Alexandria Real Estate Equities, Inc. Reports 1Q26 Net Income per Share - Diluted of $2.10; and 1Q26 FFO per Share - Diluted, as Adjusted, of $1.73

PASADENA, Calif., April 27, 2026 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the first quarter ended March 31, 2026.

Key highlights

Operating results

1Q26

1Q25

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

In millions

$ 358.9

$ (11.6)

Per share

$ 2.10

$ (0.07)

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

In millions

$ 295.9

$ 392.0

Per share

$ 1.73

$ 2.30

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

(As of March 31, 2026, unless stated otherwise)

Occupancy of operating properties

87.7 %

Percentage of annual rental revenue in effect from Megacampus™ platform

78 %

Percentage of annual rental revenue in effect from investment-grade or publicly

traded large cap tenants

55 %

Operating margin

67 %

Adjusted EBITDA margin

66 %

Percentage of leases containing annual rent escalations

97 %

Weighted-average remaining lease term:

Top 20 tenants

9.9

years

All tenants

7.5

years

Strong 1Q26 tenant collections (1):

1Q26 rents and receivables collected as of April 27, 2026

99.9 %

(1) Refer to "Tenant Collections" under "Definitions and reconciliations" in the Supplemental Information for

additional details.

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

Solid leasing of development and redevelopment space

Leasing Activity in RSF:

1Q26

Leasing of development and redevelopment space

117,935

Leasing of previously vacant space

148,734

Lease renewals and re-leasing of space

380,687

647,356

Lease renewals and re-leasing of space:

Rental rate changes

(15.0) %

Rental rate changes (cash basis)

(15.8) %

Ongoing execution of Alexandria's capital recycling strategy

We plan to continue funding a significant portion of our capital requirements for the year ending December 31, 2026 through dispositions of land, non-core assets, and core assets (primarily sales of partial interests).

(dollars in millions)

Sales Price

Completed and pending transactions subject to non-refundable deposits,

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

April 27, 2026

$ 151

5 %

Identified and in process

2,181

75 %

Additional projected

568

20 %

2026 guidance midpoint for dispositions and sales of partial interests

$ 2,900

Occupancy and leasing progress on temporary vacancy

Operating occupancy as of December 31, 2025

90.9 %

Reduction in occupancy related to previously disclosed 1Q26 key lease expirations

(1.9)

(1)

Other changes in occupancy

(1.3)

(2)

Operating occupancy as of March 31, 2026

87.7

Vacant space leased but not yet delivered

3.2

(3)

Operating occupancy as of March 31, 2026, including vacant space leased but not

yet delivered

90.9 %

(1)

Represents previously disclosed key lease expirations aggregating 657,492 RSF, with a weighted-average lease expiration date of January 2026 and prior annual rental revenue of approximately $41.6 million. These vacant spaces are currently 48% leased or under negotiation and the remaining 52% is being actively marketed for re-lease.

(2)

Includes i) 139,408 RSF, or 0.4%, resulting from spaces vacated by tenants winding down operations, which are being actively marketed for re-lease and ii) delivery of 50,531 vacant RSF, or 0.2%, at our 10075 Barnes Canyon Road development project located at our SD Tech by Alexandria Megacampus.

(3)

Represents temporary vacancies aggregating 1.1 million RSF, primarily in the Greater Boston, San Francisco Bay Area, and Seattle markets, that are leased and expected to be occupied upon completion of building and/or tenant improvements. The weighted-average expected delivery date is approximately September 2026, with expected annual rental revenue of approximately $68 million.

Key operating metrics

Operating metrics

1Q26

(dollars in millions)

Net operating income (cash basis)

$ 1,672

(1)

Decrease compared to 1Q25

(15.2) %

(2)

Same property performance:

Net operating income changes

(11.9) %

(3)

Net operating income changes (cash basis)

(11.7) %

(3)

Occupancy – current-period average

88.9 %

Occupancy – same-period prior-year average

94.0 %

(1)

Quarter annualized.

(2)

Change in net operating income (cash basis) reflects the impact of operating properties disposed of after January 1, 2025. Excluding these dispositions, net operating income (cash basis), annualized, for the three months ended March 31, 2026, would have decreased by 8.9%.

(3)

The quarter-over-quarter decline was due to a decrease in same property occupancy, primarily driven by the previously disclosed 2026 key lease expirations aggregating 657,492 RSF that became vacant during 1Q26, with a weighted-average lease expiration date of January 2026, and by vacancy in 4Q25 at one property aggregating 170,618 RSF at Alexandria Center ® for Advanced Technologies – South San Francisco in our South San Francisco submarket. We expect our same property performance to improve in 2H26, primarily due to changes in same property occupancy, including the anticipated delivery of 1.1 million RSF of vacant space that was leased but not yet delivered as of March 31, 2026, which has a weighted-average expected delivery date of approximately September 2026, and is expected to generate annual rental revenue of approximately $68 million.

Continued successful reduction and management of general and administrative expenses

Reduction of capital spend and funding needs

Alexandria's development and redevelopment pipeline is anticipated to deliver $92 million of incremental annual net operating income by 4Q26 primarily from projects that are 93% leased/negotiating

Development and Redevelopment

Projects

Incremental

Annual Net

Operating Income

RSF

Leased/

Negotiating

Percentage

(dollars in millions)

Expected to be placed into service:

2Q26 – 4Q26

$ 92

(1)

601,589

(2)

93 %

(3)

2027 – 2028

1,258,004

68 %

$ 185

(1)

Includes expected partial deliveries through 2026 from projects expected to stabilize in 2027-2028, including speculative future leasing that is not yet fully committed. Refer to the initial and stabilized occupancy years under "New Class A/A+ development and redevelopment properties: under construction" in the Supplemental Information for additional details.

(2)

Represents the RSF of projects expected to stabilize in 2026. Does not include RSF for partial deliveries through 2026 from projects expected to stabilize in 2027-2028.

(3)

Represents the current leased/negotiating percentage of the 601,589 RSF of development and redevelopment projects that are expected to stabilize in 2026.

Key capital events

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

Investments

2026 Guidance

March 31, 2026

(Dollars in millions, except per share amounts)

Guidance for 2026 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2026. There can be no assurance that actual results will not be materially higher or lower than these expectations. Our guidance for 2026 is subject to a number of variables and uncertainties. Refer to our discussion of "forward-looking statements" as well as our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

Projected 2026 Funds From Operations per Share Attributable to Alexandria's Common Stockholders – Diluted

As of 4/27/26

As of 1/26/26

Key Changes

Funds from operations per share, as adjusted (1)

$6.30 to $6.50

$6.25 to $6.55

No change to midpoint;

range narrowed by 10 cents

Midpoint

$6.40

Key Credit Metrics Targets

As of 4/27/26

As of 1/26/26

Key Changes

Net debt and preferred stock to Adjusted EBITDA – 4Q26 annualized

5.6x to 6.2x

No Change

Fixed-charge coverage ratio – 4Q26 annualized

3.6x to 4.1x

As of 4/27/26

As of 1/26/26

Midpoint

Key Sources and Uses of Capital

Range

Midpoint

Certain

Completed Items

Sources of capital:

Reduction in debt

$ (1,075)

$ (2,275)

$ (1,675)

See below

$ (1,675)

Net cash provided by operating activities, as adjusted

475

575

525

Dispositions and sales of partial interests (2)

2,100

3,700

2,900

(2)

2,900

Total sources of capital

$ 1,500

$ 2,000

$ 1,750

Uses of capital:

Construction

$ 1,500

$ 2,000

$ 1,750

Total uses of capital

$ 1,500

$ 2,000

$ 1,750

Reduction in debt (included above):

Repayment of unsecured notes payable with 2026 maturities (3)

$ (650)

Tender offers for partial principal repayments of unsecured senior notes payable (4)

(952)

$ (952)

—

Issuance of unsecured senior notes payable (4)

750

$ 750

—

Unsecured senior line of credit, commercial paper, and other

(223)

(1,423)

(823)

(1,025)

Reduction in debt

$ (1,075)

$ (2,275)

$ (1,675)

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details on key credit metrics.

(1)

Refer to "Funds from operations and funds from operations, as adjusted, attributable to Alexandria's common stockholders" under "Definitions and reconciliations" in the Supplemental Information for additional details.

(2)

We expect our dispositions and sales of partial interests for the year ending December 31, 2026 to consist of land, non-core assets, and core assets (primarily sales of partial interests). As of April 27, 2026, our share of pending dispositions subject to non-refundable deposits, signed letters of intent, or purchase and sale agreement negotiations aggregated $149.1 million. We have an additional $2.18 billion of dispositions and sales of partial interests identified and in process.

(3)

In January 2026 and April 2026, we repaid, upon maturity, $300.0 million of 4.30% unsecured senior notes payable and $350.0 million of 3.80% unsecured senior notes payable, respectively. These repayments were funded temporarily with borrowings under our commercial paper program, which will be repaid through planned dispositions and sales of partial interests included in our 2026 guidance. No gain or loss was incurred in connection with these repayments.

(4)

In February 2026, we completed tender offers to repurchase debt principal aggregating $1.33 billion across a portion of our outstanding 4.00% Senior Notes due 2050, 3.00% Senior Notes due 2051, and 3.55% Senior Notes due 2052 for $952.2 million and recognized a gain on early extinguishment of debt of $366.4 million, including the write-off of unamortized debt issuance costs and other transaction-related costs. The tender offers were primarily funded through the issuance of $750.0 million unsecured senior notes payable, due 2036, with an interest rate of 5.25%. Refer to "Key capital events" in the Earnings Press Release for additional details.

As of 4/27/26

As of 1/26/26

Key Changes

to Midpoint

Key Assumptions

Low

High

Low

High

Occupancy of operating properties as of December 31, 2026

86.2 %

(1)

87.8 %

(1)

87.7 %

89.3 %

150 bps reduction (2)

Same property performance:

Net operating income changes

(10.5) %

(1)

(8.5) %

(1)

(9.5) %

(7.5) %

100 bps reduction (2)

Net operating income changes (cash basis)

(10.5) %

(1)

(8.5) %

(1)

(9.5) %

(7.5) %

100 bps reduction (2)

Lease renewals and re-leasing of space:

Rental rate changes

(9.0) %

(1.0) %

(2.0) %

6.0 %

700 bps reduction (3)

Rental rate changes (cash basis)

(15.0) %

(7.0) %

(12.0) %

(4.0) %

300 bps reduction (3)

Straight-line rent revenue

$ 55

$ 85

$ 65

$ 95

$10 million reduction (3)

General and administrative expenses

$ 134

$ 154

$ 134

$ 154

No Change

Capitalization of interest

$ 225

$ 265

$ 225

$ 275

$5 million reduction (4)

Interest expense

$ 240

$ 280

$ 230

$ 280

$5 million increase (4)

Realized gains on non-real estate investments (5)

$ 60

$ 90

$ 60

$ 90

No Change

(1)

Our guidance for operating occupancy percentage as of December 31, 2026 and for same property performance net operating income changes assumes an approximate 1% and 2% benefit, respectively, related to a range of assets with vacancy that could potentially be sold during 2026 and/or qualify for classification as held for sale by December 31, 2026, but that had not yet met such criteria as of March 31, 2026. Refer to the chart below for key drivers of the changes to certain key projected operating metrics and assumptions included in our 2026 guidance.

(2)

Decline primarily relates to changes to a range of properties that could potentially be sold during 2026 that were assumed in our prior guidance. Refer to the chart below.

(3)

Decline primarily related to the re-lease of two spaces subject to tenant wind-downs. Refer to the chart below.

(4)

The $5 million reduction and corresponding $5 million increase to the midpoints of our guidance ranges for 2026 capitalized interest and 2026 interest expense, respectively, are primarily driven by the anticipated earlier completion of certain milestones on several projects. Refer to the discussion of 4Q26 funds from operations per share – diluted, as adjusted and "Capitalized interest" item, and "Capitalization of interest" in the Supplemental Information for additional details.

(5)

Represents realized gains and losses included in funds from operations per share – diluted, as adjusted. Excludes unrealized gains and losses and significant gains and impairments realized on non-real estate investments, if any. Refer to "Investments" in the Supplemental Information for additional details.

Occupancy of Operating Properties

Same Property Performance

Lease Renewals and

Re-leasing of Space

Straight-Line

Rent Revenue

Key Drivers of Changes to Certain 2026 Projected

Operating Metrics and Assumptions

As of

December 31, 2026

Benefit From

Potential Held

For Sale Assets (1)

Net Operating

Income Changes

Net Operating

Income Changes

(Cash Basis)

Benefit From

Potential Held

For Sale Assets (1)

Rental Rate

Changes

Rental Rate

Changes

(Cash Basis)

Guidance ranges as of 1/26/26

87.7% to 89.3%

2 %

(9.5)% to (7.5)%

3 %

(2.0)% to 6.0%

(12.0)% to (4.0)%

$65M to $95M

Changes to range of properties that could potentially be

sold during 2026 that were assumed in prior 2026

guidance (1)

(1.3)

(1)

(1.0)

(1)

—

Primarily related to the re-lease of two spaces subject

to tenant wind-downs (2)

(0.2)

—

(7.0)

(3.0)

(10) (3)

Total changes to 2026 guidance midpoints

(1.5)

(1)

(1.0)

(1)

(7.0)

(3.0)

(10)

Guidance ranges as of 4/27/26

86.2% to 87.8%

1 %

(10.5)% to (8.5)%

2 %

(9.0)% to (1.0)%

(15.0)% to (7.0)%

$55M to $85M

(1)

Our prior guidance for occupancy percentage as of December 31, 2026 and 2026 same property performance net operating income changes assumed a benefit of approximately 2% and 3%, respectively, related to a range of assets with vacancy that could potentially be sold in 2026 and/or qualify for classification as held for sale by December 31, 2026 but had not yet met such criteria as of December 31, 2025. Our updated guidance for these metrics assumes a reduced benefit of approximately 1% and 2%, respectively, related to a range of assets with vacancy that could potentially be sold during 2026 and/or qualify for classification as held for sale by December 31, 2026, primarily due to our revised expectation that we may no longer sell as many assets with significant vacancy driven, in part, by positive leasing prospects for certain spaces that are currently vacant.

(2)

Includes the impacts of i) one lease aggregating 81,220 RSF in our Torrey Pines submarket, for which we proactively addressed a tenant wind-down by terminating the existing lease and executing a new lease in April 2026 with a growth-stage life science company advancing next-generation therapeutics to accommodate their expansion needs within our portfolio, with expected delivery in early 2027 following the completion of tenant improvements, and ii) one lease aggregating 47,719 RSF at 480 Arsenal Street in our Cambridge/Inner Suburbs submarket, with the space re-leased in 1Q26. Refer to "Leasing activity" in the Supplemental Information for additional details.

(3)

Primarily attributable to the write-off of a deferred rent receivable in April 2026 of approximately $5 million in connection with the lease termination and a payment of $10.5 million from a tenant in our Torrey Pines submarket discussed in footnote 2 above.

4Q26 funds from operations per share – diluted, as adjusted

1) Potential tenant wind-downs

2) Development-related other income

3) Development and redevelopment projects under business and financial strategy evaluation

4) Capitalized interest

5) Key lease expirations

6) Construction spending

We expect to introduce 2027 guidance and related assumptions at our Investor Day on December 2, 2026, consistent with our historical practice.

Dispositions and Sales of Partial Interests

March 31, 2026

(Dollars in thousands)

Price

(Our Share)

Gain on Sales

of Real Estate

Property

Completed in April 2026

$ 2,250

$ —

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

149,106

Completed and pending 2026 dispositions as of April 27, 2026

151,356

Dispositions and sales of partial interests identified and in process

2,181,275

Additional projected

567,369

$ 2,900,000

2026 guidance range for dispositions and sales of partial interests

$ 2,100,000 – $3,700,000

Midpoint

$ 2,900,000

Weighted-average projected disposition and sales of partial interests date

August 2026

Earnings Call Information and About the Company

March 31, 2026

We will host a conference call on Tuesday, April 28, 2026, at 2:00 p.m. Eastern Time ("ET")/11:00 a.m. Pacific Time ("PT"), which is open to the general public, to discuss our financial and operating results for the first quarter ended March 31, 2026. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 2:00 p.m. ET/11:00 a.m. PT and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the "For Investors" section. A replay of the call will be available for a limited time from 4:00 p.m. ET/1:00 p.m. PT on Tuesday, April 28, 2026. The replay number is (855) 669-9658 or (412) 317-0088, and the access code is 8933833.

Additionally, a copy of this Earnings Press Release and Supplemental Information for the first quarter ended March 31, 2026 is available in the "For Investors" section of our website at www.are.com or by following this link: https://www.are.com/fs/2026q1.pdf.

For any questions, please contact [email protected]; Joel S. Marcus, executive chairman and founder; Peter M. Moglia, chief executive officer and chief investment officer; Marc E. Binda, chief financial officer and treasurer; or Paula Schwartz, managing director of Rx Communications Group, at (917) 633-7790.

About the Company

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 ® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. As of March 31, 2026, Alexandria has a total market capitalization of $20.44 billion and an asset base that includes 35.8 million RSF of operating properties and 3.4 million RSF of Class A/A+ properties undergoing construction. Alexandria has a long-standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants' ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For more information on Alexandria, please visit www.are.com.

Forward-Looking Statements

This document includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding our projected 2026 funds from operations per share, projected 2026 funds from operations per share, as adjusted, projected net operating income, and our projected sources and uses of capital. You can identify the forward-looking statements by their use of forward-looking words, such as "forecast," "guidance," "goals," "projects," "estimates," "anticipates," "believes," "expects," "intends," "may," "plans," "seeks," "should," "targets," or "will," or the negative of those words or similar words. These forward-looking statements are based on our current expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, as well as a number of assumptions concerning future events. There can be no assurance that actual results will not be materially higher or lower than these expectations. These statements are subject to risks, uncertainties, assumptions, and other important factors that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, without limitation, our failure to obtain capital (debt, construction financing, and/or equity) or refinance debt maturities, lower than expected yields, increased interest rates and operating costs, adverse economic or real estate developments in our markets, our failure to successfully place into service and lease any properties undergoing development or redevelopment and our existing space held for future development or redevelopment (including new properties acquired for that purpose), our failure to successfully operate or lease acquired properties, decreased rental rates, increased vacancy rates or failure to renew or replace expiring leases, defaults on or non-renewal of leases by tenants, adverse general and local economic conditions, an unfavorable capital market environment, decreased leasing activity or lease renewals, failure to obtain LEED and other healthy building certifications and efficiencies, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission ("SEC"). Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are made as of the date of this Earnings Press Release and Supplemental Information, and unless otherwise stated, we assume no obligation to update this information and expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

This document is not an offer to sell or a solicitation to buy securities of Alexandria Real Estate Equities, Inc. Any offers to sell or solicitations to buy our securities shall be made only by means of a prospectus approved for that purpose. Unless otherwise indicated, the "Company," "Alexandria," "ARE," "we," "us," and "our" refer to Alexandria Real Estate Equities, Inc. and our consolidated subsidiaries. Alexandria ®, Lighthouse Design ® logo, Building the Future of Life-Changing Innovation ®, That's What's in Our DNA ®, Megacampus™, At the Vanguard and Heart of the Life Science Ecosystem™, Alexandria Center ®, Alexandria Technology Square ®, Alexandria Technology Center ®, and Alexandria Innovation Center ® are copyrights and trademarks of Alexandria Real Estate Equities, Inc. All other company names, trademarks, and logos referenced herein are the property of their respective owners.

Consolidated Statements of Operations

March 31, 2026

(Dollars in thousands, except per share amounts)

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

Revenues:

Income from rentals

$ 653,013

(1)

$ 728,872

$ 735,849

$ 737,279

$ 743,175

Other income

18,009

(2)

25,542

(3)

16,095

24,761

14,983

Total revenues

671,022

754,414

751,944

762,040

758,158

Expenses:

Rental operations

224,142

232,543

239,234

224,433

226,395

General and administrative

34,685

28,020

29,224

29,128

30,675

Interest

64,584

65,674

54,852

55,296

50,876

Depreciation and amortization

305,441

322,063

340,230

346,123

342,062

Impairment of real estate

5,499

1,717,188

323,870

129,606

32,154

Total expenses

634,351

2,365,488

987,410

784,586

682,162

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

(147)

(304)

201

(9,021)

(507)

Investment (loss) income

(4,582)

(3,890)

28,161

(30,622)

(49,992)

Gain (loss) on early extinguishment of debt

366,435

—

(107)

—

Gain on sales of real estate

—

619,914

9,366

—

13,165

Net income (loss)

398,377

(995,354)

(197,845)

(62,189)

38,662

Net income attributable to noncontrolling interests

(36,724)

(85,521)

(34,909)

(44,813)

(47,601)

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

361,653

(1,080,875)

(232,754)

(107,002)

(8,939)

Net income attributable to unvested restricted stock awards

(2,779)

(965)

(2,183)

(2,609)

(2,660)

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

$ 358,874

$ (1,081,840)

$ (234,937)

$ (109,611)

$ (11,599)

Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.'s common stockholders:

Basic

$ 2.10

$ (6.35)

$ (1.38)

$ (0.64)

$ (0.07)

Diluted

$ 2.10

$ (6.35)

$ (1.38)

$ (0.64)

$ (0.07)

Weighted-average shares of common stock outstanding:

Basic

170,598

170,394

170,181

170,135

170,522

Diluted

170,867

170,394

170,181

170,135

170,522

Dividends declared per share of common stock

$ 0.72

$ 1.32

(1)

The decline from 4Q25 is primarily attributable to: i) the disposition of operating properties subsequent to October 1, 2025, ii) previously disclosed 2026 key lease expirations aggregating 657,492 RSF, that became vacant during 1Q26, with a weighted-average lease expiration date of January 2026 and prior annual rental revenue of approximately $41.6 million, and iii) rental revenue of $11.4 million recognized during 4Q25, primarily related to a termination fee, net of the deferred rent balances written off, at a property in our South San Francisco submarket that is now vacant and has been fully re-leased, with occupancy expected to commence in 3Q26.

(2)

During 1Q26, we recognized certain development fees and other related revenues included in other income aggregating approximately $2.5 million, most of which we expect to cease by the end of 2026 as we complete the related projects.

(3)

Includes an asset management fee of $7.0 million recognized in 4Q25, which was paid by our joint venture partner in connection with the disposition of 409 and 499 Illinois Street in the Mission Bay submarket.

Consolidated Balance Sheets

March 31, 2026

(In thousands)

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

Assets

Investments in real estate

$ 28,830,116

$ 28,689,996

$ 31,743,917

$ 32,160,600

$ 32,121,712

Investments in unconsolidated real estate joint ventures

30,520

30,677

39,601

40,234

50,086

Cash and cash equivalents

418,720

549,062

579,474

520,545

476,430

Restricted cash

4,665

4,693

4,705

7,403

7,324

Tenant receivables

7,362

6,672

6,409

6,267

6,875

Deferred rent

1,200,047

1,179,403

1,257,378

1,232,719

1,210,584

Deferred leasing costs

456,405

458,311

505,241

491,074

489,287

Investments

1,536,419

1,501,249

1,537,638

1,476,696

1,479,688

Other assets

1,683,143

1,661,772

1,700,785

1,688,091

1,758,442

Total assets

$ 34,167,397

$ 34,081,835

$ 37,375,148

$ 37,623,629

$ 37,600,428

Liabilities, Noncontrolling Interests, and Equity

Secured notes payable

$ —

$ 153,500

$ 150,807

Unsecured senior notes payable

11,166,009

12,047,394

12,044,999

12,042,607

12,640,144

Unsecured senior line of credit and commercial paper

1,353,986

353,161

1,548,542

1,097,993

299,883

Accounts payable, accrued expenses, and other liabilities

2,154,782

2,397,073

2,432,726

2,360,840

2,281,414

Dividends payable

128,880

127,771

230,603

229,686

228,622

Total liabilities

14,803,657

14,925,399

16,256,870

15,884,626

15,600,870

Commitments and contingencies

Redeemable noncontrolling interests

9,234

58,788

58,662

9,612

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

Common stock

1,707

1,705

1,703

1,701

Additional paid-in capital

15,763,321

15,497,760

16,669,802

17,200,949

17,509,148

Accumulated other comprehensive loss

(30,936)

(29,395)

(32,203)

(27,415)

(46,202)

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

15,734,092

15,470,070

16,639,302

17,175,235

17,464,647

Noncontrolling interests

3,620,414

3,627,578

4,420,314

4,554,156

4,525,299

Total equity

19,354,506

19,097,648

21,059,616

21,729,391

21,989,946

Total liabilities, noncontrolling interests, and equity

$ 34,167,397

$ 34,081,835

$ 37,375,148

$ 37,623,629

$ 37,600,428

Funds From Operations and Funds From Operations per Share

March 31, 2026

(In thousands)

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

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

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

$ 358,874

$ (1,081,840)

$ (234,937)

$ (109,611)

$ (11,599)

Depreciation and amortization of real estate assets

303,296

319,865

338,182

343,729

339,381

Noncontrolling share of depreciation and amortization from consolidated real estate JVs

(29,473)

(39,942)

(45,327)

(36,047)

(33,411)

Our share of depreciation and amortization from unconsolidated real estate JVs

914

855

852

942

1,054

Gain on sales of real estate

—

(307,132)

(9,824)

—

(13,165)

Impairment of real estate – rental properties and land

5,499

(1)

1,439,303

323,870

131,090

—

Allocation to unvested restricted stock awards

(2,181)

(1,903)

(1,648)

(1,222)

(686)

Funds from operations attributable to Alexandria's common stockholders – diluted (2)

636,929

329,206

371,168

328,881

281,574

Unrealized losses (gains) on non-real estate investments

10,332

(98,548)

(18,515)

21,938

68,145

Significant realized losses on non-real estate investments

—

103,329

—

Impairment of non-real estate investments

12,448

(3)

20,181

25,139

39,216

11,180

Impairment of real estate

—

12,619

—

7,189

32,154

(Gain) loss on early extinguishment of debt

(366,435)

(4)

—

107

—

Acceleration of stock compensation expense due to executive officer resignation

—

2,455

—

(Decrease) increase in provision for expected credit losses on financial instruments

—

(341)

—

285

Allocation to unvested restricted stock awards

2,674

(363)

(74)

(794)

(1,329)

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

$ 295,948

$ 368,538

$ 377,825

$ 396,430

$ 392,009

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

(1)

Primarily represents an incremental impairment charge recognized in 1Q26 in connection with the amendment of the sales agreement for our Canada portfolio, which was classified as held for sale as of December 31, 2025.

(2)

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

(3)

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

(4)

In February 2026, we completed tender offers to repurchase debt principal aggregating $1.33 billion across a portion of our outstanding 4.00% Senior Notes due 2050, 3.00% Senior Notes due 2051, and 3.55% Senior Notes due 2052 for $952.2 million. The gain includes the write-off of unamortized debt issuance costs and other transaction-related costs.

The following table presents a reconciliation of net income (loss) per share attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations per share attributable to Alexandria's common stockholders – diluted, and funds from operations per share attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below. Per share amounts may not add due to rounding.

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

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

$ 2.10

$ (6.35)

$ (1.38)

$ (0.64)

$ (0.07)

Depreciation and amortization of real estate assets

1.61

1.65

1.73

1.81

1.80

Gain on sales of real estate

—

(1.80)

(0.06)

—

(0.08)

Impairment of real estate – rental properties and land

0.03

8.45

1.90

0.77

—

Allocation to unvested restricted stock awards

(0.01)

(0.02)

(0.01)

—

Funds from operations per share attributable to Alexandria's common stockholders – diluted

3.73

1.93

2.18

1.93

1.65

Unrealized losses (gains) on non-real estate investments

0.06

(0.58)

(0.11)

0.13

0.40

Significant realized losses on non-real estate investments

—

0.61

—

Impairment of non-real estate investments

0.07

0.12

0.15

0.23

0.07

Impairment of real estate

—

0.07

—

0.04

0.19

(Gain) loss on early extinguishment of debt

(2.14)

—

Acceleration of stock compensation expense due to executive officer resignation

—

0.01

—

Allocation to unvested restricted stock awards

0.01

—

(0.01)

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

$ 1.73

$ 2.16

$ 2.22

$ 2.33

$ 2.30

Weighted-average shares of common stock outstanding – diluted

Earnings per share – diluted

170,867

170,394

170,181

170,135

170,522

Funds from operations – diluted, per share

170,867

170,504

170,305

170,192

170,599

Funds from operations – diluted, as adjusted, per share

170,867

170,504

170,305

170,192

170,599

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

SOURCE Alexandria Real Estate Equities, Inc.