Alexandria Real Estate Equities · 10-Q · Item 2 MD&A

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-looking statements

Certain information and statements included in this quarterly report on Form 10-Q, including, without limitation, statements

containing the words “forecast,” “guidance,” “goals,” “projects,” “estimates,” “anticipates,” “believes,” “expects,” “intends,” “may,” “plans,”

“seeks,” “should,” “targets,” or “will,” or the negative of those words or similar words, constitute “forward-looking statements” within the

meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as

amended. Forward-looking statements involve inherent risks and uncertainties regarding events, conditions, and financial trends that

may affect our future plans of operations, business and financial strategy, results of operations, and financial position. A number of

important factors could cause actual results to differ materially from those included within or contemplated by the forward-looking

statements, including, but not limited to, the following:

•Operating factors, such as a failure to operate our business successfully in comparison to market expectations or in

comparison to our competitors, our inability to obtain capital when desired or refinance debt maturities when desired, and/

or a failure to maintain our status as a REIT for federal tax purposes;

•Market and industry factors, such as adverse developments concerning the life science industry and/or our tenants;

•Government factors, such as any unfavorable effects resulting from federal, state, local, and/or foreign government

policies, laws, and/or funding levels;

•Global factors, such as negative economic, social, political, financial, credit market, banking conditions, and/or regional

armed hostilities; and

•Other factors, such as climate change, cyber intrusions, and/or changes in laws, regulations, and financial accounting

standards.

This list of risks and uncertainties is not exhaustive. Additional information regarding risk factors that may affect us is included

under Part I, “Item 1A. Risk factors”; and Part II, “Item 7. Management’s discussion and analysis of financial condition and results of

operations” in our annual report on Form 10-K for the year ended December 31, 2025, and under respective sections in this quarterly

report on Form 10-Q. Readers of this quarterly report on Form 10-Q should also read our other documents filed publicly with the SEC

for further discussion regarding such factors.

Overview

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

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

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

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

AAA life science and advanced technology innovation cluster locations, including Greater Boston, San Diego, the San Francisco Bay

Area, Seattle, Maryland, Research Triangle, and New York City. As of June 30, 2026, Alexandria has a total market capitalization of

$21.84 billion and an asset base that includes 36.0 million RSF of operating properties and 2.8 million RSF of Class A/A+ properties

undergoing construction.

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

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

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

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

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

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

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

companies through our venture capital platform.

•Investment-grade or publicly traded large cap tenants represented 57% of our annual rental revenue;

•Approximately 97% of our leases (on an annual rental revenue basis) contained effective annual rent escalations

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

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

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

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

•Approximately 91% of our leases (on an annual rental revenue basis) provided for the recapture of capital expenditures

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

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

•75% of our leasing activity during the last twelve months was generated from our existing tenant base.

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

collaborative Megacampus ecosystems in AAA life science and advanced technology innovation clusters. Our Megacampus

ecosystems are designed for optionality and scalability, offering our tenants a clear path to address their growth requirements, including

through our future developments and redevelopments. Strategically located near top academic and medical research institutions and

equipped with curated amenities and services and convenient access to transit, our Megacampus ecosystems are designed to support

our tenants in attracting and retaining top talent and in meeting our tenants’ growth needs, which we believe is a key driver of tenant

demand for our properties. Our strategy also includes drawing upon our deep, broad, and long-standing real estate and life science

industry relationships in order to retain tenants, identify and attract new and leading tenants, and source additional real estate.

Executive summary

Operating results

Three Months Ended June 30,

Six Months Ended June 30,

Net (loss) income attributable to Alexandria’s

common stockholders – diluted:

In millions

Per share

Funds from operations attributable to Alexandria’s

common stockholders – diluted, as adjusted:

In millions

Per share

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

Real Estate Equities, Inc.’s common stockholders” under “Definitions and reconciliations.”

A best-in-class REIT with a high-quality and diverse tenant base, strong margins, and long lease terms

(As of or for the three months ended June 30, 2026, unless stated otherwise)

Occupancy of operating properties

Occupancy of operating properties, including executed leases with future occupancy

Percentage of total annual rental revenue in effect from Megacampus platform

Percentage of total annual rental revenue in effect from investment-grade or publicly traded large cap tenants

Operating margin

Adjusted EBITDA margin

Percentage of leases containing annual rent escalations

Weighted-average remaining lease term:

Top 20 tenants

years

All tenants

years

Strong tenant collections(1):

Rents and receivables for the three months ended June 30, 2026, collected as of the date of this report

(1)Refer to “Tenant collections” under “Definitions and reconciliations” for additional details.

Strong and flexible balance sheet with significant liquidity; top 20% credit rating ranking among all publicly traded U.S. REITs; long-

duration remaining debt term (as of June 30, 2026)

•Net debt and preferred stock to Adjusted EBITDA of 7.0x and fixed-charge coverage ratio of 3.3x for the three months ended

June 30, 2026 annualized; the respective targets for the three months ending December 31, 2026, annualized, are 5.6x–6.2x

•We expect improvement in our quarter-annualized net debt and preferred stock to Adjusted EBITDA ratio in the second

half of 2026 as we complete dispositions, sales of partial interests, and other capital sources.

•T1Significant liquidity of $3.60 billion and extension of our $5.0 billion unsecured senior line of credit to 2032.

•Only 6% of our total debt matures through 2028.

•9.7-year weighted-average remaining debt term, the longest among S&P 500 REITs.

•Total debt and preferred stock to gross assets of 31%.

•Intermediate-term goal for leverage: mid-5x range.

Solid leasing volume exceeding 1.0 million RSF during the three months ended June 30, 2026

•Total leasing volume surpassed 1.0 million RSF during the three months ended June 30, 2026, increasing 60% from the three

months ended March 31, 2026 and exceeding the average quarterly leasing volume for the period from the second quarter of

•Includes 397,919 RSF of combined previously vacant and development and redevelopment space; second-highest

amount since the second quarter of 2024, excluding the 466,598 RSF build-to-suit lease signed in the third quarter of

•75% of our leasing activity during the last twelve months was generated from our existing tenant base.

Three Months Ended

Six Months

Ended June 30,

Leasing volume in RSF:

Leasing of development and redevelopment space

Leasing of previously vacant space

Lease renewals and re-leasing of space

Total leasing volume

Lease renewals and re-leasing of space:

Rental rate changes

Rental rate changes (cash basis)

Ongoing execution of Alexandria’s capital recycling strategy

T2We 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, sales of partial interests, and other capital sources.

(in millions)

Sales Price

%

Completed as of the date of this report

Pending transactions subject to non-refundable deposits, signed letters of intent, and/or sale agreement

negotiations

Dispositions, sales of partial interests, and other capital sources in process

Multiple alternatives under evaluation

2026 guidance midpoint for dispositions, sales of partial interests, and other capital sources

We expect to allocate this capital as follows (based on guidance midpoints):

(in millions)

(Midpoint)

Construction focused on highly leased developments and lease-up of vacant space

Reduction of debt to meet our leverage goal

Net cash provided by operating activities, as adjusted

Occupancy and leasing progress on temporary vacancy

Operating occupancy as of March 31, 2026

Key changes in occupancy:

Reclassification of space at 3000 Minuteman Road from redevelopment to operating in 2Q26, fully leased with

expected occupancy in 2Q27

(1)

Previously disclosed 2Q26 key lease expirations with expected downtime

Increase in occupancy, primarily due to the commencement of leases during 2Q26

Vacant space with executed leases and future occupancy

(2)

Operating occupancy as of June 30, 2026, including executed leases with future occupancy

(1)Refer to “Reduction of capital spend and funding needs” within this section for additional details regarding the 159,947 RSF lease executed during the three months

(2)Represents executed leases aggregating 1.4 million RSF with occupancy expected upon completion of building and/or tenant improvements. The weighted-average

expected occupancy date is approximately November 2026, with expected annual rental revenue of approximately $69 million. We expect 64% of the total 1.4 million

RSF to be occupied by December 31, 2026. These spaces are located primarily in the Greater Boston, San Diego, and San Francisco Bay Area markets.

Key operating metrics

•Same property net operating income changes

•Decreased by 10.6% and 8.6% (cash basis) for the three months ended June 30, 2026, compared to the three months

•Decreased by 11.5% and 11.2% (cash basis) for the six months ended June 30, 2026, compared to the six months ended

•The decline was due to a decrease in same property occupancy, primarily driven by previously disclosed key lease

expirations with expected downtime aggregating 657,492 RSF during the three months ended March 31, 2026 and

260,888 RSF during the three months ended June 30, 2026, with weighted-average lease expiration dates of January

•Same properties average occupancy:

•87.1% for the three months ended June 30, 2026, compared to 92.6% same properties average occupancy for the three

•88.2% for the six months ended June 30, 2026, compared to 93.5% same properties average occupancy for the six

Reduction of capital spend and funding needs

•During the three months ended June 30, 2026, we executed a lease aggregating 159,947 RSF with an advanced technology

tenant at our redevelopment project at 3000 Minuteman Road in our Greater Boston market. T3The lease enables us to pivot a

portion of the redevelopment project from future laboratory and/or biomanufacturing use to a lower-cost advanced technology

use, reducing the project’s expected aggregate construction budget by approximately $80 million. We expect to deliver the

159,947 RSF of leased space in the second quarter of 2027 upon completion of building and tenant improvements.

•As a result, the leased space was reclassified from redevelopment to operating, reducing the redevelopment project from

•We continue to evaluate the business and financial strategy for five projects aggregating 1.4 million RSF, which may allow us

to further reduce future construction funding requirements within our active pipeline.

•As of June 30, 2026, we executed letters of intent aggregating 108,800 RSF for advanced technology use at our

redevelopment project at 311 Arsenal Street. If we are successful in executing these potential leases, we expect to evaluate

whether all or a portion of this project will be placed back into operation without the need to further redevelop for laboratory

use.

•Non-income-producing assets as of June 30, 2026 are 16% of gross assets, a 4% reduction since December 31, 2024; we are

Alexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $57 million during 2Q26,

with an additional $42 million anticipated to be delivered by 4Q26

•During the three months ended June 30, 2026, we placed into service one development project aggregating 426,927 RSF that

is 100% occupied by Bristol Myers Squibb at 4135 Campus Point Court in our University Town Center submarket and

delivered incremental annual net operating income aggregating $57 million.

•Annual net operating income (cash basis) from recently delivered projects is expected to increase by $40 million upon the

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

•79% 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

Occupied/

Leased/

Negotiating

Percentage

(dollars in millions)

Placed into service during six months ended June 30, 2026

Expected to be placed into service:

(1)

(2)

(3)

(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 Item 2 for

additional information.

(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–

(3)Represents the current leased/negotiating percentage of our 174,662 RSF development project that is expected to stabilize in 4Q26.

Continued successful management of general and administrative expenses

•General and administrative expenses for the three months ended June 30, 2026 aggregated $36.9 million, an increase of

$7.7 million, or 26.5%, compared with the three months ended June 30, 2025, but a decrease of $7.8 million, or 17.4%,

compared with the three months ended June 30, 2024. The decrease relative to 2024 reflects the continued benefit from cost-

efficiency initiatives implemented in prior years. The increase relative to 2025 primarily reflects the expected return of a portion

of the cost reductions achieved in 2025 that were temporary in nature, while approximately half of the cost reductions achieved

in 2025 have continued into 2026 and are expected to continue through the remainder of 2026.

•Compared to 2024, we continue to expect approximately $76 million of cumulative general and administrative expense savings

•For the trailing twelve months ended June 30, 2026, general and administrative expenses represented 6.6% of net operating

income, approximately half the average of other S&P 500 REITs for 2023–2025.

Key capital events

•In July 2026, we executed an agreement to amend our $5.0 billion unsecured senior line of credit. The amendment is expected

to become effective in September 2026, upon the satisfaction of certain conditions. The amendment extends the maturity date

from January 22, 2030 to January 22, 2032, including extension options that we control. In addition, the amendment reduces

the applicable borrowing rate to SOFR plus 0.725% from the currently applicable SOFR plus 0.835%. In connection with the

amendment, we expect to recognize a loss on early extinguishment of debt of approximately $3.3 million related to the partial

write-off of unamortized loan fees during the three months ended September 30, 2026.

•In April 2026, we repaid, upon maturity, $350.0 million of 3.80% unsecured senior notes payable. The repayment was funded

temporarily with borrowings under our commercial paper program, which will be repaid through planned dispositions, sales of

partial interests, and other capital sources included in our 2026 guidance. No gain or loss was incurred in connection with this

repayment.

•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 the date of this report, no shares have been repurchased under this

program and $500.0 million remains available for future share repurchases.

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 the three months ended June 30, 2026, 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

•Dividend yield of 5.4% as of June 30, 2026 and dividend payout ratio of 42% for the three months ended June 30, 2026.

Key capital metrics as of or for the three months ended June 30, 2026

•$21.84 billion in total market capitalization.

•$9.02 billion in total equity capitalization.

•Non-real estate investments aggregating $1.69 billion:

•Unrealized gains presented in our consolidated balance sheet were $223.9 million, comprising gross unrealized gains and

losses aggregating $290.5 million and $66.6 million, respectively.

•Investment income of $133.2 million for the three months ended June 30, 2026, presented in our consolidated statement of

operations, consisted of $10.3 million of realized gains, $131.9 million of unrealized gains, and $9.0 million of impairment

charges.

Trends that may affect our future results

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

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

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

results of operations, financial position, and cash flows. Refer to “Item 1A. Risk factors” in Part I of our annual report on Form 10-K for

the year ended December 31, 2025 for discussion of additional risks we face.

New supply and reduced demand for life science space may continue to negatively affect our rental rates, occupancy, and

operating results.

•Influx of supply. During and after the COVID-19 pandemic, the shift toward hybrid and remote work arrangements as well as

exceptionally strong demand for life science space, driven by public health urgency and supported by historically low interest

rates, prompted certain office and other real estate investors to repurpose underutilized office spaces into laboratory facilities,

initiating a wave of new development activity across the sector. Our success and the success of other laboratory operators

prompted new and existing developers to commence speculative redevelopment and/or development laboratory projects in

anticipation of demand for such facilities. These conversion and speculative development projects have contributed to a

significant influx of new laboratory properties in our top three markets—Greater Boston, San Diego, and San Francisco Bay

Area. Life science real estate availability in these top markets—measured as the percentage of life science RSF available

relative to total life science RSF—rose to approximately 29% during 2025, from approximately 4% in 2021. This surge created

supply that materially exceeded current demand. As pandemic-driven urgency faded, the amount of available space became

the dominant factor influencing tenant activity, with absorption unable to match the influx of supply.

•Decrease in demand. Adding to these challenges, life science tenant demand—after reaching historically high levels in 2021—

has moderated significantly. The average tenant demand, measured by life science tenants’ RSF requirements, declined by

more than 60% in 2025 compared to 2021 across our top three markets: Greater Boston, San Diego, and San Francisco Bay

Area. This reflected a shift from extraordinary tenant demand driven by pandemic-related urgency to levels more consistent

with historical pre-pandemic norms, particularly those observed during 2016-2018. Importantly, this shift occurred amid

substantially higher available supply, as discussed above, further negatively impacting occupancy and rental rates in top life

science markets.

Exacerbating the recent demand trend, the life science industry faced an unusual convergence of macroeconomic, regulatory,

policy, and political challenges in 2025 that continued to affect the sector through the first half of 2026. These included

consequential shifts in leadership at the U.S. Department of Health and Human Services (“HHS”), tariff-related measures,

operational, leadership, and staff disruptions at the NIH and the FDA, threatened reductions in NIH funding of biomedical

research and proposals to limit NIH funding of indirect grant costs, heightened scrutiny of pharmaceutical pricing, and

increased global competition from China, discussed below. Collectively, these factors, including those described below,

increased uncertainty, leading tenants to defer leasing commitments and expansion decisions pending greater clarity. As a

result, absorption of available space has been notably slower.

◦Prolonged biotech bear market and capital constraints. The life science sector experienced the fifth consecutive year

of a broad-based biotech bear market in 2025. Life science venture capital fundraising declined to its lowest level since

2016, reducing overall levels of venture capital funds available to deploy in the future. Life science venture funds also

continued to be highly risk averse, focusing investments on clinical-stage and asset-based opportunities that may not

drive significant laboratory space needs. The initial public offering market for biotech companies remained largely closed

in 2025, eliminating a key source of liquidity and growth capital, but began to reopen selectively in 2026. Elevated

financing costs and broader economic and regulatory uncertainty continued to constrain access to debt and equity

financing. These factors slowed company formation, reduced headcount growth, and delayed laboratory expansion

decisions, directly impacting leasing demand for specialized life science space. Although capital markets and leasing

activity showed early signs of improvement in 2026, the recovery remained uneven, and laboratory demand continued to

be constrained by disciplined capital allocation and significant excess supply.

◦Regulatory and policy factors affecting absorption. At the same time, the regulatory environment experienced

significant disruption. The FDA saw more than 50% turnover in senior leadership during the first half of 2025,

accompanied by employee layoffs and delays in regulatory review decisions. Leadership turnover continued in 2026,

including the departure of the FDA Commissioner in May 2026. Changing expectations related to clinical trial requirements

and flexibility for rare diseases with large unmet needs created additional uncertainty around development timelines for

certain regulated products. These conditions have reduced some tenants’ near-term confidence in expansion and capital

investment decisions.

T4Biomedical research institutions faced increased uncertainty around federal funding policies throughout 2025. The

proposed 15% cap on NIH institutional indirect grant spending, subsequently ruled unlawful by an appellate court, raised

concerns for biomedical research institutions about the ability to recover infrastructure and operating costs, which

materially constrained incremental real estate demand among certain federally supported entities.

In April 2026, the Trump administration discontinued its legal effort to implement the proposed 15% cap on NIH indirect

cost reimbursements, allowing the federal court ruling blocking the policy to become final. Existing negotiated

reimbursement rates remain in effect. Accordingly, NIH-funded research institutions continue to operate under the current

reimbursement framework.

Further, government actions aimed at reducing U.S. prescription drug prices have heightened uncertainty regarding future

returns on pharmaceutical and biotechnology investments. This has weighed on risk appetite across the sector and

constrained investment into some areas of research and development. As a result, some tenants have delayed or scaled

back expansion plans, reducing leasing activity and occupancy levels.

At the same time, global competition for life science research has intensified, with certain foreign markets, especially

China, rapidly gaining ground as biotechnology leaders through centralized funding and faster regulatory approval

timelines. Coupled with immigration-related restrictions implemented in the U.S. during 2025 that limit access to

international research talent, these policy actions not only affect current activities but also pose a significant threat to the

long-term viability of the U.S. biomedical industry. The cumulative effect of these developments may significantly reduce

tenant demand for U.S. life science real estate. Refer to “Item 1A. Risk factors” in our annual report on Form 10-K for

additional details.

•Impact on our business. The surge in supply and decrease in demand for life science space have led to industry-wide elevated

vacancy rates, slower leasing activity, pressure on rental rates, higher lease concessions, and increased competition for

tenants. Our operating occupancy declined from 90.9% as of December 31, 2025 to 86.9% as of June 30, 2026, and we

project our operating occupancy to be approximately 87.0% as of December 31, 2026, representing the midpoint of our

guidance range for occupancy percentage in North America as of December 31, 2026.

To remain competitive, we have realized lower rental rate changes on renewed and re-leased spaces and have offered more

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

tenants. We project our rental rate on renewed and re-leased spaces to decrease by approximately 5.0% for the year ending

December 31, 2026, representing the midpoint of our guidance range. Furthermore, to maintain long-term tenant relationships

and sustain occupancy levels within our core assets, our existing operating properties may require additional revenue- and

non-revenue-enhancing capital expenditures earlier than typically expected.

The table below reflects a trend of increasing revenue- and non-revenue-enhancing capital expenditures, including tenant

improvement expenditures. The table also presents the trend, on a per RSF basis, of increasing tenant improvement

allowance, leasing commissions, and free rent concessions, and of less favorable changes in rental rates related to our

renewed/re-leased spaces, as well as decreases in our operating occupancy (dollars in thousands, except per RSF amounts):

Revenue- and

Non-Revenue-

Enhancing

Capital

Expenditures

Tenant

Improvements/

Leasing

Commissions

per RSF

Free Rent

Concessions per

Annum

(leases executed in

trailing 12 months)

Rental Rate

Changes

(on renewed/

re-leased

spaces)

Operating

Occupancy

(as of each

period end)

Midpoint of 2026 guidance range

N/A

Additionally, we have key lease expirations with expected downtime in 2026, primarily in the Greater Boston, San Francisco

Bay Area, and Seattle markets, aggregating 451,450 RSF as of June 30, 2026 with a weighted-average lease expiration date

of August 2026. These spaces are expected to become vacant at lease expiration and re-leased to new tenants. We expect

downtime on the 451,450 RSF to be approximately 12 to 24 months on a weighted-average basis. In addition, we have

identified 1.4 million RSF of key lease expirations in 2027 that are expected to have downtime of approximately 12 to 24

months on a weighted-average basis. Considering elevated new laboratory supply in these markets, there can be no

assurance that we will be able to re-lease some or all of this space on acceptable terms, without significant capital

expenditures, or within anticipated time frames, even at reduced rates.

As of June 30, 2026, we anticipate that 1.4 million RSF of our projects undergoing construction will be placed into service from

July 1, 2026 through 2028 and will generate $135 million in future incremental annual net operating income. These projects

are 71% leased or under lease negotiations as of June 30, 2026. Furthermore, we have an additional 1.4 million RSF of

projects under evaluation which are 15% leased or under lease negotiations. For these projects, we are evaluating the

business and financial strategy, including continuing construction, repositioning for advanced technology or other non-

laboratory use, selling, or pausing development or redevelopment. If we decide to sell or pause, such actions could negatively

impact our FFO and operating metrics. Alternatively, if we decide to invest limited capital, we may place some or all of these

projects into operation, which could temporarily reduce our operating occupancy until the projects are leased and occupied.

T5Landlord-funded tenant improvement allowances have increased significantly for first-generation space, including development

and redevelopment projects, with most space in shell condition requiring landlords to fund the full build-out cost. This trend

places additional pressure on projected returns and overall economics, and further challenges our ability to attract and secure

tenants for the remaining unleased RSF related to these projects at the expected rates, or at all, which could result in a

shortfall or delay in the commencement of the projected incremental annual net operating income.

Unfavorable macroeconomic and capital market conditions may continue to adversely affect the value of our real estate and

non-real estate portfolios, which could result in additional significant impairments and may impact our ability to raise capital

efficiently to further our business objectives.

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

these projects. We expect funding for construction spending in 2026 to aggregate $1.75 billion at the midpoint of our 2026

guidance range for construction spending. This includes significant remaining construction costs to complete our active

pipeline and anticipated increases in both revenue- and non-revenue-enhancing capital expenditures in our operating portfolio.

As a result, our capital plan and leverage management strategy have increased our reliance on real estate dispositions, sales

of partial interests, and other capital sources to generate capital. However, current real estate market conditions, including

lower property valuations and increased capitalization rates, will likely adversely affect the timing and pricing of such

transactions.

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

of capital is expected to be funded through dispositions, sales of partial interests, and other capital sources in core, land, and

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

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

oversupply.

In addition to the factors discussed above specifically affecting demand for life science space, broader real estate demand has

also been impacted by macroeconomic conditions, particularly elevated interest rates. Following the onset of the COVID-19

pandemic, the U.S. Federal Reserve reduced the federal funds target range to 0%–0.25% in March 2020 and maintained that

near-zero range until March 2022. To address inflation concerns, the U.S. Federal Reserve then increased the target range

rapidly, reaching 5.25%–5.50% in July 2023, where it remained for an extended period. Although the U.S. Federal Reserve

reduced the federal funds target range to 4.25%–4.50% during 2024, and to 3.50%–3.75% during 2025, interest rates remain

elevated. This continues to limit access to debt and/or equity financing for prospective buyers of real estate assets. All other

aspects being equal, such challenges for buyers contribute to an excess of properties available for sale, which exerts

downward pressure on property valuations and elevates capitalization rates, adversely impacting the sales proceeds we can

generate from our real estate asset sales.

The oversupply of life science real estate assets, discussed above, combined with high interest rates and reduced market

liquidity, has contributed to a prolonged period of lower property valuations and higher capitalization rates, resulting in

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

favorable pricing. In 2026, we expect to complete dispositions, sales of partial interests, and other capital sources of

approximately $2.90 billion at the midpoint of our 2026 guidance range. However, we may not be able to achieve this and/or

other targets disclosed in our 2026 guidance as a result of the uncertainties discussed in this section as well as in “Item 1A.

Risk factors” in Part I of our annual report on Form 10-K for the year ended December 31, 2025.

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

associated with dispositions, sales of partial interests, and other capital sources in our real estate assets over the last several

years (dollars in thousands), which is partly attributable to the quality of core and non-core assets sold during each period.

Aggregate Sales Price

of Dispositions, Sales

of Partial Interests,

and Other Capital

Sources

Impairment of

Real Estate

Capitalization

Rates(1)

Capitalization

Rates

(Cash Basis)(1)

(2)

(2)

N/A

Midpoint of 2026 guidance range

(3)

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

information.

(2)Represents the weighted-average capitalization rate for stabilized operating assets sold in 2025, which accounted for only 20% of the aggregate sales price

of dispositions, sales of partial interests, and other capital sources in 2025.

(3)We are not able to forecast impairments or capitalization rates for future periods without unreasonable effort due to the inherent difficulty of forecasting the

timing and amount of transactions that depend on market conditions outside of our control.

For additional information about our dispositions and real estate impairments recognized during the three months ended June

30, 2026, refer to “Sales of real estate assets and impairment of real estate” in Note 3 – “Investments in real estate” to our

unaudited consolidated financial statements in Item 1.

For 2026, we have established a disposition and joint venture program with expected sales of approximately $2.90 billion at

the midpoint of our 2026 guidance range for dispositions, sales of partial interests, and other capital sources. We may utilize

multiple sources of capital, including land and non-core dispositions, sales of partial interests, and other capital sources, to

fund (i) construction focused on highly leased developments and lease-up of vacant space, and (ii) repayment of senior

unsecured debt sufficient to achieve our net debt and preferred stock to Adjusted EBITDA – 4Q26 annualized target of 5.6x to

6.2x. We continue to evaluate available alternatives and expect to execute on cost-efficient sources of capital under prevailing

market conditions. We do not anticipate the issuance of any common equity during the year ending December 31, 2026.

In 2026, we are committed to dispose of certain assets classified as held for sale with an aggregate book value of

$555.8 million as of June 30, 2026. To achieve the midpoint of our 2026 guidance range of $2.90 billion for dispositions, sales

of partial interests, and other capital sources, we continue to evaluate a broad range of opportunities, including non-core

operating properties, both stabilized and unstabilized, and land parcels.

Under GAAP, real estate assets are evaluated for impairment upon an indication of potential impairment:

•For real estate assets held and used, impairments are recognized if the sum of expected future undiscounted cash

flows, including estimated proceeds from eventual disposition, is less than the carrying amount. In such cases, the

carrying amount is reduced to estimated fair value.

•For real estate assets held for sale, impairments are recognized if fair value less costs to sell is less than the carrying

amount.

•In evaluating potential disposition targets that do not meet the criteria for held for sale classification, we apply a

probability-weighted approach, and in each case, no impairment charge is currently required.

If circumstances change, including changes in expected cash flows, capitalization rates, or market conditions, we may incur

additional material real estate impairments in 2026. For additional information on accounting for real estate impairments, refer

to “Impairment of long-lived assets” in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated

financial statements in Item 1.

We expect to substantially complete our large-scale non-core disposition program in 2026, although some of these

dispositions could close in 2027. As of June 30, 2026, 80% of our annual rental revenue is from our Megacampus platform,

and we expect this percentage to continue to grow over time, in part through our disposition program.

•Increased cost and limited availability of capital. Our 2026 guidance assumes a reduction of our outstanding unsecured senior

debt by approximately $1.68 billion, at the midpoint of our 2026 guidance range.

•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. The tender offers were completed at an average discount of approximately 28%, for a total cash

payment of $952.2 million, resulting in the extinguishment of approximately $380 million of debt. We funded the

$952.2 million payment through the issuance of $750.0 million of 5.25% unsecured senior notes due 2036 and

approximately $200 million of short-term borrowings under our commercial paper program.

•In January 2026 and April 2026, we repaid, upon maturity, $300.0 million of 4.30% unsecured senior notes and

$350.0 million of 3.80% unsecured senior notes, respectively. These repayments, aggregating $650 million, were

temporarily funded through borrowings under our commercial paper program.

Although we repaid a portion of our outstanding unsecured senior debt during 2026, these repayments have been fully

financed through the issuance of new unsecured senior debt. As a result, we have not yet made progress toward our targeted

$1.68 billion net unsecured senior debt reduction. Accordingly, achievement of this target debt reduction remains dependent on

our ability to generate proceeds during 2026 from planned real estate dispositions, sales of partial interests, and other capital

sources.

These expectations assume our ability to execute these transactions on acceptable terms. If we are unable to sell real estate

assets at our targeted prices or within our expected timeframes, we may need to reduce the projected amount of debt

repayment, delay the timing of such repayment, and/or increase our reliance on additional debt financing to fund the

approximately $1.75 billion of construction spending, based on the midpoint of our 2026 guidance range. Elevated interest

rates may result in debt financing options that are costlier, less accessible, or even unavailable, potentially limiting our ability to

complete our development and redevelopment projects on schedule and thereby delaying our expected incremental annual

net operating income generation.

The table below reflects interest rates related to unsecured senior notes payable that we have issued over the last several

years and in February 2026 (dollars in thousands). There is no assurance that high debt costs will not continue into the future.

Unsecured Senior

Notes Payable Issued

Interest Rate(1)

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

•Capitalized Interest.

The table below presents gross interest expense, capitalized interest, and interest expense (in thousands):

Gross Interest Expense

Capitalized Interest

Interest Expense

Midpoint of 2026 guidance range

For 2026, we expect capitalized interest of approximately $240 million at the midpoint of our guidance range. The decrease

compared to 2025 reflects our actions taken in response to the market conditions, including re-evaluating certain projects,

ceasing or pausing certain pre-construction activities on land and uncommitted projects to conserve capital, and disposing of

certain assets. As a result, we expect our interest expense to increase to approximately $280 million (at the midpoint of our

2026 guidance range) in 2026 from $226.7 million in 2025. Continued macroeconomic and capital market pressures may

necessitate further reevaluation of our plans, including temporary suspension of our construction projects, delay of future

projects, or the sale of non-income-producing properties, which could further reduce our capitalized interest and increase

interest expense.

•Volatility in the valuation of non-real estate investments. We hold strategic investments in publicly traded companies and

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

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

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

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

In such an environment, distributions from our investments—which we may receive as dividends, as liquidation distributions

from our investments in limited partnerships, or as a result of mergers and acquisitions involving our privately held investees—

may be limited and could result in lower realized gains. Gross unrealized gains related to our non-real estate investments held

as of June 30, 2026, December 31, 2025, and December 31, 2024 aggregated to $290.5 million, $184.4 million, and

$228.1 million, respectively. These unrealized amounts are subject to market fluctuations and may not ultimately be realized.

We may not receive distributions from our investments or may face difficulties in monetizing our non-real estate investments at

optimal prices. There can be no assurance that we will be able to realize gains in the future. In periods with limited or no

realized gains, our FFO per share, as adjusted, may be adversely affected.

For the six months ended June 30, 2026, we recognized $28.5 million in realized gains on non-real estate investments and are

projecting realized gains of $75 million in 2026 at the midpoint of our guidance range. During the six months ended

June 30, 2026, we also recognized impairment charges and unrealized gains that reflect continued valuation pressures. The

table below presents components of investment income (loss) on our non-real estate investments (in thousands):

Realized

Gains

Significant

Realized Losses

Impairments

Unrealized

(Losses) Gains

Investment

(Loss) Income

$—

$—

Midpoint of 2026 guidance range

N/A(1)

(1)We are not able to forecast investment income (loss) of future periods without unreasonable effort and therefore do not provide the information 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.

Unfavorable market conditions could also lead to additional impairments of our investments in privately held entities that do not

report NAV per share, as well as other‑than‑temporary impairments of our non‑real‑estate investments accounted for under the

equity method.

The realization of any of the foregoing risks could continue to have material adverse impacts on our revenues and operating

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

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

share, FFO per share, as adjusted, and net cash provided by operating activities, as adjusted. These impacts have adversely affected,

and could continue to adversely affect, our Adjusted EBITDA, which in turn may continue to negatively impact our key metrics such as

Adjusted EBITDA margin, net debt and preferred stock to Adjusted EBITDA, and fixed-charge coverage ratios. This may also impact

our credit ratings and credit rating outlooks. To preserve liquidity and mitigate an increase to our net debt and preferred stock to

Adjusted EBITDA ratio resulting from declines in Adjusted EBITDA, we may seek additional capital by pursuing additional sales of real

estate and non-real estate investments, or through equity offerings, which could be dilutive to existing stockholders. A reduction in

earnings and/or net cash provided by operating activities, as adjusted, could potentially necessitate or make advisable a reduction in

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

the market value of our common stock.

•Mitigating factors:

•Reinforcing the Megacampus platform as our core growth engine. We believe our Megacampus strategy represents

our most powerful competitive advantage in an oversupplied life science real estate market. Our Megacampus

ecosystems are large-scale environments designed to meet the evolving needs of the world’s leading scientific and

technological organizations, located in life science innovation hubs in close proximity to top academic and medical

research institutions. This proximity is a key driver of tenant demand. These campuses are used in two distinct ways: (i) to

house the research operations of our tenants, and (ii) to recruit and retain the best talent available from a limited pool,

which underscores why their scale, strategic design, and location are critical. With our Megacampus ecosystems, we aim

to provide a superior set of amenities, services, and access to transit. With inspiring design and people-centric amenities,

we believe these campuses enhance our tenants’ confidence in using these spaces as effective recruiting tools. In

contrast, we believe that a significant amount of the competitive supply in the market today consists of isolated facilities

that provide operational space but lack the scale and strategic design that our Megacampus ecosystems deliver.

Our Megacampus ecosystems, which offer both high visibility and a clear path for growth, are designed for scalability to

accommodate our tenants’ growth. Our future development and redevelopment projects aggregate 21.3 million RSF as of

June 30, 2026, of which 79% is concentrated within our Megacampus ecosystems. Their strategic locations and path for

growth serve as powerful incentives for tenants to lease space from us.

T6We believe our Megacampus strategy has enabled us to capture a greater share of available leasing demand relative to

competitors in our core life science markets, even as overall supply has increased. The strength of this strategy is

reflected in the 2026 performance metrics below, achieved despite challenging macroeconomic, regulatory, policy, and

geopolitical environments:

•Outperforms market occupancy levels in our top three markets: Greater Boston, San Diego, and San Francisco

Bay Area.

•Additional 4.0% occupancy is expected from 1.4 million RSF (4.0% of total operating RSF) of leased space that

was temporarily vacant as of June 30, 2026, primarily in our Greater Boston, San Diego, and San Francisco Bay

Area markets. These spaces are expected to become occupied upon completion of building and/or tenant

improvements, with a weighted‑average expected occupancy date of November 2026, and are expected to

generate annual rental revenue of approximately $69 million upon lease commencement.

•During the six months ended June 30, 2026, we placed into service development and redevelopment projects

aggregating 532,219 RSF that are 91% occupied in various submarkets and delivered incremental annual net

operating income of $58 million.

•Expected incremental annual net operating income from projects anticipated to be placed into service from the third

•$42 million from deliveries in the second half of 2026.

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

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

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

volume, generate growth in net operating income and cash flows, and effectively navigate various economic cycles. Key

indicators of our brand strength include the following:

•As of June 30, 2026, 75% of our leasing activity during the last twelve months was from our existing tenant base.

•As of June 30, 2026, 88% of our top 20 tenant annual rental revenue was derived from investment-grade or publicly

traded large cap companies.

•Our tenant collections have remained consistently high, averaging 99.9% from the beginning of 2021 to June 30,

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

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

financial position is highlighted by several key indicators:

•Our significant liquidity of $3.60 billion as of June 30, 2026 provides us the flexibility to address our operational needs

and to pursue strategic opportunities.

•We expect to fund a large portion of our capital requirements through the following sources in 2026:

•$525 million in net cash provided by operating activities, as adjusted, at the midpoint of our 2026 guidance range.

•$104.0 million in capital contributions to fund construction expected from our existing consolidated real estate

joint venture partners from July 1, 2026 through 2027 and beyond.

•$2.90 billion from real estate dispositions, sales of partial interests, and other capital sources at the midpoint of

•As of June 30, 2026, our credit ratings from S&P Global Ratings and Moody’s Ratings were BBB+ and Baa2,

respectively, which rank in the top 20% among all publicly traded U.S. REITs.

•Net debt and preferred stock to Adjusted EBITDA ratio target: 5.6x to 6.2x for the fourth quarter of 2026, annualized.

•As of June 30, 2026, our fixed-rate debt represents 84.4% of our total debt, which provides predictability in debt

servicing costs. Since 2022, our quarter-end fixed-rate debt has averaged 95.7%.

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

refinancing risks. As of June 30, 2026, only 6% of our debt matures through 2028.

•As of June 30, 2026, the weighted-average remaining term of our debt is 9.7 years, which is the longest among S&P

500 REITs, and demonstrates our strategic approach to debt management and our focus on maintaining manageable

annual debt maturities. Pro forma for the amended and restated unsecured senior line of credit expected to become

effective in September 2026, our weighted-average remaining debt term would have been 10.0 years.

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

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

educated, and professionally credentialed facilities specialists. This expertise, essential in ensuring a secure and efficient

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

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

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

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

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

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

•Other mitigating factors

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

technology sector, particularly companies focused on AI, absorbed some of the market’s supply previously anticipated

for life science use and is now being repositioned back into office space. High ceilings, improved ventilation systems,

and abundant natural light, which are all features of life science real estate, have become highly desirable, appealing

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

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

•Proactive reduction in capital spending and funding needs. To address higher capital costs and slower market

absorption, we implemented a disciplined reduction in construction spending. Based on the midpoint of our 2026

guidance range, our average annual construction spending is expected to decrease to approximately $1.74 billion for

2024–2026, representing a reduction of approximately $1.02 billion, or 37%, compared to the 2021–2023 average.

Our 2026 construction spending is primarily focused on:

•Leasing vacant space at operating properties

•Completing active committed construction projects

•Limiting future pipeline pre-construction activity

This strategy supports a more self-funded capital plan while preserving flexibility for future growth opportunities.

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

measures to reduce our expenditures across our organization, including our general and administrative expenses,

through a variety of cost-control and efficiency initiatives, including, but not limited to:

•Personnel-related matters, including:

•Reduction in headcount over the last two years.

•Restructuring of various compensation plans.

•Streamlining of business processes:

•Implementation of systems upgrades, process improvements, and smarter technology.

•Renegotiation of contracts related to legal, technology, and operational support services, and

elimination of redundancies through better alignment and consolidation of roles.

As a result, we have achieved the following outcomes:

•T7During the three months ended June 30, 2026, general and administrative expenses aggregated

$36.9 million, a decrease of $5.2 million, or 12%, compared to the quarterly average for 2024.

•We expect $76 million of cumulative savings in 2025 and 2026 (based upon the midpoint of our guidance

range for 2026 general and administrative expenses), compared to 2024.

•For the trailing twelve months ended June 30, 2026, our general and administrative expenses were 6.6% net

operating income, approximately half the 2023–2025 average of other S&P 500 REITs.

We believe the mitigating factors discussed above will help us manage prolonged market volatility while maintaining the

flexibility to act on strategic opportunities. Through disciplined execution of non-core asset recycling, targeted capital

allocation, continued focus on our Megacampus platform, moderated construction spending, and preservation of balance sheet

strength, we are building a resilient platform designed to deliver sustainable future growth and value creation across multiple

cycles. We believe these actions position us to emerge from the current cycle in a position of strength.

Operating summary

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

Increasing cash flows

Percentage of leases containing annual

rent escalations

Stable cash flows

Percentage of triple net leases

Lower capex burden

Percentage of leases providing for the

recapture of capital expenditures

Net Debt and Preferred Stock

to Adjusted EBITDA(5)

Fixed-Charge Coverage Ratio(5)

(1)

(2)

(1)

(2)

Mid-5x Range

Refer to “Same properties” and “Definitions and reconciliations” in Item 2 for additional details. “Definitions and reconciliations” contains the definitions of “Adjusted EBITDA,”

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

comparable financial measures presented in accordance with GAAP.

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

(2)Refer to footnote 2 under “Leasing activity” in Item 2 for additional details.

(4)Percentages calculated based on our annual rental revenue in effect as of June 30, 2026.

(5)Quarter annualized.

Stable Cash Flows From Our High-Quality and Diverse Tenants

(1)

(2)

(3)

Percentage of ARE’s Annual Rental Revenue

Investment-Grade or

Publicly Traded Large Cap Tenants

of ARE’s Top 20 Tenant

Annual Rental Revenue

of ARE’s Total

Annual Rental Revenue

Weighted Average

Remaining Term(4)

of ARE’s Top 20 Tenants

All Tenants

As of June 30, 2026. Annual rental revenue represents amounts in effect as of June 30, 2026. Refer to “Definitions and reconciliations” in Item 2 for additional information.

(1)Represents the percentage of our annual rental revenue generated by professional services, finance, construction/real estate companies, and retail-related tenants.

(2)83% of our annual rental revenue from advanced technologies tenants is from investment-grade or publicly traded large cap tenants.

(3)81% of our annual rental revenue from biomedical institutions is from investment-grade or publicly traded large cap tenants.

(4)Represents the weighted-average remaining term based on annual rental revenue in effect as of June 30, 2026.

Leasing activity

The following table summarizes our leasing activity at our properties:

Three Months Ended

Six Months Ended

Year Ended

(Dollars per RSF)

Including

Straight-Line Rent

Cash Basis

Including

Straight-Line Rent

Cash Basis

Including

Straight-Line Rent

Cash Basis

Leasing activity:

Renewed/re-leased space(1)

Rental rate changes

New rates

(2)

(2)

Expiring rates

RSF

Tenant improvements/leasing

commissions

(3)

Weighted-average lease term

Previously vacant/developed/

redeveloped space leased

New rates

(2)

(2)

(4)

Previously vacant RSF

Developed/redeveloped RSF(5)

(4)

Weighted-average lease term

Leasing activity summary (totals):

New rates

RSF

Weighted-average lease term

Lease expirations(1)

Expiring rates

RSF

(6)

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

(1)Excludes month-to-month leases aggregating 291,724 RSF and 58,516 RSF as of June 30, 2026 and December 31, 2025, respectively. During the trailing twelve months

ended June 30, 2026, we granted free rent concessions averaging 1.5 months per annum.

(2)Leases executed with advanced technology tenants represented 29.2% of our total leasing volume for the three months ended June 30, 2026. Advanced technology

space typically generates lower rental rates, and requires lower capital investment, compared to laboratory space.

(3)Includes the impact of one lease aggregating 81,220 RSF at 10955 Alexandria Way in our Torrey Pines submarket, executed in April 2026 to accommodate the

expansion needs of a growth-stage life science company advancing next-generation therapeutics and to backfill a vacancy from a tenant wind-down. Delivery of the

space is expected in the first quarter of 2027 upon completion of tenant improvements. Excluding this lease, tenant improvements and leasing commissions for the

(4)Includes the largest life science lease in company history, executed in July 2025 with Novartis AG. 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, previously vacant/developed/

redeveloped rental rates would have been $58.31 and $58.70 (cash basis) and development/redevelopment leasing volume would have been 238,223 RSF, for the

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

(6)Includes previously disclosed key lease expirations aggregating 260,888 RSF that became vacant during the three months ended June 30, 2026, with a weighted-

average lease expiration date of April 2026.

Contractual lease expirations

The following tables summarize the contractual lease expirations as of June 30, 2026:

Year

RSF

Percentage of

Occupied RSF

Annual Rental Revenue

(per RSF)(1)

Percentage of

Annual Rental Revenue

(2)

Thereafter

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

—

San Diego

—

—

—

—

San Francisco Bay Area

Seattle

Maryland

—

—

—

Research Triangle

—

New York City

—

—

—

—

Texas

—

—

—

—

Subtotal

Key lease expirations with expected downtime

(3)

—

—

(3)

Total

Percentage of expiring leases

3%

4%

Contractual lease expirations for properties classified as held for sale as of June 30, 2026 are excluded from the information on this page.

(2)Excludes month-to-month leases aggregating 291,724 RSF as of June 30, 2026. Refer to “Leasing activity” in Item 2 for additional details.

(3)See tables below for additional details.

(4)Includes 317,385 RSF of key lease expirations from Bristol Myers Squibb across four properties, generating $24.0 million of annual rental revenue with a weighted-average expiration date of April 2027. Upon lease expiration, Bristol Myers

Squibb is expected to relocate to 4135 Campus Point Court, a 426,927 RSF R&D facility delivered in June 2026. We expect the vacated space to experience a period of downtime and are currently in early discussions for 190,085 RSF.

2026 Key Lease Expirations with Expected Downtime

2027 Key Lease Expirations with Expected Downtime

Total

Annual Rental

Revenue(1)

Weighted Average

Expiration Date

Weighted Average

Expected Downtime

Total

Annual Rental

Revenue(1)

Weighted Average

Expiration Date

Weighted Average

Expected Downtime

Reason for Expected Downtime

(Based on RSF)

Reason for Expected Downtime

(Based on RSF)

Relocation to Other

ARE Properties(4)

Leases at Assets Originally

Acquired for Redevelopment

Other

Relocation to Other ARE Properties

Other

Current Leasing Status

(Based on RSF)

Current Leasing Status

(Based on RSF)

Leased/Negotiating

Early Discussions

Marketing

Early Discussions

Marketing

Top 20 tenants

88% of Top 20 Tenant Annual Rental Revenue Is From Investment-Grade

or Publicly Traded Large Cap Tenants(1)

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

8.8% of our annual rental revenue in effect as of June 30, 2026. The following table sets forth information regarding leases with our 20

largest tenants in North America based upon annual rental revenue in effect as of June 30, 2026 (dollars in thousands, except average

market cap amounts):

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)

Tenant

Moody’s

S&P

1

Bristol Myers Squibb Company

$

A2

A

2

Eli Lilly and Company

Aa3

AA-

3

Moderna, Inc.

—

—

4

AstraZeneca PLC

(2)

A1

A+

5

Takeda Pharmaceutical Company Limited

Baa1

BBB+

6

Eikon Therapeutics, Inc.(3)

—

—

7

Illumina, Inc.

Baa3

BBB

8

United States Government

(4)

Aaa

AA+

$—

9

Uber Technologies, Inc.

(5)

Baa1

BBB+

Boston Children's Hospital

Aa2

AA

$—

Novartis AG

(6)

Aa3

AA-

Sanofi

Aa3

AA

Alphabet Inc.

Aa2

AA+

New York University

Aa2

AA-

$—

Massachusetts Institute of Technology

Aaa

AAA

$—

Merck & Co., Inc.

Aa3

A+

Vaxcyte, Inc.

—

—

Altos Labs, Inc.(7)

—

—

$—

Charles River Laboratories, Inc.

—

—

Amgen Inc.

Baa1

BBB+

Total/weighted-average

(5)

$

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

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

ventures and average market capitalization, respectively.

(1)Based on total annual rental revenue in effect as of June 30, 2026.

(2)Of the $56.2 million of annual rental revenue generated by this tenant, $27.0 million relates to a 232,902-RSF lease at our Alexandria Center® for Life Science – Waltham

Megacampus, which expires in the first quarter of 2027. This lease is included in the 1.4 million RSF of 2027 key lease expirations with expected downtime disclosed under

“Contractual lease expirations” in Item 2. We do not anticipate the tenant to renew its lease and are actively marketing the space.

(3)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 March 31, 2026, the company held $512 million in cash and marketable securities.

(4)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.

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

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

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

estate joint ventures. Excluding these ground leases, the weighted-average remaining lease term for our top 20 tenants was 8.3 years as of June 30, 2026.

(6)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 do not expect the tenant to renew the lease and are actively marketing the space for re-lease.

(7)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.

Locations of properties

Our properties are strategically located in AAA life science and advanced technology innovation cluster markets. The following

table sets forth the total RSF, number of properties, and annual rental revenue in effect as of June 30, 2026 in each of our markets in

North America (dollars in thousands, except per RSF amounts):

RSF

Number of

Properties

Annual Rental Revenue

Market

Operating

Development

Redevelopment

Total

% of Total

Total

% of Total

Per RSF

Greater Boston

San Diego

—

San Francisco Bay Area

Seattle

—

8

6

Maryland

—

—

9

8

Research Triangle

—

—

9

5

New York City

—

—

2

2

4

Texas

—

4

2

Non-cluster/other markets

—

—

—

6

—

Properties held for sale

—

—

4

2

Summary of occupancy percentages in North America

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

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

Operating Properties

Operating and Redevelopment Properties

Market

Greater Boston

(1)

San Diego

San Francisco Bay Area

(2)

Seattle

Maryland

Research Triangle

New York City

Texas

Subtotal

Canada

N/A

N/A

N/A

N/A

Non-cluster/other markets

(3)

(1)Decline in occupancy was primarily due to 159,947 RSF at our 3000 Minuteman Road redevelopment project in our Greater Boston market being placed back into

operation following the execution of a lease with an advanced technology tenant during the three months ended June 30, 2026. The lease enables us to pivot a portion

of the redevelopment project from future laboratory use to a lower-cost advanced technology use, reducing the project’s expected aggregate construction budget by

approximately $80 million. We expect to deliver the 159,947 RSF of leased space in the second quarter of 2027 upon completion of building and tenant improvements.

(2)Decline in occupancy since March 31, 2026 was primarily attributable to previously disclosed key lease expirations with expected downtime, including 137,316 RSF of

office space at Alexandria Stanford Life Science District, where we are evaluating a repositioning for advanced technology space, and 71,567 RSF across two properties

in our Palo Alto and South San Francisco submarkets. Of the latter, we have re-leased 17,271 RSF, and are actively marketing the remaining space.

(3)Excludes leases aggregating 1.4 million RSF, or 4.0% of total operating RSF, executed as of June 30, 2026 and expected to be occupied upon completion of building

and/or tenant improvements. The weighted-average expected occupancy date is approximately November 2026, with expected annual rental revenue of approximately

$69 million. We expect 64% of the total RSF to be occupied by December 31, 2026. These spaces are located primarily in the Greater Boston, San Diego, and San

Francisco Bay Area markets.

Investments in real estate

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

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

collaborative Megacampus ecosystems in AAA life science and advanced technology innovation clusters. These projects are focused

on providing high-quality, generic, and reusable spaces that meet the real estate requirements of a wide range of tenants. Upon

completion, each development or redevelopment project is expected to generate increases in rental income, net operating income, and

cash flows. Our development and redevelopment projects are generally in locations that are highly desirable to high-quality entities,

which we believe may result in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term

asset value. Our pre-construction activities are undertaken in order to prepare the property for its intended use and include entitlements,

permitting, design, site work, and other activities preceding commencement of construction of aboveground building improvements.

Our investments in real estate consisted of the following as of June 30, 2026 (dollars in thousands):

Development and Redevelopment

Under Construction

Operating

Stabilization

Stabilization

Evaluating

Business and

Financial

Strategy

Future

Subtotal

Total

Square footage

Operating

—

—

—

—

—

Future Class A/A+ development and

redevelopment properties

—

Future development and redevelopment square

feet currently included in rental properties(1)

—

—

—

—

Total square footage, excluding properties held for

sale

Properties held for sale

—

—

—

Total square footage

Investments in real estate

(3)

Properties held for sale

—

—

—

Total gross investment in real estate, excluding

properties held for sale

Development/

Redevelopment

Under Construction

Land/Future

Development

Non-Income-Producing Assets(4) as a Percentage of Gross Assets

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

currently included in rental properties.

(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.

(3)Our share of investment in our development and redevelopment pipeline as of June 30, 2026 is $6.17 billion.

(4)Excludes properties classified as held for sale. Land parcels classified as held for sale represented approximately 0.5% of total non-income-producing assets as of

Dispositions, sales of partial interests, and other capital sources

The following table summarizes our 2026 sources of capital activity during the six months ended June 30, 2026 and through the date of this report, and projections for the remainder

of 2026 (dollars in thousands):

Interest

Sold

Square Footage

Capitalization

Rate

(Cash Basis)

Price

(Our Share)

Property

Submarket/Market

Date of

Transaction

Operating

Future

Development

Capitalization

Rate

Completed during the three and six months ended June 30, 2026

Land:

Palo Alto/San Francisco Bay Area

N/A

Our share of pending dispositions and sales of partial interests subject to non-refundable deposits,

signed letters of intent, and/or purchase and sale agreement negotiations

Dispositions, sales of partial interests, and other capital sources in process

Multiple alternatives under evaluation

2026 guidance range for dispositions, sales of partial interests, and other capital sources(2)

Midpoint

Weighted-average projected completion date of 2026 dispositions, sales of partial interests, and other capital sources

(1)Represents one future development project aggregating 250,000 SF at 3825 Fabian Way and one operating building aggregating 228,000 RSF at 3875 Fabian Way in our Palo Alto submarket. These assets were acquired in 2019 with the

intent to develop them for life science use. However, due to the project’s macroeconomic outlook, the assets no longer aligned with our strategy and were sold to a residential developer. Based on the annualized results for the three months

ended June 30, 2026, the assets generated approximately $6.2 million of annual net operating income.

(2)For the year ending December 31, 2026, we may utilize multiple sources of capital, including land and non-core dispositions, sales of partial interests, and other capital sources, to fund (i) construction focused on highly leased

developments and lease-up of vacant space, and (ii) repayment of senior unsecured debt sufficient to achieve our net debt and preferred stock to Adjusted EBITDA – 4Q26 annualized target of 5.6x to 6.2x. We continue to evaluate

available alternatives and expect to execute on varied cost-efficient sources of capital under prevailing market conditions. We do not anticipate the issuance of any common equity during the year ending December 31, 2026.