Alexandria Real Estate Equities, Inc. Reports: 3Q25 and YTD 3Q25 Net Loss per Share - Diluted of $(1.38) and $(2.09), respectively; and 3Q25 and YTD 3Q25 FFO per Share - Diluted, as Adjusted, of $2.22 and $6.85, respectively

PASADENA, Calif., Oct. 27, 2025 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the third quarter ended September 30, 2025.

Key highlights

YTD

Operating results

3Q25

3Q24

3Q25

3Q24

Net (loss) income attributable to Alexandria's common stockholders – diluted:

In millions

$ (234.9)

$ 164.7

$ (356.1)

$ 374.5

Per share

$ (1.38)

$ 0.96

$ (2.09)

$ 2.18

Funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted:

In millions

$ 377.8

$ 407.9

$ 1,166.3

$ 1,217.3

Per share

$ 2.22

$ 2.37

$ 6.85

$ 7.08

A sector-leading REIT with a high-quality, diverse tenant base, strong margins, and long lease terms

(As of September 30, 2025, unless stated otherwise)

Occupancy of operating properties in North America

90.6 %

Percentage of annual rental revenue in effect from Megacampus™ platform

77 %

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

53 %

Operating margin

68 %

Adjusted EBITDA margin

71 %

Percentage of leases containing annual rent escalations

97 %

Weighted-average remaining lease term:

Top 20 tenants

9.4

years

All tenants

7.5

years

Strong 3Q25 tenant collections:

3Q25 tenant rents and receivables collected as of October 27, 2025

99.9 %

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

Solid leasing volume and rental rate increases

3Q25

YTD 3Q25

Lease renewals and re-leasing of space:

Rental rate increase

15.2 %

13.6 %

Rental rate increase (cash basis)

6.1 %

6.8 %

RSF

354,367

1,722,184

Leasing of previously vacant space – RSF

256,633

550,986

Leasing of development and redevelopment space – RSF

560,344

698,542

Total leasing activity – RSF

1,171,344

2,971,712

Dividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment

Ongoing execution of Alexandria's 2025 capital recycling strategy

We expect to fund a significant portion of our capital requirements for the year ending December 31, 2025 through dispositions of non-core assets, land, partial interest sales, and sales to owner/users. We expect dispositions of land to represent 20%–30% of our total dispositions and sales of partial interests for 2025.

(dollars in millions)

Sales Price

Total dispositions completed as of October 27, 2025

$ 508

Our share of pending transactions subject to non-refundable deposits, signed letters of

intent, and/or purchase and sale agreement negotiations

1,032

Our share of completed and pending 2025 dispositions and sales of partial interests

$ 1,540

(1)

Excludes an exchange of partial interests of Pacific Technology Park and 199 East Blaine Street with nominal net cash proceeds. Refer to "Dispositions and exchange of partial interests" in the Earnings Press Release for additional details.

Leasing progress on temporary vacancy

Operating occupancy as of June 30, 2025

90.8 %

Assets with vacancy designated as held for sale during 3Q25 now excluded from

operating occupancy and expected to be sold primarily in 4Q25

0.9

Reduction in occupancy, primarily from 3Q25 lease expirations

(1.1)

(1)

Operating occupancy as of September 30, 2025

90.6

Key vacant space leased with future delivery

1.6

(2)

Operating occupancy as of September 30, 2025, including leased but not yet

delivered space

92.2 %

(1)

Comprises the following: (i) 0.3% related to lease expirations that became vacant in 3Q25 and have been re-leased with a future delivery upon completion of construction (and is included in item 2 below); (ii) 0.2% vacancy at one asset in our Greater Stanford submarket, which was recently acquired with the intent to redevelop office to laboratory space but for which we are now evaluating options to reposition for advanced technologies use; and (iii) 0.6% of other occupancy declines, primarily from space that became vacant during 3Q25 which we are currently marketing. These lease expirations resulting in the 1.1% decline in occupancy previously generated annual rental revenue aggregating approximately $29.0 million and had a weighted-average lease expiration date at the end of July 2025.

(2)

Represents temporary vacancies as of September 30, 2025 aggregating 617,458 RSF, primarily in the Greater Boston, San Francisco Bay Area, San Diego, and Seattle markets, that are leased and expected to be occupied upon completion of building and/or tenant improvements. The weighted-average expected delivery date is approximately May 1, 2026 and the expected annual rental revenue is approximately $46 million.

Key operating metrics

Operating metrics

3Q25

YTD 3Q25

(dollars in millions)

Net operating income (cash basis) – annualized

$ 1,928

(1)

$ 1,975

(Decline)/Increase compared to 3Q24 and YTD 3Q24, annualized

(5.8) %

(2)

1.3 %

(2)

Same property performance:

Net operating income changes

(6.0) %

(3.1) %

Net operating income changes (cash basis)

(3.1) %

3.0 %

Occupancy – current-period average

91.4 %

92.6 %

Occupancy – same-period prior-year average

94.8 %

94.6 %

(1)

Quarter annualized.

(2)

Decrease in net operating income (cash basis) includes the impact of operating properties disposed of after January 1, 2024. Excluding these dispositions, net operating income (cash basis) – annualized for the three months ended September 30, 2025 would have decreased by 1.2%, and for the nine months ended September 30, 2025 would have increased by 7.3%, compared to the corresponding periods in 2024.

Alexandria's development and redevelopment pipeline delivered incremental annual net operating income of $16 million commencing during 3Q25, with an additional $111 million of incremental annual net operating income anticipated to deliver by 4Q26 primarily from projects that are 80% leased/negotiating

Development and Redevelopment Projects

Incremental

Annual Net

Operating Income

RSF

Occupied/

Leased/

Negotiating

Percentage

(dollars in millions)

Placed into service:

1H25

$ 52

527,268

96 %

3Q25

185,517

Placed into service in YTD 3Q25

$ 68

(1)

712,785

94 %

Expected to be placed into service:

4Q25 through 4Q26

$ 111

(2)

969,524

(3)

80 %

(4)

(1)

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

(2)

Includes expected partial deliveries through 4Q26 from projects expected to stabilize in 2027 and beyond, including speculative future leasing that is not yet fully committed. Refer to the initial and stabilized occupancy years under "New Class A/A+ development and redevelopment properties: current projects" in the Supplemental Information for additional details.

(3)

Represents the RSF related to projects expected to stabilize by 4Q26. Does not include RSF for partial deliveries through 4Q26 from projects expected to stabilize in 2027 and beyond.

(4)

Represents the current leased/negotiating percentage of development and redevelopment projects that are expected to stabilize during 4Q25 through 4Q26.

Strong and flexible balance sheet

Key capital events

Investments

Other key highlights

Key items included in net income attributable to Alexandria's common stockholders:

YTD

3Q25

3Q24

3Q25

3Q24

3Q25

3Q24

3Q25

3Q24

(in millions, except per share amounts)

Amount

Per Share –

Diluted

Amount

Per Share –

Diluted

Unrealized gains (losses) on

non-real estate investments

$ 18.5

$ 2.6

$ 0.11

$ 0.02

$ (71.6)

$ (32.5)

$ (0.42)

$ (0.19)

Gain on sales of real estate

9.4

27.1

0.06

0.16

22.5

27.5

0.13

0.16

Impairment of non-real

estate investments

(25.1)

(10.3)

(0.15)

(0.06)

(75.5)

(37.8)

(0.45)

(0.22)

Impairment of real estate (1)

(323.9)

(5.7)

(1.90)

(0.03)

(485.6)

(36.5)

(2.85)

(0.22)

Loss on early extinguishment of debt

(0.1)

—

(0.1)

—

Increase in provision for

expected credit losses on

financial instruments

—

(0.3)

—

Total

$ (321.2)

$ 13.7

$ (1.88)

$ 0.09

$ (610.6)

$ (79.3)

$ (3.59)

$ (0.47)

(1) Refer to "Funds from operations and funds from operations per share" in the Earnings Press Release for additional details.

Subsequent event

2025 Guidance

September 30, 2025

(Dollars in millions, except per share amounts)

Guidance for 2025 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2025. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. Our guidance for 2025 is subject to a number of variables and uncertainties, including actions and changes in policy by the current U.S. administration related to the regulatory environment, life science funding, the U.S. Food and Drug Administration and National Institutes of Health, trade, and other areas. For additional discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated, refer to our discussion of "forward-looking statements" on page 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.

Key changes to our 2025 guidance include the following:

1) The midpoint of our guidance range for 2025 net (loss) income per share was reduced by $3.44 from $0.50 to $(2.94). In addition to the items discussed in item 2 below, the update to our guidance range for 2025 net (loss) income per share includes the following:

2) The midpoint of our guidance range for 2025 funds from operations per share – diluted, as adjusted, was reduced by 25 cents, from $9.26 to $9.01. The primary drivers of the change include the following:

3) Our guidance range for net debt and preferred stock Adjusted EBITDA – 4Q25 annualized increased from less than or equal to 5.2x to a range of 5.5x to 6.0x. The primary drivers of the change include the following:

Refer to "Key assumptions" and "Key sources and uses of capital".

Projected 2025 Earnings per Share and Funds From Operations per Share Attributable to Alexandria's Common Stockholders – Diluted

As of 10/27/25

As of 7/21/25

Key Changes to Midpoint

Net (loss) income per share (1)

$(5.68) to $(0.20)

$0.40 to $0.60

(2)

Depreciation and amortization of real estate assets

7.05

Gain on sales of real estate

(0.14) to (1.54)

(0.08)

(2)

Impairment of real estate – rental properties and land (3)

6.69 to 2.67

0.77

(2)

Allocation to unvested restricted stock awards

(0.03)

Funds from operations per share (4)

$7.89 to $7.95

$8.11 to $8.31

Unrealized losses on non-real estate investments

0.42

0.53

Impairment of non-real estate investments (3)

0.45

0.30

Impairment of real estate

0.23

Allocation to unvested restricted stock awards

(0.01)

Funds from operations per share, as adjusted (4)

$8.98 to $9.04

$9.16 to $9.36

Midpoint

$9.01

$9.26

Reduction of 25 cents (2)

Key Credit Metrics Targets

As of 10/27/25

As of 7/21/25

Key Changes

Net debt and preferred stock to Adjusted EBITDA – 4Q25 annualized

5.5x to 6.0x

Less than or equal to 5.2x

0.6x increase (2)

Fixed-charge coverage ratio – 4Q25 annualized

3.6x to 4.1x

4.0x to 4.5x

0.4x reduction

(1)

Excludes unrealized gains or losses on non-real estate investments after September 30, 2025 that are required to be recognized in earnings and are excluded from funds from operations per share, as adjusted.

(2)

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

(3)

Refer to "Funds from operations and funds from operations per share" in the Earnings Press Release for additional details.

(4)

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.

As of 10/27/25

As of 7/21/25

Key Changes

to Midpoint

Key Assumptions

Low

High

Low

High

Operating occupancy percentage in North America as of December 31, 2025

90.0 %

91.6 %

(1)

90.9 %

92.5 %

90 bps reduction

Lease renewals and re-leasing of space:

Rental rate changes

7.0 %

15.0 %

9.0 %

17.0 %

200 bps reduction (2)

Rental rate changes (cash basis)

0.5 %

8.5 %

0.5 %

8.5 %

No change

Same property performance:

Net operating income changes

(4.7) %

(2.7) %

(3.7) %

(1.7) %

100 bps reduction

Net operating income changes (cash basis)

(1.2) %

0.8 %

(1.2) %

0.8 %

No change

Straight-line rent revenue

$ 75

$ 95

$ 96

$ 116

$21 million reduction

General and administrative expenses

$ 112

$ 127

$ 112

$ 127

No Change

Capitalization of interest

$ 320

$ 350

$ 320

$ 350

Interest expense

$ 195

$ 225

$ 185

$ 215

$10 million increase (3)

Realized gains on non-real estate investments (4)

$ 100

$ 120

$ 100

$ 130

$5 million reduction

(1)

Our guidance assumes an approximate 1% benefit related to a range of assets with vacancy that could potentially qualify for classification as held for sale in 4Q25 that have not yet reached the criteria for held for sale designation as of 3Q25.

(2)

In October 2025, we executed a one-year lease extension aggregating 247,743 RSF with an investment-grade rated government institution tenant at a recently acquired office property in our Canada market. At acquisition, this building was originally targeted for a future change in use, but we instead renewed the existing tenant through the beginning of 2027, with no incremental capital investment. We continue to evaluate options to convert this space, subject to market conditions. The impact from this renewal on our 2025 rental rate changes is anticipated to result in a reduction of approximately 2.0%.

(3)

The increase in the midpoint of our guidance range for 2025 interest expense is primarily due to the $450 million reduction to the midpoint of our guidance range for 2025 dispositions and sales of partial interests, which includes expected delays in the closing of certain dispositions that are now anticipated to be completed in 1H26.

(4)

Represents realized gains and losses included in funds from operations per share – diluted, as adjusted, and excludes significant impairments realized on non-real estate investments, if any. The midpoint of our revised guidance range for 2025 realized gains on non-real estate investments assumes approximately $15 million in 4Q25, compared to the quarterly average realized gains of approximately $32 million per quarter for the nine months ended September 30, 2025. Refer to "Investments" in the Supplemental Information for additional details.

As of 10/27/25

As of 7/21/25

Midpoint

Key Changes

to Midpoint

Key Sources and Uses of Capital

Range

Midpoint

Certain Completed Items

Sources of capital:

Increase in debt

260

160

See below

$ (290)

$450 million increase

Net cash provided by operating activities after dividends

425

525

475

Dispositions and sales of partial interests

1,100

1,900

1,500

(1)

1,950

$450 million decrease

Total sources of capital

1,585

2,685

2,135

$ 2,135

Uses of capital:

Construction

1,450

2,050

1,750

$ 1,750

Acquisitions and other opportunistic uses of capital

—

500

250

208 (2)

250

Ground lease prepayment

135

Total uses of capital

1,585

2,685

2,135

$ 2,135

Increase in debt (included above):

Issuance of unsecured senior notes payable

550

$ 550

Repayment of unsecured note payable

(600)

Repayment of secured note payable

(154)

(154) (3)

(154)

Unsecured senior line of credit, commercial paper, and other

264

464

364

(86)

Increase in debt

260

160

$ (290)

$450 million increase

(1)

As of October 27, 2025, completed dispositions aggregated $508.3 million and our share of pending transactions subject to non-refundable deposits, signed letters of intent, or purchase and sale agreement negotiations aggregated $1.0 billion. We expect to achieve a weighted-average capitalization rate on our projected 2025 dispositions and sales of partial interests (excluding land and including stabilized and non-stabilized operating properties) in the 7.5%–8.5% range. We expect dispositions of land to represent 20%–30% of our total dispositions and sales of partial interest sales for the year ending December 31, 2025. Refer to "Dispositions and exchange of partial interests" in the Earnings Press Release for additional details.

(2)

Under our common stock repurchase program authorized in December 2024, we may repurchase up to $500 million of our common stock through December 31, 2025. During 3Q25, we did not repurchase any shares of common stock. As of October 27, 2025, the approximate value of shares authorized and remaining under this program was $241.8 million. Subject to market conditions, we may consider repurchasing additional shares of our common stock.

(3)

In August 2025, we repaid a secured construction loan held by our development project at 99 Coolidge Avenue in our Cambridge/Inner Suburbs submarket. Refer to "Key capital events" in the Earnings Press Release for additional details.

2026 Considerations

Summary of Key Items That May Impact 2026 Results

We expect to introduce 2026 guidance on December 3, 2025 at our Investor Day. The following is an initial summary of key items that are expected to impact 2026 results:

Dispositions and Exchange of Partial Interests

September 30, 2025

(Dollars in thousands)

Interest

Sold/

Acquired

Square Footage

Gain on

Sales of Real

Estate

Property

Submarket/Market

Date of

Transaction

Operating

Future

Development

Price

Dispositions

Completed in 1H25

$ 260,639

$ 13,165

Completed in 3Q25:

5505 Morehouse Drive (1)

Sorrento Mesa/San Diego

8/26/25

100 %

79,945

—

45,000

—

Other

Various

35,232

Total dispositions completed in 3Q25

80,232

(2)

(3)

Completed in October 2025:

550 Arsenal Street (4)

Cambridge/Inner Suburbs/Greater Boston

10/15/25

100 %

249,275

281,592

99,250

—

Other

Various

68,129

4,362

167,379

(2)

4,362

Total dispositions as of October 27, 2025

508,250

$ 17,603

Our share of pending dispositions subject to non-refundable deposits, signed letters of intent, and/or purchase and sale agreement negotiations

1,032,495

Completed and pending YTD 2025 dispositions, excluding exchange of partial interests (see below)

$ 1,540,745

2025 guidance range for dispositions and sales of partial interests

$1,100,000 – $1,900,000

2025 guidance midpoint for dispositions and sales of partial interests

$ 1,500,000

Exchange of partial interests (5)

Disposition of Pacific Technology Park

Sorrento Mesa/San Diego

9/9/25

50 %

544,352

—

$ 96,000

$ 9,290

Acquisition of 199 East Blaine Street

Lake Union/Seattle

9/9/25

70 %

115,084

—

(94,430)

Difference in sales price received in cash

$ 1,570

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.

(1)

Represents a laboratory property with significant near-term lease expirations.

(2)

Dispositions completed during the three months ended September 30, 2025 had annual net operating income of $4.3 million (based on 2Q25 annualized) with a weighted-average disposition date of September 2, 2025. Additionally, October 2025 dispositions had annual net operating income of $13.0 million (based on 3Q25 annualized) with a weighted-average disposition date of October 13, 2025.

(3)

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

(4)

Represents a retail shopping center with future development opportunity. We originally acquired the property in 2021 with the intent to demolish the retail center and develop it into laboratory space. However, due to the project's financial outlook and the substantial capital that development would have required, we decided to recycle the capital generated by the disposition into our development and redevelopment pipeline. The capitalization rates of the disposition were 6.1% and 5.4% (cash basis) based upon net operating income and net operating income (cash basis), respectively, for 3Q25 annualized.

(5)

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

•

We sold our 50% controlling interest in Pacific Technology Park, a non-Megacampus comprising five non-laboratory properties that were 93% occupied, at capitalization rates of 4.9% and 5.0% (cash basis). The disposition had consolidated annual net operating income of $9.4 million based on 2Q25 annualized (at 100%). As of September 30, 2025, we no longer have any ownership interest in Pacific Technology Park, and the consolidated net operating income is no longer included in our statement of operations following the sale.

•

We acquired our partner's 70% noncontrolling interest at 199 East Blaine Street, a fully occupied laboratory building located in our Alexandria Center ® for Life Science – Eastlake Megacampus, with a weighted-average remaining lease term of 1.3 years. The purchase price exceeded the book value of the noncontrolling interest by $66.3 million, which was recognized in additional paid-in capital. As of September 30, 2025, we own 100% of 199 East Blaine Street.

Earnings Call Information and About the Company

September 30, 2025

We will host a conference call on Tuesday, October 28, 2025, 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 third quarter ended September 30, 2025. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 2:00 p.m. ET/11:00 a.m. PT and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the "For Investors" section. A replay of the call will be available for a limited time from 4:00 p.m. ET/1:00 p.m. PT on Tuesday, October 28, 2025. The replay number is (877) 344-7529 or (412) 317-0088, and the access code is 6086829.

Additionally, a copy of this Earnings Press Release and Supplemental Information for the third quarter ended September 30, 2025 is available in the "For Investors" section of our website at www.are.com or by following this link: https://www.are.com/fs/2025q3.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 September 30, 2025, Alexandria has a total market capitalization of $27.8 billion and an asset base in North America that includes 39.1 million RSF of operating properties and 4.2 million RSF of Class A/A+ properties undergoing construction and one 100% pre-leased committed near-term project expected to commence construction in the next year. 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 2025 earnings per share, projected 2025 funds from operations per share, projected 2025 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

September 30, 2025

(Dollars in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

9/30/25

6/30/25

3/31/25

12/31/24

9/30/24

9/30/25

9/30/24

Revenues:

Income from rentals

$ 735,849

$ 737,279

$ 743,175

$ 763,249

$ 775,744

$ 2,216,303

$ 2,286,457

Other income

16,095

24,761

14,983

25,696

15,863

55,839

40,992

Total revenues

751,944

762,040

758,158

788,945

791,607

2,272,142

2,327,449

Expenses:

Rental operations

239,234

224,433

226,395

240,432

233,265

690,062

668,833

General and administrative

29,224

29,128

30,675

32,730

43,945

89,027

135,629

Interest

54,852

55,296

50,876

55,659

43,550

161,024

130,179

Depreciation and amortization

340,230

346,123

342,062

330,108

293,998

1,028,415

872,272

Impairment of real estate

323,870

(1)

129,606

32,154

186,564

5,741

485,630

36,504

Loss on early extinguishment of debt

107

—

107

—

Total expenses

987,517

784,586

682,162

845,493

620,499

2,454,265

1,843,417

Equity in earnings (losses) of unconsolidated real estate joint ventures

201

(9,021)

(507)

6,635

139

(9,327)

424

Investment income (loss)

28,161

(30,622)

(49,992)

(67,988)

15,242

(52,453)

14,866

Gain on sales of real estate

9,366

—

13,165

101,806

27,114

22,531

27,506

Net (loss) income

(197,845)

(62,189)

38,662

(16,095)

213,603

(221,372)

526,828

Net income attributable to noncontrolling interests

(34,909)

(44,813)

(47,601)

(46,150)

(45,656)

(127,323)

(141,634)

Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s

stockholders

(232,754)

(107,002)

(8,939)

(62,245)

167,947

(348,695)

385,194

Net income attributable to unvested restricted stock awards

(2,183)

(2,609)

(2,660)

(2,677)

(3,273)

(7,452)

(10,717)

Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s

common stockholders

$ (234,937)

$ (109,611)

$ (11,599)

$ (64,922)

$ 164,674

$ (356,147)

$ 374,477

Net (loss) income per share attributable to Alexandria Real Estate Equities,

Inc.'s common stockholders:

Basic

$ (1.38)

$ (0.64)

$ (0.07)

$ (0.38)

$ 0.96

$ (2.09)

$ 2.18

Diluted

$ (1.38)

$ (0.64)

$ (0.07)

$ (0.38)

$ 0.96

$ (2.09)

$ 2.18

Weighted-average shares of common stock outstanding:

Basic

170,181

170,135

170,522

172,262

172,058

170,278

172,007

Diluted

170,181

170,135

170,522

172,262

172,058

170,278

172,007

Dividends declared per share of common stock

$ 1.32

$ 1.30

$ 3.96

$ 3.87

(1) Refer to footnote 2 in "Funds from operations and funds from operations per share" in the Earnings Press Release for additional details.

Consolidated Balance Sheets

September 30, 2025

(In thousands)

9/30/25

6/30/25

3/31/25

12/31/24

9/30/24

Assets

Investments in real estate

$ 31,743,917

$ 32,160,600

$ 32,121,712

$ 32,110,039

$ 32,951,777

Investments in unconsolidated real estate joint ventures

39,601

40,234

50,086

39,873

40,170

Cash and cash equivalents

579,474

520,545

476,430

552,146

562,606

Restricted cash

4,705

7,403

7,324

7,701

17,031

Tenant receivables

6,409

6,267

6,875

6,409

6,980

Deferred rent

1,257,378

1,232,719

1,210,584

1,187,031

1,216,176

Deferred leasing costs

505,241

491,074

489,287

485,959

516,872

Investments

1,537,638

1,476,696

1,479,688

1,476,985

1,519,327

Other assets

1,700,785

1,688,091

1,758,442

1,661,306

1,657,189

Total assets

$ 37,375,148

$ 37,623,629

$ 37,600,428

$ 37,527,449

$ 38,488,128

Liabilities, Noncontrolling Interests, and Equity

Secured notes payable

$ —

$ 153,500

$ 150,807

$ 149,909

$ 145,000

Unsecured senior notes payable

12,044,999

12,042,607

12,640,144

12,094,465

12,092,012

Unsecured senior line of credit and commercial paper

1,548,542

1,097,993

299,883

—

454,589

Accounts payable, accrued expenses, and other liabilities

2,432,726

2,360,840

2,281,414

2,654,351

2,865,886

Dividends payable

230,603

229,686

228,622

230,263

227,191

Total liabilities

16,256,870

15,884,626

15,600,870

15,128,988

15,784,678

Commitments and contingencies

Redeemable noncontrolling interests

58,662

9,612

19,972

16,510

Alexandria Real Estate Equities, Inc.'s stockholders' equity:

Common stock

1,703

1,701

1,722

Additional paid-in capital

16,669,802

17,200,949

17,509,148

17,933,572

18,238,438

Accumulated other comprehensive loss

(32,203)

(27,415)

(46,202)

(46,252)

(22,529)

Alexandria Real Estate Equities, Inc.'s stockholders' equity

16,639,302

17,175,235

17,464,647

17,889,042

18,217,631

Noncontrolling interests

4,420,314

4,554,156

4,525,299

4,489,447

4,469,309

Total equity

21,059,616

21,729,391

21,989,946

22,378,489

22,686,940

Total liabilities, noncontrolling interests, and equity

$ 37,375,148

$ 37,623,629

$ 37,600,428

$ 37,527,449

$ 38,488,128

Funds From Operations and Funds From Operations per Share

September 30, 2025

(In thousands)

The following table presents a reconciliation of net income (loss) attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with U.S. generally accepted accounting principles ("GAAP"), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria's common stockholders – diluted, and funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below:

Three Months Ended

Nine Months Ended

9/30/25

6/30/25

3/31/25

12/31/24

9/30/24

9/30/25

9/30/24

Net (loss) income attributable to Alexandria's common stockholders – basic

and diluted

$ (234,937)

$ (109,611)

$ (11,599)

$ (64,922)

$ 164,674

$ (356,147)

$ 374,477

Depreciation and amortization of real estate assets

338,182

343,729

339,381

327,198

291,258

1,021,292

864,326

Noncontrolling share of depreciation and amortization from consolidated real

estate JVs

(45,327)

(36,047)

(33,411)

(34,986)

(32,457)

(114,785)

(94,725)

Our share of depreciation and amortization from unconsolidated real estate JVs

852

942

1,054

1,061

1,075

2,848

3,177

Gain on sales of real estate

(9,824)

(1)

—

(13,165)

(100,109)

(27,114)

(22,989)

(27,506)

Impairment of real estate – rental properties and land

323,870

(2)

131,090

—

184,532

5,741

454,960

7,923

Allocation to unvested restricted stock awards

(1,648)

(1,222)

(686)

(1,182)

(2,908)

(3,590)

(7,657)

Funds from operations attributable to Alexandria's common stockholders –

diluted (3)

371,168

328,881

281,574

311,592

400,269

981,589

1,120,015

Unrealized (gains) losses on non-real estate investments

(18,515)

21,938

68,145

79,776

(2,610)

71,568

32,470

Impairment of non-real estate investments

25,139

(4)

39,216

11,180

20,266

10,338

75,535

37,824

Impairment of real estate

—

7,189

32,154

2,032

—

39,343

28,581

Loss on early extinguishment of debt

107

—

107

—

Increase (decrease) in provision for expected credit losses on financial instruments

—

285

(434)

—

285

—

Allocation to unvested restricted stock awards

(74)

(794)

(1,329)

(1,407)

(125)

(2,156)

(1,640)

Funds from operations attributable to Alexandria's common stockholders –

diluted, as adjusted

$ 377,825

$ 396,430

$ 392,009

$ 411,825

$ 407,872

$ 1,166,271

$ 1,217,250

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.

(1)

Includes our share of a gain on sale of real estate asset by an unconsolidated real estate joint venture of $458 thousand, which is classified as equity in earnings of unconsolidated real estate joint ventures in our consolidated statements of operations.

(2)

Primarily represents impairment charges to reduce the carrying amount of our investments in real estate assets to their respective estimated fair values less costs to sell upon their classification as held for sale in 3Q25, including (i) $206.2 million related to our only property located in Long Island City, in our New York City market, which was a full building conversion to laboratory/office space and is currently 52% occupied, (ii) $43.4 million related to a retail shopping center at 550 Arsenal Street that was originally intended to be a life science development in our Cambridge/Inner Suburbs submarket that was sold in October 2025, (iii) $31.8 million related to a vacant property that would require significant re-leasing capital in our Research Triangle submarket, and (iv) $27.8 million related to land parcels in our Sorrento Mesa submarket.

(3)

Calculated in accordance with standards established by the Nareit Board of Governors.

(4)

Primarily related to four non-real estate investments in privately held entities that do not report NAV.

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

Nine Months Ended

9/30/25

6/30/25

3/31/25

12/31/24

9/30/24

9/30/25

9/30/24

Net (loss) income per share attributable to Alexandria's common stockholders –

diluted

$ (1.38)

$ (0.64)

$ (0.07)

$ (0.38)

$ 0.96

$ (2.09)

$ 2.18

Depreciation and amortization of real estate assets

1.73

1.81

1.80

1.70

1.51

5.34

4.49

Gain on sales of real estate

(0.06)

—

(0.08)

(0.58)

(0.16)

(0.14)

(0.16)

Impairment of real estate – rental properties and land

1.90

0.77

—

1.07

0.03

2.67

0.05

Allocation to unvested restricted stock awards

(0.01)

—

(0.01)

(0.02)

(0.05)

Funds from operations per share attributable to Alexandria's common

stockholders – diluted

2.18

1.93

1.65

1.81

2.33

5.76

6.51

Unrealized (gains) losses on non-real estate investments

(0.11)

0.13

0.40

0.46

(0.02)

0.42

0.19

Impairment of non-real estate investments

0.15

0.23

0.07

0.12

0.06

0.45

0.22

Impairment of real estate

—

0.04

0.19

0.01

—

0.23

0.17

Allocation to unvested restricted stock awards

—

(0.01)

—

(0.01)

Funds from operations per share attributable to Alexandria's common

stockholders – diluted, as adjusted

$ 2.22

$ 2.33

$ 2.30

$ 2.39

$ 2.37

$ 6.85

$ 7.08

Weighted-average shares of common stock outstanding – diluted

Earnings per share – diluted

170,181

170,135

170,522

172,262

172,058

170,278

172,007

Funds from operations – diluted, per share

170,305

170,192

170,599

172,262

172,058

170,351

172,007

Funds from operations – diluted, as adjusted, per share

170,305

170,192

170,599

172,262

172,058

170,351

172,007

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.

SOURCE Alexandria Real Estate Equities, Inc.