Alexandria Real Estate Equities, Inc. Reports 2Q26 and 1H26 Net (Loss) Income per Share - Diluted of $(0.43) and $1.68, respectively, and 2Q26 and 1H26 FFO per Share - Diluted, as Adjusted, of $1.73 and $3.46, respectively

PASADENA, Calif., Aug. 3, 2026 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the second quarter ended June 30, 2026.

KEY HIGHLIGHTS

Operating results

2Q26

2Q25

1H26

1H25

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

In millions

$ (73.7)

$ (109.6)

$ 286.7

$ (121.2)

Per share

$ (0.43)

$ (0.64)

$ 1.68

$ (0.71)

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

In millions

$ 296.1

$ 396.4

$ 592.0

$ 788.4

Per share

$ 1.73

$ 2.33

$ 3.46

$ 4.63

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

86.9 %

Occupancy of operating properties, including executed leases with future occupancy

90.9 %

Percentage of annual rental revenue in effect from Megacampus platform

80 %

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

traded large cap tenants

57 %

Operating margin

69 %

Adjusted EBITDA margin

67 %

Percentage of leases containing annual rent escalations

97 %

Weighted-average remaining lease term:

Top 20 tenants

10.0

years

All tenants

7.7

years

Strong 2Q26 tenant collections (1):

2Q26 rents and receivables collected as of August 3, 2026

99.9 %

(1) Refer to "Tenant collections" under "Definitions and reconciliations" in the Supplemental Information.

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 6/30/26)

Solid 2Q26 leasing volume exceeding 1.0 million RSF

Leasing Volume in RSF:

2Q26

1Q26

1H26

Leasing of development and redevelopment space

68,771

117,935

186,706

Leasing of previously vacant space

329,148

148,734

477,882

397,919

266,669

664,588

Lease renewals and re-leasing of space

640,998

380,687

1,021,685

Total leasing volume

1,038,917

647,356

1,686,273

Lease renewals and re-leasing of space:

Rental rate changes

(0.7) %

(15.0) %

(7.4) %

Rental rate changes (cash basis)

(4.3) %

(15.8) %

(9.6) %

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

(in millions)

Sales Price

Completed as of August 3, 2026

$ 170

Pending transactions subject to non-refundable deposits, signed letters of

intent, and/or sale agreement negotiations

1,159

1,329

46 %

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

1,100

38 %

Multiple alternatives under evaluation

471

16 %

2026 guidance midpoint for dispositions, sales of partial interests, and

other capital sources

$ 2,900

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

(in millions)

2026

Guidance

(Midpoint)

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

$ 1,750

Reduction of debt to meet our leverage goal

1,675

Net cash provided by operating activities, as adjusted

(525)

$ 2,900

Occupancy and leasing progress

Operating occupancy as of March 31, 2026

87.7 %

Key changes to occupancy:

Reclassification of space at 3000 Minuteman Road from redevelopment to operating

in 2Q26, fully leased with expected occupancy in 2Q27

(0.4)

(1)

Previously disclosed 2Q26 key lease expirations with expected downtime

(0.8)

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

0.4

Operating occupancy as of June 30, 2026

86.9

Vacant space with executed leases and future occupancy

4.0

(2)

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

occupancy

90.9 %

(1)

Refer to "Reduction of capital spend and funding needs" in this Earnings Press Release for additional details regarding the 159,947 RSF lease executed in 2Q26.

(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

Operating metrics

2Q26

1H26

Same property performance:

Net operating income changes

(10.6) %

(1)

(11.5) %

(1)

Net operating income changes (cash basis)

(8.6) %

(1)

(11.2) %

(1)

Occupancy – current-period average

87.1 %

88.2 %

Occupancy – same-period prior-year average

92.6 %

93.5 %

Refer to "Same property comparisons" and "Net operating income" under "Definitions and reconciliations" in the Supplemental Information for additional details and their respective reconciliations from the most directly comparable financial measures presented in accordance with GAAP.

(1)

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 in 1Q26 and 260,888 RSF in 2Q26, with weighted-average lease expiration dates of January 2026 and April 2026, respectively.

Reduction of capital spend and funding needs

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

Development and Redevelopment

Projects

Incremental

Annual Net

Operating Income

RSF

Occupied/

Leased/

Negotiating

Percentage

(dollars in millions)

Placed into service in 1H26

$ 58

532,219

91 %

Expected to be placed into service:

2H26

$ 42

(1)

174,662

(2)

84 %

(3)

2027–2028

1,258,004

68 %

$ 135

(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 our 174,662 RSF development project that is expected to stabilize in 4Q26.

Continued successful management of general and administrative expenses

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

June 30, 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" in this Earnings Press Release as well as our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

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

As of 8/3/26

As of 4/27/26

Key Changes

Funds from operations per share, as adjusted (1)

$6.35 to $6.45

$6.30 to $6.50

No change to midpoint;

range narrowed by 10 cents (2)

Midpoint

$6.40

Key Credit Metrics Targets

As of 8/3/26

As of 4/27/26

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 8/3/26

As of 4/27/26

Midpoint

Key Sources and Uses of Capital

Range

Midpoint

Certain

Completed Items

Sources of capital:

Net cash provided by operating activities, as adjusted

$ 475

$ 575

$ 525

Dispositions, sales of partial interests, and other capital sources (3)

2,100

3,700

2,900

(3)

2,900

Total sources of capital

$ 2,575

$ 4,275

$ 3,425

Uses of capital:

Construction (4)(5)

$ 1,500

$ 2,000

$ 1,750

Reduction in unsecured senior debt

1,075

2,275

1,675

See below

1,675

Total uses of capital

$ 2,575

$ 4,275

$ 3,425

Reduction in unsecured senior debt (included above):

Repayment of unsecured senior notes payable with 2026 maturities

$ 650

650

$ 650

Tender offers for partial principal repayments of unsecured senior notes payable

952

Issuance of unsecured senior notes payable

(750)

Unsecured senior line of credit, commercial paper, and other

223

1,423

823

Reduction in unsecured senior 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 Real Estate Equities, Inc.'s common stockholders" under "Definitions and reconciliations" in the Supplemental Information for additional details.

(2)

Refer to "2026 and 4Q26 funds from operations per share – diluted, as adjusted" below for additional details.

(3)

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. As of August 3, 2026, completed dispositions aggregated $170.4 million, our share of pending dispositions and sales of partial interests subject to non-refundable deposits, signed letters of intent, or purchase and sale agreement negotiations aggregated $1.16 billion, and in-process dispositions, sales of partial interests, and other capital sources aggregated $1.10 billion, with the remaining $471.0 million representing multiple alternatives that we are currently evaluating.

(4)

We are currently evaluating our future construction spending estimates for 2027, and a number of factors could cause our preliminary estimates for 2027 to change as we refine our estimates over the next several months. As of August 3, 2026, our updated estimate of 2027 construction spending assumes a decline of $100 million to $600 million (relative to the $1.75 billion midpoint of our 2026 guidance range), resulting in an expected range of $1.15 billion to $1.65 billion, subject to market conditions. The updates to our 2027 construction spending outlook primarily reflect additional leasing activity since 1Q26, including recently executed leases and leases currently under negotiation, which has refined our expectations regarding the amount and timing of 2027 construction spending.

(5)

We expect 2027 construction spending to primarily focus on: (i) construction spending required to complete our development and redevelopment projects that are expected to stabilize through 2028 and are 71% leased, (ii) five projects under evaluation which may require significant capital to complete, and (iii) revenue- and non-revenue-enhancing capital expenditures, in order to secure leasing of vacant space and renewals and re-leasing of space at our operating properties.

As of 8/3/26

As of 4/27/26

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)

86.2 %

87.8 %

No Change

Same property performance:

Net operating income changes

(10.5) %

(1)

(8.5) %

(1)

(10.5) %

(8.5) %

Net operating income changes (cash basis)

(10.5) %

(1)

(8.5) %

(1)

(10.5) %

(8.5) %

Lease renewals and re-leasing of space:

Rental rate changes

(9.0) %

(1.0) %

(9.0) %

(1.0) %

Rental rate changes (cash basis)

(15.0) %

(7.0) %

(15.0) %

(7.0) %

Straight-line rent revenue

$ 45

$ 75

$ 55

$ 85

$10 million reduction (2)

General and administrative expenses

$ 134

$ 154

$ 134

$ 154

No Change

Capitalization of interest

$ 220

$ 260

$ 225

$ 265

$5 million reduction (3)

Interest expense

$ 260

$ 300

$ 240

$ 280

$20 million increase (4)

Realized gains on non-real estate investments (5)

$ 60

$ 90

$ 60

$ 90

No Change

(1)

Our guidance for occupancy of operating properties as of December 31, 2026, and for 2026 same property net operating income changes assumes a 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, but that had not yet met such criteria as of June 30, 2026.

(2)

Reduction driven primarily by write-offs and reserves of deferred rent related to tenant wind-downs. Our 2026 guidance continues to assume a $25 million to $30 million reduction in funds from operations related to potential tenant wind-downs, of which approximately $14 million was recognized during 1H26, including approximately $8 million recognized in 2Q26.

(3)

Reduction driven primarily by the achievement of certain milestone dates across several projects impacting 4Q26, including a potential decline related to projects for which we are evaluating business and financial strategies. Refer to the discussion of "2026 and 4Q26 funds from operations per share – diluted, as adjusted" and "Capitalization of interest" below, and "Capitalization of interest" in the Supplemental Information for additional details.

(4)

Includes: (i) an approximate $15 million increase resulting primarily from a shift of approximately six weeks in the weighted-average projected completion date of our 2026 dispositions, sales of partial interests, and other capital sources, from August 2026 to September 2026, and (ii) an approximate $5 million increase resulting primarily from the reduction in 2026 capitalization of interest in 4Q26 discussed in the footnote above.

(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.

2026 and 4Q26 funds from operations per share – diluted, as adjusted

1) Development-related other income

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

3) Capitalization of interest

4) 2Q26 Key lease expirations

Key Lease Expirations

RSF

Annual Rental

Revenue

Weighted-Average

Expiration Date

Weighted-Average

Downtime

2026

451,450

$18.1 million

August 2026

12 to 24 months

2027

1,377,960

$100.5 million

March 2027

12 to 24 months

5) Dispositions, sales of partial interests, and other capital sources

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

Dispositions, Sales of Partial Interests, and Other Capital Sources

June 30, 2026

(Dollars in thousands)

Date of

Transaction

Interest

Sold

Square Footage

Capitalization

Rate

Capitalization

Rate

(Cash Basis)

Price

(Our Share)

Property

Submarket/Market

Operating

Future

Development

Completed in 2Q26 and 1H26

$ 7,350

Completed in July 2026:

Land:

3825 and 3875 Fabian Way (1)

Palo Alto/San Francisco Bay Area

7/14/26

100 %

228,000

250,000

N/A (1)

163,000

Total completed 2026 dispositions as of August 3, 2026

170,350

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

1,158,626

1,328,976

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

1,100,000

Multiple alternatives under evaluation

471,024

$ 2,900,000

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

$2,100,000 – $3,700,000

Midpoint

$ 2,900,000

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

September 2026

(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 2Q26 annualized results, the assets generated approximately $6.2 million of annual net operating income.

(2)

Earnings Call Information and About the Company

June 30, 2026

We will host a conference call on Tuesday, August 4, 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 second quarter ended June 30, 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, August 4, 2026. The replay number is (855) 669-9658 or (412) 317-0088, and the access code is 5367901.

Additionally, a copy of this Earnings Press Release and Supplemental Information for the second quarter ended June 30, 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/2026q2.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 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. 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

June 30, 2026

(Dollars in thousands, except per share amounts)

Three Months Ended

Six Months Ended

6/30/26

3/31/26

12/31/25

9/30/25

6/30/25

6/30/26

6/30/25

Revenues:

Income from rentals

$ 643,210

$ 653,013

$ 728,872

$ 735,849

$ 737,279

$ 1,296,223

$ 1,480,454

Other income

19,574

18,009

25,542

16,095

24,761

37,583

39,744

Total revenues

662,784

671,022

754,414

751,944

762,040

1,333,806

1,520,198

Expenses:

Rental operations

207,336

224,142

232,543

239,234

224,433

431,478

450,828

General and administrative

36,861

34,685

28,020

29,224

29,128

71,546

59,803

Interest

64,342

64,584

65,674

54,852

55,296

128,926

106,172

Depreciation and amortization

304,384

305,441

322,063

340,230

346,123

609,825

688,185

Impairment of real estate

222,470

5,499

1,717,188

323,870

129,606

227,969

161,760

Total expenses

835,393

634,351

2,365,488

987,410

784,586

1,469,744

1,466,748

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

413

(147)

(304)

201

(9,021)

266

(9,528)

Investment income (losses)

133,227

(4,582)

(3,890)

28,161

(30,622)

128,645

(80,614)

Gain (loss) on early extinguishment of debt

—

366,435

—

(107)

—

366,435

—

Gain on sales of real estate

—

619,914

9,366

—

13,165

Net (loss) income

(38,969)

398,377

(995,354)

(197,845)

(62,189)

359,408

(23,527)

Net income attributable to noncontrolling interests

(33,814)

(36,724)

(85,521)

(34,909)

(44,813)

(70,538)

(92,414)

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

stockholders

(72,783)

361,653

(1,080,875)

(232,754)

(107,002)

288,870

(115,941)

Net income attributable to unvested restricted stock awards

(908)

(2,779)

(965)

(2,183)

(2,609)

(2,149)

(5,269)

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

common stockholders

$ (73,691)

$ 358,874

$ (1,081,840)

$ (234,937)

$ (109,611)

$ 286,721

$ (121,210)

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

Inc.'s common stockholders:

Basic

$ (0.43)

$ 2.10

$ (6.35)

$ (1.38)

$ (0.64)

$ 1.68

$ (0.71)

Diluted

$ (0.43)

$ 2.10

$ (6.35)

$ (1.38)

$ (0.64)

$ 1.68

$ (0.71)

Weighted-average shares of common stock outstanding:

Basic

170,718

170,598

170,394

170,181

170,135

170,658

170,328

Diluted

170,718

170,867

170,394

170,181

170,135

171,040

170,328

Dividends declared per share of common stock

$ 0.72

$ 1.32

$ 1.44

$ 2.64

Consolidated Balance Sheets

June 30, 2026

(In thousands)

6/30/26

3/31/26

12/31/25

9/30/25

6/30/25

Assets

Investments in real estate

$ 29,125,895

$ 28,830,116

$ 28,689,996

$ 31,743,917

$ 32,160,600

Investments in unconsolidated real estate joint ventures

28,910

30,520

30,677

39,601

40,234

Cash and cash equivalents

470,449

418,720

549,062

579,474

520,545

Restricted cash

4,690

4,665

4,693

4,705

7,403

Tenant receivables

7,661

7,362

6,672

6,409

6,267

Deferred rent

1,209,722

1,200,047

1,179,403

1,257,378

1,232,719

Deferred leasing costs

453,761

456,405

458,311

505,241

491,074

Investments

1,685,695

1,536,419

1,501,249

1,537,638

1,476,696

Other assets

1,645,443

1,683,143

1,661,772

1,700,785

1,688,091

Total assets

$ 34,632,226

$ 34,167,397

$ 34,081,835

$ 37,375,148

$ 37,623,629

Liabilities, Noncontrolling Interests, and Equity

Secured notes payable

$ —

$ 153,500

Unsecured senior notes payable

10,818,366

11,166,009

12,047,394

12,044,999

12,042,607

Unsecured senior line of credit and commercial paper

1,994,508

1,353,986

353,161

1,548,542

1,097,993

Accounts payable, accrued expenses, and other liabilities

2,513,526

2,154,782

2,397,073

2,432,726

2,360,840

Dividends payable

130,468

128,880

127,771

230,603

229,686

Total liabilities

15,456,868

14,803,657

14,925,399

16,256,870

15,884,626

Commitments and contingencies

Redeemable noncontrolling interests

9,119

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

15,585,296

15,763,321

15,497,760

16,669,802

17,200,949

Accumulated other comprehensive loss

(33,027)

(30,936)

(29,395)

(32,203)

(27,415)

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

15,553,976

15,734,092

15,470,070

16,639,302

17,175,235

Noncontrolling interests

3,612,263

3,620,414

3,627,578

4,420,314

4,554,156

Total equity

19,166,239

19,354,506

19,097,648

21,059,616

21,729,391

Total liabilities, noncontrolling interests, and equity

$ 34,632,226

$ 34,167,397

$ 34,081,835

$ 37,375,148

$ 37,623,629

Funds From Operations and Funds From Operations per Share

June 30, 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

Six Months Ended

6/30/26

3/31/26

12/31/25

9/30/25

6/30/25

6/30/26

6/30/25

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

$ (73,691)

$ 358,874

$ (1,081,840)

$ (234,937)

$ (109,611)

$ 286,721

$ (121,210)

Depreciation and amortization of real estate assets

302,238

303,296

319,865

338,182

343,729

605,534

683,110

Noncontrolling share of depreciation and amortization from consolidated real estate JVs

(31,518)

(29,473)

(39,942)

(45,327)

(36,047)

(60,991)

(69,458)

Our share of depreciation and amortization from unconsolidated real estate JVs

805

914

855

852

942

1,719

1,996

Gain on sales of real estate

—

(307,132)

(9,824)

—

(13,165)

Impairment of real estate – rental properties and land

222,470

(1)

5,499

1,439,303

323,870

131,090

227,969

131,090

Allocation to unvested restricted stock awards

(2,201)

(2,181)

(1,903)

(1,648)

(1,222)

(5,877)

(1,916)

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

418,103

636,929

329,206

371,168

328,881

1,055,075

610,447

Unrealized (gains) losses on non-real estate investments

(131,933)

10,332

(98,548)

(18,515)

21,938

(121,601)

90,083

Significant realized losses on non-real estate investments

—

103,329

—

Impairment of non-real estate investments

8,998

(3)

12,448

20,181

25,139

39,216

21,446

50,396

Impairment of real estate

—

12,619

—

7,189

—

39,343

(Gain) loss on early extinguishment of debt

—

(366,435)

—

107

—

(366,435)

—

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

909

2,674

(363)

(74)

(794)

3,541

(2,116)

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

adjusted

$ 296,077

$ 295,948

$ 368,538

$ 377,825

$ 396,430

$ 592,026

$ 788,438

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

(1)

Primarily reflects impairment charges to reduce the carrying amounts of the following real estate assets classified as held for sale as of 2Q26 to their respective estimated fair values less costs to sell, including (i) $64.2 million related to a land parcel in Sorrento Mesa that is expected to be sold to a residential developer, (ii) $61.6 million, including $8.9 million attributable to foreign currency translation, related to one operating property in Canada, which was classified as held for sale following our decision to sell the asset and reallocate the substantial near-term capital that its redevelopment would have required toward other projects with greater value-creation opportunities, (iii) $28.2 million related to one land parcel and five operating properties, primarily comprising non-laboratory space, in our Sorrento Valley submarket, which were 30% occupied as of 2Q26, had a weighted-average lease term of 2.4 years, and would have required significant capital investment to convert to laboratory use, and (iv) $24.8 million related to one vacant office property, aggregating 104,956 RSF, in the Cambridge submarket of our Greater Boston market, for which we elected not to pursue a conversion to laboratory space.

(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.

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

Six Months Ended

6/30/26

3/31/26

12/31/25

9/30/25

6/30/25

6/30/26

6/30/25

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

$ (0.43)

$ 2.10

$ (6.35)

$ (1.38)

$ (0.64)

$ 1.68

$ (0.71)

Depreciation and amortization of real estate assets

1.59

1.61

1.65

1.73

1.81

3.19

3.61

Gain on sales of real estate

—

(1.80)

(0.06)

—

(0.08)

Impairment of real estate – rental properties and land

1.30

0.03

8.45

1.90

0.77

1.33

0.77

Allocation to unvested restricted stock awards

(0.02)

(0.01)

(0.02)

(0.01)

(0.03)

(0.01)

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

diluted

2.44

3.73

1.93

2.18

1.93

6.17

3.58

Unrealized (gains) losses on non-real estate investments

(0.77)

0.06

(0.58)

(0.11)

0.13

(0.71)

0.53

Significant realized losses on non-real estate investments

—

0.61

—

Impairment of non-real estate investments

0.05

0.07

0.12

0.15

0.23

0.13

0.30

Impairment of real estate

—

0.07

—

0.04

—

0.23

(Gain) loss on early extinguishment of debt

—

(2.14)

—

(2.14)

—

Acceleration of stock compensation expense due to executive officer resignation

—

0.01

—

Allocation to unvested restricted stock awards

0.01

—

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

$ 3.46

$ 4.63

Weighted-average shares of common stock outstanding – diluted

Earnings per share – diluted

170,718

170,867

170,394

170,181

170,135

171,040

170,328

Funds from operations – diluted, per share

171,210

170,867

170,504

170,305

170,192

171,040

170,390

Funds from operations – diluted, as adjusted, per share

171,210

170,867

170,504

170,305

170,192

171,040

170,390

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

SOURCE Alexandria Real Estate Equities, Inc.