||||
Investments | Cost | Unrealized Gains | Unrealized Losses | Carrying Amount | Carrying Amount | |||||
Publicly traded companies | $83,916 | $34,674 | $(16,514) | $102,076 | $94,928 | |||||
Entities that report NAV | 471,058 | 102,050 | (38,132) | 534,976 | 512,376 | |||||
Entities that do not report NAV: | ||||||||||
Entities with observable price changes | 82,128 | 54,780 | (10,991) | 125,917 | 123,238 | |||||
Entities without observable price changes | 405,567 | — | — | 405,567 | 413,324 | |||||
Investments accounted for under the equity method | N/A | N/A | N/A | 367,883 | 357,383 | |||||
March 31, 2026 | $1,042,669 | (4) | $191,504 | $(65,637) | $1,536,419 | $1,501,249 | ||||
December 31, 2025 | $1,010,488 | $184,434 | $(51,056) | $1,501,249 | ||||||
Public/Private Mix (Cost) | Tenant/Non-Tenant Mix (Cost) | |
17%
Tenant
6%
Public
83%
Non-Tenant
94%
Private
(1)Primarily related to two non-real estate investments in privately held entities that do not report NAV.
(2)Primarily relates to the accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our realization of investments during the three months ended March 31, 2026.
(3)Primarily relates to the increase in fair values of our investments in publicly traded entities during the year ended December 31, 2025.
(4)Represents 2.6% of gross assets as of March 31, 2026. Refer to “Gross assets” under “Definitions and reconciliations” in the Supplemental Information for additional details.
| |
Balance Sheet | |
March 31, 2026 | |
ALEXANDRIA CONTINUES TO HAVE A STRONG AND FLEXIBLE
BALANCE SHEET WITH SIGNIFICANT LIQUIDITY
SIGNIFICANT LIQUIDITY | PERCENTAGE OF FIXED-RATE DEBT SINCE 2022(2) | ||
$4.2B | 96.4% | ||
REMAINING DEBT TERM (IN YEARS) | DEBT INTEREST RATE | ||
10.0 | 4.06% | ||
Longest Among S&P 500 REITs(3) | |||
4Q26 ANNUALIZED GUIDANCE | |||
5.6x to 6.2x | 3.6x to 4.1x | ||
NET DEBT AND PREFERRED STOCK TO ADJUSTED EBITDA | FIXED-CHARGE COVERAGE RATIO | ||
TOP 15%
CREDIT RATING RANKING AMONG
ALL PUBLICLY TRADED U.S. REITS(1)
BBB+
Negative
WEIGHTED AVERAGE
Baa1
Negative
As of March 31, 2026. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)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 March 31, 2026.
(2)Represents the average quarterly percentage fixed-rate debt as of each quarter-end from January 1, 2022 through March 31, 2026.
(3)Sources: S&P Global Market Intelligence, Bloomberg, or company filings as of December 31, 2025, except for ARE, which is as of March 31, 2026.
| |
Balance Sheet | |
March 31, 2026 | |
KEY HIGHLIGHTS: | |||
Repurchased $1.33 billion debt principal at a 28% discount for $952.2 million across 2050, 2051, and 2052 notes Funded repurchase primarily with issuance of $750 million of 5.25% senior unsecured notes due 2036 Recognized $366.4 million(1) gain on early extinguishment of debt with a ~0.2x benefit to leverage(2) No significant impact on 2026 FFO per share — diluted, as adjusted, interest expense, or fixed-charge coverage ratio ARE’s overall weighted-average remaining debt term: 10.0 years(3) (continues to be the longest among S&P 500 REITs) | |||
1Q26 TENDER
OFFERS AND
NEW ISSUANCE
EFFICIENT
DE-LEVERAGING
THROUGH
LIABILITY
MANAGEMENT
(1)Includes the write-off of unamortized debt issuance costs and other transaction-related costs.
(2)Refer to “Net debt and preferred stock to adjusted EBITDA” in Definitions and reconciliations in the Supplemental Information for additional details.
(3)As of March 31, 2026.
| |
Key Credit Metrics | |
March 31, 2026 | |
3.6x to 4.1x
5.6x to 6.2x
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Quarter annualized.
Summary of Debt | |
March 31, 2026 | |
ALEXANDRIA HAS THE LONGEST WEIGHTED-AVERAGE REMAINING DEBT TERM
AMONG S&P 500 REITS AT ALMOST 2X THE AVERAGE DEBT TERM FOR THESE REITS
5.6 Years
Average Debt Term
of S&P 500 REITs
as of December 31, 2025
WEIGHTED-AVERAGE REMAINING DEBT TERM (IN YEARS)
Sources: S&P Global Market Intelligence, Bloomberg, or company filings as of December 31, 2025, except for ARE, which is as of March 31, 2026.
Summary of Debt (continued) | |
March 31, 2026 | |
(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 | $11,166,009 | $— | $11,166,009 | 89.2% | 4.03% | 10.7 | ||||||
Unsecured senior line of credit(2) and commercial paper program(3) | — | 1,353,986 | 1,353,986 | 10.8 | 4.27 | 3.8 | (4) | |||||
Total/weighted average | $11,166,009 | $1,353,986 | $12,519,995 | 100.0% | 4.06% | 10.0 | (4) | |||||
Percentage of total debt | 89.2% | 10.8% | 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 March 31, 2026, 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+0.835%. As of March 31, 2026, we had $1.35 billion 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 9.6 years. The commercial paper notes sold during the three months ended March 31, 2026 were issued at a weighted-average yield to maturity of 4.08% and had a
weighted-average maturity term of 13 days.
Three Months Ended March 31, 2026 | |||||
Average Debt Outstanding | Weighted-Average Interest Rate | ||||
Long-term fixed-rate debt | $11,432,675 | 3.94% | |||
Short-term variable-rate unsecured senior line of credit and commercial paper program debt | 1,736,226 | 4.05 | |||
Blended-average interest rate | 13,168,901 | 3.95 | |||
Loan fee amortization and annual facility fee related to unsecured senior line of credit | N/A | 0.13 | |||
Total/weighted average | $13,168,901 | 4.08% | |||
Summary of Debt (continued) | |
March 31, 2026 | |
(Dollars in thousands) | |
Debt covenants | Unsecured Senior Notes Payable | Unsecured Senior Line of Credit | ||||||
Debt Covenant Ratios(1) | Requirement | March 31, 2026 | Requirement | March 31, 2026 | ||||
Total Debt to Total Assets | ≤ 60% | 32% | ≤ 60.0% | 34.5% | ||||
Secured Debt to Total Assets | ≤ 40% | —% | ≤ 45.0% | —% | ||||
Consolidated EBITDA to Interest Expense | ≥ 1.5x | 7.7x | ≥ 1.50x | 3.23x | ||||
Unencumbered Total Asset Value to Unsecured Debt | ≥ 150% | 302% | N/A | N/A | ||||
Unsecured Interest Coverage Ratio | N/A | N/A | ≥ 1.75x | 6.93x | ||||
(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) | 5.68% | $26,750 | $19,048 | 58.4% | |||||||||||
1655 and 1725 Third Street | 2/10/35 | 6.37% | 6.44% | 500,000 | 496,967 | 10.0% | ||||||||||||
$526,750 | $516,015 | |||||||||||||||||
(1)Includes interest expense and amortization of loan fees.
(2)Represents outstanding principal, net of unamortized deferred financing costs, as of March 31, 2026.
(3)This loan is subject to a fixed SOFR floor of 0.75%.
Summary of Debt (continued) | |
March 31, 2026 | |
(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) | 4.27% | (3) | 1/22/30 | (3) | $— | $— | $— | $— | $1,355,271 | $— | $1,355,271 | $(1,285) | $1,353,986 | ||||||||||||
Unsecured senior notes payable | 3.80% | 3.96 | 4/15/26 | (4) | 350,000 | — | — | — | — | — | 350,000 | (38) | 349,962 | |||||||||||||
Unsecured senior notes payable | 3.95% | 4.13 | 1/15/27 | — | 350,000 | — | — | — | — | 350,000 | (426) | 349,574 | ||||||||||||||
Unsecured senior notes payable | 3.95% | 4.07 | 1/15/28 | — | — | 425,000 | — | — | — | 425,000 | (782) | 424,218 | ||||||||||||||
Unsecured senior notes payable | 4.50% | 4.60 | 7/30/29 | — | — | — | 300,000 | — | — | 300,000 | (749) | 299,251 | ||||||||||||||
Unsecured senior notes payable | 2.75% | 2.87 | 12/15/29 | — | — | — | 400,000 | — | — | 400,000 | (1,552) | 398,448 | ||||||||||||||
Unsecured senior notes payable | 4.70% | 4.81 | 7/1/30 | — | — | — | — | 450,000 | — | 450,000 | (1,594) | 448,406 | ||||||||||||||
Unsecured senior notes payable | 4.90% | 5.05 | 12/15/30 | — | — | — | — | 700,000 | — | 700,000 | (3,751) | 696,249 | ||||||||||||||
Unsecured senior notes payable | 3.375% | 3.48 | 8/15/31 | — | — | — | — | — | 750,000 | 750,000 | (3,543) | 746,457 | ||||||||||||||
Unsecured senior notes payable | 2.00% | 2.12 | 5/18/32 | — | — | — | — | — | 900,000 | 900,000 | (5,811) | 894,189 | ||||||||||||||
Unsecured senior notes payable | 1.875% | 1.97 | 2/1/33 | — | — | — | — | — | 1,000,000 | 1,000,000 | (6,023) | 993,977 | ||||||||||||||
Unsecured senior notes payable | 2.95% | 3.07 | 3/15/34 | — | — | — | — | — | 800,000 | 800,000 | (6,287) | 793,713 | ||||||||||||||
Unsecured senior notes payable | 4.75% | 4.88 | 4/15/35 | — | — | — | — | — | 500,000 | 500,000 | (4,385) | 495,615 | ||||||||||||||
Unsecured senior notes payable | 5.50% | 5.66 | 10/1/35 | — | — | — | — | — | 550,000 | 550,000 | (6,162) | 543,838 | ||||||||||||||
Unsecured senior notes payable | 5.25% | 5.41 | 3/15/36 | — | — | — | — | — | 750,000 | 750,000 | (11,130) | 738,870 | ||||||||||||||
Unsecured senior notes payable | 5.25% | 5.38 | 5/15/36 | — | — | — | — | — | 400,000 | 400,000 | (3,681) | 396,319 | ||||||||||||||
Unsecured senior notes payable | 4.85% | 4.93 | 4/15/49 | — | — | — | — | — | 300,000 | 300,000 | (2,727) | 297,273 | ||||||||||||||
Unsecured senior notes payable | 4.00% | 3.91 | 2/1/50 | — | — | — | — | — | 390,801 | 390,801 | 5,463 | 396,264 | ||||||||||||||
Unsecured senior notes payable | 3.00% | 3.09 | 5/18/51 | — | — | — | — | — | 352,398 | 352,398 | (4,454) | 347,944 | ||||||||||||||
Unsecured senior notes payable | 3.55% | 3.64 | 3/15/52 | — | — | — | — | — | 475,406 | 475,406 | (6,233) | 469,173 | ||||||||||||||
Unsecured senior notes payable | 5.15% | 5.26 | 4/15/53 | — | — | — | — | — | 500,000 | 500,000 | (7,316) | 492,684 | ||||||||||||||
Unsecured senior notes payable | 5.625% | 5.71 | 5/15/54 | — | — | — | — | — | 600,000 | 600,000 | (6,415) | 593,585 | ||||||||||||||
Unsecured debt weighted-average interest rate/ subtotal | 4.06 | 350,000 | 350,000 | 425,000 | 700,000 | 2,505,271 | 8,268,605 | 12,598,876 | (78,881) | 12,519,995 | ||||||||||||||||
Weighted-average interest rate/total | 4.06% | $350,000 | $350,000 | $425,000 | $700,000 | $2,505,271 | $8,268,605 | $12,598,876 | $(78,881) | $12,519,995 | ||||||||||||||||
Balloon payments | $350,000 | $350,000 | $425,000 | $700,000 | $2,505,271 | $8,268,605 | $12,598,876 | $— | $12,598,876 | |||||||||||||||||
Principal amortization | — | — | — | — | — | — | — | (78,881) | (78,881) | |||||||||||||||||
Total debt | $350,000 | $350,000 | $425,000 | $700,000 | $2,505,271 | $8,268,605 | $12,598,876 | $(78,881) | $12,519,995 | |||||||||||||||||
Fixed-rate debt | $350,000 | $350,000 | $425,000 | $700,000 | $1,150,000 | $8,268,605 | $11,243,605 | $(77,596) | $11,166,009 | |||||||||||||||||
Variable-rate debt | — | — | — | — | 1,355,271 | — | 1,355,271 | (1,285) | 1,353,986 | |||||||||||||||||
Total debt | $350,000 | $350,000 | $425,000 | $700,000 | $2,505,271 | $8,268,605 | $12,598,876 | $(78,881) | $12,519,995 | |||||||||||||||||
Weighted-average stated rate on maturing debt | 3.80% | 3.95% | 3.95% | 3.50% | 4.52% | 3.84% | ||||||||||||||||||||
(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 April 2026, we repaid our 3.80% unsecured senior notes payable upon maturity. No gain or loss was incurred in connection with this repayment.
| |
Definitions and Reconciliations | |
March 31, 2026 | |
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) | 3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||
Net income (loss) | $398,377 | $(995,354) | $(197,845) | $(62,189) | $38,662 | ||||
Interest expense | 64,584 | 65,674 | 54,852 | 55,296 | 50,876 | ||||
Income taxes | 3,225 | 1,851 | 3,737 | 1,020 | 1,145 | ||||
Depreciation and amortization | 305,441 | 322,063 | 340,230 | 346,123 | 342,062 | ||||
Stock compensation expense | 11,032 | 8,232 | 10,293 | 12,530 | 10,064 | ||||
(Gain) loss on early extinguishment of debt | (366,435) | (1) | — | 107 | — | — | |||
Gain on sales of real estate | — | (619,914) | (9,366) | — | (13,165) | ||||
Unrealized losses (gains) on non-real estate investments | 10,332 | (98,548) | (18,515) | 21,938 | 68,145 | ||||
Significant realized losses on non-real estate investments | — | 103,329 | — | — | — | ||||
Impairment of real estate | 5,499 | 1,717,188 | 323,870 | 129,606 | 32,154 | ||||
Impairment of non-real estate investments | 12,448 | 20,181 | 25,139 | 39,216 | 11,180 | ||||
(Decrease) increase in provision for expected credit losses on financial instruments | — | (341) | — | — | 285 | ||||
Adjusted EBITDA | $444,503 | $524,361 | $532,502 | $543,540 | $541,408 | ||||
Total revenues | $671,022 | $754,414 | $751,944 | $762,040 | $758,158 | ||||
Adjusted EBITDA margin | 66% | 70% | 71% | 71% | 71% | ||||
(1)In February 2026, we completed tender offers to repurchase debt principal aggregating $1.33 billion across a
portion of our outstanding 4.00% Senior Notes due 2050, 3.00% Senior Notes due 2051, and 3.55% Senior
Notes due 2052 for $952.2 million. The gain includes the write-off of unamortized debt issuance costs and other
transaction-related costs.
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.
Adjusted EBITDA and Adjusted EBITDA margin (continued)
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) | |
March 31, 2026 | |
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 March 31, 2026, approximately 91% of our leases (on an
annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real
estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and other operating
expenses (including increases thereto) in addition to base rent. Annual rental revenue excludes these
operating expenses recovered from our tenants. Amounts recovered from our tenants related to these
operating expenses, along with base rent, are classified in income from rentals in our consolidated
statements of operations.
Capitalization rates
Capitalization rates are calculated based on net operating income and net operating income
(cash basis) annualized, excluding lease termination fees, on stabilized operating assets for the quarter
preceding the date on which the property is sold, or near-term prospective net operating income.
Capitalized interest
We capitalize interest cost as a cost of a project during periods for which activities necessary
to develop, redevelop, or reposition a project for its intended use are ongoing, provided that
expenditures for the asset have been made and interest cost has been incurred. Activities necessary to
develop, redevelop, or reposition a project include pre-construction activities such as entitlements,
permitting, design, site work, and other activities preceding commencement of construction of
aboveground building improvements. The advancement of pre-construction efforts is focused on
reducing the time required to deliver projects to prospective tenants. These critical activities add
significant value for future ground-up development and are required for the vertical construction of
buildings. If we cease activities necessary to prepare a project for its intended use, interest costs related
to such project are expensed as incurred.
Cash interest
Cash interest is equal to interest expense calculated in accordance with GAAP plus
capitalized interest, less amortization of loan fees and debt premiums (discounts). Refer to 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
March 31, 2026. 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 generally consist of the permanent change in use
of acquired office, warehouse, or shell space into facilities designed for life science innovation or
advanced technology. 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.
| |
Definitions and Reconciliations (continued) | |
March 31, 2026 | |
Development, redevelopment, and pre-construction (continued)
Development, redevelopment, and pre-construction spending also includes the following
costs: (i) amounts to bring certain acquired properties up to market standard and/or other costs identified
during the acquisition process (generally within two years of acquisition) and (ii) permanent conversion
of space for highly flexible, move-in-ready laboratory space to foster the growth of promising early- and
growth-stage life science companies.
Revenue-enhancing and repositioning capital expenditures represent spending to reposition
or significantly change the use of a property, including through improvement in the asset quality from
Class B to Class A/A+.
Non-revenue-enhancing capital expenditures represent costs required to maintain the current
revenues of a stabilized property, including the associated costs for renewed and re-leased space.
Dividend payout ratio (common stock)
Dividend payout ratio (common stock) is the ratio of the absolute dollar amount of dividends
on our common stock (shares of common stock outstanding on the respective record dates multiplied by
the related dividend per share) to funds from operations attributable to Alexandria’s common
stockholders – diluted, as adjusted.
Dividend yield
Dividend yield for the quarter represents the annualized quarter dividend divided by the
closing common stock price at the end of the quarter.
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) | 3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||
Adjusted EBITDA | $444,503 | $524,361 | $532,502 | $543,540 | $541,408 | ||||
Interest expense | $64,584 | $65,674 | $54,852 | $55,296 | $50,876 | ||||
Capitalized interest | 69,973 | 81,845 | 86,091 | 82,423 | 80,065 | ||||
Amortization of loan fees | (4,428) | (4,481) | (4,505) | (4,615) | (4,691) | ||||
Amortization of debt discounts | (320) | (327) | (325) | (335) | (349) | ||||
Cash interest and fixed charges | $129,809 | $142,711 | $136,113 | $132,769 | $125,901 | ||||
Fixed-charge coverage ratio: | |||||||||
– quarter annualized | 3.4x | 3.7x | 3.9x | 4.1x | 4.3x | ||||
– trailing 12 months | 3.8x | 4.0x | 4.1x | 4.3x | 4.4x | ||||
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) | |
March 31, 2026 | |
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:
Three Months Ended March 31, 2026 | |||
Noncontrolling Interest Share of Consolidated Real Estate JVs | Our Share of Unconsolidated Real Estate JVs | ||
Net income (loss) | $36,724 | $(147) | |
Depreciation and amortization of real estate assets | 29,473 | 914 | |
Funds from operations | $66,197 | $767 | |
Gross assets
Gross assets are calculated as total assets plus accumulated depreciation:
(In thousands) | 3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||
Total assets | $34,167,397 | $34,081,835 | $37,375,148 | $37,623,629 | $37,600,428 | ||||
Accumulated depreciation | 6,393,658 | 6,127,525 | 6,416,745 | 6,146,378 | 5,886,561 | ||||
Gross assets | $40,561,055 | $40,209,360 | $43,791,893 | $43,770,007 | $43,486,989 | ||||
Incremental annual net operating income on development and redevelopment projects
Incremental annual net operating income represents the amount of net operating income, on
an annual basis, expected to be realized upon a project being placed into service and achieving full
occupancy. Incremental annual net operating income is calculated as the initial stabilized yield multiplied
by the project’s total cost at completion.
Initial stabilized yield (unlevered)
Initial stabilized yield is calculated as the estimated amounts of net operating income at
stabilization divided by our investment in the property. For this calculation, we exclude any tenant-
funded and tenant-built landlord improvements from our investment in the property. Our initial stabilized
yield excludes the benefit of leverage. Our cash rents related to our development and redevelopment
projects are generally expected to increase over time due to contractual annual rent escalations. Our
estimates for initial stabilized yields, initial stabilized yields (cash basis), and total costs at completion
represent our initial estimates at the commencement of the project. We expect to update this information
upon completion of the project, or sooner if there are significant changes to the expected project yields
or costs.
•Initial stabilized yield reflects rental income, including contractual rent escalations and any rent
concessions over the term(s) of the lease(s), calculated on a straight-line basis, and any
amortization of deferred revenue related to tenant-funded and tenant-built landlord improvements.
•Initial stabilized yield (cash basis) reflects cash rents at the stabilization date after initial rental
concessions, if any, have elapsed and our total cash investment in the property.
| |
Definitions and Reconciliations (continued) | |
March 31, 2026 | |
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 March 31, 2026, as reported by Bloomberg Professional Services.
Credit ratings from Moody’s Ratings and S&P Global Ratings reflect credit ratings of the tenant’s parent
entity, and there can be no assurance that a tenant’s parent entity will satisfy the tenant’s lease
obligation upon such tenant’s default. We monitor the credit quality and related material changes of our
tenants. Material changes that cause a tenant’s market capitalization to decrease below $10 billion,
which are not immediately reflected in the twelve-month average, may result in their exclusion from this
measure.
Investments
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.
Investments in real estate
The following table reconciles our investments in real estate as of March 31, 2026:
(In thousands) | Investments in Real Estate | ||
Gross investments in real estate | $35,223,774 | ||
Less: accumulated depreciation | (6,393,658) | ||
Investments in real estate | $28,830,116 |
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 March 31, 2026:
(Dollars in thousands) | Book Value | Percentage of Gross Assets | ||
Projects under active construction | $3,117,332 | 8% | ||
Future development projects(1) and land parcels primarily located in Megacampuses | 3,740,237 | 9 | ||
Total Class A/A+ development and redevelopment pipeline, excluding properties held for sale | 6,857,569 | 17 | ||
Properties held for sale – land parcels | 230,905 | 1 | ||
Total Class A/A+ development and redevelopment pipeline | $7,088,474 | 18% | ||
(1)Includes projects with existing buildings that are generating or can generate operating cash flows. Also includes
development rights associated with existing operating campuses.
The square footage presented in the table below is classified as operating as of March 31,
2026. These lease expirations or vacant space at recently acquired properties represent future
opportunities for which we intend, 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 | ||||||
Future projects: | ||||||||||
446, 458, and 500 Arsenal Street/Cambridge/Inner Suburbs | Dev | — | — | 116,623 | 116,623 | |||||
1122 and 1150 El Camino Real/South San Francisco | Dev | — | — | 375,232 | 375,232 | |||||
2100 Geng Road/Greater Stanford | Dev | — | — | 12,125 | 12,125 | |||||
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 | |||||
Canada | Redev | — | — | 247,743 | 247,743 | |||||
Total | — | — | 1,516,872 | 1,516,872 | ||||||
(1)Includes vacant square footage as of March 31, 2026.
| |
Definitions and Reconciliations (continued) | |
March 31, 2026 | |
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, to facilitate investors’
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.
The following table reconciles our annual rental revenue and development and redevelopment
pipeline RSF, excluding properties classified as held for sale, as of March 31, 2026:
(Dollars in thousands) | Annual Rental Revenue | Development and Redevelopment Pipeline RSF | ||
Megacampus | $1,414,438 | 16,919,119 | ||
Core and non-core | 388,856 | 4,990,866 | ||
Total | $1,803,294 | 21,909,985 | ||
Megacampus as a percentage of annual rental revenue and of total development and redevelopment pipeline RSF | 78% | 77% |
Net cash provided by operating activities, as adjusted
We use net cash provided by operating activities, as adjusted, as a supplemental measure for
financial and operational decision-making, and as a supplemental means of evaluating period-to-period
comparisons on a consistent basis. Net cash provided by operating activities, as adjusted, is calculated
as net cash provided by operating activities as shown in our consolidated statements of cash flows,
adjusted for changes in operating assets and liabilities (as they represent timing differences), and
reduced by dividends and distributions to noncontrolling interests (excludes liquidating distributions from
asset sales).
We believe net cash provided by operating activities, as adjusted, provides investors with
relevant and useful information as it allows investors to evaluate our operating cash flows on a more
consistent basis that excludes period-to-period timing differences in operating assets and liabilities
(working capital) and reflects cash dividends and distributions paid quarterly.
The following table reconciles net cash flows from operating activities, the most directly
comparable financial measure presented in accordance with GAAP, to net cash provided by operating
activities, as adjusted:
Three Months Ended | ||||
(in thousands) | 3/31/26 | 3/31/25 | ||
Net cash provided by operating activities | $196,624 | $207,949 | ||
Decreases in operating assets and liabilities | 143,523 | 220,294 | ||
Common stock dividends paid | (123,752) | (229,987) | ||
Distributions to noncontrolling interests | (60,111) | (66,034) | ||
Net cash provided by operating activities, as adjusted | $156,284 | $132,222 | ||
| |
Definitions and Reconciliations (continued) | |
March 31, 2026 | |
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) | 3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | |||||
Secured notes payable | $— | $— | $— | $153,500 | $150,807 | |||||
Unsecured senior notes payable | 11,166,009 | 12,047,394 | 12,044,999 | 12,042,607 | 12,640,144 | |||||
Unsecured senior line of credit and commercial paper | 1,353,986 | 353,161 | 1,548,542 | 1,097,993 | 299,883 | |||||
Unamortized deferred financing costs | 69,071 | 74,314 | 76,383 | 78,574 | 80,776 | |||||
Cash and cash equivalents | (418,720) | (549,062) | (579,474) | (520,545) | (476,430) | |||||
Restricted cash | (4,665) | (4,693) | (4,705) | (7,403) | (7,324) | |||||
Preferred stock | — | — | — | — | — | |||||
Net debt and preferred stock | $12,165,681 | $11,921,114 | $13,085,745 | $12,844,726 | $12,687,856 | |||||
Adjusted EBITDA: | ||||||||||
– quarter annualized | $1,778,012 | $2,097,444 | $2,130,008 | $2,174,160 | $2,165,632 | |||||
– trailing 12 months | $2,044,906 | $2,141,811 | $2,185,820 | $2,208,226 | $2,218,722 | |||||
Net debt and preferred stock to Adjusted EBITDA: | ||||||||||
– quarter annualized | 6.8x | 5.7x | 6.1x | 5.9x | 5.9x | |||||
– trailing 12 months | 5.9x | 5.6x | 6.0x | 5.8x | 5.7x | |||||
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 | ||||
(Dollars in thousands) | 3/31/26 | 3/31/25 | ||
Net income | $398,377 | $38,662 | ||
Equity in losses of unconsolidated real estate joint ventures | 147 | 507 | ||
General and administrative expenses | 34,685 | 30,675 | ||
Interest expense | 64,584 | 50,876 | ||
Depreciation and amortization | 305,441 | 342,062 | ||
Impairment of real estate | 5,499 | 32,154 | ||
Gain on early extinguishment of debt | (366,435) | — | ||
Gain on sales of real estate | — | (13,165) | ||
Investment loss | 4,582 | 49,992 | ||
Net operating income | 446,880 | 531,763 | ||
Straight-line rent revenue | (17,862) | (22,023) | ||
Amortization of deferred revenue related to tenant-funded and -built landlord improvements | (5,405) | (1,651) | ||
Amortization of acquired below-market leases | (5,615) | (15,222) | ||
Provision for expected credit losses on financial instruments | — | 285 | ||
Net operating income (cash basis) | $417,998 | $493,152 | ||
Net operating income (cash basis) – annualized | $1,671,992 | $1,972,608 | ||
Net operating income (from above) | $446,880 | $531,763 | ||
Total revenues | $671,022 | $758,158 | ||
Operating margin | 67% | 70% | ||
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) | |
March 31, 2026 | |
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, to facilitate investors’ 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) | |
March 31, 2026 | |
Same property comparisons (continued)
The following table reconciles the number of same properties to total properties for the three
months ended March 31, 2026:
Development and redevelopment – under construction | Properties | |
99 Coolidge Avenue | 1 | |
1450 Owens Street | 1 | |
421 Park Drive | 1 | |
4135 Campus Point Court | 1 | |
701 Dexter Avenue North | 1 | |
10200 Campus Point Drive | 1 | |
40, 50, and 60 Sylvan Road | 3 | |
269 East Grand Avenue | 1 | |
8800 Technology Forest Place | 1 | |
311 Arsenal Street | 1 | |
3000 Minuteman Road | 2 | |
14 | ||
Development – placed into service after January 1, 2025 | ||
230 Harriet Tubman Way | 1 | |
500 North Beacon Street and 4 Kingsbury Avenue | 2 | |
10935, 10945, and 10955 Alexandria Way | 3 | |
10075 Barnes Canyon Road | 1 | |
7 | ||
Acquisitions after January 1, 2025 | ||
Other | 2 | |
2 | ||
Unconsolidated real estate JVs | 3 | |
Properties held for sale | 19 | |
Total properties excluded from same properties | 45 | |
Same properties | 294 | |
Total properties in North America as of March 31, 2026 | 339 |
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 collections
Tenant collections represent the percentage of recognized rental income billed during the
respective quarter that has been collected as of the date of this report. Rental income from tenants for
whom collection is considered not probable is recognized only upon receipt of cash and, accordingly, is
included in this calculation only to the extent recognized and collected.
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:
Three Months Ended | |||||||||
(In thousands) | 3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||
Income from rentals | $653,013 | $728,872 | $735,849 | $737,279 | $743,175 | ||||
Rental revenues | (474,786) | (538,330) | (541,070) | (553,377) | (552,112) | ||||
Tenant recoveries | $178,227 | $190,542 | $194,779 | $183,902 | $191,063 | ||||
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) | |
March 31, 2026 | |
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) | 3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||
Unencumbered net operating income | $446,880 | $521,871 | $512,710 | $535,766 | $530,691 | ||||
Encumbered net operating income | — | — | — | 1,841 | 1,072 | ||||
Total net operating income | $446,880 | $521,871 | $512,710 | $537,607 | $531,763 | ||||
Unencumbered net operating income as a percentage of total net operating income | 100.0% | 100.0% | 100.0% | 99.7% | 99.8% | ||||
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 | |||||||||
(In thousands) | 3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | 3/31/25 | ||||
Basic shares for earnings per share | 170,598 | 170,394 | 170,181 | 170,135 | 170,522 | ||||
Unvested RSAs with forfeitable dividends | 269 | — | — | — | — | ||||
Diluted shares for earnings per share | 170,867 | 170,394 | 170,181 | 170,135 | 170,522 | ||||
Basic shares for funds from operations per share and funds from operations per share, as adjusted | 170,598 | 170,394 | 170,181 | 170,135 | 170,522 | ||||
Unvested RSAs with forfeitable dividends | 269 | 110 | 124 | 57 | 77 | ||||
Diluted shares for funds from operations per share and funds from operations per share, as adjusted | 170,867 | 170,504 | 170,305 | 170,192 | 170,599 | ||||
Weighted-average unvested RSAs with nonforfeitable dividends used in calculating the allocations of net income, funds from operations, and funds from operations, as adjusted | 1,340 | 1,570 | 1,917 | 1,998 | 2,053 | ||||