Alexandria Real Estate Equities (ARE) 10-Q 2024 Q3 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q 

(Mark One)

    ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

          EXCHANGE ACT OF 1934 

For the quarterly period ended September 30, 2024

OR

    ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number 1-12993

ALEXANDRIA REAL ESTATE EQUITIES, INC.

(Exact name of registrant as specified in its charter)

Maryland	95-4502084
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

 26 North Euclid Avenue, Pasadena, California 91101

(Address of principal executive offices) (Zip code)

(626) 578-0777

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	ARE	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and

posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period

that the registrant was required to submit and post such files). Yes ☒  No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting

company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting

company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Smaller reporting company	☐
Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

As of October 15, 2024, 174,762,259 shares of common stock, par value $0.01 per share, were outstanding.

i

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS (UNAUDITED)
	Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 ..................................................	1
	Consolidated Financial Statements for the Three and Nine Months Ended September 30, 2024 and 2023:
	Consolidated Statements of Operations ...................................................................................................................	2
	Consolidated Statements of Comprehensive Income ............................................................................................	3
	Consolidated Statements of Changes in Stockholders’ Equity and Noncontrolling Interests ..........................	4
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 ...................	8
	Notes to Consolidated Financial Statements ....................................................................................................................	10
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ........................................................................................................................................................................	44
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK .........................................................	113
Item 4.	CONTROLS AND PROCEDURES .....................................................................................................................................	114
PART II – OTHER INFORMATION
Item 1.	LEGAL PROCEEDINGS ......................................................................................................................................................	115
Item 1A.	RISK FACTORS ....................................................................................................................................................................	115
Item 5.	OTHER INFORMATION .......................................................................................................................................................	116
Item 6.	EXHIBITS ...............................................................................................................................................................................	117
SIGNATURES .................................................................................................................................................................................................		118

ii

GLOSSARY

The following abbreviations or acronyms that may be used in this document

shall have the adjacent meanings set forth below:

ASU	Accounting Standards Update
ATM	At the Market
CIP	Construction in Progress
EPS	Earnings per Share
FASB	Financial Accounting Standards Board
FFO	Funds From Operations
GAAP	U.S. Generally Accepted Accounting Principles
IRS	Internal Revenue Service
JV	Joint Venture
Nareit	National Association of Real Estate Investment Trusts
NAV	Net Asset Value
NYSE	New York Stock Exchange
REIT	Real Estate Investment Trust
RSF	Rentable Square Feet/Foot
SEC	Securities and Exchange Commission
SF	Square Feet/Foot
SoDo	South of Downtown submarket of Seattle
SOFR	Secured Overnight Financing Rate
SoMa	South of Market submarket of the San Francisco Bay Area
U.S.	United States
VIE	Variable Interest Entity

1

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

Alexandria Real Estate Equities, Inc.

Consolidated Balance Sheets

(In thousands)

	September 30, 2024	December 31, 2023
	(Unaudited)
Assets
Investments in real estate	$32,951,777	$31,633,511
Investments in unconsolidated real estate joint ventures	40,170	37,780
Cash and cash equivalents	562,606	618,190
Restricted cash	17,031	42,581
Tenant receivables	6,980	8,211
Deferred rent	1,216,176	1,050,319
Deferred leasing costs	516,872	509,398
Investments	1,519,327	1,449,518
Other assets	1,657,189	1,421,894
Total assets	$38,488,128	$36,771,402
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable	$145,000	$119,662
Unsecured senior notes payable	12,092,012	11,096,028
Unsecured senior line of credit and commercial paper	454,589	99,952
Accounts payable, accrued expenses, and other liabilities	2,865,886	2,610,943
Dividends payable	227,191	221,824
Total liabilities	15,784,678	14,148,409
Commitments and contingencies
Redeemable noncontrolling interests	16,510	16,480
Alexandria Real Estate Equities, Inc.’s stockholders’ equity:
Common stock	1,722	1,719
Additional paid-in capital	18,238,438	18,485,352
Accumulated other comprehensive loss	(22,529)	(15,896)
Alexandria Real Estate Equities, Inc.’s stockholders’ equity	18,217,631	18,471,175
Noncontrolling interests	4,469,309	4,135,338
Total equity	22,686,940	22,606,513
Total liabilities, noncontrolling interests, and equity	$38,488,128	$36,771,402

The accompanying notes are an integral part of these consolidated financial statements.

2

Alexandria Real Estate Equities, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Revenues:
Income from rentals	$775,744	$707,531	$2,286,457	$2,099,819
Other income	15,863	6,257	40,992	28,664
Total revenues	791,607	713,788	2,327,449	2,128,483
Expenses:
Rental operations	233,265	217,687	668,833	636,454
General and administrative	43,945	45,987	135,629	140,065
Interest	43,550	11,411	130,179	42,237
Depreciation and amortization	293,998	269,370	872,272	808,227
Impairment of real estate	5,741	20,649	36,504	189,224
Total expenses	620,499	565,104	1,843,417	1,816,207
Equity in earnings of unconsolidated real estate joint ventures	139	242	424	617
Investment income (loss)	15,242	(80,672)	14,866	(204,051)
Gain on sales of real estate	27,114	—	27,506	214,810
Net income	213,603	68,254	526,828	323,652
Net income attributable to noncontrolling interests	(45,656)	(43,985)	(141,634)	(131,584)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders	167,947	24,269	385,194	192,068
Net income attributable to unvested restricted stock awards	(3,273)	(2,414)	(10,717)	(7,697)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$164,674	$21,855	$374,477	$184,371
Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders:
Basic	$0.96	$0.13	$2.18	$1.08
Diluted	$0.96	$0.13	$2.18	$1.08

The accompanying notes are an integral part of these consolidated financial statements.

3

Alexandria Real Estate Equities, Inc.

Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Net income	$213,603	$68,254	$526,828	$323,652
Other comprehensive income (loss)
Unrealized gains (losses) on foreign currency translation:
Unrealized foreign currency translation gains (losses) arising during the period	5,056	(8,395)	(6,758)	(4,172)
Reclassification adjustment for losses included in net income	125	—	125	—
Unrealized gains (losses) on foreign currency translation, net	5,181	(8,395)	(6,633)	(4,172)
Total other comprehensive income (loss)	5,181	(8,395)	(6,633)	(4,172)
Comprehensive income	218,784	59,859	520,195	319,480
Less: comprehensive income attributable to noncontrolling interests	(45,656)	(43,985)	(141,634)	(131,584)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s stockholders	$173,128	$15,874	$378,561	$187,896

The accompanying notes are an integral part of these consolidated financial statements.

4

Alexandria Real Estate Equities, Inc.

Consolidated Statement of Changes in Stockholders’ Equity and Noncontrolling Interests

(Dollars in thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc.’s Stockholders’ Equity
	Number of Common Shares	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total Equity	Redeemable Noncontrolling Interests
Balance as of June 30, 2024	172,017,674	$1,720	$18,284,611	$—	$(27,710)	$4,391,806	$22,650,427	$16,440
Net income	—	—	—	167,947	—	45,385	213,332	271
Total other comprehensive income	—	—	—	—	5,181	—	5,181	—
Contributions from and sales of noncontrolling interests	—	—	490	—	—	91,118	91,608	—
Distributions to and redemption of noncontrolling interests	—	—	—	—	—	(59,000)	(59,000)	(201)
Issuance pursuant to stock plan	376,781	4	31,235	—	—	—	31,239	—
Taxes related to net settlement of equity awards	(150,054)	(2)	(18,654)	—	—	—	(18,656)	—
Dividends declared on common stock ($1.30 per share)	—	—	—	(227,191)	—	—	(227,191)	—
Reclassification of distributions in excess of earnings	—	—	(59,244)	59,244	—	—	—	—
Balance as of September 30, 2024	172,244,401	$1,722	$18,238,438	$—	$(22,529)	$4,469,309	$22,686,940	$16,510

The accompanying notes are an integral part of these consolidated financial statements.

5

Alexandria Real Estate Equities, Inc.

Consolidated Statement of Changes in Stockholders’ Equity and Noncontrolling Interests

(Dollars in thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc.’s Stockholders’ Equity
	Number of Common Shares	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total Equity	Redeemable Noncontrolling Interests
Balance as of June 30, 2023	170,869,778	$1,709	$18,812,318	$—	$(16,589)	$3,917,186	$22,714,624	$52,628
Net income	—	—	—	24,269	—	43,737	68,006	248
Total other comprehensive loss	—	—	—	—	(8,395)	—	(8,395)	—
Contributions from and sales of noncontrolling interests	—	—	6,455	—	—	130,271	136,726	—
Distributions to and redemption of noncontrolling interests	—	—	—	—	—	(57,881)	(57,881)	(1,218)
Issuance pursuant to stock plan	203,826	2	31,196	—	—	—	31,198	—
Taxes related to net settlement of equity awards	(76,765)	(1)	(8,603)	—	—	—	(8,604)	—
Dividends declared on common stock ($1.24 per share)	—	—	—	(214,450)	—	—	(214,450)	—
Reclassification of distributions in excess of earnings	—	—	(190,181)	190,181	—	—	—	—
Balance as of September 30, 2023	170,996,839	$1,710	$18,651,185	$—	$(24,984)	$4,033,313	$22,661,224	$51,658

The accompanying notes are an integral part of these consolidated financial statements.

6

Alexandria Real Estate Equities, Inc.

Consolidated Statement of Changes in Stockholders’ Equity and Noncontrolling Interests

(Dollars in thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc.’s Stockholders’ Equity
	Number of Common Shares	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total Equity	Redeemable Noncontrolling Interests
Balance as of December 31, 2023	171,910,599	$1,719	$18,485,352	$—	$(15,896)	$4,135,338	$22,606,513	$16,480
Net income	—	—	—	385,194	—	140,820	526,014	814
Total other comprehensive loss	—	—	—	—	(6,633)	—	(6,633)	—
Contributions from and sales of noncontrolling interests	—	—	8,190	—	—	350,003	358,193	—
Distributions to and redemption of noncontrolling interests	—	—	(8,084)	—	—	(186,787)	(194,871)	(1,034)
Transfer of noncontrolling interests	—	—	—	—	—	(250)	(250)	250
Reallocation of capital to joint venture partner	—	—	(30,185)	—	—	30,185	—	—
Issuance pursuant to stock plan	555,959	6	101,302	—	—	—	101,308	—
Taxes related to net settlement of equity awards	(222,157)	(3)	(26,598)	—	—	—	(26,601)	—
Dividends declared on common stock ($3.87 per share)	—	—	—	(676,733)	—	—	(676,733)	—
Reclassification of distributions in excess of earnings	—	—	(291,539)	291,539	—	—	—	—
Balance as of September 30, 2024	172,244,401	$1,722	$18,238,438	$—	$(22,529)	$4,469,309	$22,686,940	$16,510

The accompanying notes are an integral part of these consolidated financial statements.

7

Alexandria Real Estate Equities, Inc.

Consolidated Statement of Changes in Stockholders’ Equity and Noncontrolling Interests

(Dollars in thousands)

(Unaudited)

	Alexandria Real Estate Equities, Inc.’s Stockholders’ Equity
	Number of Common Shares	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total Equity	Redeemable Noncontrolling Interests
Balance as of December 31, 2022	170,748,395	$1,707	$18,991,492	$—	$(20,812)	$3,701,248	$22,673,635	$9,612
Net income	—	—	—	192,068	—	130,934	323,002	650
Total other comprehensive loss	—	—	—	—	(4,172)	—	(4,172)	—
Contributions from and sales of noncontrolling interests	—	—	30,400	—	—	400,993	431,393	35,250
Distributions to and redemption of noncontrolling interests	—	—	—	—	—	(192,096)	(192,096)	(1,620)
Transfer of noncontrolling interests	—	—	—	—	—	(7,766)	(7,766)	7,766
Issuance pursuant to stock plan	412,755	4	96,648	—	—	—	96,652	—
Taxes related to net settlement of equity awards	(164,311)	(1)	(21,072)	—	—	—	(21,073)	—
Dividends declared on common stock ($3.69 per share)	—	—	—	(638,351)	—	—	(638,351)	—
Reclassification of distributions in excess of earnings	—	—	(446,283)	446,283	—	—	—	—
Balance as of September 30, 2023	170,996,839	$1,710	$18,651,185	$—	$(24,984)	$4,033,313	$22,661,224	$51,658

The accompanying notes are an integral part of these consolidated financial statements.

8

Alexandria Real Estate Equities, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Nine Months Ended September 30,
	2024	2023
Operating Activities:
Net income	$526,828	$323,652
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	872,272	808,227
Impairment of real estate	36,504	189,224
Gain on sales of real estate	(27,506)	(214,810)
Equity in earnings of unconsolidated real estate joint ventures	(424)	(617)
Distributions of earnings from unconsolidated real estate joint ventures	2,637	2,590
Amortization of loan fees	12,510	11,427
Amortization of debt discounts	976	898
Amortization of acquired above- and below-market leases	(70,167)	(69,647)
Deferred rent	(125,676)	(92,331)
Stock compensation expense	47,157	48,266
Investment (income) loss	(14,866)	204,051
Changes in operating assets and liabilities:
Tenant receivables	1,216	1,199
Deferred leasing costs	(74,608)	(81,573)
Other assets	(36,334)	(20,907)
Accounts payable, accrued expenses, and other liabilities	79,827	92,284
Net cash provided by operating activities	1,230,346	1,201,933
Investing Activities:
Proceeds from sales of real estate	229,790	761,321
Additions to real estate	(1,932,351)	(2,600,999)
Purchases of real estate	(201,049)	(257,333)
Change in escrow deposits	(5,512)	(5,982)
Investments in unconsolidated real estate joint ventures	(4,039)	(499)
Additions to non-real estate investments	(185,560)	(156,363)
Sales of and distributions from non-real estate investments	141,762	149,299
Net cash used in investing activities	$(1,956,959)	$(2,110,556)

9

Alexandria Real Estate Equities, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Nine Months Ended September 30,
	2024	2023
Financing Activities:
Borrowings under secured notes payable	$24,853	$49,578
Repayments of borrowings from secured notes payable	(32)	(30)
Proceeds from issuance of unsecured senior notes payable	998,806	996,205
Borrowings under unsecured senior line of credit	—	375,000
Repayments of borrowings under unsecured senior line of credit	—	(375,000)
Proceeds from issuances under commercial paper program	7,935,600	1,705,000
Repayments of borrowings under commercial paper program	(7,580,600)	(1,705,000)
Payments of loan fees	(36,366)	(16,047)
Taxes paid related to net settlement of equity awards	(45,670)	(20,203)
Dividends on common stock	(671,366)	(633,032)
Contributions from and sales of noncontrolling interests	251,252	436,207
Distributions to and purchases of noncontrolling interests	(231,072)	(193,716)
Net cash provided by financing activities	645,405	618,962
Effect of foreign exchange rate changes on cash and cash equivalents	74	(603)
Net decrease in cash, cash equivalents, and restricted cash	(81,134)	(290,264)
Cash, cash equivalents, and restricted cash as of the beginning of period	660,771	857,975
Cash, cash equivalents, and restricted cash as of the end of period	$579,637	$567,711
Supplemental Disclosure and Non-Cash Investing and Financing Activities:
Cash paid during the period for interest, net of interest capitalized	$87,660	$16,559
Accrued construction for current-period additions to real estate	$419,072	$641,705
Contribution of assets from and issuance of noncontrolling interest to real estate joint venture partner	$106,941	$33,250
Reallocation of additional paid-in-capital to consolidated joint venture partner’s non- controlling interest	$30,185	$—
Transfer of real estate assets and/or equipment from tenants	$107,562	$—
Initial recognition of right-of-use asset and lease liability	$265,110	$—

The accompanying notes are an integral part of these consolidated financial statements.

10

Alexandria Real Estate Equities, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

1.ORGANIZATION AND BASIS OF PRESENTATION

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® life science REIT, is the pioneer of the life science real estate

niche since its founding in 1994. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative

mega campuses 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, 2024, Alexandria has a total market capitalization of

$33.1 billion and an asset base in North America that includes 41.8 million RSF of operating properties, 5.3 million RSF of Class A/A+

properties undergoing construction, and one committed near-term project expected to commence construction in the next two years. As

used in this quarterly report on Form 10-Q, references to the “Company,” “Alexandria,” “ARE,” “we,” “us,” and “our” refer to Alexandria

Real Estate Equities, Inc. and its consolidated subsidiaries. The accompanying unaudited consolidated financial statements include the

accounts of Alexandria Real Estate Equities, Inc. and its consolidated subsidiaries. All significant intercompany balances and

transactions have been eliminated.

We have prepared the accompanying interim consolidated financial statements in accordance with GAAP and in conformity

with the rules and regulations of the SEC. In our opinion, these interim consolidated financial statements presented herein reflect all

adjustments, of a normal recurring nature, that are necessary to fairly present the interim consolidated financial statements. The results

of operations for the interim period are not necessarily indicative of the results that may be expected for the year ending December 31,

2024. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial

statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2023. Any references to

our total market capitalization, number or quality of buildings or tenants, quality of location, square footage, number of leases, or

occupancy percentage, and any amounts derived from these values in these notes to consolidated financial statements are outside the

scope of our independent registered public accounting firm’s procedures.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation

On an ongoing basis, as circumstances indicate the need for reconsideration, we evaluate each legal entity that is not wholly

owned by us in accordance with the consolidation accounting guidance. Our evaluation considers all of our variable interests, including

equity ownership, as well as fees paid to us for our involvement in the management of each partially owned entity. To fall within the

scope of the consolidation guidance, an entity must meet both of the following criteria:

•The entity has a legal structure that has been established to conduct business activities and to hold assets; such entity

can be in the form of a partnership, limited liability company, or corporation, among others; and

•We have a variable interest in the legal entity — i.e., variable interests that are contractual, such as equity ownership, or

other financial interests that change with changes in the fair value of the entity’s net assets.

If an entity does not meet both criteria above, we apply other accounting literature, such as the equity method of accounting. If

an entity does meet both criteria above, we evaluate such entity for consolidation under either the variable interest model if the legal

entity meets any of the characteristics below to qualify as a VIE, or under the voting model for all other legal entities that are not VIEs.

A legal entity is determined to be a VIE if it has any of the following three characteristics:

1)The entity does not have sufficient equity to finance its activities without additional subordinated financial support;

2)The entity is established with non-substantive voting rights (i.e., the entity deprives the majority economic interest

holder(s) of voting rights); or

3)The equity holders, as a group, lack the characteristics of a controlling financial interest. Equity holders meet this criterion

if they lack any of the following:

•The power, through voting rights or similar rights, to direct the activities of the entity that most significantly influence

the entity’s economic performance, as evidenced by:

•Substantive participating rights in day-to-day management of the entity’s activities; or

•Substantive kick-out rights over the party responsible for significant decisions;

•The obligation to absorb the entity’s expected losses; or

•The right to receive the entity’s expected residual returns.

11

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

For an entity, including our real estate joint ventures, structured as a limited partnership or a limited liability company, our

evaluation of whether the equity holders (equity partners other than the general partner or the managing member of a joint venture) lack

the characteristics of a controlling financial interest includes the evaluation of whether the limited partners or non-managing members

(the noncontrolling equity holders) lack both substantive participating rights and substantive kick-out rights, defined as follows:

•Participating rights provide the noncontrolling equity holders the ability to direct significant financial and operating

decisions made in the ordinary course of business that most significantly influence the entity’s economic performance.

•Kick-out rights allow the noncontrolling equity holders to remove the general partner or managing member without cause.

If we conclude that any of the three characteristics of a VIE are met, including that the equity holders lack the characteristics of

a controlling financial interest because they lack both substantive participating rights and substantive kick-out rights, we conclude that

the entity is a VIE and evaluate it for consolidation under the variable interest model.

Variable interest model

If an entity is determined to be a VIE, we evaluate whether we are the primary beneficiary. The primary beneficiary analysis is

a qualitative analysis based on power and benefits. We consolidate a VIE if we have both power and benefits — that is, (i) we have the

power to direct the activities of a VIE that most significantly influence the VIE’s economic performance (power) and (ii) we have the

obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE (benefits). We

consolidate VIEs whenever we determine that we are the primary beneficiary. Refer to Note 4 – “Consolidated and unconsolidated real

estate joint ventures” and Note 7 – “Investments” to our unaudited consolidated financial statements for information on specific entities

that qualify as VIEs. If we have a variable interest in a VIE but are not the primary beneficiary, we account for our investment using the

equity method.

Voting model

If a legal entity fails to meet any of the three characteristics of a VIE (i.e., insufficiency of equity, existence of non-substantive

voting rights, or lack of a controlling financial interest), we then evaluate such entity under the voting model. Under the voting model, we

consolidate the entity if we determine that we, directly or indirectly, have greater than 50% of the voting shares (or own a majority of the

limited partnership’s kick-out rights through voting interests), and that other equity holders do not have substantive participating rights.

Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial statements for

information on specific joint ventures that qualify for evaluation under the voting model.

Use of estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions

that affect the reported amounts of assets, liabilities, and equity; the disclosure of contingent assets and liabilities as of the date of the

consolidated financial statements; and the amounts of revenues and expenses during the reporting period. Actual results could

materially differ from those estimates.

Investments in real estate

Evaluation of business combination or asset acquisition

We evaluate each acquisition of real estate or in-substance real estate (including equity interests in entities that predominantly

hold real estate assets) to determine whether the integrated set of assets and activities acquired meets the definition of a business and

needs to be accounted for as a business combination. An acquisition of an integrated set of assets and activities that does not meet the

definition of a business is accounted for as an asset acquisition. If either of the following criteria is met, the integrated set of assets and

activities acquired would not qualify as a business:

•Substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group

of similar identifiable assets; or

•The integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together

significantly contribute to the ability to create outputs (i.e., revenue generated before and after the transaction).

An acquired process is considered substantive if:

•The process includes an organized workforce (or includes an acquired contract that provides access to an organized

workforce) that is skilled, knowledgeable, and experienced in performing the process;

•The process cannot be replaced without significant cost, effort, or delay; or

•The process is considered unique or scarce.

12

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Generally, our acquisitions of real estate or in-substance real estate do not meet the definition of a business because

substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings,

and related intangible assets) or because the acquisition does not include a substantive process in the form of an acquired workforce or

an acquired contract that cannot be replaced without significant cost, effort, or delay. When evaluating acquired service or management

contracts, we consider the nature of the services performed, the terms of the contract relative to similar arm’s-length contracts, and the

availability of comparable vendors in evaluating whether the acquired contract constitutes a substantive process.

Recognition of real estate acquired

We evaluate each acquisition of real estate or in-substance real estate (including equity interests in entities that predominantly

hold real estate assets) to determine whether the integrated set of assets and activities acquired meets the definition of a business and

needs to be accounted for as a business combination. An acquisition of an integrated set of assets and activities that does not meet the

definition of a business is accounted for as an asset acquisition.

For acquisitions of real estate or in-substance real estate that are accounted for as business combinations, we allocate the

acquisition consideration (excluding acquisition costs) to the assets acquired, liabilities assumed, noncontrolling interests, and

previously existing ownership interests at fair value as of the acquisition date. Assets include intangible assets such as tenant

relationships, acquired in-place leases, and favorable intangibles associated with in-place leases in which we are the lessor. Liabilities

include unfavorable intangibles associated with in-place leases in which we are the lessor. In addition, for acquired in-place finance or

operating leases in which we are the lessee, acquisition consideration is allocated to lease liabilities and related right-of-use assets,

adjusted to reflect favorable or unfavorable terms of the lease when compared with market terms. Any excess (deficit) of the

consideration transferred relative to the fair value of the net assets acquired is accounted for as goodwill (bargain purchase gain).

Acquisition costs related to business combinations are expensed as incurred.

Generally, we expect that acquisitions of real estate or in-substance real estate will not meet the definition of a business

because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land,

buildings, and related intangible assets). The accounting model for asset acquisitions is similar to the accounting model for business

combinations, except that the acquisition consideration (including acquisition costs) is allocated to the individual assets acquired and

liabilities assumed on a relative fair value basis. Any excess (deficit) of the consideration transferred relative to the sum of the fair value

of the assets acquired and liabilities assumed is allocated to the individual assets and liabilities based on their relative fair values. As a

result, asset acquisitions do not result in the recognition of goodwill or a bargain purchase gain. Incremental and external direct

acquisition costs related to acquisitions of real estate or in-substance real estate (such as legal and other third-party services) are

capitalized.

We exercise judgment to determine the key assumptions used to allocate the purchase price of real estate acquired among its

components. The allocation of the consideration to the various components of properties acquired during the year can have an effect on

our net income due to the useful depreciable and amortizable lives applicable to each component and the recognition of the related

depreciation and amortization expense in our consolidated statements of operations. We apply judgment in utilizing available

comparable market information to assess relative fair value. We assess the relative fair values of tangible and intangible assets and

liabilities based on available comparable market information, including estimated replacement costs, rental rates, and recent market

transactions. In addition, we may use estimated cash flow projections that utilize appropriate discount and capitalization rates.

Estimates of future cash flows are based on a number of factors, including the historical operating results, known and anticipated

trends, and market/economic conditions that may affect the property.

The value of tangible assets acquired is based upon our estimation of fair value on an “as if vacant” basis. The value of

acquired in-place leases includes the estimated costs during the hypothetical lease-up period and other costs that would have been

incurred in the execution of similar leases under the market conditions at the acquisition date of the acquired in-place lease. If there is a

bargain fixed-rate renewal option for the period beyond the noncancelable lease term of an in-place lease, we evaluate intangible

factors, such as the business conditions in the industry in which the lessee operates, the economic conditions in the area in which the

property is located, and the ability of the lessee to sublease the property during the renewal term, in order to determine the likelihood

that the lessee will renew. When we determine that there is reasonable assurance that such bargain purchase option will be exercised,

we consider the option in determining the intangible value of such lease and its related amortization period. We also recognize the

relative fair values of assets acquired, the liabilities assumed, and any noncontrolling interest in acquisitions of less than a 100%

interest when the acquisition constitutes a change in control of the acquired entity.

13

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Depreciation and amortization

The values allocated to buildings and building improvements, land improvements, tenant improvements, and equipment are

depreciated on a straight-line basis. For buildings and building improvements, we depreciate using the shorter of the respective ground

lease terms or their estimated useful lives, not to exceed 40 years. Land improvements are depreciated over their estimated useful

lives, not to exceed 20 years. Tenant improvements are depreciated over their respective lease terms or estimated useful lives, and

equipment is depreciated over the shorter of the lease term or its estimated useful life. The values of the right-of-use assets are

amortized on a straight-line basis over the remaining terms of each related lease. The values of acquired in-place leases and

associated favorable intangibles (i.e., acquired above-market leases) are classified in other assets in our consolidated balance sheets

and are amortized over the remaining terms of the related leases as a reduction of income from rentals in our consolidated statements

of operations. The values of unfavorable intangibles (i.e., acquired below-market leases) associated with acquired in-place leases are

classified in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheets and are amortized over the

remaining terms of the related leases as an increase in income from rentals in our consolidated statements of operations.

Capitalized project costs

We capitalize project costs, including pre-construction costs, interest, property taxes, insurance, and other costs directly

related and essential to the development, redevelopment, pre-construction, or construction of a project. Capitalization of development,

redevelopment, pre-construction, and construction costs is required while activities are ongoing to prepare an asset for its intended use.

Fluctuations in our development, redevelopment, pre-construction, and construction activities could result in significant changes to total

expenses and net income. Costs incurred after a project is substantially complete and ready for its intended use are expensed as

incurred. Should development, redevelopment, pre-construction, or construction activity cease, interest, property taxes, insurance, and

certain other costs would no longer be eligible for capitalization and would be expensed as incurred. Expenditures for repairs and

maintenance are expensed as incurred.

Real estate sales

A property is classified as held for sale when all of the following criteria for a plan of sale have been met: (i) management,

having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its

present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions

required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within

one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and

(vi) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the

plan will be withdrawn. Depreciation of assets ceases upon designation of a property as held for sale. Refer to Note 15 – “Assets

classified as held for sale” to our unaudited consolidated financial statements for additional details.

If the disposal of a property represents a strategic shift that has (or will have) a major effect on our operations or financial

results, such as (i) a major line of business, (ii) a major geographic area, (iii) a major equity method investment, or (iv) other major parts

of an entity, then the operations of the property, including any interest expense directly attributable to it, are classified as discontinued

operations in our consolidated statements of operations, and amounts for all prior periods presented are reclassified from continuing

operations to discontinued operations. The disposal of an individual property generally will not represent a strategic shift and therefore

will typically not meet the criteria for classification as a discontinued operation.

We recognize gains or losses on real estate sales in accordance with the accounting standard on the derecognition of

nonfinancial assets arising from contracts with noncustomers. Our ordinary output activities consist of the leasing of space to our

tenants in our operating properties, not the sales of real estate. Therefore, sales of real estate (in which we are the seller) qualify as

contracts with noncustomers. In our transactions with noncustomers, we apply certain recognition and measurement principles

consistent with our method of recognizing revenue arising from contracts with customers. Derecognition of the asset is based on the

transfer of control. If a real estate sales contract includes our ongoing involvement with the property, then we evaluate each promised

good or service under the contract to determine whether it represents a separate performance obligation, constitutes a guarantee, or

prevents the transfer of control. If a good or service is considered a separate performance obligation, an allocated portion of the

transaction price is recognized as revenue as we transfer the related good or service to the buyer.

The recognition of gain or loss on the sale of a partial interest also depends on whether we retain a controlling or

noncontrolling interest in the property. If we retain a controlling interest in the property upon completion of the sale, we continue to

reflect the asset at its book value, record a noncontrolling interest for the book value of the partial interest sold, and recognize additional

paid-in capital for the difference between the consideration received and the partial interest at book value. Conversely, if we retain a

noncontrolling interest upon completion of the sale of a partial interest of real estate, we recognize a gain or loss as if 100% of the asset

were sold.

14

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Impairment of long-lived assets

Prior to and subsequent to the end of each quarter, we review current activities and changes in the business conditions of all of

our long-lived assets to determine the existence of any triggering events or impairment indicators requiring an impairment analysis. If

triggering events or impairment indicators are identified, we review an estimate of the future undiscounted cash flows, including, if

necessary, a probability-weighted approach if multiple outcomes are under consideration.

Long-lived assets to be held and used, including our rental properties, CIP, land held for development, right-of-use assets

related to operating leases in which we are the lessee, and intangibles, are individually evaluated for impairment when conditions exist

that may indicate that the carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be

held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual

disposition of the asset. Triggering events or impairment indicators for long-lived assets to be held and used are assessed by project

and include significant fluctuations in estimated net operating income, occupancy changes, significant near-term lease expirations,

current and historical operating and/or cash flow losses, construction costs, estimated completion dates, rental rates, and other market

factors. We assess the expected undiscounted cash flows based upon numerous factors, including, but not limited to, construction

costs, available market information, current and historical operating results, known trends, current market/economic conditions that may

affect the asset, and our assumptions about the use of the asset, including, if necessary, a probability-weighted approach if multiple

outcomes are under consideration. 

Upon determination that an impairment has occurred, a write-down is recognized to reduce the carrying amount of the asset to

its estimated fair value. If an impairment charge is not required to be recognized, the recognition of depreciation or amortization is

adjusted prospectively, as necessary, to reduce the carrying amount of the asset to its estimated disposition value over the remaining

period that the asset is expected to be held and used. We may adjust depreciation of properties that are expected to be disposed of or

redeveloped prior to the end of their useful lives.

We use the held for sale impairment model for our properties classified as held for sale, which is different from the held and

used impairment model. Under the held for sale impairment model, an impairment charge is recognized if the carrying amount of the

long-lived asset classified as held for sale exceeds its fair value less cost to sell. Because of these two different models, it is possible for

a long-lived asset previously classified as held and used to require the recognition of an impairment charge upon classification as held

for sale.

International operations

In addition to operating properties in the U.S., we have 11 properties in Canada. The functional currency for our subsidiaries

operating in the U.S. is the U.S. dollar. The local currency of a foreign subsidiary serves as its functional currency. The assets and

liabilities of our foreign subsidiaries are translated into U.S. dollars at the exchange rate in effect as of the financial statement date.

Revenue and expense accounts of our foreign subsidiaries are translated using the weighted-average exchange rate for the periods

presented. Gains or losses resulting from the translation are classified in accumulated other comprehensive income (loss) as a

separate component of total equity and are excluded from net income (loss).

Whenever a foreign investment meets the criteria for classification as held for sale, we evaluate the recoverability of the

investment under the held for sale impairment model. We may recognize an impairment charge if the carrying amount of the investment

exceeds its fair value less cost to sell. In determining an investment’s carrying amount, we consider its net book value and any

cumulative unrealized foreign currency translation adjustment related to the investment.

The appropriate amounts of foreign exchange rate gains or losses classified in accumulated other comprehensive income

(loss) are reclassified to net income (loss) when realized upon the sale of our investment or upon the complete or substantially

complete liquidation of our investment.

Investments

We hold investments in publicly traded companies and privately held entities primarily involved in the life science industry. As a

REIT, we generally limit our ownership of each individual entity’s voting stock to less than 10%. We evaluate each investment to

determine whether we have the ability to exercise significant influence, but not control, over an investee. We evaluate investments in

which our ownership is equal to or greater than 20%, but less than or equal to 50%, of an investee’s voting stock with a presumption

that we have this ability. For our investments in limited partnerships that maintain specific ownership accounts, we presume that such

ability exists when our ownership interest exceeds 3% to 5%. In addition to our ownership interest, we consider whether we have a

board seat or whether we participate in the investee’s policy-making process, among other criteria, to determine if we have the ability to

exert significant influence, but not control, over an investee. If we determine that we have such ability, we account for the investment

under the equity method, as described below.

From time to time, we may hold equity investments that are subject to contractual sale restrictions. We do not recognize a

discount related to a contractual sale restriction.

15

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Investments accounted for under the equity method

Under the equity method of accounting, we initially recognize our investment at cost and subsequently adjust the carrying

amount of the investment for our share of earnings or losses reported by the investee, distributions received, and other-than-temporary

impairments. For more information about our investments accounted for under the equity method, refer to Note 7 – “Investments” to our

unaudited consolidated financial statements.

Investments that do not qualify for the equity method of accounting

For investees over which we determine that we do not have the ability to exercise significant influence or control, we account

for each investment depending on whether it is an investment in a (i) publicly traded company, (ii) privately held entity that reports NAV

per share, or (iii) privately held entity that does not report NAV per share, as described below.

Investments in publicly traded companies

Our investments in publicly traded companies are classified as investments with readily determinable fair values and are

presented at fair value in our consolidated balance sheets, with changes in fair value classified in investment income (loss) in our

consolidated statements of operations. The fair values for our investments in publicly traded companies are determined based on sales

prices or quotes available on securities exchanges.

Investments in privately held companies

Our investments in privately held entities without readily determinable fair values consist of (i) investments in privately held

entities that report NAV per share and (ii) investments in privately held entities that do not report NAV per share. These investments are

accounted for as follows:

Investments in privately held entities that report NAV per share

Investments in privately held entities that report NAV per share, such as our privately held investments in limited partnerships,

are presented at fair value using NAV as a practical expedient, with changes in fair value classified in investment income (loss) in our

consolidated statements of operations. We use NAV per share reported by limited partnerships generally without adjustment, unless we

are aware of information indicating that the NAV reported by a limited partnership does not accurately reflect the fair value of the

investment at our reporting date.

Investments in privately held entities that do not report NAV per share

Investments in privately held entities that do not report NAV per share are accounted for using a measurement alternative,

under which these investments are measured at cost, adjusted for observable price changes and impairments, with changes classified

in investment income (loss) in our consolidated statements of operations.

An observable price arises from an orderly transaction for an identical or similar investment of the same issuer, which is

observed by an investor without expending undue cost and effort. Observable price changes result from, among other things, equity

transactions of the same issuer executed during the reporting period, including subsequent equity offerings or other reported equity

transactions related to the same issuer. To determine whether these transactions are indicative of an observable price change, we

evaluate, among other factors, whether these transactions have similar rights and obligations, including voting rights, distribution

preferences, and conversion rights to the investments we hold.

16

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Impairment evaluation of equity method investments and investments in privately held entities that do not report NAV per

share

We monitor equity method investments and investments in privately held entities that do not report NAV per share for new

developments, including operating results, prospects and results of clinical trials, new product initiatives, new collaborative agreements,

capital-raising events, and merger and acquisition activities. These investments are evaluated on the basis of a qualitative assessment

for indicators of impairment by monitoring the presence of the following triggering events or impairment indicators:

(i)a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee;

(ii)a significant adverse change in the regulatory, economic, or technological environment of the investee;

(iii)a significant adverse change in the general market condition, including the research and development of technology and

products that the investee is bringing or attempting to bring to the market;

(iv)significant concerns about the investee’s ability to continue as a going concern; and/or

(v)a decision by investors to cease providing support or reduce their financial commitment to the investee.

If such indicators are present, we are required to estimate the investment’s fair value and immediately recognize an

impairment charge in an amount equal to the investment’s carrying value in excess of its estimated fair value.

Investment income/loss recognition and classification

We recognize both realized and unrealized gains and losses in our consolidated statements of operations, classified in

investment income (loss) in our consolidated statements of operations. Unrealized gains and losses represent:

(i)changes in fair value for investments in publicly traded companies;

(ii)changes in NAV for investments in privately held entities that report NAV per share;

(iii)observable price changes for investments in privately held entities that do not report NAV per share; and

(iv)our share of unrealized gains or losses reported by our equity method investees.

Realized gains and losses on our investments represent the difference between proceeds received upon disposition of

investments and their historical or adjusted cost basis. For our equity method investments, realized gains and losses represent our

share of realized gains or losses reported by the investee. Impairments are realized losses, which result in an adjusted cost basis, and

represent charges to reduce the carrying values of investments in privately held entities that do not report NAV per share and equity

method investments, if impairments are deemed other than temporary, to their estimated fair value.

Revenues

The table below provides details of our consolidated total revenues for the three and nine months ended September 30, 2024

and 2023 (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Income from rentals:
Revenues subject to the lease accounting standard:
Operating leases	$763,947	$696,601	$2,255,634	$2,069,042
Direct financing leases	665	653	1,986	1,951
Revenues subject to the lease accounting standard	764,612	697,254	2,257,620	2,070,993
Revenues subject to the revenue recognition accounting standard	11,132	10,277	28,837	28,826
Income from rentals	775,744	707,531	2,286,457	2,099,819
Other income	15,863	6,257	40,992	28,664
Total revenues	$791,607	$713,788	$2,327,449	$2,128,483

During the three and nine months ended September 30, 2024, revenues that were subject to the lease accounting standard

aggregated $764.6 million and $2.3 billion, respectively, and represented 96.6% and 97.0%, respectively, of our total revenues. During

the three and nine months ended September 30, 2023, revenues that were subject to the lease accounting standard aggregated

$697.3 million and $2.1 billion, respectively, and represented 97.7% and 97.3%, respectively, of our total revenues. Our other income

consisted primarily of management fees and interest income earned during each period presented. For a detailed discussion related to

our revenue streams, refer to “Lease accounting” and “Recognition of revenue arising from contracts with customers” in Note 2 –

“Summary of significant accounting policies” to our unaudited consolidated financial statements.

17

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Lease accounting

Definition and classification of a lease

When we enter into a contract or amend an existing contract, we evaluate whether the contract meets the definition of a lease.

To meet the definition of a lease, the contract must meet all three criteria:

(i)One party (lessor) must hold an identified asset;

(ii)The counterparty (lessee) must have the right to obtain substantially all of the economic benefits from the use of the asset

throughout the period of the contract; and

(iii)The counterparty (lessee) must have the right to direct the use of the identified asset throughout the period of the contract.

We classify our leases as either finance leases or operating leases if we are the lessee, or sales-type, direct financing, or

operating leases if we are the lessor. We use the following criteria to determine if a lease is a finance lease (as a lessee) or sales-type

or direct financing lease (as a lessor):

(i)Ownership is transferred from lessor to lessee by the end of the lease term;

(ii)An option to purchase is reasonably certain to be exercised;

(iii)The lease term is for the major part of the underlying asset’s remaining economic life;

(iv)The present value of lease payments equals or exceeds substantially all of the fair value of the underlying asset; or

(v)The underlying asset is specialized and is expected to have no alternative use at the end of the lease term.

If we meet any of the above criteria, we account for the lease as a finance, a sales-type, or a direct financing lease. If we do

not meet any of the criteria, we account for the lease as an operating lease.

A lease is accounted for as a sales-type lease if it is considered to transfer control of the underlying asset to the lessee. A

lease is accounted for as a direct financing lease if risks and rewards are conveyed without the transfer of control, which is normally

indicated by the existence of a residual value guarantee from an unrelated third party other than the lessee.

This classification will determine the method of recognition of the lease:

•For an operating lease, we recognize income from rentals if we are the lessor, or rental operations expense if we are the

lessee, over the term of the lease on a straight-line basis.

•For a sales-type lease or a direct financing lease, we recognize the income from rentals, or for a finance lease, we

recognize rental operations expense, over the term of the lease using the effective interest method.

•At inception of a sales-type lease or a direct financing lease, if we determine the fair value of the leased property is lower

than its carrying amount, we recognize a selling loss immediately at lease commencement. If fair value exceeds the

carrying amount of a lease, a gain is recognized at lease commencement on a sales-type lease. For a direct financing

lease, a gain is deferred at lease commencement and amortized over the lease term.

Lessor accounting

Costs to execute leases

We capitalize initial direct costs, which represent only incremental costs to execute a lease that would not have been incurred

if the lease had not been obtained. Costs that we incur to negotiate or arrange a lease, regardless of its outcome, such as for fixed

employee compensation, tax or legal advice to negotiate lease terms, and other costs, are expensed as incurred.

Operating leases

We account for the revenue from our lease contracts by utilizing the single component accounting policy. This policy requires

us to account for, by class of underlying asset, the lease component and nonlease component(s) associated with each lease as a single

component if two criteria are met:

(i)The timing and pattern of transfer of the lease component and the nonlease component(s) are the same; and

(ii)The lease component would be classified as an operating lease if it were accounted for separately.

Lease components consist primarily of fixed rental payments, which represent scheduled rental amounts due under our

leases, and contingent rental payments. Nonlease components consist primarily of tenant recoveries representing reimbursements of

rental operating expenses under our triple net lease structure, including recoveries for property taxes, insurance, utilities, repairs and

maintenance, and common area expenses.

18

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

If the lease component is the predominant component, we account for all revenues under such lease as a single component in

accordance with the lease accounting standard. Conversely, if the nonlease component is the predominant component, all revenues

under such lease are accounted for in accordance with the revenue recognition accounting standard. Our operating leases qualify for

the single component accounting, and the lease component in each of our leases is predominant. Therefore, we account for all

revenues from our operating leases under the lease accounting standard and classify these revenues as income from rentals in our

consolidated statements of operations.

We commence recognition of income from rentals related to the operating leases at the date the property is ready for its

intended use by the tenant and the tenant takes possession or controls the physical use of the leased asset. When a lease includes

construction of tenant improvements, we determine whether the improvements are landlord or tenant assets. In determining if the

improvements are landlord or tenant improvements, we consider various factors including, but not limited to, the following:

•Which party retains legal title to the improvements upon lease expiration;

•Whether the improvements are expected to have significant residual value at the end of the lease term;

•Whether the improvements are unique to the tenant;

•What happens to the improvements upon lease expiration (i.e., whether they are removed or preserved for the landlord)

•Which party bears all costs of the improvements (including the risk of cost overruns); and

•Which party supervises the construction of the improvements.

If the improvements are landlord assets, we capitalize such improvements. If the improvements are tenant assets, we do not

capitalize these assets. Such improvements, if funded by us, are accounted for as lease incentives and amortized as a reduction of

revenue over the term of the lease. If the tenant funds improvements without reimbursement from us and we determine these

improvements to be landlord assets, we consider the amount associated with the improvements to be noncash lease payments, which

are recognized as incremental revenue over the term of the lease.

Income from rentals related to fixed rental payments under operating leases is recognized on a straight-line basis over the

respective operating lease terms. We classify amounts expected to be received in later periods as deferred rent in our consolidated

balance sheets. Amounts received currently but recognized as revenue in future periods are classified in accounts payable, accrued

expenses, and other liabilities in our consolidated balance sheets.

Income from rentals related to variable payments includes tenant recoveries and contingent rental payments. Tenant

recoveries, including reimbursements of utilities, repairs and maintenance, common area expenses, real estate taxes and insurance,

and other operating expenses, are recognized as revenue in the period during which the applicable expenses are incurred and the

tenant’s obligation to reimburse us arises. Income from rentals related to other variable payments is recognized when associated

contingencies are removed.

We assess collectibility from our tenants of future lease payments for each of our operating leases. If we determine that

collectibility is probable, we recognize income from rentals based on the methodology described above. If we determine that

collectibility is not probable, we recognize an adjustment to lower our income from rentals. Furthermore, we may recognize a general

allowance at a portfolio level (not the individual level) if we do not expect to collect future lease payments in full.

For each lease for which we determine that collectibility of future lease payments is not probable, we cease the recognition of

income from rentals on a straight-line basis and limit the recognition of income to the lesser of payments collected from the lessee or

lease income that would have been recognized on a straight-line basis. We do not resume straight-line recognition of income from

rentals for these leases until we determine that the collectibility of future payments related to these leases is probable. We also record a

general allowance related to the deferred rent balances that at the portfolio level (not the individual level) are not expected to be

collected in full through the lease term. As of September 30, 2024 and December 31, 2023, our general allowance balance aggregated

$21.3 million and $21.4 million, respectively.

Direct financing and sales-type leases

Income from rentals related to direct financing and sales-type leases is recognized over the lease term using the effective

interest rate method. At lease commencement, we record an asset within other assets in our consolidated balance sheets, which

represents our net investment in the lease. This initial net investment is determined by aggregating the present values of the total future

lease payments attributable to the lease and the estimated residual value of the property, less any unearned income related to our

direct financing lease. Over the lease term, the investment in the lease accretes in value, producing a constant periodic rate of return on

the net investment in the lease. Income from these leases is classified in income from rentals in our consolidated statements of

operations. Our net investment is reduced over time as lease payments are received. We evaluate our net investment in direct financing

and sales-type leases for impairment under the current expected credit loss accounting standard. For more information, refer to

“Allowance for credit losses” in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated financial

statements.

As a lessor, we classify a lease with variable lease payments that do not depend on an index or a rate as an operating lease

19

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

on the commencement date of the lease if both of the following criteria are met:

(i)The lease would have been classified as a sales-type lease or direct financing lease under the current lease accounting

standard; and

(ii)The sales-type lease or direct financing lease classification would have resulted in a selling loss at lease commencement.

We do not derecognize the underlying asset and do not recognize a loss upon lease commencement but continue to

depreciate the underlying asset over its useful life.

Lessee accounting

We have operating lease agreements in which we are the lessee consisting of ground and office leases. At the lease

commencement date (or at the acquisition date if the lease is acquired as part of a real estate acquisition), we are required to recognize

a liability to account for our future obligations under these operating leases, and a corresponding right-of-use asset.

The lease liability is measured based on the present value of the future lease payments, including payments during the term

under our extension options that we are reasonably certain to exercise. The present value of the future lease payments is calculated for

each operating lease using each respective remaining lease term and a corresponding estimated incremental borrowing rate, which is

the interest rate that we estimate we would have to pay to borrow on a collateralized basis over a similar term for an amount equal to

the lease payments. Subsequently, the lease liability is accreted by applying a discount rate established at the lease commencement

date to the lease liability balance as of the beginning of the period and is reduced by the payments made during the period. We classify

the operating lease liability in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheets.

The right-of-use asset is measured based on the corresponding lease liability, adjusted for initial direct leasing costs and any

other consideration exchanged with the landlord prior to the commencement of the lease, as well as adjustments to reflect favorable or

unfavorable terms of an acquired lease when compared with market terms at the time of acquisition. Subsequently, the right-of-use

asset is amortized on a straight-line basis during the lease term. We classify the right-of-use asset in other assets in our consolidated

balance sheets.

Recognition of revenue arising from contracts with customers

We recognize revenues associated with transactions arising from contracts with customers, excluding revenues subject to the

lease accounting standard discussed in “Lease accounting” above, in accordance with the revenue recognition accounting standard. A

customer is distinguished from a noncustomer by the nature of the goods or services that are transferred. Customers are provided with

goods or services that are generated by a company’s ordinary output activities, whereas noncustomers are provided with nonfinancial

assets that are outside of a company’s ordinary output activities.

We generally recognize revenue representing the transfer of goods and services to customers in an amount that reflects the

consideration to which we expect to be entitled in the exchange. In order to determine the recognition of revenue from customer

contracts, we use a five-step model to (i) identify the contract with the customer, (ii) identify the performance obligations in the contract,

(iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will

not occur, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we

satisfy the performance obligation.

We identify contractual performance obligations and determine whether revenue should be recognized at a point in time or

over time, based on when control of goods and services transfers to a customer. We consider whether we control the goods or services

prior to the transfer to the customer in order to determine whether we should account for the arrangement as a principal or agent. If we

determine that we control the goods or services provided to the customer, then we are the principal to the transaction, and we recognize

the gross amount of consideration expected in the exchange. If we simply arrange but do not control the goods or services being

transferred to the customer, then we are considered to be an agent to the transaction, and we recognize the net amount of

consideration we are entitled to retain in the exchange.

Total revenues subject to the revenue recognition accounting standard and classified within income from rentals in our

consolidated statements of operations for the three and nine months ended September 30, 2024 included $11.1 million and

$28.8 million, respectively, primarily related to short-term parking revenues associated with long-term lease agreements. Short-term

parking revenues do not qualify for the single component accounting policy, as discussed in “Lessor accounting” in Note 2 – “Summary

of significant accounting policies”, due to the difference in the timing and pattern of transfer of our parking service obligations and

associated lease components within the same lease agreement. We recognize short-term parking revenues in accordance with the

revenue recognition accounting standard when the service is provided and the performance obligation is satisfied, which normally

occurs at a point in time.

20

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Monitoring of tenant credit quality

During the term of each lease, we monitor the credit quality and any related material changes of our tenants by (i) monitoring

the credit rating of tenants that are rated by a nationally recognized credit rating agency, (ii) reviewing financial statements of the

tenants that are publicly available or that are required to be delivered to us pursuant to the applicable lease, (iii) monitoring news

reports regarding our tenants and their respective businesses, and (iv) monitoring the timeliness of lease payments.

Allowance for credit losses

We are required to estimate and recognize lifetime expected losses, rather than incurred losses, for most of our financial

assets measured at amortized cost and certain other instruments, including trade and other receivables (excluding receivables arising

from operating leases), loans, held-to-maturity debt securities, net investments in leases arising from sales-type and direct financing

leases, and off-balance-sheet credit exposures (e.g., loan commitments). The recognition of such expected losses, even if the expected

risk of credit loss is remote, typically results in earlier recognition of credit losses. An assessment of the collectibility of operating lease

payments and the recognition of an adjustment to lease income based on this assessment is governed by the lease accounting

standard discussed in “Lease accounting” earlier in Note 2 — “Summary of significant accounting policies” to our unaudited

consolidated financial statements.

At each reporting date, we reassess our credit loss allowances on the aggregate net investment of direct financing and sales-

type leases and our trade receivables. If necessary, we recognize a credit loss adjustment for our current estimate of expected credit

losses, which is classified within rental operations in our consolidated statements of operations. Refer to Note 5 – “Leases” to our

unaudited consolidated financial statements for additional details.

Income taxes

We are organized and operate as a REIT pursuant to the Internal Revenue Code (the “Code”). Under the Code, a REIT that

distributes at least 90% of its REIT taxable income to its stockholders annually (excluding net capital gains) and meets certain other

conditions is not subject to federal income tax on its distributed taxable income, but could be subject to certain federal, foreign, state,

and local taxes. We distribute 100% of our taxable income annually; therefore, a provision for federal income taxes is not required. In

addition to our REIT returns, we file federal, foreign, state, and local tax returns for our subsidiaries. We file with jurisdictions located in

the U.S., Canada, and other international locations. Our tax returns are subject to routine examination in various jurisdictions for the

2018 through 2023 calendar years.

Employee and non-employee share-based payments

We have implemented an entity-wide accounting policy to account for forfeitures related to unmet service conditions of share-

based awards granted to employees and non-employees when they occur. Under this policy, when forfeitures occur, any previously

recognized expense related to those forfeited awards is reversed in the period of forfeiture.

Our employee and non-employee share-based awards are measured at fair value on the grant date and recognized over the

recipient’s required service period. For share-based awards with performance conditions, we continue to assess the probability of

achieving the performance conditions and recognize expense only when it becomes probable that the performance targets will be met.

Conversely, for share-based awards with market conditions, expense is recognized regardless of whether the market condition is

achieved.

All nonforfeitable dividends paid on share-based awards are initially classified in retained earnings and reclassified to

compensation cost only if forfeitures of the underlying awards occur.

Forward equity sales agreements

From time to time, we enter into forward equity sales agreements and account for them in accordance with the accounting

guidance governing financial instruments and derivatives. Under the accounting guidance, our forward equity sales agreements are not

deemed to be liabilities as they do not embody obligations to repurchase our shares, nor do they embody obligations to issue a variable

number of shares for which the monetary value is predominantly fixed, varied with something other than the fair value of our shares, or

varied inversely in relation to our shares. We also evaluate whether the agreements meet the derivatives and hedging guidance scope

exception to be accounted for as equity instruments. Our forward equity sales agreements are classified as equity contracts based on

the following assessment: (i) none of the agreements’ exercise contingencies are based on observable markets or indices besides

those related to the market for our own stock price and operations; and (ii) none of the settlement provisions preclude the agreements

from being indexed to our own stock.

21

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Issuer and guarantor subsidiaries of guaranteed securities

Generally, a parent entity of an issuer that holds guaranteed securities must provide separate subsidiary issuer or guarantor

financial statements, unless it qualifies for disclosure exceptions. A parent entity may be eligible for disclosure exceptions if it meets the

following criteria:

(i)The subsidiary issuer or guarantor is a consolidated subsidiary of the parent company, and

(ii)The subsidiary issues a registered security that is issued jointly and severally with the parent company, or is fully and

unconditionally guaranteed by the parent company.

A parent entity that meets the above criteria may instead present summarized financial information (“alternative disclosures”)

either within the consolidated financial statements or within “Management’s discussion and analysis of financial condition and results of

operations” in Item 2. We evaluated the criteria and determined that we are eligible for the disclosure exceptions, which allow us to

provide alternative disclosures; as such, we present alternative disclosures in “Management’s discussion and analysis of financial

condition and results of operations” in Item 2.

Loan fees

Fees incurred in obtaining long-term financing are capitalized and classified with the corresponding debt instrument appearing

on our consolidated balance sheets. Loan fees related to our unsecured senior line of credit are capitalized and classified within other

assets. Capitalized amounts are amortized over the term of the related loan, and the amortization is classified in interest expense in our

consolidated statements of operations.

Distributions from equity method investments

We use the “nature of the distribution” approach to determine the classification within our consolidated statements of cash

flows of cash distributions received from equity method investments, including our unconsolidated real estate joint ventures and equity

method non-real estate investments. Under this approach, distributions are classified based on the nature of the underlying activity that

generated the cash distributions. If we lack the information necessary to apply this approach in the future, we will be required to apply

the “cumulative earnings” approach as an accounting change on a retrospective basis. Under the cumulative earnings approach,

distributions up to the amount of cumulative equity in earnings recognized are classified as cash inflows from operating activities, and

those in excess of that amount are classified as cash inflows from investing activities.

Restricted cash

We present cash and cash equivalents separately from restricted cash within our consolidated balance sheets. However, we

include restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown

in the consolidated statements of cash flows. We provide a reconciliation between the consolidated balance sheets and the

consolidated statements of cash flows, as required, when the balance includes more than one line item for cash, cash equivalents, and

restricted cash. We also provide a disclosure of the nature of the restrictions related to material restricted cash balances.

Recent accounting pronouncements

On August 23, 2023, the FASB issued an ASU that will require a joint venture, upon formation, to measure its assets and

liabilities at fair value in its standalone financial statements. A joint venture will recognize the difference between the fair value of its

equity and the fair value of its identifiable assets and liabilities as goodwill (or an equity adjustment, if negative) using the business

combination accounting guidance regardless of whether the net assets meet the definition of a business. The new accounting standard

is intended to reduce diversity in practice. This ASU will apply to joint ventures that meet the definition of a corporate joint venture under

GAAP, thus limiting its scope to joint ventures not controlled and therefore not consolidated by any joint venture investor. We generally

seek to maintain control of our real estate joint ventures and therefore expect this ASU to apply to a limited number, if any, of our

unconsolidated real estate joint ventures formed after the adoption of this accounting standard. This standard does not change the

accounting of investments by the investors in a joint venture in their individual financial statements, and therefore, its adoption will have

no impact on our consolidated financial statements. This accounting standard will become effective for joint ventures with a formation

date on or after January 1, 2025, with early adoption permitted. We expect to adopt this ASU on January 1, 2025.

On November 27, 2023, the FASB issued an ASU that will require quarterly disclosure of segment expenses if they are (i)

significant to the segment, (ii) regularly provided to the chief operating decision maker (“CODM”), and (iii) included in each reported

measure of a segment’s profit or loss. In addition, this ASU requires an annual disclosure of the CODM’s title and a description of how

the CODM uses the segment’s profit/loss measure to assess segment performance and to allocate resources. Pursuant to this ASU, the

footnotes to our consolidated financial statements may include incremental disclosures. The compliance with this ASU will be required

beginning with our annual report on Form 10-K for the year ending December 31, 2024, followed by interim disclosures in our quarterly

reports on Form 10-Q thereafter, with early adoption permitted. We will adopt this ASU for our annual report on Form 10-K for the year

ending December 31, 2024.

22

3.INVESTMENTS IN REAL ESTATE

Our consolidated investments in real estate, including real estate assets classified as held for sale as described in Note 15 –

“Assets classified as held for sale” to our unaudited consolidated financial statements, consisted of the following as of September 30,

2024 and December 31, 2023 (in thousands):

	September 30, 2024	December 31, 2023
Rental properties:
Land (related to rental properties)	$4,267,297	$4,385,515
Buildings and building improvements	20,651,577	20,320,866
Other improvements	4,317,120	3,681,628
Rental properties	29,235,994	28,388,009
Development and redevelopment projects	9,340,425	8,226,309
Gross investments in real estate	38,576,419	36,614,318
Less: accumulated depreciation	(5,624,642)	(4,980,807)
Investments in real estate(1)	$32,951,777	$31,633,511

(1)Balances as of September 30, 2024 and December 31, 2023 include investments in real estate aggregating $228.4 million and $185.4 million, respectively, related to our

assets held for sale as of each respective date. Refer to Note 15 – “Assets held for sale” to our unaudited consolidated financial statements for additional details.

Acquisitions

Our real estate asset acquisitions during the nine months ended September 30, 2024 consisted of the following (dollars in

thousands):

Property	Submarket/Market	Date of Purchase	Number of Properties	Future Development Square Footage	Purchase Price(1)
285, 299, 307, and 345 Dorchester Avenue(2)	Seaport Innovation District/ Greater Boston	1/30/24	—	1,040,000	$155,321
Other					46,490
					$201,811

(1)Represents the aggregate contractual purchase price of our acquisitions, which differs from purchases of real estate in our unaudited consolidated statements of cash

flows due to the timing of payment, closing costs, and other acquisition adjustments such as prorations of rents and expenses.

(2)Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial statements for additional details.

Based upon our evaluation of each acquisition, we determined that substantially all of the fair value related to each acquisition

was concentrated in a single identifiable asset or a group of similar identifiable assets or was associated with a land parcel with no

operations. Accordingly, each transaction did not meet the definition of a business and therefore was accounted for as an asset

acquisition. In each of these transactions, we allocated the total consideration for each acquisition to the individual assets and liabilities

acquired on a relative fair value basis.

Sales of real estate assets and impairment charges

Our completed dispositions of real estate assets during the nine months ended September 30, 2024 consisted of the following

(dollars in thousands):

Property	Submarket/Market	Date of Sale	Interest Sold	RSF	Sales Price		Gain on Sales of Real Estate
99 A Street	Seaport Innovation District/ Greater Boston	3/8/24	100%	235,000	$13,350		$—
1165 Eastlake Avenue East	Lake Union/Seattle	9/12/24	100%	100,086	149,985		21,535
219 East 42nd Street	New York City/New York City	7/9/24	100%	349,947	60,000		—
Other					15,374		5,971
					$238,709	(1)	$27,506

(1)Represents the aggregate contractual sales price of our dispositions, which differs from proceeds from sales of real estate and contributions from and sales of

noncontrolling interests in our consolidated statements of cash flows under “Investing activities” and “Financing activities,” respectively, primarily due to the timing of

payment, closing costs, and other sales adjustments such as prorations of rents and expenses.

23

3.INVESTMENTS IN REAL ESTATE (continued)

Impairment charges

During the nine months ended September 30, 2024, we recognized real estate impairment charges aggregating $36.5 million,

consisting of the following:

•Impairment charges aggregating $30.8 million primarily consisting of the pre-acquisition costs related to two potential

acquisitions aggregating 1.4 million RSF of future development in our Greater Boston market. We executed purchase

agreements for these potential acquisitions with the total purchase price aggregating $366.8 million in 2020 and 2022, and we

initially expected to close these acquisitions after 2024. Our intent for each site included the demolition of existing buildings

upon expiration of the existing in-place leases and the development of life science properties. During the three months ended

June 30, 2024, due to the existing macroeconomic environment that negatively impacted the financial outlooks for these

projects, we decided to no longer proceed with these acquisitions, resulting in the recognition of impairment charges. 

•Impairment charge of $5.7 million to adjust the carrying amount of one property in Canada that continued to meet the held-for-

sale classification to the sales price under negotiation with a potential buyer less costs to sell. We expect to sell this property

within 12 months.

Other

In 2006, ARE-East River Science Park, LLC, a subsidiary of Alexandria Real Estate Equities, Inc., was granted an option to

incorporate a land parcel adjacent to and north of the Alexandria Center® for Life Science – New York City (“ACLS-NYC”) campus

(“Option Parcel”) into the existing ground lease of that campus. The Option Parcel will allow ARE-East River Science Park, LLC to

develop a future world-class life science building within the ACLS-NYC campus. ARE-East River Science Park, LLC’s investment in pre-

construction costs related to the development of the Option Parcel, including costs related to design, engineering, environmental,

survey/title, and permitting and legal costs, aggregate $165.1 million as of September 30, 2024.

On August 6, 2024, ARE-East River Science Park, LLC filed a lawsuit in the United States District Court for the Southern

District of New York against its landlord, New York City Health + Hospitals Corporation (“H+H”), and the New York City Economic

Development Corporation (“EDC”). The lawsuit alleges two principal claims against H+H and EDC: fraud in the inducement, and, in the

alternative, breach of contract in violation of the implied covenant of good faith and fair dealing. As alleged in the complaint, ARE-East

River Science Park, LLC’s claims arise from H+H’s and EDC’s misrepresentations and concealment of material facts in connection with

a floodwall, which H+H and EDC are seeking to require ARE-East River Science Park, LLC to integrate into the development of the

Option Parcel. ARE-East River Science Park, LLC alleges that H+H’s and EDC’s misconduct have prevented it from commencing the

development of the Option Parcel. In light of the pending litigation, the closing date for the option and thus the commencement date for

construction of the third tower at the campus are presently indeterminate. Among other things, ARE-East River Science Park, LLC is

seeking significant damages and equitable relief to maintain the option.

This matter exposes us to potential losses ranging from zero to the full amount of the investment in the project aggregating

$165.1 million as of September 30, 2024, depending on any collection of damages and/or the ability to develop the project. We

performed a probability-weighted recoverability analysis based on initial estimates of various possible outcomes and determined no

impairment was present as of September 30, 2024.

24

4.CONSOLIDATED AND UNCONSOLIDATED REAL ESTATE JOINT VENTURES

From time to time, we enter into joint venture agreements through which we own a partial interest in real estate entities that

own, develop, and operate real estate properties. As of September 30, 2024, our real estate joint ventures held the following properties:

	Property	Market	Submarket	Our Ownership Interest(1)
Consolidated real estate joint ventures(2):
	50 and 60 Binney Street	Greater Boston	Cambridge/Inner Suburbs		34.0%
	75/125 Binney Street	Greater Boston	Cambridge/Inner Suburbs		40.0%
	100 and 225 Binney Street and 300 Third Street	Greater Boston	Cambridge/Inner Suburbs		30.0%
	99 Coolidge Avenue	Greater Boston	Cambridge/Inner Suburbs		75.0%
	15 Necco Street	Greater Boston	Seaport Innovation District		56.7%
	285, 299, 307, and 345 Dorchester Avenue	Greater Boston	Seaport Innovation District		60.0%
	Alexandria Center® for Science and Technology – Mission Bay(3)	San Francisco Bay Area	Mission Bay		25.0%
	1450 Owens Street	San Francisco Bay Area	Mission Bay		25.4%	(4)
	601, 611, 651, 681, 685, and 701 Gateway Boulevard	San Francisco Bay Area	South San Francisco		50.0%
	751 Gateway Boulevard	San Francisco Bay Area	South San Francisco		51.0%
	211 and 213 East Grand Avenue	San Francisco Bay Area	South San Francisco		30.0%
	500 Forbes Boulevard	San Francisco Bay Area	South San Francisco		10.0%
	Alexandria Center® for Life Science – Millbrae	San Francisco Bay Area	South San Francisco		47.9%
	3215 Merryfield Row	San Diego	Torrey Pines		30.0%
	Campus Point by Alexandria(5)	San Diego	University Town Center		55.0%
	5200 Illumina Way	San Diego	University Town Center		51.0%
	9625 Towne Centre Drive	San Diego	University Town Center		30.0%
	SD Tech by Alexandria(6)	San Diego	Sorrento Mesa		50.0%
	Pacific Technology Park	San Diego	Sorrento Mesa		50.0%
	Summers Ridge Science Park(7)	San Diego	Sorrento Mesa		30.0%
	1201 and 1208 Eastlake Avenue East	Seattle	Lake Union		30.0%
	199 East Blaine Street	Seattle	Lake Union		30.0%
	400 Dexter Avenue North	Seattle	Lake Union		30.0%
	800 Mercer Street	Seattle	Lake Union		60.0%
Unconsolidated real estate joint ventures(2):
	1655 and 1725 Third Street	San Francisco Bay Area	Mission Bay		10.0%
	1401/1413 Research Boulevard	Maryland	Rockville		65.0%	(8)
	1450 Research Boulevard	Maryland	Rockville		73.2%	(8)
	101 West Dickman Street	Maryland	Beltsville		58.2%	(8)

(1)Refer to the table on the next page that shows the categorization of our joint ventures under the consolidation framework.

(2)In addition to the real estate joint ventures listed, various partners hold insignificant noncontrolling interests in three other consolidated real estate joint ventures in North

America and we hold an interest in one insignificant unconsolidated real estate joint venture in North America.

(3)Includes 409 and 499 Illinois Street, 1500 and 1700 Owens Street, and 455 Mission Bay Boulevard South.

(4)During the nine months ended September 30, 2024, our equity ownership decreased from 40.6% to 25.4% based on continued funding of construction costs by our joint

venture partner and a reallocation of equity to our joint venture partner of $30.2 million from us. The noncontrolling interest share of our joint venture partner is

anticipated to increase to 75% and ours to decrease to 25% as our partner contributes additional equity to fund the construction of the project.

(5)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4135, 4155, 4161, 4165, 4224, and 4242 Campus Point Court.

(6)Includes 9605, 9645, 9675, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road.

(7)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.

(8)Represents a joint venture with a local real estate operator in which our joint venture partner manages the day-to-day activities that significantly affect the economic

performance of the joint venture.

25

4.CONSOLIDATED AND UNCONSOLIDATED REAL ESTATE JOINT VENTURES (continued)

Our consolidation policy is described under “Consolidation” in Note 2 – “Summary of significant accounting policies” to our

unaudited consolidated financial statements. Consolidation accounting is highly technical, but its framework is primarily based on the

controlling financial interests and benefits of the joint ventures. We generally consolidate a joint venture that is a legal entity that we

control (i.e., we have the power to direct the activities of the joint venture that most significantly affect its economic performance)

through contractual rights, regardless of our ownership interest, and where we determine that we have benefits through the allocation of

earnings or losses and fees paid to us that could be significant to the joint venture (the “VIE model”).

We also generally consolidate joint ventures when we have a controlling financial interest through voting rights and where our

voting interest is greater than 50% (the “voting model”). Voting interest differs from ownership interest for some joint ventures. We

account for joint ventures that do not meet the consolidation criteria under the equity method of accounting by recognizing our share of

income and losses.

The table below shows the categorization of our real estate joint ventures under the consolidation framework:

Property(1)	Consolidation Model	Voting Interest	Consolidation Analysis		Conclusion
50 and 60 Binney Street	VIE model	Not applicable under VIE model			Consolidated
75/125 Binney Street			We have:
100 and 225 Binney Street and 300 Third Street
99 Coolidge Avenue			(i)	The power to direct the activities of the joint venture that most significantly affect its economic performance; and
15 Necco Street
285, 299, 307, and 345 Dorchester Avenue
Alexandria Center® for Science and Technology – Mission Bay
1450 Owens Street
601, 611, 651, 681, 685, and 701 Gateway Boulevard
751 Gateway Boulevard
211 and 213 East Grand Avenue			(ii)	Benefits that can be significant to the joint venture.
500 Forbes Boulevard
Alexandria Center® for Life Science – Millbrae
3215 Merryfield Row
Campus Point by Alexandria
5200 Illumina Way			Therefore, we are the primary beneficiary of each VIE
9625 Towne Centre Drive
SD Tech by Alexandria
Pacific Technology Park
Summers Ridge Science Park
1201 and 1208 Eastlake Avenue East
199 East Blaine Street
400 Dexter Avenue North
800 Mercer Street
1401/1413 Research Boulevard			We do not control the joint venture and are therefore not the primary beneficiary.		Equity method of accounting
1450 Research Boulevard
101 West Dickman Street
1655 and 1725 Third Street	Voting model	Does not exceed 50%	Our voting interest is 50% or less.

(1)In addition to the real estate joint ventures listed, various partners hold insignificant noncontrolling interests in three other consolidated real estate joint ventures in North

America and we hold an interest in one insignificant unconsolidated real estate joint venture in North America.

26

4.CONSOLIDATED AND UNCONSOLIDATED REAL ESTATE JOINT VENTURES (continued)

Formation of consolidated real estate joint ventures

We evaluated each of our real estate joint ventures described below under the consolidation framework outlined above and

further detailed in “Consolidation” in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated financial

statements.

Refer to “Consolidation” in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated financial

statements for additional information. For a summary of our completed dispositions of real estate assets during the nine months ended

September 30, 2024, refer to “Sales of real estate assets and impairment charges” in Note 3 – “Investments in real estate” to our

unaudited consolidated financial statements.

285, 299, 307, and 345 Dorchester Avenue

During the three months ended March 31, 2024, we formed real estate joint ventures to develop a mega campus. We

contributed $155.3 million to these real estate joint ventures, and our partner’s share of contributed real estate assets aggregated

$103.5 million. As of March 31, 2024, these joint ventures owned four land parcels at 285, 299, 307, and 345 Dorchester Avenue in our

Seaport Innovation District submarket, with future development opportunities aggregating 1.0 million SF. We determined that we have

control over these real estate joint ventures, and we therefore consolidate the joint ventures. As of September 30, 2024, we have a 60%

ownership interest in the joint ventures.

1201 and 1208 Eastlake Avenue East

In September 2024, our prior joint venture partner sold its ownership interest in each of 1201 and 1208 Eastlake Avenue East

joint ventures to our new joint venture partner, who is also our longstanding tenant at the 1201 and 1208 Eastlake Avenue East

properties, occupying 117,479 RSF out of the total 207,774 RSF. Alexandria’s ownership interest in each of 1201 and 1208 Eastlake

Avenue East remained unchanged at 30.0%. Upon completion of the sale, we reassessed our consolidation analysis for this joint

venture and determined that we retain control, and we therefore continue to consolidate the joint venture.

Consolidated VIEs’ balance sheet information

We, together with joint venture partners, hold interests in real estate joint ventures that we consolidate in our financial

statements. These existing joint ventures provide significant equity capital to fund a portion of our future construction spend, and our

joint venture partners may also contribute equity into these entities for financing-related activities.

The table below aggregates the balance sheet information of our consolidated VIEs as of September 30, 2024 and

December 31, 2023 (in thousands):

	September 30, 2024	December 31, 2023
Investments in real estate	$8,801,576	$8,032,315
Cash and cash equivalents	334,329	306,475
Other assets	785,377	728,390
Total assets	$9,921,282	$9,067,180
Secured notes payable	$144,412	$119,042
Other liabilities	629,119	608,665
Mandatorily redeemable noncontrolling interest	—	35,250
Total liabilities	773,531	762,957
Redeemable noncontrolling interests	6,898	6,868
Alexandria Real Estate Equities, Inc.’s share of equity	4,671,544	4,162,017
Noncontrolling interests’ share of equity	4,469,309	4,135,338
Total liabilities and equity	$9,921,282	$9,067,180

27

4.CONSOLIDATED AND UNCONSOLIDATED REAL ESTATE JOINT VENTURES (continued)

In determining whether to aggregate the balance sheet information of consolidated VIEs, we considered the similarity of each

VIE, including the primary purpose of these entities to own, manage, operate, and lease real estate properties owned by the VIEs, and

the similar nature of our involvement in each VIE as a managing member. Due to the similarity of the characteristics, we present the

balance sheet information of these entities on an aggregated basis. None of our consolidated VIEs’ assets have restrictions that limit

their use to settle specific obligations of the VIE. There are no creditors or other partners of our consolidated VIEs that have recourse to

our general credit, and our maximum exposure to our consolidated VIEs is limited to our variable interests in each VIE, except for our

99 Coolidge Avenue real estate joint venture in which the VIE’s secured construction loan is guaranteed by us. Refer to Note 10 –

“Secured and unsecured senior debt” to our unaudited consolidated financial statements for additional information.

Unconsolidated real estate joint ventures

Our maximum exposure to our unconsolidated VIEs is limited to our investment in each VIE, except for our 1450 Research

Boulevard and 101 West Dickman Street unconsolidated real estate joint ventures in which we guarantee up to $6.7 million of the

outstanding balance related to each VIE’s secured loan. Our investments in unconsolidated real estate joint ventures, accounted for

under the equity method and classified in investments in unconsolidated real estate joint ventures in our consolidated balance sheets,

consisted of the following as of September 30, 2024 and December 31, 2023 (in thousands):

Property	September 30, 2024	December 31, 2023
1655 and 1725 Third Street	$10,792	$11,718
1450 Research Boulevard	9,197	6,041
101 West Dickman Street	9,733	9,290
Other	10,448	10,731
	$40,170	$37,780

The following table presents key terms related to our unconsolidated real estate joint ventures’ secured loans as of

September 30, 2024 (dollars in thousands):

					Interest Rate(1)	At 100%		Our Share
Unconsolidated Joint Venture	Maturity Date		Stated Rate			Aggregate Commitment	Debt Balance(2)
1401/1413 Research Boulevard(3)		12/23/24	2.70%		3.31%	$28,500	$28,461	65.0%
1655 and 1725 Third Street(4)		3/10/25	4.50%		4.57%	600,000	599,823	10.0%
101 West Dickman Street		11/10/26	SOFR+1.95%	(5)	7.39%	26,750	18,565	58.2%
1450 Research Boulevard		12/10/26	SOFR+1.95%	(5)	7.45%	13,000	8,616	73.2%
						$668,250	$655,465

(1)Includes interest expense and amortization of loan fees.

(2)Represents outstanding principal, net of unamortized deferred financing costs, as of September 30, 2024.

(3)We have executed a purchase and sale agreement to sell the unconsolidated real estate joint venture and expect to complete the sale during the fourth quarter of 2024.

Our net proceeds from the sale are expected to exceed our share of the outstanding debt balance and the carrying amount of this investment as of September 30, 2024.

(4)The unconsolidated real estate joint venture is in the process of working with prospective lenders to refinance this debt. In the event that all or a portion of the debt

cannot be refinanced, we may consider contributing additional equity into this unconsolidated real estate joint venture. As of September 30, 2024, our investment in this

unconsolidated real estate joint venture was $10.8 million.

(5)This loan is subject to a fixed SOFR floor of 0.75%.

28

5.LEASES

Refer to “Lease accounting” in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated financial

statements for information about lease accounting standards that set principles for the recognition, measurement, presentation, and

disclosure of leases for both parties to a lease agreement (i.e., lessees and lessors).

Leases in which we are the lessor

As of September 30, 2024, we had 406 properties aggregating 41.8 million operating RSF in key cluster locations, including

Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. We primarily focus

on developing Class A/A+ properties in AAA life science innovation cluster locations that offer the scale and strategic design integral to

our mega campus strategy. Strategically located near top academic medical institutions and equipped with curated amenities, services,

and transit access, our mega campuses are designed to support our tenants in attracting and retaining top talent, which we believe is a

key driver of tenant demand for our properties.

As of September 30, 2024, all leases in which we are the lessor were classified as operating leases, with the exception of one

direct financing lease. Our leases are described below.

Operating leases

As of September 30, 2024, our 406 properties were subject to operating lease agreements. Four of these properties are

subject to operating lease agreements that each contain a purchase option as described below:

(i)Two properties, representing two land parcels, are subject to lease agreements that each contain an option for the lessee

to purchase the underlying asset from us at fair market value during each of the 30-day periods commencing on the dates

that are 15 years, 30 years, and 74.5 years after the rent commencement date of October 1, 2017. The remaining lease

term related to each of the two land parcels is 68.2 years.

(ii)Two operating properties aggregating 207,774 RSF owned by our 1201 and 1208 Eastlake Avenue East consolidated real

estate joint venture are subject to purchase options held by our partner in this joint venture, who is also a tenant

occupying 117,479 RSF at these properties. One purchase option allows our partner to purchase our 30% interest in 1208

Eastlake Avenue East for $40.0 million in 2031. Contingent upon the exercise of this option, the second purchase option

allows our partner to purchase our 30% interest in 1201 Eastlake Avenue East for $69.1 million in 2034. Our partner’s

remaining lease terms for its operating leases at 1201 and 1208 Eastlake Avenue East are 20.0 years and 6.4 years,

respectively.

We evaluated the impact of the purchase options on the classification of the existing operating leases and determined that

each lease continues to meet the criteria for classification as an operating lease.

Our leases generally contain options to extend lease terms at prevailing market rates at the time of expiration. Certain

operating leases contain early termination options that require advance notification and payment of a penalty, which in most cases is

substantial enough to be deemed economically disadvantageous by a tenant to exercise. Future lease payments to be received under

the terms of our operating lease agreements, excluding expense reimbursements, in effect as of September 30, 2024 are outlined in the

table below (in thousands):

Year	Amount
2024	$485,925
2025	1,888,408
2026	1,842,590
2027	1,764,075
2028	1,621,117
Thereafter	11,131,473
Total	$18,733,588

Refer to Note 3 – “Investments in real estate” to our unaudited consolidated financial statements for additional information

about our owned real estate assets, which are the underlying assets under our operating leases.

Direct financing lease

As of September 30, 2024, we had one direct financing lease agreement, with a net investment balance of $40.6 million, for a

parking structure with a remaining lease term of 68.2 years. The lessee has an option to purchase the underlying asset at fair market

value during each of the 30-day periods commencing on the dates that are 15 years, 30 years, and 74.5 years after the rent

commencement date of October 1, 2017.

29

5.LEASES (continued)

The components of our aggregate net investment in our direct financing lease as of September 30, 2024 and December 31,

2023 are summarized in the table below (in thousands):

	September 30, 2024	December 31, 2023
Gross investment in direct financing lease	$251,886	$253,324
Less: unearned income on direct financing lease	(208,402)	(210,388)
Less: allowance for credit losses	(2,839)	(2,839)
Net investment in direct financing lease	$40,645	$40,097

As of September 30, 2024, our estimated credit loss related to our direct financing lease was $2.8 million. No adjustment to the

estimated credit loss balance was required during the nine months ended September 30, 2024. For further details, refer to “Allowance

for credit losses” in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated financial statements.

Future lease payments to be received under the terms of our direct financing lease as of September 30, 2024 are outlined in

the table below (in thousands):

Year	Total
2024	$481
2025	1,976
2026	2,036
2027	2,097
2028	2,160
Thereafter	243,136
Total	$251,886

Income from rentals

Our income from rentals includes revenue related to agreements for the rental of our real estate, which primarily includes

revenues subject to the lease accounting standard and the revenue recognition accounting standard as shown below (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Income from rentals:
Revenues subject to the lease accounting standard:
Operating leases	$763,947	$696,601	$2,255,634	$2,069,042
Direct financing leases	665	653	1,986	1,951
Revenues subject to the lease accounting standard	764,612	697,254	2,257,620	2,070,993
Revenues subject to the revenue recognition accounting standard	11,132	10,277	28,837	28,826
Income from rentals	$775,744	$707,531	$2,286,457	$2,099,819

Our revenues that are subject to the revenue recognition accounting standard and are classified in income from rentals consist

primarily of short-term parking revenues that are not considered lease revenues under the lease accounting standard. Refer to

“Revenues” and “Recognition of revenue arising from contracts with customers” in Note 2 – “Summary of significant accounting policies”

to our unaudited consolidated financial statements for additional information.

Residual value risk management strategy

Our leases do not have guarantees of residual value on the underlying assets. We manage risk associated with the residual

value of our leased assets by (i) evaluating each potential acquisition of real estate to determine whether it meets our business

objective to invest primarily in high-demand markets, (ii) directly managing our leased properties, conducting frequent property

inspections, proactively addressing potential maintenance issues before they arise, and/or timely resolving any occurring issues, and

(iii) carefully selecting our tenants and monitoring their credit quality throughout their respective lease terms.

30

5.LEASES (continued)

Leases in which we are the lessee

Operating lease agreements

We have operating lease agreements in which we are the lessee consisting of ground and office leases. Certain of these

leases have options to extend or terminate the contract terms upon meeting certain criteria. There are no notable restrictions or

covenants imposed by the leases, nor guarantees of residual value.

We recognize a right-of-use asset, which is classified within other assets in our consolidated balance sheets, and a related

liability, which is classified within accounts payable, accrued expenses, and other liabilities in our consolidated balance sheets, to

account for our future obligations under ground and office lease arrangements in which we are the lessee. Refer to “Lessee accounting”

in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated financial statements.

As of September 30, 2024, the present value of the remaining contractual payments aggregating $1.1 billion under our

operating lease agreements, including our extension options that we are reasonably certain to exercise, was $648.3 million. Our

corresponding operating lease right-of-use assets, adjusted for initial direct leasing costs and other consideration exchanged with the

landlord prior to the commencement of the lease, aggregated $776.7 million. As of September 30, 2024, the weighted-average

remaining lease term of operating leases in which we are the lessee was approximately 49 years, including extension options that we

are reasonably certain to exercise, and the weighted-average discount rate was 5.1%. The weighted-average discount rate is based on

the incremental borrowing rate estimated for each lease, which is the interest rate that we estimate we would have to pay to borrow on

a collateralized basis over a similar term for an amount equal to the lease payments.

Included in the operating lease liability balance as of September 30, 2024 is the liability related to an amendment to our

existing ground lease agreement at the Alexandria Technology Square® mega campus aggregating 1.2 million RSF in our Cambridge

submarket, which extended the lease term by 24 years from January 1, 2065 to December 31, 2088. The amendment requires that we

prepay our entire rent obligation for the extended lease term aggregating $270.0 million in two equal installments during the fourth

quarter of 2024 and the first quarter of 2025. Upon the execution of the amendment in July 2024, we recognized $265.1 million,

representing the present value of our rent obligation related to the amendment, as operating lease liability.

Ground lease obligations as of September 30, 2024 included leases for 36 of our properties, which accounted for

approximately 9% of our total number of properties. Excluding one ground lease that expires in 2036 related to one operating property

with a net book value of $5.8 million as of September 30, 2024, our ground lease obligations have remaining lease terms ranging from

approximately 30 to 97 years, including extension options that we are reasonably certain to exercise.

The reconciliation of future lease payments under noncancelable operating leases in which we are the lessee to the operating

lease liability reflected in our unaudited consolidated balance sheet as of September 30, 2024 is in the table below (in thousands):

Year	Total
2024	$140,553
2025	158,233
2026	23,427
2027	22,508
2028	22,176
Thereafter	757,389
Total future payments under our operating leases in which we are the lessee	1,124,286
Effect of discounting	(475,948)
Operating lease liability	$648,338

31

5.LEASES (continued)

Lessee operating costs

Operating lease costs relate to our ground and office leases in which we are the lessee. Ground leases generally require fixed

annual rent payments and may also include escalation clauses and renewal options. Our operating lease obligations related to our

office leases have remaining terms of up to 12 years, exclusive of extension options. For the nine months ended September 30, 2024

and 2023, amounts paid and classified as operating activities in our unaudited consolidated statements of cash flows for leases in which

we are the lessee aggregated $24.7 million and $24.6 million, respectively. For the three and nine months ended September 30, 2024

and 2023, our costs for operating leases in which we are the lessee were as follows (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Gross operating lease costs	$10,701	$9,005	$29,842	$30,277
Capitalized lease costs	(521)	(688)	(1,567)	(4,906)
Expenses for operating leases in which we are the lessee	$10,180	$8,317	$28,275	$25,371

6. CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

Cash, cash equivalents, and restricted cash consisted of the following as of September 30, 2024 and December 31, 2023 (in

thousands):

	September 30, 2024	December 31, 2023
Cash and cash equivalents	$562,606	$618,190
Restricted cash:
Funds held in escrow for real estate acquisitions	11,923	37,434
Other	5,108	5,147
	17,031	42,581
Total	$579,637	$660,771

32

7.INVESTMENTS

We hold investments in publicly traded companies and privately held entities primarily involved in the life science industry. As a

REIT, we generally limit our ownership of each individual entity’s voting stock to less than 10%. We evaluate each investment to

determine whether we have the ability to exercise significant influence, but not control, over an investee. We evaluate investments in

which our ownership is equal to or greater than 20%, but less than or equal to 50%, of an investee’s voting stock with a presumption

that we have this ability. For our investments in limited partnerships that maintain specific ownership accounts, we presume that such

ability exists when our ownership interest exceeds 3% to 5%. In addition to our ownership interest, we consider whether we have a

board seat or whether we participate in the investee’s policy-making process, among other criteria, to determine if we have the ability to

exert significant influence, but not control, over an investee. If we determine that we have such ability, we account for the investment

under the equity method, as described below.

Investments accounted for under the equity method

Under the equity method of accounting, we initially recognize our investment at cost and subsequently adjust the carrying

amount of the investment for our share of earnings or losses reported by the investee, distributions received, and other-than-temporary

impairments.

As of September 30, 2024, we had 10 investments in limited partnerships maintaining specific ownership accounts for each

investor, which were accounted for under the equity method. These investments aggregated $137.7 million. Our ownership interest in

each of these 10 investments was greater than 5%.

Investments that do not qualify for the equity method of accounting

For investees over which we determine that we do not have the ability to exercise significant influence or control, we account

for each investment depending on whether it is an investment in a (i) publicly traded company, (ii) privately held entity that reports NAV

per share, or (iii) privately held entity that does not report NAV per share, as described below.

Investments in publicly traded companies

Our investments in publicly traded companies are classified as investments with readily determinable fair values and are

presented at fair value in our consolidated balance sheets, with changes in fair value classified in investment income (loss) in our

consolidated statements of operations. The fair values for our investments in publicly traded companies are determined based on sales

prices or quotes available on securities exchanges.

Investments in privately held companies

Our investments in privately held entities without readily determinable fair values consist of (i) investments in privately held

entities that report NAV per share and (ii) investments in privately held entities that do not report NAV per share. These investments are

accounted for as follows:

Investments in privately held entities that report NAV per share

Investments in privately held entities that report NAV per share, such as our privately held investments in limited partnerships,

are presented at fair value using NAV as a practical expedient, with changes in fair value classified in investment income (loss) in our

consolidated statements of operations. We use NAV per share reported by limited partnerships generally without adjustment, unless we

are aware of information indicating that the NAV reported by a limited partnership does not accurately reflect the fair value of the

investment at our reporting date.

Investments in privately held entities that do not report NAV per share

Investments in privately held entities that do not report NAV per share are accounted for using a measurement alternative,

under which these investments are measured at cost, adjusted for observable price changes and impairments, with changes classified

in investment income (loss) in our consolidated statements of operations.

An observable price arises from an orderly transaction for an identical or similar investment of the same issuer, which is

observed by an investor without expending undue cost and effort. Observable price changes result from, among other things, equity

transactions of the same issuer executed during the reporting period, including subsequent equity offerings or other reported equity

transactions related to the same issuer. To determine whether these transactions are indicative of an observable price change, we

evaluate, among other factors, whether these transactions have similar rights and obligations, including voting rights, distribution

preferences, and conversion rights to the investments we hold.

33

7.INVESTMENTS (continued)

Impairment evaluation of equity method investments and investments in privately held entities that do not report NAV per

share

We monitor equity method investments and investments in privately held entities that do not report NAV per share for new

developments, including operating results, prospects and results of clinical trials, new product initiatives, new collaborative agreements,

capital-raising events, and merger and acquisition activities. These investments are evaluated on the basis of a qualitative assessment

for indicators of impairment by monitoring the presence of the following triggering events or impairment indicators:

(i)a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee;

(ii)a significant adverse change in the regulatory, economic, or technological environment of the investee;

(iii)a significant adverse change in the general market condition, including the research and development of technology and

products that the investee is bringing or attempting to bring to the market;

(iv)significant concerns about the investee’s ability to continue as a going concern; and/or

(v)a decision by investors to cease providing support or reduce their financial commitment to the investee.

If such indicators are present, we are required to estimate the investment’s fair value and immediately recognize an

impairment charge in an amount equal to the investment’s carrying value in excess of its estimated fair value.

Investment income/loss recognition and classification

We recognize both realized and unrealized gains and losses in our consolidated statements of operations, classified in

investment income (loss) in our consolidated statements of operations. Unrealized gains and losses represent:

(i)changes in fair value for investments in publicly traded companies;

(ii)changes in NAV for investments in privately held entities that report NAV per share;

(iii)observable price changes for investments in privately held entities that do not report NAV per share; and

(iv)our share of unrealized gains or losses reported by our equity method investees.

Realized gains and losses on our investments represent the difference between proceeds received upon disposition of

investments and their historical or adjusted cost basis. For our equity method investments, realized gains and losses represent our

share of realized gains or losses reported by the investee. Impairments are realized losses, which result in an adjusted cost basis, and

represent charges to reduce the carrying values of investments in privately held entities that do not report NAV per share and equity

method investments, if impairments are deemed other than temporary, to their estimated fair value.

Funding commitments to investments in privately held entities that report NAV

We are committed to funding approximately $379.9 million for our investments in privately held entities that report NAV. Our

funding commitments expire at various dates over the next 12 years with a weighted-average expiration of 8.1 years as of September

30, 2024. These investments are not redeemable by us, but we may receive distributions from these investments throughout their

terms. Our investments in privately held entities that report NAV generally have expected initial terms in excess of 10 years. The

weighted-average remaining term during which these investments are expected to be liquidated was 5.3 years as of September 30,

2024.

34

7.INVESTMENTS (continued)

The following tables summarize our investments as of September 30, 2024 and December 31, 2023 (in thousands):

	September 30, 2024
	Cost	Unrealized Gains	Unrealized Losses	Carrying Amount
Publicly traded companies	$187,085	$50,933	$(85,592)	$152,426
Entities that report NAV	527,042	160,608	(31,225)	656,425
Entities that do not report NAV:
Entities with observable price changes	93,982	72,862	(1,337)	165,507
Entities without observable price changes	407,261	—	—	407,261
Investments accounted for under the equity method	N/A	N/A	N/A	137,708
Total investments	$1,215,370	$284,403	$(118,154)	$1,519,327

	December 31, 2023
	Cost	Unrealized Gains	Unrealized Losses	Carrying Amount
Publicly traded companies	$203,467	$50,377	$(94,278)	$159,566
Entities that report NAV	507,059	192,468	(27,995)	671,532
Entities that do not report NAV:
Entities with observable price changes	97,892	77,600	(1,224)	174,268
Entities without observable price changes	368,654	—	—	368,654
Investments accounted for under the equity method	N/A	N/A	N/A	75,498
Total investments	$1,177,072	$320,445	$(123,497)	$1,449,518

Cumulative gains and losses (realized and unrealized) on investments in privately held entities that do not report NAV still held

as of September 30, 2024 aggregated to a loss of $73.4 million, which consisted of upward adjustments aggregating $72.9 million,

downward adjustments aggregating $1.3 million, and impairments aggregating $144.9 million.

Our investment income (loss) for the three and nine months ended September 30, 2024 and 2023 consisted of the following (in

thousands):

	Three Months Ended September 30,			Nine Months Ended September 30,
	2024		2023	2024		2023
Realized gains (losses)	$12,632	(1)	$(3,470)	$47,336	(1)	$16,903
Unrealized gains (losses)	2,610		(77,202)	(32,470)		(220,954)
Investment income (loss)	$15,242		$(80,672)	$14,866		$(204,051)

(1)Consists of realized gains of $23.0 million and $85.2 million, partially offset by impairment charges of $10.3 million and $37.8 million during the three and nine months

ended September 30, 2024, respectively.

During the nine months ended September 30, 2024, gains and losses on investments in privately held entities that do not

report NAV still held as of September 30, 2024 aggregated to a loss of $27.3 million, which consisted of upward adjustments

aggregating $17.6 million and downward adjustments and impairments aggregating $44.9 million.

During the nine months ended September 30, 2023, gains and losses on investments in privately held entities that do not

report NAV still held as of September 30, 2023 aggregated to a loss of $57.7 million, which consisted of upward adjustments

aggregating $16.5 million and downward adjustments and impairments aggregating $74.2 million.

Unrealized gains or losses related to investments still held (excluding investments accounted for under the equity method) as

of September 30, 2024 and 2023 aggregated to gains of $15.7 million and $97.8 million during the nine months ended

September 30, 2024 and 2023, respectively.

Our investment income of $14.9 million for the nine months ended September 30, 2024 also included $5.4 million of equity in

losses of our equity method investments.

Refer to “Investments” in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated financial

statements for additional information.

35

8. OTHER ASSETS

The following table summarizes the components of other assets as of September 30, 2024 and December 31, 2023 (in

thousands):

	September 30, 2024		December 31, 2023
Acquired in-place leases	$373,842		$461,613
Deferred compensation plan	46,471		40,365
Deferred financing costs – unsecured senior line of credit	51,470	(1)	30,897
Deposits	31,046		25,863
Furniture, fixtures, and equipment	35,967		26,560
Net investment in direct financing lease	40,645		40,097
Notes receivable	17,165		15,841
Operating lease right-of-use assets	776,740	(2)	516,452
Other assets	101,398		88,453
Prepaid expenses	40,271		30,969
Property, plant, and equipment	142,174		144,784
Total	$1,657,189		$1,421,894

(1)Increase is primarily due to the amendment and restatement of our unsecured senior line of credit to extend the maturity date from January 22, 2028 to January 22,

2030 in September 2024. Refer to Note 10 – “Secured and unsecured senior debt” to our unaudited consolidated financial statements for additional information.

(2)Includes the operating lease right-of-use asset related to an amendment executed in July 2024 to our existing ground lease agreement at the Alexandria Technology

Square® mega campus. For additional information, refer to “Leases in which we are the lessee” in Note 5 – “Leases” to our unaudited consolidated financial statements.

9.FAIR VALUE MEASUREMENTS

We provide fair value information about all financial instruments for which it is practicable to estimate fair value. We measure

and disclose the estimated fair value of financial assets and liabilities by utilizing a fair value hierarchy that distinguishes between data

obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant

assumptions. This hierarchy consists of three broad levels, as follows: (i) quoted prices in active markets for identical assets or liabilities

(Level 1), (ii) significant other observable inputs (Level 2), and (iii) significant unobservable inputs (Level 3). Significant other observable

inputs can include quoted prices for similar assets or liabilities in active markets, as well as inputs that are observable for the asset or

liability, such as interest rates, foreign exchange rates, and yield curves. Significant unobservable inputs are typically based on an

entity’s own assumptions, since there is little, if any, related market activity. In instances in which the determination of the fair value

measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the

entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety.

Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers

factors specific to the asset or liability.

Assets and liabilities measured at fair value on a recurring basis

The following table sets forth the assets that we measure at fair value on a recurring basis by level in the fair value hierarchy

(in thousands). There were no liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023.

There were no transfers of assets measured at fair value on a recurring basis to or from Level 3 in the fair value hierarchy during the

nine months ended September 30, 2024.

		Fair Value Measurement Using
Description	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investments in publicly traded companies:
As of September 30, 2024	$152,426	$152,426	$—	$—
As of December 31, 2023	$159,566	$159,566	$—	$—

Our investments in publicly traded companies represent investments with readily determinable fair values, and are carried at

fair value, with changes in fair value classified in investment income in our consolidated financial statements. We also hold investments

in privately held entities, which consist of (i) investments that report NAV and (ii) investments that do not report NAV, as further

described below.

36

9.FAIR VALUE MEASUREMENTS (continued)

Our investments in privately held entities that report NAV, such as our privately held investments in limited partnerships, are

carried at fair value using NAV as a practical expedient, with changes in fair value classified in net income. As of September 30, 2024

and December 31, 2023, the carrying values of investments in privately held entities that report NAV aggregated $656.4 million and

$671.5 million, respectively. These investments are excluded from the fair value hierarchy above as required by the fair value

accounting standards. We estimate the fair value of each of our investments in limited partnerships based on the most recent NAV

reported by each limited partnership. As a result, the determination of fair values of our investments in privately held entities that report

NAV generally does not involve significant estimates, assumptions, or judgments.

Assets and liabilities measured at fair value on a nonrecurring basis

The following table sets forth the assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy

as of September 30, 2024 and December 31, 2023 (in thousands).

			Fair Value Measurement Using
Description	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Real estate assets held for sale with carrying values adjusted to fair value less costs to sell:
As of September 30, 2024	$70,566	(1)	$—	$—		$70,566	(2)
As of December 31, 2023	$133,885	(1)	$—	$—		$133,885	(2)
Investments in privately held entities that do not report NAV:
As of September 30, 2024	$180,833		$—	$165,507	(3)	$15,326	(4)
As of December 31, 2023	$188,689		$—	$174,268	(3)	$14,421	(4)

(1)These amounts are included in the total balances of our net assets classified as held for sale aggregating $272.7 million and $191.4 million as of September 30, 2024

and December 31, 2023, respectively, disclosed in Note 15 – “Assets classified as held for sale,” and represent assets held for sale as of September 30, 2024 and

December 31, 2023, respectively, for which impairments were recognized. Refer to Note 3 – “Investments in real estate” and Note 15 – “Assets classified as held for

sale” to our unaudited consolidated financial statements for additional information.

(2)These amounts represent the aggregate carrying amounts of assets held for sale after adjustments to their respective fair values less costs to sell based on executed

purchase and sale agreements, letters of intent, or valuations provided by third-party real estate brokers.

(3)These amounts represent the total carrying amounts of our equity investments in privately held entities with observable price changes, which are included in the

investments balances of $1.5 billion and $1.4 billion in our unaudited consolidated balance sheets as of September 30, 2024 and December 31, 2023, respectively,

disclosed in Note 7 – “Investments” to our unaudited consolidated financial statements.

(4)These amounts are included in the investments in privately held entities without observable price changes balances aggregating $407.3 million and $368.7 million as of 

September 30, 2024 and December 31, 2023, respectively, disclosed in Note 7 – “Investments” to our unaudited consolidated financial statements. The aforementioned

balances represent the carrying amounts of investments in privately held entities that do not report NAV for which impairments have been recognized in accordance with

the measurement alternative guidance described in “Investments” in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated financial

statements.

Real estate assets classified as held for sale measured at fair value less costs to sell

Our real estate assets classified as held for sale and measured at fair value less costs to sell are presented in the table above.

These properties are subsets of our total real estate assets classified as held for sale as of September 30, 2024 and December 31,

2023, respectively. The fair values for these real estate assets were estimated based on executed purchase and sale agreements,

letters of intent, or valuations provided by third-party real estate brokers. Refer to “Investments in real estate” in Note 2 – “Summary of

significant accounting policies” and Note 15 – “Assets classified as held for sale” to our unaudited consolidated financial statements for

additional information.

Investments in privately held entities that do not report NAV

Our investments in privately held entities that do not report NAV are measured at cost, adjusted for observable price changes

and impairments, with changes recognized in net income. These investments are adjusted based on the observable price changes in

orderly transactions for the identical or similar investment of the same issuer. Further adjustments are not made until another

observable transaction occurs. Therefore, the determination of fair values of our investments in privately held entities that do not report

NAV does not involve significant estimates and assumptions or subjective and complex judgments.

We also subject our investments in privately held entities that do not report NAV to a qualitative assessment for indicators of

impairment. If indicators of impairment are present, we are required to estimate the investment’s fair value and immediately recognize

an impairment charge in an amount equal to the investment’s carrying value in excess of its estimated fair value.

37

9.FAIR VALUE MEASUREMENTS (continued)

The estimates of fair value typically incorporate valuation techniques that include an income approach reflecting a discounted

cash flow analysis, and a market approach that includes a comparative analysis of acquisition multiples and pricing multiples generated

by market participants. In certain instances, we may use multiple valuation techniques for a particular investment and estimate its fair

value based on an average of multiple valuation results.

Refer to Note 7 – “Investments” to our unaudited consolidated financial statements for additional information.

Assets and liabilities not measured at fair value in the statement of financial position but for which the fair value is disclosed

The fair values of our secured notes payable and unsecured senior notes payable, and the amounts outstanding on our

unsecured senior line of credit and commercial paper program, were estimated using widely accepted valuation techniques, including

discounted cash flow analyses using significant other observable inputs such as available market information on discount and

borrowing rates with similar terms, maturities, and credit ratings. Because the valuations of our financial instruments are based on these

types of estimates, the actual fair value of our financial instruments may differ materially if our estimates do not prove to be accurate.

Additionally, the use of different market assumptions or estimation methods may have a material effect on the estimated fair value

amounts.

As of September 30, 2024 and December 31, 2023, the book and estimated fair values of our secured notes payable and

unsecured senior notes payable and the amounts outstanding under our unsecured senior line of credit and commercial paper program,

including the level within the fair value hierarchy for which the estimates were derived, were as follows (in thousands):

	September 30, 2024
	Book Value	Fair Value Hierarchy			Estimated Fair Value
		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Liabilities:
Secured notes payable	$145,000	$—	$144,398	$—	$144,398
Unsecured senior notes payable	$12,092,012	$—	$10,927,583	$—	$10,927,583
Unsecured senior line of credit	$—	$—	$—	$—	$—
Commercial paper program	$454,589	$—	$454,575	$—	$454,575

	December 31, 2023
	Book Value	Fair Value Hierarchy			Estimated Fair Value
		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Liabilities:
Secured notes payable	$119,662	$—	$118,660	$—	$118,660
Unsecured senior notes payable	$11,096,028	$—	$9,708,930	$—	$9,708,930
Unsecured senior line of credit	$—	$—	$—	$—	$—
Commercial paper program	$99,952	$—	$99,915	$—	$99,915

The carrying values of cash and cash equivalents, restricted cash, tenant receivables, deposits, notes receivable, accounts

payable, accrued expenses, and other short-term liabilities approximate their fair value.

38

10.SECURED AND UNSECURED SENIOR DEBT

The following table summarizes our outstanding indebtedness and respective principal payments remaining as of September 30, 2024 (dollars in thousands):

	Stated  Rate	Interest Rate(1)		Maturity Date(2)		Principal Payments Remaining for the Periods Ending December 31,							Unamortized (Deferred Financing Cost), (Discount)/ Premium
Debt						2024	2025	2026	2027	2028	Thereafter	Principal		Total
Secured notes payable
Greater Boston(3)	SOFR+2.70%	8.40%		11/19/26		$—	$—	$144,527	$—	$—	$—	$144,527	$(114)	$144,413
San Francisco Bay Area	6.50%	6.50		7/1/36		—	34	36	38	41	438	587	—	587
Secured debt weighted-average interest rate/ subtotal		8.39				—	34	144,563	38	41	438	145,114	(114)	145,000
Unsecured senior line of credit and commercial paper program(4)	(4)	5.05	(4)	1/22/30	(4)	—	—	—	—	—	455,000	455,000	(411)	454,589
Unsecured senior notes payable	3.45%	3.62		4/30/25		—	600,000	—	—	—	—	600,000	(518)	599,482
Unsecured senior notes payable	4.30%	4.50		1/15/26		—	—	300,000	—	—	—	300,000	(655)	299,345
Unsecured senior notes payable	3.80%	3.96		4/15/26		—	—	350,000	—	—	—	350,000	(776)	349,224
Unsecured senior notes payable	3.95%	4.13		1/15/27		—	—	—	350,000	—	—	350,000	(1,194)	348,806
Unsecured senior notes payable	3.95%	4.07		1/15/28		—	—	—	—	425,000	—	425,000	(1,418)	423,582
Unsecured senior notes payable	4.50%	4.60		7/30/29		—	—	—	—	—	300,000	300,000	(1,082)	298,918
Unsecured senior notes payable	2.75%	2.87		12/15/29		—	—	—	—	—	400,000	400,000	(2,167)	397,833
Unsecured senior notes payable	4.70%	4.81		7/1/30		—	—	—	—	—	450,000	450,000	(2,149)	447,851
Unsecured senior notes payable	4.90%	5.05		12/15/30		—	—	—	—	—	700,000	700,000	(4,926)	695,074
Unsecured senior notes payable	3.375%	3.48		8/15/31		—	—	—	—	—	750,000	750,000	(4,509)	745,491
Unsecured senior notes payable	2.00%	2.12		5/18/32		—	—	—	—	—	900,000	900,000	(7,198)	892,802
Unsecured senior notes payable	1.875%	1.97		2/1/33		—	—	—	—	—	1,000,000	1,000,000	(7,326)	992,674
Unsecured senior notes payable	2.95%	3.07		3/15/34		—	—	—	—	—	800,000	800,000	(7,425)	792,575
Unsecured senior notes payable	4.75%	4.88		4/15/35		—	—	—	—	—	500,000	500,000	(5,071)	494,929
Unsecured senior notes payable	5.25%	5.38		5/15/36		—	—	—	—	—	400,000	400,000	(4,195)	395,805
Unsecured senior notes payable	4.85%	4.93		4/15/49		—	—	—	—	—	300,000	300,000	(2,900)	297,100
Unsecured senior notes payable	4.00%	3.91		2/1/50		—	—	—	—	—	700,000	700,000	10,017	710,017
Unsecured senior notes payable	3.00%	3.08		5/18/51		—	—	—	—	—	850,000	850,000	(11,322)	838,678
Unsecured senior notes payable	3.55%	3.63		3/15/52		—	—	—	—	—	1,000,000	1,000,000	(13,782)	986,218
Unsecured senior notes payable	5.15%	5.26		4/15/53		—	—	—	—	—	500,000	500,000	(7,647)	492,353
Unsecured senior notes payable	5.625%	5.71		5/15/54		—	—	—	—	—	600,000	600,000	(6,745)	593,255
Unsecured debt weighted-average interest rate/ subtotal		3.85				—	600,000	650,000	350,000	425,000	10,605,000	12,630,000	(83,399)	12,546,601
Weighted-average interest rate/total		3.91%				$—	$600,034	$794,563	$350,038	$425,041	$10,605,438	$12,775,114	$(83,513)	$12,691,601

(1)Represents the weighted-average interest rate as of the end of the applicable period, including amortization of loan fees, amortization of debt premiums (discounts), and other bank fees.

(2)Reflects any extension options that we control.

(3)Represents a secured construction loan held by our consolidated real estate joint venture for 99 Coolidge Avenue, of which we own a 75.0% interest. As of September 30, 2024, this joint venture has $50.8 million available under existing

lender commitments. The interest rate shall be reduced from SOFR+2.70% to SOFR+2.10% over time upon the completion of certain leasing, construction, and financial covenant milestones.

(4)Refer to “$5.0 billion unsecured senior line of credit” and “$2.5 billion commercial paper program” on the following page. In September 2024, we amended and restated our unsecured senior line of credit to, among other changes, extend

the maturity date from January 22, 2028 to January 22, 2030, including extension options that we control.

39

10.SECURED AND UNSECURED SENIOR DEBT (continued)

The following table summarizes our secured and unsecured senior debt and amounts outstanding under our unsecured senior

line of credit and commercial paper program as of September 30, 2024 (dollars in thousands):

	Fixed-Rate Debt	Variable-Rate Debt				Weighted-Average
						Interest		Remaining Term (in years)
			Total		Percentage	Rate(1)
Secured notes payable	$587	$144,413	$145,000		1.1%	8.39%		2.2
Unsecured senior notes payable	12,092,012	—	12,092,012		95.3	3.81		13.0
Unsecured senior line of credit and commercial paper program	—	454,589	454,589	(2)	3.6	5.05	(2)	5.3	(3)
Total/weighted average	$12,092,599	$599,002	$12,691,601		100.0%	3.91%		12.6	(3)
Percentage of total debt	95.3%	4.7%	100%

(1)Represents the weighted-average interest rate as of the end of the applicable period, including expense/income related to the amortization of loan fees, amortization of

debt premiums (discounts), and other bank fees.

(2)As of September 30, 2024, we had no outstanding balance on our unsecured senior line of credit and $454.6 million of commercial paper notes outstanding with a

weighted-average interest rate of 5.05%.

(3)We calculate the weighted-average remaining term of our commercial paper notes by using the maturity date of our unsecured senior line of credit. Using the maturity

date of our outstanding commercial paper notes, the consolidated weighted-average maturity of our debt is 12.5 years. The commercial paper notes sold during the nine

months ended September 30, 2024 were issued at a weighted-average yield to maturity of 5.55% and had a weighted-average maturity term of 17 days.

Unsecured senior notes payable

In February 2024, we issued $1.0 billion of unsecured senior notes payable with a weighted-average interest rate of 5.48%

and a weighted-average maturity of 23.1 years. The unsecured senior notes consisted of $400.0 million of 5.25% unsecured senior

notes due 2036 and $600.0 million of 5.625% unsecured senior notes due 2054.

$5.0 billion unsecured senior line of credit

As of September 30, 2024, our unsecured senior line of credit had aggregate commitments of $5.0 billion and bore an interest

rate of SOFR plus 0.855%. In addition to the cost of borrowing, the unsecured senior line of credit is subject to an annual facility fee of

0.145% based on the aggregate commitments outstanding. Based upon our ability to achieve certain annual sustainability metrics, the

interest rate and facility fee rate are also subject to upward or downward adjustments of up to four basis points with respect to the

interest rate and up to one basis point with respect to the facility fee rate.

Based on certain sustainability metrics achieved in accordance with the terms of our unsecured senior line of credit

agreement, the borrowing rate was reduced for a one-year period by two basis points to SOFR plus 0.855%, from SOFR plus 0.875%,

and the facility fee was reduced by 0.5 basis point to 0.145% from 0.15%. As of September 30, 2024, we had no outstanding balance

on our unsecured line of credit.

In September 2024, we amended and restated our unsecured senior line of credit to, among other changes, extend the

maturity date from January 22, 2028 to January 22, 2030, including extension options that we control.

$2.5 billion commercial paper program

Our commercial paper program provides us with the ability to issue up to $2.5 billion of commercial paper notes that bear

interest at short-term fixed rates with a maturity of generally 30 days or less and a maximum maturity of 397 days from the date of

issuance. Our commercial paper program is backed by our unsecured senior line of credit, and at all times we expect to retain a

minimum undrawn amount of borrowing capacity under our unsecured senior line of credit equal to any outstanding notes issued under

our commercial paper program. We use the net proceeds from the issuances of the notes for general working capital and other general

corporate purposes. General corporate purposes may include, but are not limited to, the repayment of other debt and selective

development, redevelopment, or acquisition of properties. During the nine months ended September 30, 2024, the commercial paper

notes were issued at a weighted-average yield to maturity of 5.55% and had a weighted-average maturity term of 17 days. As of

September 30, 2024, the outstanding balance under our commercial paper program was $454.6 million with a weighted-average

interest rate of 5.05%.

40

10.SECURED AND UNSECURED SENIOR DEBT (continued)

Interest expense

The following table summarizes interest expense for the three and nine months ended September 30, 2024 and 2023 (in

thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Interest incurred	$130,046	$107,530	$379,554	$317,100
Capitalized interest	(86,496)	(96,119)	(249,375)	(274,863)
Interest expense	$43,550	$11,411	$130,179	$42,237

11.ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES

The following table summarizes the components of accounts payable, accrued expenses, and other liabilities as of

September 30, 2024 and December 31, 2023 (in thousands):

	September 30, 2024		December 31, 2023
Accounts payable and accrued expenses	$469,970		$524,439
Accrued construction	586,074		606,333
Acquired below-market leases	249,053		322,040
Conditional asset retirement obligations	54,392		53,083
Deferred rent liabilities	12,029		15,183
Operating lease liability	648,338	(1)	382,883
Unearned rent and tenant security deposits	651,814		548,529
Other liabilities	194,216		158,453
Total	$2,865,886		$2,610,943

(1)Includes ground lease liability related to an amendment executed in July 2024 to our existing ground lease agreement at the Alexandria Technology Square® mega

campus. For additional information, refer to “Leases in which we are the lessee” in Note 5 – “Leases” to our unaudited consolidated financial statements.

As of September 30, 2024 and December 31, 2023, our conditional asset retirement obligations liability primarily consisted of

the soil and groundwater remediation liabilities associated with certain of our properties. Some of our properties may contain asbestos

or may be subjected to other hazardous or toxic substances, which, under certain conditions, requires remediation. We engage

independent environmental consultants to conduct Phase I or similar environmental assessments at our properties. This type of

assessment generally includes a site inspection, interviews, and a public records review; asbestos, lead-based paint, and mold surveys;

subsurface sampling; and other testing. We recognize a liability for the fair value of a conditional asset retirement obligation (including

asbestos) when the fair value of the liability can be reasonably estimated. In addition, environmental laws and regulations subject our

tenants, and potentially us, to liability that may result from our tenants’ routine handling of hazardous substances and wastes as part of

their operations at our properties. These assessments and investigations of our properties have not to date revealed any additional

environmental liability we believe would have a material adverse effect on our business and financial statements or that would require

additional disclosures or recognition in our consolidated financial statements.

41

12.EARNINGS PER SHARE

From time to time, we enter into forward equity sales agreements, which are discussed in Note 13 – “Stockholders’ equity” to

our unaudited consolidated financial statements. We consider the potential dilution resulting from the forward equity sales agreements

on the EPS calculations. At inception, the agreements do not have an effect on the computation of basic EPS as no shares are

delivered until settlement. The common shares issued upon the settlement of the forward equity sales agreements, weighted for the

period these common shares were outstanding, are included in the denominator of basic EPS. To determine the dilution resulting from

the forward equity sales agreements during the period of time prior to settlement, we calculate the number of weighted-average shares

outstanding – diluted using the treasury stock method.

We account for unvested restricted stock awards that contain nonforfeitable rights to dividends as participating securities and

include these securities in the computation of EPS using the two-class method. Our forward equity sales agreements are not

participating securities and are therefore not included in the computation of EPS using the two-class method. Under the two-class

method, we allocate net income (after amounts attributable to noncontrolling interests) to common stockholders and unvested restricted

stock awards by using the weighted-average shares of each class outstanding for quarter-to-date and year-to-date periods

independently, based on their respective participation rights to dividends declared (or accumulated) and undistributed earnings.

The table below reconciles the numerators and denominators of the basic and diluted EPS computations for the three and nine

months ended September 30, 2024 and 2023 (in thousands, except per share amounts):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Net income	$213,603	$68,254	$526,828	$323,652
Net income attributable to noncontrolling interests	(45,656)	(43,985)	(141,634)	(131,584)
Net income attributable to unvested restricted stock awards	(3,273)	(2,414)	(10,717)	(7,697)
Numerator for basic and diluted EPS – net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$164,674	$21,855	$374,477	$184,371
Denominator for basic EPS – weighted-average shares of common stock outstanding	172,058	170,890	172,007	170,846
Dilutive effect of forward equity sales agreements	—	—	—	—
Denominator for diluted EPS – weighted-average shares of common stock outstanding	172,058	170,890	172,007	170,846
Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders:
Basic	$0.96	$0.13	$2.18	$1.08
Diluted	$0.96	$0.13	$2.18	$1.08

42

13.STOCKHOLDERS’ EQUITY

Common equity transactions

In February 2024, we entered into a new ATM common stock offering program that allows us to sell up to an aggregate of

$1.5 billion of our common stock. 

During the three months ended June 30, 2024, we entered into new forward equity sales agreements aggregating $28 million

to sell 230 thousand shares of common stock under our ATM program at an average price of $122.32 (before underwriting discounts).

As of September 30, 2024, none of these agreements were settled.

During the three months ended September 30, 2024, we had no activity under our ATM program. As of September 30, 2024,

the remaining aggregate amount available under our ATM program for future sales of common stock was $1.47 billion.

Dividends

During the three months ended March 31, 2024, we declared cash dividends on our common stock aggregating $222.1 million,

or $1.27 per share. In April 2024, we paid the cash dividends on our common stock declared for the three months ended March 31,

2024.

During the three months ended June 30, 2024, we declared cash dividends on our common stock aggregating $227.4 million,

or $1.30 per share. In July 2024, we paid the cash dividends on our common stock declared for the three months ended June 30, 2024.

During the three months ended September 30, 2024, we declared cash dividends on our common stock aggregating

$227.2 million, or $1.30 per share. In October 2024, we paid the cash dividends on our common stock declared for the three months

ended September 30, 2024.

Accumulated other comprehensive loss

The change in accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc.’s stockholders

during the nine months ended September 30, 2024 was entirely due to net unrealized losses of $6.6 million on foreign currency

translation related to our operations primarily in Canada.

Common stock, preferred stock, and excess stock authorizations

Our charter authorizes the issuance of 400.0 million shares of common stock, of which 172.2 million shares were issued and

outstanding as of September 30, 2024. Our charter also authorizes the issuance of up to 100.0 million shares of preferred stock, none

of which were issued and outstanding as of September 30, 2024. In addition, 200.0 million shares of “excess stock” (as defined in our

charter) are authorized, none of which were issued and outstanding as of September 30, 2024.

14.NONCONTROLLING INTERESTS

Noncontrolling interests represent the third-party interests in certain entities in which we have a controlling interest. As of

September 30, 2024, these entities owned 67 properties, which are included in our consolidated financial statements. Noncontrolling

interests are adjusted for additional contributions and distributions, the proportionate share of the net earnings or losses, and other

comprehensive income or loss. Distributions, profits, and losses related to these entities are allocated in accordance with the respective

operating agreements. During the nine months ended September 30, 2024 and 2023, we distributed $179.1 million and $192.7 million,

respectively, to our consolidated real estate joint venture partners.

Certain of our noncontrolling interests have the right to require us to redeem their ownership interests in the respective entities.

We classify these ownership interests in the entities as redeemable noncontrolling interests outside of total equity in our consolidated

balance sheets. Redeemable noncontrolling interests are adjusted for additional contributions and distributions, the proportionate share

of the net earnings or losses, and other comprehensive income or loss. If the amount of a redeemable noncontrolling interest is less

than the maximum redemption value at the balance sheet date, such amount is adjusted to the maximum redemption value.

Subsequent declines in the redemption value are recognized only to the extent that previous increases have been recognized.

Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial

statements for additional information.

43

15.ASSETS CLASSIFIED AS HELD FOR SALE

As of September 30, 2024, we had nine properties aggregating 1.3 million RSF that were classified as held for sale in our

consolidated financial statements.

The disposal of properties classified as held for sale does not represent a strategic shift that has (or will have) a major effect

on our operations or financial results and therefore does not meet the criteria for classification as a discontinued operation. We cease

depreciation of our properties upon their classification as held for sale.

The following is a summary of net assets as of September 30, 2024 and December 31, 2023 for our real estate investments

that were classified as held for sale as of each respective date (in thousands):

	September 30, 2024	December 31, 2023
Total assets(1)	$280,631	$194,223
Total liabilities	(9,355)	(4,750)
Total accumulated other comprehensive income	1,421	1,960
Net assets classified as held for sale	$272,697	$191,433

(1)Balances as of September 30, 2024 and December 31, 2023 include investments in real estate aggregating $228.4 million and $185.4 million, respectively, classified in

investments in real estate in our consolidated balance sheets as of each respective date.

For additional information, refer to “Real estate sales” in Note 2 – “Summary of significant accounting policies” to our unaudited

consolidated financial statements.

16.SUBSEQUENT EVENTS

Real estate acquisition and disposition in October 2024

In October 2024, we completed the sale of one property aggregating 248,186 RSF at 14225 Newbrook Drive in our Northern

Virginia submarket for a sales price of $80.5 million and recognized a gain on sale of real estate of $37.1 million.

In October 2024, we completed the acquisition of one property at 428 Westlake Avenue North in our Lake Union submarket for

a purchase price of $47.6 million.

Real estate impairment charges in October 2024

In October 2024, four properties located in our Greater Boston market met the criteria for classification as held for sale. We

expect to complete the sale of these properties for a sales price of $369.4 million during the fourth quarter of 2024 to the current tenant

of the properties. These properties are currently 100% leased for a weighted-average remaining lease term of 18 years to a single

tenant with whom we have a long-established relationship. The important tenant relationship and strategic nature of these properties

resulted in a limited pool of buyers we would be willing to sell this asset to and, as a result, the likelihood of selling this asset was not

probable until the buyer committed in October 2024 to acquire these properties. As a result, in October 2024, we recognized an

impairment charge aggregating $40.9 million to reduce the carrying amounts of these properties to the expected sales price less costs

to sell.

In October 2024, five operating properties aggregating 203,223 RSF and land parcels aggregating 1.5 million SF in our

Sorrento Mesa and University Town Center submarkets met the criteria for classification as held for sale. We expect to complete the

sale of these assets to buyers that are expected to develop residential properties on these sites for an aggregate sales price of

approximately $314.0 million during the fourth quarter of 2024. In October 2024, upon management obtaining the authority to sell these

assets and agreeing to acceptable terms, we recognized impairment charges aggregating $65.9 million to reduce the carrying amounts

of these properties to the expected aggregate sales price less costs to sell.

44

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

Forward-looking statements

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

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

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

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

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

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

could cause actual results to differ materially from those included within or contemplated by the forward-looking statements, including,

but not limited to, the following:

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

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

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

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

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

policies, laws, and/or funding levels;

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

armed hostilities; and

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

standards.

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

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

operations” in our annual report on Form 10-K for the year ended December 31, 2023 and under respective sections in this quarterly

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

for further discussion regarding such factors.

45

Overview

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

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

REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche with our founding in 1994,

Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative mega campuses 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, 2024, Alexandria has a total market capitalization of $33.1 billion and an asset base in North

America that includes 41.8 million RSF of operating properties, 5.3 million RSF of Class A/A+ properties undergoing construction, and

one committed near-term project expected to commence construction in the next two years. Alexandria has a longstanding and proven

track record of developing Class A/A+ properties clustered in mega campuses that provide our innovative tenants with highly dynamic

and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity,

efficiency, creativity, and success. 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.

As of September 30, 2024:

•Investment-grade or publicly traded large cap tenants represented 53% of our annual rental revenue;

•Approximately 96% of our leases (on an annual rental revenue basis) contained effective annual rent escalations

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

•Approximately 93% of our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay

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

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

•Approximately 92% of our leases (on an annual rental revenue basis) provided for the recapture of capital expenditures

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

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

•80% of our leasing activity during the last twelve months was generated from our existing tenant base.

Our primary business objective is to maximize long-term asset value and stockholder returns based on a multifaceted platform

of internal and external growth. A key element of our strategy is our unique focus on Class A/A+ properties located in collaborative

mega campuses in AAA life science innovation clusters. Our mega campuses are designed for scalability, offering our tenants a clear

path for growth, including through our future developments and redevelopments. Strategically located near top academic medical

institutions and equipped with curated amenities, services, and transit access, our mega campuses are designed to support our tenants

in attracting and retaining top talent, which we believe is a key driver of tenant demand for our properties. Our strategy also includes

drawing upon our deep and broad real estate and life science relationships in order to identify and attract new and leading tenants and

to source additional value-creation real estate.

Executive summary

Operating results

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Net income attributable to Alexandria’s common stockholders – diluted:
In millions	$164.7	$21.9	$374.5	$184.4
Per share	$0.96	$0.13	$2.18	$1.08
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted:
In millions	$407.9	$386.4	$1,217.3	$1,142.5
Per share	$2.37	$2.26	$7.08	$6.69

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

Real Estate Equities, Inc.’s common stockholders” under “Definitions and reconciliations” and to the tabular presentation of these items

in “Results of operations” in Item 2.

46

Continued operational excellence and solid results amid challenging macroeconomics environment

(As of September 30, 2024, unless stated otherwise)
Occupancy of operating properties in North America	94.7%
Percentage of annual rental revenue in effect from mega campuses	76%
Percentage of annual rental revenue in effect from investment-grade or publicly traded large cap tenants	53%
Adjusted EBITDA margin for the three months ended September 30, 2024	70%
Percentage of leases containing annual rent escalations	96%
Weighted-average remaining lease term:
Top 20 tenants	9.5	years
All tenants	7.5	years
Sustained strength in tenant collections:
Tenant receivables as a percentage of rental revenues for the three months ended September 30, 2024	0.9%
October 2024 tenant rents and receivables collected as of the date of this report	99.6%
Tenant rents and receivables for the three months ended September 30, 2024 collected as of the date of this report	99.9%

Strong and flexible balance sheet with significant liquidity; top 10% credit rating ranking among all publicly traded U.S. REITs

•As of September 30, 2024, our credit ratings from Moody’s Ratings and S&P Global Ratings were Baa1 and BBB+,

respectively, which rank in the top 10% among all publicly traded U.S. REITs.

•Net debt and preferred stock to Adjusted EBITDA of 5.5x and fixed-charge coverage ratio of 4.4x for the three months ended

September 30, 2024 annualized.

•Significant liquidity of $5.4 billion.

•31% of our total debt matures in 2049 and beyond.

•12.6 years weighted-average remaining term of debt.

•Since 2020, an average of 97.7% of our debt has been fixed rate.

•Total debt and preferred stock to gross assets of 29%.

•$1.0 billion of capital contribution commitments from existing consolidated real estate joint venture partners to fund

construction from October 1, 2024 through 2027.

Strong leasing volume and solid rental rates

•Strong leasing volume aggregating 1.5 million RSF for the three months ended September 30, 2024, up 48% compared to our

previous four-quarter average of 1.0 million RSF.

•Rental rate changes on lease renewals and re-leasing of space were 5.1% and 1.5% (cash basis) for the three months ended

September 30, 2024 and 16.4% and 8.9% (cash basis) for the nine months ended September 30, 2024.

•80% of our leasing activity during the last twelve months was generated from our existing tenant base.

	September 30, 2024
	Three Months Ended		Nine Months Ended
Total leasing activity – RSF	1,486,097		3,742,955
Leasing of development and redevelopment space – RSF	39,121		480,342
Lease renewals and re-leasing of space:
RSF (included in total leasing activity above)	1,278,857		2,863,277
Rental rate changes	5.1%	(1)	16.4%
Rental rate changes (cash basis)	1.5%	(1)	8.9%

(1)Includes a five-year lease extension to an investment-grade rated technology tenant aggregating 357,136 RSF of recently acquired tech R&D space in our

Texas market that was renewed with rental rate changes of (33.6)% and (4.8)% (cash basis). These spaces were originally targeted for a future change in

use at acquisition, but we instead renewed them with a lower capital investment while we continue to evaluate options to convert these spaces in the future,

subject to market conditions. Excluding this lease, rental rate changes for renewed/re-leased space for the three months ended September 30, 2024 were

13.0% and 2.3% (cash basis).

47

Continued solid net operating income and internal growth

•Total revenue growth

•$791.6 million, up 10.9%, for the three months ended September 30, 2024, compared to $713.8 million for the three

months ended September 30, 2023.

•$2.3 billion, up 9.3%, for the nine months ended September 30, 2024, compared to $2.1 billion for the nine months ended

September 30, 2023.

•Net operating income (cash basis) of $2.0 billion for the three months ended September 30, 2024 annualized, increased by

$274.2 million, or 15.5%, compared to the three months ended September 30, 2023 annualized. Refer to “Net operating

income, net operating income (cash basis), and operating margin” under “Definitions and reconciliations” in Item 2 for a

reconciliation of our net income to net operating income (cash basis).

•Same property net operating income growth

•1.5% and 6.5% (cash basis) for the three months ended September 30, 2024, compared to the three months ended

September 30, 2023.

•1.6% and 4.6% (cash basis) for the nine months ended September 30, 2024, compared to the nine months ended

September 30, 2023.

•96% of our leases contain contractual annual rent escalations approximating 3%.

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

reinvestment

•Common stock dividend declared for the three months ended September 30, 2024 of $1.30 per common share aggregating

$5.14 per common share for the twelve months ended September 30, 2024, up 24 cents, or 5%, over the twelve months

ended September 30, 2023.

•Dividend yield of 4.4% as of September 30, 2024.

•Dividend payout ratio of 55% for the three months ended September 30, 2024.

•Average annual dividend per-share growth of 5.4% from 2020 through the three months ended September 30, 2024

annualized.

•Significant net cash flows from operating activities after dividends retained for reinvestment aggregating $2.1 billion for the

years ended December 31, 2020 through 2023 and including the midpoint of our 2024 guidance range for net cash provided

by operating activities after dividends.

Ongoing successful execution of Alexandria’s 2024 capital strategy

We expect to continue pursuing our strategy to fund a significant portion of our capital requirements for the year ending

December 31, 2024 with dispositions primarily focused on sales of properties and land parcels not integral to our mega campus

strategy. Refer to “Dispositions” in Item 2 for additional details.

(in millions)
Completed dispositions of 100% interest in properties	$319
Pending dispositions subject to non-refundable deposits	577
Pending dispositions subject to executed letters of intent and/or purchase and sale agreement	603
Forward equity sales agreements	28
Total	$1,527
2024 guidance midpoint for dispositions and common equity	$1,550

•In September 2024, we completed the following transactions with our longstanding tenant, Fred Hutchinson Cancer Center

(“Fred Hutch”), in the Lake Union submarket:

•Sale of 1165 Eastlake Avenue East, a fully leased 100,086 RSF single-tenant Class A+ life science facility that was

developed in 2021. We sold the property for $150.0 million, or $1,499 per RSF, at strong capitalization rates of 4.7% and

4.9% (cash basis). Upon completion of the sale, we recognized a gain on sale of real estate aggregating $21.5 million.

•Fred Hutch executed early renewals aggregating 117,479 RSF at our 1201 and 1208 Eastlake Avenue East properties,

including a 15-year lease extension at 1201 Eastlake Avenue East.

•Our prior joint venture partner sold its ownership interest in each of 1201 and 1208 Eastlake Avenue East to Fred Hutch.

Our ownership interest in both properties remains unchanged at 30.0%. This sale, lease extensions, and new joint venture

affirm Fred Hutch’s commitment to South Lake Union.

48

Strong balance sheet management

Key capital metrics as of or for the three months ended September 30, 2024

	September 30, 2024		Target for Fourth Quarter of 2024 Annualized
	Quarter Annualized	Trailing 12 Months
Net debt and preferred stock to Adjusted EBITDA	5.5x	5.6x	Less than or equal to 5.1x
Fixed-charge coverage ratio	4.4x	4.5x	Greater than or equal to 4.5x

•$33.1 billion in total market capitalization.

•$20.5 billion in total equity capitalization, which ranks in the top 10% among all publicly traded U.S. REITs.

•As of September 30, 2024, our non-real estate investments aggregated $1.5 billion:

•Unrealized gains presented in our consolidated balance sheet were $166.2 million, comprising gross unrealized gains and

losses aggregating $284.4 million and $118.2 million, respectively.

•Investment income of $15.2 million for the three months ended September 30, 2024 presented in our consolidated statement

of operations consisted of $23.0 million of realized gains  and $2.6 million of unrealized gains, offset by $10.3 million of

impairment charges. Investment income of $14.9 million for the nine months ended September 30, 2024 presented in our

consolidated statement of operations consisted of $85.2 million of realized gains and $32.5 million of unrealized losses, offset

by $37.8 million of impairment charges.

Key capital events

•In September 2024, we amended and restated our unsecured senior line of credit to, among other changes, extend the

maturity date from January 22, 2028 to January 22, 2030, including extension options that we control.

•During the three months ended September 30, 2024, we had no activity under our ATM program. As of the date of this report,

the remaining aggregate amount available for future sales of common stock was $1.47 billion.

External growth and investments in real estate

Alexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $21 million, commencing

during the three months ended September 30, 2024, and is expected to deliver incremental annual net operating income aggregating

$510 million primarily by the first quarter of 2028

•During the three months ended September 30, 2024, we placed into service development and redevelopment projects

aggregating 316,691 RSF that are 100% leased across multiple submarkets and delivered incremental annual net operating

income of $21 million. Deliveries during the three months ended September 30, 2024 included 250,000 RSF at 9820

Darnestown Road on the Alexandria Center® for Life Science – Shady Grove mega campus in our Rockville submarket.

•Annual net operating income (cash basis) is expected to increase by $57 million upon the burn-off of initial free rent, with a

weighted-average burn-off period of approximately six months, from recently delivered projects.

•69% of the RSF in our total development and redevelopment pipeline is within our mega campuses.

Development and Redevelopment Projects	Incremental Annual Net Operating Income		RSF	Leased/ Negotiating Percentage
(dollars in millions)
Placed into service:
Six months ended June 30, 2024	$42		628,427		100%
Three months ended September 30, 2024	21		316,691		100
Total placed into service during nine months ended September 30, 2024	$63		945,118		100%
Expected to be placed into service(1):
Fourth quarter of 2024 through fourth quarter of 2025	$158	(2)	5,467,897		55%
First quarter of 2026 through first quarter of 2028	352					(3)
	$510

(1)Represents expected incremental annual net operating income to be placed into service from deliveries of projects undergoing construction and one committed

near-term project expected to commence construction in the next two years.

(2)Includes (i) 1.0 million RSF that is expected to stabilize through 2025 and is 92% leased/negotiating and (ii) expected partial deliveries through fourth quarter of

2025 from projects expected to stabilize in 2026 and beyond. Refer to the initial and stabilized occupancy years under “New Class A/A+ development and

redevelopment properties: current projects” in Item 2 for additional details.

(3)70% of the leased RSF of our development and redevelopment projects was generated from our existing tenant base.

49

50

Operating summary

Same Property Net Operating Income Growth		Rental Rate Growth: Renewed/Re-Leased Space
Margins(1)		Favorable Lease Structure(2)
Operating	Adjusted EBITDA	Strategic Lease Structure by Owner and Operator of Collaborative Mega Campuses
71%	70%	Increasing cash flows
		Percentage of leases containing annual rent escalations	96%
		Stable cash flows
Weighted-Average Lease Term of Executed Leases(3)		Percentage of triple net leases	93%
		Lower capex burden
8.8 years		Percentage of leases providing for the recapture of capital expenditures	92%
Net Debt and Preferred Stock to Adjusted EBITDA(4)		Fixed-Charge Coverage Ratio(4)

Refer to “Same properties” and “Definitions and reconciliations” in Item 2 for additional details. “Definitions and reconciliations” contains the definitions of “Fixed-charge

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

financial measures presented in accordance with GAAP.

(1)For the three months ended September 30, 2024.

(2)Percentages calculated based on our annual rental revenue in effect as of September 30, 2024.

(3)Represents the weighted-average lease term of executed leases based on annual rental revenue for the 10-year period from December 31, 2015 through September 30,

2024.

(4)Quarter annualized.

51

Stable Cash Flows From Our High-Quality and Diverse Mix of Approximately 800 Tenants
		Investment-Grade or Publicly Traded Large Cap Tenants
		92%
		of ARE’s Top 20 Tenant Annual Rental Revenue
		53%
		of ARE’s Annual Rental Revenue
Percentage of ARE’s Annual Rental Revenue
Solid Historical Occupancy of 96% Over Past 10 Years(2) From Historically Strong Demand for Our Class A/A+ Properties in AAA Locations
Mega Campuses	Occupancy Across Key Locations
Percentage of ARE’s Annual Rental Revenue

(3)

Life Science

Product,

Service, and

Device

Multinational

Pharmaceutical

Public

Biotechnology –

Approved or

Marketed

Product

Public

Biotechnology –

Preclinical or

Clinical Stage

Private

Biotechnology

Other(1)

Other Investment-Grade

or Large Cap Tech

Biomedical and

Government

Institutions

76%

Mega

Campuses

24%

Non-Mega

Campuses

As of September 30, 2024. Annual rental revenue represents amounts in effect as of September 30, 2024. Refer to “Definitions and reconciliations” in Item 2 for additional

information.

(1)Represents the percentage of our annual rental revenue generated by technology, professional services, finance, telecommunications, and construction/real estate

companies, as well as retail-related tenants, which generate less than 1.0% of our annual rental revenue.

(2)Represents average occupancy of operating properties as of each December 31 from 2015 through 2023 and as of September 30, 2024.

(3)Refer to footnote 1 under “Summary of occupancy percentages in North America” in Item 2 for additional details.

52

Long-Duration and Stable Cash Flows From

High-Quality and Diverse Tenants

Long-Duration Lease Terms

9.5 Years

Top 20 Tenants

7.5 Years

All Tenants

Weighted-Average Remaining Term(1)

Sustained Strength in Tenant Collections(2)

99.9%

For the Three Months Ended

September 30, 2024

99.6%

October 2024

(1)Based on annual rental revenue in effect as of September 30, 2024.

(2)Represents the portion of total receivables billed for each period collected through the date of this report.

53

Leasing Activity

The following table summarizes our leasing activity at our properties:

	Three Months Ended				Nine Months Ended			Year Ended
	September 30, 2024				September 30, 2024			December 31, 2023
	Including Straight-Line Rent		Cash Basis		Including Straight-Line Rent		Cash Basis	Including Straight-Line Rent	Cash Basis
(Dollars per RSF)
Leasing activity:
Renewed/re-leased space(1)
Rental rate changes	5.1%	(2)	1.5%	(2)	16.4%		8.9%	29.4%	15.8%
New rates	$56.60		$55.77		$63.43		$62.39	$52.35	$50.82
Expiring rates	$53.86		$54.95		$54.47		$57.28	$40.46	$43.87
RSF	1,278,857				2,863,277			3,046,386
Tenant improvements/ leasing commissions	$43.73	(3)			$33.92			$26.09
Weighted-average lease term	9.7 years				8.7 years			8.7 years
Developed/redeveloped/ previously vacant space leased(4)
New rates	$52.66		$52.18		$64.59		$62.90	$65.66	$59.74
RSF	207,240				879,678	(5)		1,259,686
Weighted-average lease term	10.6 years				8.1 years			13.8 years
Leasing activity summary (totals):
New rates	$56.05		$55.27		$63.69		$62.50	$56.09	$53.33
RSF	1,486,097				3,742,955			4,306,072
Weighted-average lease term	9.8 years				8.6 years			11.3 years
Lease expirations(1)
Expiring rates	$51.62		$53.17		$52.01		$54.40	$43.84	$45.20
RSF	1,500,213				3,801,559			5,027,773

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

(1)Excludes month-to-month leases aggregating 355,698 RSF and 86,092 RSF as of September 30, 2024 and December 31, 2023, respectively. Month-to-month leases

aggregating 355,698 RSF as of September 30, 2024 include 226,144 RSF in our University Town Center submarket primarily related to space being temporarily held over

by an expiring tenant at buildings that are targeted for the future development of laboratory space, subject to market conditions and leasing. During the trailing twelve

months ended September 30, 2024, we granted free rent concessions averaging 0.7 months per annum.

(2)Includes a five-year lease extension to an investment-grade rated technology tenant aggregating 357,136 RSF of recently acquired tech R&D space in our Texas market

that was renewed with rental rate changes of (33.6)% and (4.8)% (cash basis). These spaces were originally targeted for a future change in use at acquisition, but we

instead renewed them with a lower capital investment while we continue to evaluate options to convert these spaces in the future, subject to market conditions. Excluding

this lease, rental rate changes for renewed/re-leased space were 13.0% and 2.3% (cash basis) for three months ended September 30, 2024. Rental rate changes may

experience volatility from quarter to quarter based on the volume and mix of leases executed. Refer to “Projected results” in Item 2 for rental rate changes expected from

leases executed for the year ending December 31, 2024.

(3)Includes tenant improvements and leasing commissions related to a 10.5-year extension of a recently acquired lease aggregating 85,019 RSF in our Fenway submarket

to an investment-grade rated academic institution. Excluding this lease, tenant improvements and leasing commissions per RSF for the three and nine months ended

September 30, 2024 were $33.16 and $28.85, respectively, which are consistent with the five-year quarterly average of $32.17 per RSF.

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

(5)Includes the five-year extension of 171,102 RSF at our 4155 Campus Point Court property in San Diego, a fully leased development project expected to deliver during the

fourth quarter of 2024.

54

Summary of contractual lease expirations

The following table summarizes the contractual lease expirations at our properties as of September 30, 2024:

Year			RSF		Percentage of Occupied RSF		Annual Rental Revenue (per RSF)(1)		Percentage of Annual Rental Revenue
	2024	(2)		518,665		1.4%		$69.19		1.7%
	2025			3,785,573		10.0%		$49.64		8.8%
	2026			2,714,170		7.1%		$53.21		6.7%
	2027			3,242,737		8.5%		$51.87		7.9%
	2028			4,332,150		11.4%		$51.78		10.5%
	2029			2,437,921		6.4%		$51.25		5.8%
	2030			3,135,445		8.3%		$43.25		6.3%
	2031			3,425,338		9.0%		$55.11		8.8%
	2032			1,093,311		2.9%		$59.53		3.0%
	2033			2,772,455		7.3%		$50.81		6.6%
Thereafter				10,541,840		27.7%		$68.66		33.9%

Contractual lease expirations at properties classified as held for sale as of September 30, 2024 are excluded from the information on this page.

(1)Represents amounts in effect as of September 30, 2024.

(2)Excludes month-to-month leases aggregating 355,698 RSF as of September 30, 2024.

55

The following tables present our lease expirations by market for the remainder of 2024 and for 2025 as of September 30,

2024:

	2024 Contractual Lease Expirations (in RSF)
Market	Leased	Negotiating/ Anticipating	Targeted for Future Development/Redevelopment(1)			Remaining Expiring Leases		Total(2)	Annual Rental Revenue (per RSF)(3)
			Committed Near-Term/ Priority Anticipated	Future
Greater Boston	73,614	21,621	—	104,500		80,788	(4)	280,523	$86.07
San Francisco Bay Area	12,847	13,943	107,250	—		14,682		148,722	49.58
San Diego	27,119	—	—	—		17,408		44,527	55.30
Seattle	—	—	—	—		3,652		3,652	N/A
Maryland	—	—	—	—		182		182	N/A
Research Triangle	10,478	—	—	—		8,202		18,680	28.31
New York City	—	—	—	—		9,058		9,058	109.57
Texas	—	—	—	—		—		—	—
Canada	13,321	—	—	—		—		13,321	26.54
Non-cluster/other markets	—	—	—	—		—		—	—
Total	137,379	35,564	107,250	104,500		133,972		518,665	$69.19
Percentage of expiring leases	26%	7%	21%	20%		26%		100%
	2025 Contractual Lease Expirations (in RSF)							Annual Rental Revenue (per RSF)(3)
Market	Leased	Negotiating/ Anticipating	Targeted for Future Development/ Redevelopment(1)	Remaining Expiring Leases(5)		Total
Greater Boston	172,446	145,715	25,312	659,355	(4)	1,002,828		$76.13
San Francisco Bay Area	72,162	247,827	—	547,092		867,081		51.33
San Diego	83,546	—	269,048	260,627		613,221		22.98
Seattle	—	—	—	196,419		196,419		25.10
Maryland	35,055	6,926	—	151,958		193,939		27.51
Research Triangle	—	—	—	306,916		306,916		51.16
New York City	—	13,273	—	54,966		68,239		105.86
Texas	—	—	198,972	247,246		446,218		40.09
Canada	—	—	—	88,412		88,412		20.28
Non-cluster/other markets	—	—	—	2,300		2,300		40.17
Total	363,209	413,741	493,332	2,515,291		3,785,573		$49.64
Percentage of expiring leases	10%	11%	13%	66%		100%

Contractual lease expirations at properties classified as held for sale as of September 30, 2024 are excluded from the information on this page.

(1)Primarily represents assets that were recently acquired for future development and redevelopment opportunities, for which we expect, subject to market conditions and

leasing, to commence first-time conversion from non-laboratory space to laboratory space, or to commence future ground-up development. As of September 30, 2024,

annual rental revenue from these leases expiring in 2024, including 226,144 RSF of month-to-month leases in our University Town Center submarket primarily related to

space being temporarily held over by an expiring tenant, and 2025 is $20.9 million and $17.5 million, respectively. The weighted-average expiration date of these leases

expiring in 2024 and 2025 is October 20, 2024 and January 10, 2025, respectively. Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2

for additional details, including development and redevelopment square feet currently included in rental properties.

(2)Excludes month-to-month leases aggregating 355,698 RSF as of September 30, 2024. Refer to “Leasing Activity” in Item 2 for additional details.

(3)Represents amounts in effect as of September 30, 2024.

(4)Includes 41,908 RSF and 210,868 RSF expiring in 2024 and 2025, respectively, related to properties that are under executed letters of intent and/or purchase and sale

agreements to sell. Approximately 95% of the 2025 remaining expiring leases in Greater Boston are located in our Cambridge/Inner Suburbs submarket. Refer to

footnote 5 for additional details.

(5)Includes 768,080 RSF in four submarkets with a weighted-average expiration date of January 21, 2025 and annual rental revenue aggregating approximately

$47 million, with our share of this annual rental revenue aggregating $35 million, comprising the following: (i) existing laboratory spaces for which we are evaluating

options to re-lease or reposition from single tenancy to multi-tenancy that will remain in our same property pool at Alexandria Technology Square® in our Cambridge

submarket for 182,054 RSF and at 409 Illinois Street, where we have an ownership interest of 25.0%, in our Mission Bay submarket for 234,249 RSF (we are in early

discussions with a tenant to lease approximately 50% of this space); and (ii) non-laboratory space for which we are evaluating options to re-lease generally in their

current condition, reposition, or, subject to market conditions, may undergo a conversion through redevelopment in our Austin submarket for 247,246 RSF and in our

Research Triangle market for 104,531 RSF. Should we commence redevelopment efforts, these properties would be placed into our active pipeline and removed from

our same property pool; otherwise, they would remain in our same property pool. We expect downtime on the 768,080 RSF to range from 12 to 24 months on a

weighted-average basis.

56

Top 20 tenants

92% of Top 20 Tenant Annual Rental Revenue Is From Investment-Grade

or Publicly Traded Large Cap Tenants(1)

Our properties are leased to a high-quality and diverse group of tenants, with no individual tenant accounting for more than 5.8%

of our annual rental revenue in effect as of September 30, 2024. The following table sets forth information regarding leases with our 20

largest tenants in North America based upon annual rental revenue in effect as of September 30, 2024 (dollars in thousands, except

average market cap amounts):

		Remaining Lease Term(1) (in Years)			Aggregate RSF	Annual Rental Revenue(1)		Percentage of Annual Rental Revenue (1)	Investment-Grade Credit Ratings		Average Market Cap (in billions)
	Tenant								Moody’s	S&P
1	Moderna, Inc.		12.6		1,385,678	$	127,387	5.8%	—	—	$38.6
2	Eli Lilly and Company		8.2		1,166,754		94,814	4.3	A1	A+	$712.4
3	Bristol-Myers Squibb Company		6.4		999,379		76,363	3.5	A2	A	$99.1
4	Takeda Pharmaceutical Company Limited		10.7		549,759		47,899	2.2	Baa1	BBB+	$44.5
5	Roche		6.7		770,279		47,104	2.2	Aa2	AA	$227.8
6	Illumina, Inc.		7.4		857,967		35,362	1.6	Baa3	BBB	$19.7
7	Alphabet Inc.		3.1		625,015		34,899	1.6	Aa2	AA+	$1,916.3
8	2seventy bio, Inc.(2)		8.9		312,805		33,543	1.5	—	—	$0.2
9	Novartis AG		3.8		450,664		30,969	1.4	Aa3	AA-	$231.8
10	United States Government		5.9		429,359		28,593	1.3	Aaa	AA+	$—
11	Cloud Software Group, Inc.		2.4	(3)	292,013		28,537	1.3	—	—	$—
12	Uber Technologies, Inc.		58.0	(4)	1,009,188		27,776	1.3	Baa2	BBB-	$137.1
13	AstraZeneca PLC		5.1		450,848		27,156	1.2	A2	A+	$222.8
14	Harvard University		7.2		343,858		27,084	1.2	Aaa	AAA	$—
15	The Regents of the University of California		6.6		372,647		23,670	1.1	Aa2	AA	$—
16	Sanofi		6.3		267,278		21,444	1.0	A1	AA	$126.6
17	Merck & Co., Inc.		8.8		337,703		21,401	1.0	A1	A+	$300.8
18	Amgen Inc.		8.3		428,227		21,314	1.0	Baa1	BBB+	$159.2
19	New York University		7.4		218,983		21,056	1.0	Aa2	AA-	$—
20	Massachusetts Institute of Technology		4.7		246,725		20,527	0.9	Aaa	AAA	$—
	Total/weighted-average		9.5	(4)	11,515,129	$	796,898	36.4%

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

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

estate joint ventures and average market capitalization, respectively.

(1)Based on annual rental revenue in effect as of September 30, 2024.

(2)As of June 30, 2024, 2seventy bio, Inc. held $201.9 million of cash, cash equivalents, and marketable securities. In March 2024, Regeneron Pharmaceuticals, Inc., a

publicly traded biotechnology company with investment-grade credit ratings of Baa1 and BBB+ assigned by Moody’s and S&P, respectively, entered into a sublease for

approximately 195,000 RSF, or 62.8% of our annual rental revenue generated from 2seventy bio as of September 30, 2024. Additionally, 90.2% of the annual rental

revenue generated by 2seventy bio is guaranteed by another related public biotechnology company.

(3)Consists of one lease at a property acquired in 2022 with future development and redevelopment opportunities. This lease with Cloud Software Group, Inc. (formerly known

as TIBCO Software, Inc.) was in place when we acquired the property.

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

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

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

estate joint ventures. Excluding these ground leases, the weighted-average remaining lease term for our top 20 tenants was 7.8 years as of September 30, 2024.

57

Locations of properties

The locations of our properties are diversified among a number of Class A/A+ assets strategically clustered in mega campuses

in AAA life science innovation cluster markets. The following table sets forth the total RSF, number of properties, and annual rental

revenue in effect as of September 30, 2024 in each of our markets in North America (dollars in thousands, except per RSF amounts):

	RSF						Number of Properties	Annual Rental Revenue
Market	Operating	Development	Redevelopment		Total	% of Total		Total	% of Total	Per RSF
Greater Boston	10,352,695	764,036	1,762,974	(1)	12,879,705	28%	72	$833,562	38%	$85.09
San Francisco Bay Area	7,784,590	498,142	259,689		8,542,421	18	65	432,102	20	63.54
San Diego	7,673,315	1,186,104	—		8,859,419	19	87	330,596	15	44.90
Seattle	3,108,593	227,577	34,306		3,370,476	7	45	137,044	6	47.78
Maryland	3,819,512	29,890	—		3,849,402	8	50	145,847	7	40.12
Research Triangle	3,770,927	—	—		3,770,927	8	38	116,318	5	31.64
New York City	921,686	—	—		921,686	2	4	72,439	3	92.37
Texas	1,845,159	—	73,298		1,918,457	4	15	54,958	3	31.19
Canada	887,737	—	139,311		1,027,048	2	11	19,790	1	23.33
Non-cluster/other markets	347,806	—	—		347,806	1	10	14,623	1	57.76
Properties held for sale	1,261,387	—	—		1,261,387	3	9	26,796	1	N/A
North America	41,773,407	2,705,749	2,269,578		46,748,734	100%	406	$2,184,075	100%	$57.09
		4,975,327

(1)Primarily includes our active redevelopment projects aggregating 735,744 RSF at 40, 50, and 60 Sylvan Road and 840 Winter Street located on the Alexandria Center®

for Life Science – Waltham mega campus. This mega campus project is expected to capture demand in our Route 128 submarket.

Summary of occupancy percentages in North America

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

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

	Operating Properties				Operating and Redevelopment Properties
Market	9/30/24		6/30/24	9/30/23	9/30/24	6/30/24	9/30/23
Greater Boston	94.6%		94.2%	93.2%	80.9%	81.7%	83.3%
San Francisco Bay Area	94.1		94.0	95.3	91.1	90.7	91.9
San Diego	96.0		95.1	90.9	96.0	95.1	90.9
Seattle	92.3	(1)	94.7	95.1	91.3	93.7	90.3
Maryland	96.2		96.5	96.6	96.2	96.5	96.6
Research Triangle	97.5		97.4	96.9	97.5	97.4	96.9
New York City	85.1	(2)	85.1	89.4	85.1	85.1	89.4
Texas	95.5		95.5	95.1	91.8	91.8	91.5
Subtotal	94.9		94.7	93.9	90.0	90.2	89.9
Canada	95.5		94.9	88.9	82.6	82.5	75.7
Non-cluster/other markets	72.8		75.6	80.5	72.8	75.6	80.5
North America	94.7%		94.6%	93.7%	89.7%	89.9%	89.4%

(1)Decline in occupancy relates to the expiration of an acquired non-laboratory lease aggregating 87,273 RSF at one property in our Bothell submarket that is expected to

be converted to laboratory space subject to market conditions and leasing.

(2)The Alexandria Center® for Life Science – New York City mega campus is 95.3% occupied as of September 30, 2024. Occupancy percentage in our New York City

market reflects vacancy at the Alexandria Center® for Life Science – Long Island City property, which was 42.8% occupied as of September 30, 2024.

58

Investments in real estate

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

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

collaborative mega campuses in AAA life science innovation clusters. These projects are focused on providing high-quality, generic, and

reusable spaces that meet the real estate requirements of a wide range of tenants. Upon completion, each development and

redevelopment project is expected to generate increases in rental income, net operating income, and cash flows. Our development and

redevelopment projects are generally in locations that are highly desirable to high-quality entities, which we believe results in higher

occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. Our pre-construction

activities are undertaken in order to prepare the property for its intended use and include entitlements, permitting, design, site work, and

other activities preceding commencement of construction of aboveground building improvements.

Our investments in real estate consisted of the following as of September 30, 2024 (dollars in thousands):

		Development and Redevelopment
		Active and Near-Term Construction		Future Opportunities Subject to Market Conditions and Leasing
	Operating	Under Construction 55% Leased/ Negotiating	Committed Near Term 51% Leased/ Negotiating(1)	Priority Anticipated	Future	Subtotal	Total
Square footage
Operating	40,512,020	—	—	—	—	—	40,512,020
New Class A/A+ development and redevelopment properties	—	4,975,327	492,570	2,163,784	27,582,766	35,214,447	35,214,447
Future development and redevelopment square feet currently included in rental properties(2)	—	—	(159,884)	(258,596)	(2,957,559)	(3,376,039)	(3,376,039)
Total square footage, excluding properties held for sale	40,512,020	4,975,327	332,686	1,905,188	24,625,207	31,838,408	72,350,428
Properties held for sale	1,261,387	—	—	—	—	—	1,261,387
Total square footage	41,773,407	4,975,327	332,686	1,905,188	24,625,207	31,838,408	73,611,815	(3)
Investments in real estate
Gross book value as of September 30, 2024(4)	$29,235,994	$4,335,573	$69,521	$578,694	$4,356,637	$9,340,425	$38,576,419

(1)Represents one committed near-term project expected to commence construction during the next two years after September 30, 2024.

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

currently included in rental properties.

(3)We expect to continue pursuing our strategy to fund a significant portion of our capital requirements for the year ending December 31, 2024 with dispositions primarily

focused on sales of properties and land parcels not integral to our mega campus strategy.

(4)Balances exclude accumulated depreciation and our share of the cost basis associated with our properties held by our unconsolidated real estate joint ventures, which is

classified as investments in unconsolidated real estate joint ventures in our consolidated balance sheets.

59

Acquisitions

Our real estate asset acquisitions during the nine months ended September 30, 2024 and pending as of the date of this report consisted of the following (dollars in thousands):

Property	Submarket/Market	Date of Purchase	Number of Properties	Operating Occupancy	Square Footage
					Future Development(1)	Operating With Future Development/ Redevelopment(1)	Purchase Price
Completed during the nine months ended September 30, 2024:
285, 299, 307, and 345 Dorchester Avenue (60% interest in consolidated JV)(2)	Seaport Innovation District/ Greater Boston	1/30/24	—	N/A	1,040,000	—	$155,321
Other							46,490
							201,811
Completed in October 2024:
428 Westlake Avenue North	Lake Union/Seattle	10/1/24	1	100%	—	88,514	47,600
							$249,411
2024 guidance range for acquisitions					$250,000 – $750,000

(1)We expect to provide total estimated costs and related yields for development and significant redevelopment projects in the future, subsequent to the commencement of construction.

(2)Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial statements in Item 1 for additional details.

60

Dispositions

Our completed dispositions of real estate assets during the nine months ended September 30, 2024 and pending as of the date of this report consisted of the following (dollars in

thousands):

Property	Submarket/Market	Date of Sale	Interest Sold	RSF	Capitalization Rate	Capitalization Rate (Cash Basis)	Sales Price		Sales Price per RSF
Completed during the six months ended June 30, 2024:
Dispositions of 100% interest in properties not integral to our mega campus strategy
99 A Street(1)	Seaport Innovation District/ Greater Boston	3/8/24	100%	235,000	N/A	N/A	$13,350		N/A
Other							3,863
							17,213
Completed during the three months ended September 30, 2024:
Sale to longstanding tenant
1165 Eastlake Avenue East	Lake Union/Seattle	9/12/24	100%	100,086	4.7%	4.9%	149,985	(2)	$1,499
Dispositions of properties not integral to our mega campus strategy
219 East 42nd Street	New York City/New York City	7/9/24	100%	349,947	N/A	N/A	60,000	(3)	N/A
Other							11,511
							221,496	(4)
Dispositions completed during the nine months ended September 30, 2024							238,709
Completed in October 2024:
Dispositions of properties not integral to our mega campus strategy
14225 Newbrook Drive	Northern Virginia/Maryland	10/15/24	100%	248,186	7.6%	7.4%	80,500	(5)	$324
							319,209
Pending dispositions for the fourth quarter of 2024 subsequent to the date of this report:
Subject to non-refundable deposits
Sale to longstanding tenant	Greater Boston	4Q24	100%		8.5%	6.3%	369,439	(6)
Other							207,713
							577,152
Subject to executed letters of intent and/or purchase and sale agreements							602,500	(6)
							1,179,652	(7)
							$1,498,861
2024 guidance range for dispositions and common equity				$1,050,000 – $2,050,000

(1)We completed the sale during the three months ended March 31, 2024 and recognized no gain or loss. Refer to Note 3 – “Investments in real estate” to our unaudited consolidated financial statements in Item 1 for additional information.

(2)Upon completion of the sale, we recognized a gain on sale of real estate aggregating $21.5 million during the three months ended September 30, 2024.

(3)The property was leased to a single tenant with a July 2024 lease expiration and had annual net operating income of $18.6 million based on three months ended June 30, 2024 annualized. This property was previously considered to be a

potential development project upon expiration of the in-place non-laboratory space lease.

(4)Dispositions completed during the three months ended September 30, 2024 had annual net operating income of $26.5 million (based on three months ended June 30, 2024 annualized) with a weighted-average disposition date of July 28,

2024 (weighted by net operating income for the three months ended June 30, 2024 annualized).

(5)Demonstrating the long-term enduring value of our laboratory facilities, Alexandria successfully operated our only asset in the Northern Virginia submarket from its acquisition in 1997 (prior to our IPO) through its sale in October 2024. Upon

completion of the sale, we recognized a gain on sale of real estate aggregating $37.1 million.

(6)Refer to Note 16 – “Subsequent events” to our unaudited consolidated financial statements in Item 1 for additional information.

(7)Pending dispositions subsequent to the date of this report have estimated annual net operating income of approximately $95.8 million (based on three months ended September 30, 2024 annualized) with a weighted-average estimated

disposition date of December 5, 2024 (weighted by net operating income for the three months ended September 30, 2024 annualized). Approximately half of our pending dispositions are non-core stabilized stand-alone properties with

weighted-average capitalization rates of 8.5% and 7.0% (cash basis), and the remaining half are land and non-stabilized properties that have vacancy or significant near-term lease expirations that will require capital to re-tenant, including

one building with approximately 72% of non-laboratory space.

61

New Class A/A+ development and redevelopment properties

ALEXANDRIA’S FUTURE GROWTH IN

ANNUAL NET OPERATING INCOME FROM

DEVELOPMENT AND REDEVELOPMENT DELIVERIES

$510 MILLION

(1)

Placed Into Service

Expected to Be Placed Into Service

(2)

YTD 3Q24	3Q24
$63M	$21M
945,118 RSF	316,691 RSF
100% Leased

(3)

4Q24–4Q25	1Q26–1Q28
$158M	$352M
Aggregating 5.5M RSF
55% Leased/Negotiating

Refer to “Net operating income” under “Definitions and reconciliations” in Item 2 for additional details, including its reconciliation from the most directly comparable financial measures presented in accordance with GAAP.

(1)Our share of incremental annual net operating income from development and redevelopment projects expected to be placed into service primarily commencing from 4Q24 through 1Q28 is projected to be $407 million.

(2)Represents expected incremental annual net operating income to be placed into service from deliveries of projects undergoing construction and one committed near-term project expected to commence construction in the next two

years.

(3)Includes (i) 1.0 million RSF that is expected to stabilize through 2025 and is 92% leased/negotiating and (ii) expected partial deliveries through 4Q25 from projects expected to stabilize in 2026 and beyond. Refer to the initial and stabilized

occupancy years under “New Class A/A+ development and redevelopment properties: current projects” in Item 2 for additional details.

62

New Class A/A+ development and redevelopment properties: recent deliveries

500 North Beacon Street and 4 Kingsbury Avenue(1)	651 Gateway Boulevard	1150 Eastlake Avenue East
Greater Boston/ Cambridge/Inner Suburbs	San Francisco Bay Area/ South San Francisco	Seattle/Lake Union
138,537 RSF	67,017 RSF	311,631 RSF
100% Occupancy	100% Occupancy	100% Occupancy

9810 Darnestown Road	9820 Darnestown Road	9808 Medical Center Drive
Maryland/Rockville	Maryland/Rockville	Maryland/Rockville
195,435 RSF	250,000 RSF	65,171 RSF
100% Occupancy	100% Occupancy	100% Occupancy

(1)Image represents 500 North Beacon Street on The Arsenal on the Charles mega campus.

63

New Class A/A+ development and redevelopment properties: recent deliveries (continued)

The following table presents development and redevelopment of new Class A/A+ projects placed into service during the nine months ended September 30, 2024 (dollars in

thousands):

Incremental Annual Net Operating Income Generated From YTD 3Q24 Deliveries

Aggregated $63 Million, Including $21 Million in 3Q24

Property/Market/Submarket	3Q24 Delivery Date(1)	Our Ownership Interest	RSF Placed in Service					Occupancy Percentage(2)		Total Project		Unlevered Yields
			Prior to 1/1/24	1Q24	2Q24	3Q24	Total					Initial Stabilized		Initial Stabilized (Cash Basis)
										RSF	Investment
Development projects
99 Coolidge Avenue/Greater Boston/Cambridge/ Inner Suburbs	N/A	75.0%	43,568	72,846	—	—	116,414		100%	320,809	$468,000		7.1%		7.0%
500 North Beacon Street and 4 Kingsbury Avenue/ Greater Boston/Cambridge/Inner Suburbs	N/A	100%	—	100,624	37,913	—	138,537		100%	248,018	427,000		6.2		5.5
1150 Eastlake Avenue East/Seattle/Lake Union	7/16/24	100%	278,282	—	2,079	31,270	311,631		100%	311,631	442,000		6.6		6.7
9810 Darnestown Road/Maryland/Rockville	N/A	100%	—	—	195,435	—	195,435		100%	195,435	135,000		7.1		6.2
9820 Darnestown Road/Maryland/Rockville	8/21/24	100%	—	—	—	250,000	250,000		100%	250,000	177,000		8.7		5.6
9808 Medical Center Drive/Maryland/Rockville	7/25/24	100%	26,460	—	25,655	13,056	65,171		100%	95,061	115,000		5.4		5.4
Redevelopment projects
651 Gateway Boulevard/San Francisco Bay Area/ South San Francisco	7/12/24	50.0%	—	44,652	—	22,365	67,017		100%	326,706	487,000		5.0		5.1
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell	N/A	100%	65,086	115,598	—	—	180,684		100%	460,934	229,000		6.3		6.2
Canada	N/A	100%	44,862	9,725	23,900	—	78,487		100%	250,790	113,000		6.4		6.3
Weighted average/total	8/11/24		458,258	343,445	284,982	316,691	1,403,376			2,459,384	$2,593,000		6.4%		6.0%

(1)Represents the average delivery date for deliveries that occurred during the three months ended September 30, 2024, weighted by annual rental revenue.

(2)Occupancy relates to total operating RSF placed in service as of the most recent delivery.

64

New Class A/A+ development and redevelopment properties: current projects

99 Coolidge Avenue	500 North Beacon Street and 4 Kingsbury Avenue(1)	311 Arsenal Street	201 Brookline Avenue	401 Park Drive
Greater Boston/ Cambridge/Inner Suburbs	Greater Boston/ Cambridge/Inner Suburbs	Greater Boston/ Cambridge/Inner Suburbs	Greater Boston/Fenway	Greater Boston/Fenway
204,395 RSF	109,481 RSF	308,446 RSF	58,149 RSF	159,959 RSF
40% Leased/Negotiating	92% Leased	21% Leased	100% Leased	14% Leased

421 Park Drive	40, 50, and 60 Sylvan Road(2)	840 Winter Street	1450 Owens Street(3)	651 Gateway Boulevard
Greater Boston/Fenway	Greater Boston/Route 128	Greater Boston/Route 128	San Francisco Bay Area/ Mission Bay	San Francisco Bay Area/ South San Francisco
392,011 RSF	596,064 RSF	139,680 RSF	212,796 RSF	259,689 RSF
13% Leased	31% Leased	100% Leased	—% Leased/Negotiating	25% Leased/Negotiating

(1)Image represents 500 North Beacon Street on The Arsenal on the Charles mega campus.

(2)Image represents 60 Sylvan Road on the Alexandria Center® for Life Science – Waltham mega campus. The project is expected to capture demand in our Route 128 submarket.

(3)Image represents a multi-tenant project expanding our existing Alexandria Center® for Science and Technology – Mission Bay mega campus, where our joint venture partner will fund 100% of the construction cost until it attains an

ownership interest of 75%, after which it will contribute its respective share of additional capital. We are in negotiations with a biomedical institution for the sale of a 50% condominium interest in this property.

65

New Class A/A+ development and redevelopment properties: current projects (continued)

230 Harriet Tubman Way	10935, 10945, and 10955 Alexandria Way(1)	4135 Campus Point Court	4155 Campus Point Court
San Francisco Bay Area/ South San Francisco	San Diego/Torrey Pines	San Diego/ University Town Center	San Diego/ University Town Center
285,346 RSF	334,996 RSF	426,927 RSF	171,102 RSF
100% Leased	100% Leased	100% Leased	100% Leased

10075 Barnes Canyon Road	701 Dexter Avenue North(2)	Alexandria Center® for Advanced Technologies – Monte Villa Parkway(3)	9808 Medical Center Drive	8800 Technology Forest Place
San Diego/Sorrento Mesa	Seattle/Lake Union	Seattle/Bothell	Maryland/Rockville	Texas/Greater Houston
253,079 RSF	227,577 RSF	34,306 RSF	29,890 RSF	73,298 RSF
70% Leased	—% Leased/Negotiating	98% Leased	76% Leased/Negotiating	41% Leased

(1)Image represents 10955 Alexandria Way on the One Alexandria Square mega campus.

(2)We initially started this project due to strong demand from neighboring tenants but strategically paused in the first quarter of 2023. We have resumed construction activities at this project in order to maintain our existing entitlements and

permits. We have interest from various prospective tenants, including from multinational pharmaceutical companies. Beyond this purpose-built life science asset, there is no competitive supply expected to be delivered in 2025 or 2026 in

our Lake Union submarket. As of September 30, 2024, we are 95.3% occupied in our Lake Union submarket.

(3)Image represents 3755 Monte Villa Parkway.

66

New Class A/A+ development and redevelopment properties: current projects (continued)

The following tables set forth a summary of our new Class A/A+ development and redevelopment properties under construction and pre-leased/negotiating near-term projects as of

September 30, 2024 (dollars in thousands):

Property/Market/Submarket		Square Footage				Percentage			Occupancy(1)
	Dev/Redev	In Service		CIP	Total	Leased	Leased/ Negotiating		Initial		Stabilized
Under construction
2024 and 2025 stabilization
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs	Dev	138,537		109,481	248,018	92%	92%			1Q24	2025
201 Brookline Avenue/Greater Boston/Fenway	Dev	451,967		58,149	510,116	100	100			3Q22	4Q24
840 Winter Street/Greater Boston/Route 128	Redev	28,534		139,680	168,214	100	100			4Q24	2025
230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco	Dev	—		285,346	285,346	100	100			1Q25	1Q25
4155 Campus Point Court/San Diego/University Town Center	Dev	—		171,102	171,102	100	100			4Q24	4Q24
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell	Redev	426,628		34,306	460,934	98	98			1Q23	4Q24
9808 Medical Center Drive/Maryland/Rockville	Dev	65,171		29,890	95,061	69	76			3Q23	4Q24
8800 Technology Forest Place/Texas/Greater Houston	Redev	50,094		73,298	123,392	41	41			2Q23	2025
Canada	Redev	111,479		139,311	250,790	73	73			3Q23	2025
		1,272,410		1,040,563	2,312,973	91	92
2026 and beyond stabilization
One Hampshire Street/Greater Boston/Cambridge	Redev	—		104,956	104,956	—	—			2027	2028
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs	Redev	82,216	(2)	308,446	390,662	21	21			2027	2027
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs	Dev	116,414		204,395	320,809	40	40			4Q23	2026
401 Park Drive/Greater Boston/Fenway	Redev	—		159,959	159,959	14	14			2024	2026
421 Park Drive/Greater Boston/Fenway	Dev	—		392,011	392,011	13	13			2026	2027
40, 50, and 60 Sylvan Road/Greater Boston/Route 128	Redev	—		596,064	596,064	31	31			2025	2027
Other/Greater Boston	Redev	—		453,869	453,869	—	—	(3)		2027	2027
1450 Owens Street/San Francisco Bay Area/Mission Bay	Dev	—		212,796	212,796	—	—	(4)		2025	2026
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco	Redev	67,017		259,689	326,706	21	25			1Q24	2026
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines	Dev	—		334,996	334,996	100	100			4Q24	2026
4135 Campus Point Court/San Diego/University Town Center	Dev	—		426,927	426,927	100	100			2026	2026
10075 Barnes Canyon Road/San Diego/Sorrento Mesa	Dev	—		253,079	253,079	70	70			2025	2026
701 Dexter Avenue North/Seattle/Lake Union	Dev	—		227,577	227,577	—	—	(5)		2026	2027
		265,647		3,934,764	4,200,411	35	36
		1,538,057		4,975,327	6,513,384	55	55
Committed near-term project expected to commence construction in the next two years
4165 Campus Point Court/San Diego/University Town Center	Dev	—		492,570	492,570	—	51
Total		1,538,057		5,467,897	7,005,954	51%	55%
(1)Initial occupancy dates are subject to leasing and/or market conditions. Stabilized occupancy may vary depending on single tenancy versus multi-tenancy. Multi-tenant projects may increase in occupancy over a period of time. (2)We expect to redevelop an additional 25,312 RSF of space occupied as of September 30, 2024 into laboratory space upon expiration of the existing leases through the second half of 2025. Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2 for additional information. (3)Represents a project focused on demand from our existing tenants in our adjacent properties/campuses that will address demand from other non-Alexandria properties/campuses. (4)Represents a multi-tenant project expanding our existing mega campus, where our joint venture partner will fund 100% of the construction cost until it attains an ownership interest of 75%, after which it will contribute its respective share of additional capital. We are in negotiations with a biomedical institution for the sale of a 50% condominium interest in this property. (5)We initially started this project due to strong demand from neighboring tenants but strategically paused in the first quarter of 2023. We have resumed construction activities at this project in order to maintain our existing entitlements and permits. We have interest from various prospective tenants, including from multinational pharmaceutical companies. Beyond this purpose-built life science asset, there is no competitive supply expected to be delivered in 2025 or 2026 in our Lake Union submarket. As of September 30, 2024, we are 95.3% occupied in our Lake Union submarket.

67

New Class A/A+ development and redevelopment properties: current projects (continued)

	Our Ownership Interest	At 100%						Unlevered Yields
Property/Market/Submarket		In Service	CIP	Cost to Complete		Total at Completion		Initial Stabilized		Initial Stabilized (Cash Basis)
Under construction
2024 and 2025 stabilization
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs	100%	$284,645	$115,506	$26,849		$427,000			6.2%		5.5%
201 Brookline Avenue/Greater Boston/Fenway	99.0%	665,877	91,610	17,513		775,000			7.2%		6.5%
840 Winter Street/Greater Boston/Route 128	100%	13,653	187,366	35,981		237,000			7.6%		6.5%
230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco	47.9%	—	350,231	159,769		510,000			7.4%		6.4%
4155 Campus Point Court/San Diego/University Town Center	55.0%	—	140,300	43,700		184,000			8.0%		6.4%
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell	100%	193,823	11,977	23,200		229,000			6.3%		6.2%
9808 Medical Center Drive/Maryland/Rockville	100%	79,320	33,018	2,662		115,000			5.4%		5.4%
8800 Technology Forest Place/Texas/Greater Houston	100%	57,315	46,202	8,483		112,000			6.3%		6.0%
Canada	100%	50,219	50,044	12,737		113,000			6.4%		6.3%
		1,344,852	1,026,254
2026 and beyond stabilization(1)
One Hampshire Street/Greater Boston/Cambridge	100%	—	161,328	TBD
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs	100%	60,625	233,563
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs	75.0%	136,527	192,432	139,041		468,000			7.1%		7.0%
401 Park Drive/Greater Boston/Fenway	100%	—	194,421	TBD
421 Park Drive/Greater Boston/Fenway	99.7%	—	422,278
40, 50, and 60 Sylvan Road/Greater Boston/Route 128	100%	—	437,356
Other/Greater Boston	100%	—	148,804
1450 Owens Street/San Francisco Bay Area/Mission Bay	25.4%	—	234,665
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco	50.0%	87,357	256,413	143,230		487,000			5.0%		5.1%
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines	100%	—	359,926	143,074		503,000			6.2%		5.8%
4135 Campus Point Court/San Diego/University Town Center	55.0%	—	292,913	231,087		524,000			6.6%		6.2%
10075 Barnes Canyon Road/San Diego/Sorrento Mesa	50.0%	—	168,582	152,418		321,000			5.5%		5.7%
701 Dexter Avenue North/Seattle/Lake Union	100%	—	206,638	TBD
		284,509	3,309,319
		1,629,361	4,335,573
Committed near-term project expected to commence construction in the next two years
4165 Campus Point Court/San Diego/University Town Center	55.0%	—	69,521	TBD
Total		$1,629,361	$4,405,094	$3,780,000	(2)	$9,820,000	(2)
Our share of investment(2)(3)		$1,550,000	$3,570,000	$3,030,000		$8,150,000
Refer to “Initial stabilized yield (unlevered)” under “Definitions and reconciliations” in Item 2 for additional information. (1)We expect to provide total estimated costs and related yields for each project with estimated stabilization in 2026 and beyond over the next several quarters. (2)Represents dollar amount rounded to the nearest $10 million and includes preliminary estimated amounts for projects listed as TBD. (3)Represents our share of investment based on our ownership percentage upon completion of development or redevelopment projects.

68

New Class A/A+ development and redevelopment properties: summary of pipeline

69% of Our Total Development and Redevelopment Pipeline RSF Is Within Our Mega Campuses

The following table summarizes the key information for all our development and redevelopment projects in North America as of September 30, 2024 (dollars in thousands):

Market Property/Submarket	Our Ownership Interest	Book Value	Square Footage
			Development and Redevelopment				Total(1)
			Active and Near-Term Construction		Future Opportunities Subject to Market Conditions and Leasing
			Under Construction	Committed Near Term	Priority Anticipated	Future
Greater Boston
Mega Campus: Alexandria Center® at One Kendall Square/ Cambridge	100%	$161,328	104,956	—	—	—	104,956
One Hampshire Street
Mega Campus: The Arsenal on the Charles/Cambridge/Inner Suburbs	100%	360,538	417,927	—	25,312	34,157	477,396
311 Arsenal Street, 500 North Beacon Street, and 4 Kingsbury Avenue
Mega Campus: 480 Arsenal Way and 446, 458, 500, and 550 Arsenal Street, and 99 Coolidge Avenue/Cambridge/Inner Suburbs	(2)	279,763	204,395	—	—	902,000	1,106,395
446, 458, 500, and 550 Arsenal Street, and 99 Coolidge Avenue
Mega Campus: Alexandria Center® for Life Science – Fenway/ Fenway	(3)	708,309	610,119	—	—	—	610,119
201 Brookline Avenue and 401 and 421 Park Drive
Mega Campus: Alexandria Center® for Life Science – Waltham/ Route 128	100%	687,346	735,744	—	—	515,000	1,250,744
40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street
Mega Campus: Alexandria Center® at Kendall Square/ Cambridge	100%	126,688	—	—	—	216,455	216,455
100 Edwin H. Land Boulevard
Mega Campus: Alexandria Technology Square®/Cambridge	100%	7,881	—	—	—	100,000	100,000
Mega Campus: 285, 299, 307, and 345 Dorchester Avenue/ Seaport Innovation District	60.0%	286,300	—	—	—	1,040,000	1,040,000
10 Necco Street/Seaport Innovation District	100%	105,111	—	—	—	175,000	175,000
Mega Campus: One Moderna Way/Route 128	100%	26,052	—	—	—	1,085,000	1,085,000
215 Presidential Way/Route 128	100%	6,816	—	—	—	112,000	112,000
Other development and redevelopment projects	(4)	310,381	453,869	—	—	1,323,541	1,777,410
		$3,066,513	2,527,010	—	25,312	5,503,153	8,055,475
Refer to “Mega campus” under “Definitions and reconciliations” in Item 2 for additional information. (1)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2 for additional information, including development and redevelopment square feet currently included in rental properties. (2)We have a 75.0% interest in 99 Coolidge Avenue aggregating 204,395 RSF and 100.0% interest in 446, 458, 500, and 550 Arsenal Street aggregating 902,000 RSF. (3)We have a 99.0% interest in 201 Brookline Avenue aggregating 58,149 RSF, a 100% interest in 401 Park Drive aggregating 159,959 RSF, and a 99.7% interest in 421 Park Drive aggregating 392,011 RSF. (4)Includes a property in which we own a partial interest through a real estate joint venture.

69

New Class A/A+ development and redevelopment properties: summary of pipeline (continued)

Market Property/Submarket	Our Ownership Interest	Book Value	Square Footage
			Development and Redevelopment				Total(1)
			Active and Near-Term Construction		Future Opportunities Subject to Market Conditions and Leasing
			Under Construction	Committed Near Term	Priority Anticipated	Future
San Francisco Bay Area
Mega Campus: Alexandria Center® for Science and Technology – Mission Bay/Mission Bay	25.4%	$234,665	212,796	—	—	—	212,796
1450 Owens Street
Alexandria Center® for Life Science – Millbrae/South San Francisco	47.9%	510,162	285,346	—	198,188	150,213	633,747
230 Harriet Tubman Way, 201 and 231 Adrian Road, and 6 and 30 Rollins Road
Mega Campus: Alexandria Technology Center® – Gateway/ South San Francisco	50.0%	283,002	259,689	—	—	291,000	550,689
651 Gateway Boulevard
Mega Campus: Alexandria Center® for Advanced Technologies – Tanforan/South San Francisco	100%	397,159	—	—	150,000	1,780,000	1,930,000
1122, 1150, and 1178 El Camino Real
Mega Campus: Alexandria Center® for Advanced Technologies – South San Francisco/South San Francisco	100%	6,655	—	—	107,250	90,000	197,250
211(2) and 269 East Grand Avenue
Mega Campus: Alexandria Center® for Life Science – San Carlos/Greater Stanford	100%	446,892	—	—	105,000	1,392,830	1,497,830
960 Industrial Road, 987 and 1075 Commercial Street, and 888 Bransten Road
3825 and 3875 Fabian Way/Greater Stanford	100%	154,174	—	—	—	478,000	478,000
2100, 2200, 2300, and 2400 Geng Road/Greater Stanford	100%	36,509	—	—	—	240,000	240,000
901 California Avenue/Greater Stanford	100%	19,770	—	—	—	56,924	56,924
Mega Campus: 88 Bluxome Street/SoMa	100%	392,785	—	—	—	1,070,925	1,070,925
Other development and redevelopment projects	100%	—	—	—	—	25,000	25,000
		$2,481,773	757,831	—	560,438	5,574,892	6,893,161
Refer to “Mega campus” under “Definitions and reconciliations” in Item 2 for additional information. (1)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2 for additional information, including development and redevelopment square feet currently included in rental properties. (2)We own a partial interest in this property through a real estate joint venture. Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial statements in Item 1 for additional details.

70

New Class A/A+ development and redevelopment properties: summary of pipeline (continued)

Market Property/Submarket	Our Ownership Interest	Book Value	Square Footage
			Development and Redevelopment				Total(1)
			Active and Near-Term Construction		Future Opportunities Subject to Market Conditions and Leasing
			Under Construction	Committed Near Term	Priority Anticipated	Future
San Diego
Mega Campus: One Alexandria Square/Torrey Pines	100%	$417,621	334,996	—	—	125,280	460,276
10935, 10945, and 10955 Alexandria Way and 10975 and 10995 Torreyana Road
Mega Campus: Campus Point by Alexandria/University Town Center	55.0%	671,303	598,029	492,570	—	650,000	1,740,599
10010(2), 10140(2), and 10260 Campus Point Drive and 4135, 4155, 4161, 4165, and 4275(2) Campus Point Court
Mega Campus: SD Tech by Alexandria/Sorrento Mesa	50.0%	317,172	253,079	—	250,000	243,845	746,924
9805 Scranton Road and 10065 and 10075 Barnes Canyon Road
11255 and 11355 North Torrey Pines Road/Torrey Pines	100%	150,187	—	—	153,000	62,000	215,000
Costa Verde by Alexandria/University Town Center	100%	138,107	—	—	—	537,000	537,000
8410-8750 Genesee Avenue and 4282 Esplanade Court
Mega Campus: 5200 Illumina Way/University Town Center	51.0%	17,441	—	—	—	451,832	451,832
ARE Towne Centre/University Town Center	100%	19,869	—	—	—	230,000	230,000
9363, 9373, and 9393 Towne Centre Drive
9625 Towne Centre Drive/University Town Center	30.0%	837	—	—	—	100,000	100,000
Mega Campus: Sequence District by Alexandria/Sorrento Mesa	100%	46,323	—	—	—	1,798,915	1,798,915
6260, 6290, 6310, 6340, 6350, and 6450 Sequence Drive
Scripps Science Park by Alexandria/Sorrento Mesa	100%	120,941	—	—	—	598,349	598,349
10048, 10219, 10256, and 10260 Meanley Drive and 10277 Scripps Ranch Boulevard
Pacific Technology Park/Sorrento Mesa	50.0%	23,857	—	—	—	149,000	149,000
9444 Waples Street
4025, 4031, 4045, and 4075 Sorrento Valley Boulevard/Sorrento Valley	100%	43,641	—	—	—	247,000	247,000
Other development and redevelopment projects	(3)	75,716	—	—	—	475,000	475,000
		$2,043,015	1,186,104	492,570	403,000	5,668,221	7,749,895
Refer to “Mega campus” under “Definitions and reconciliations” in Item 2 for additional information. (1)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2 for additional information, including development and redevelopment square feet currently included in rental properties. (2)We have a 100% interest in this property. (3)Includes a property in which we own a partial interest through a real estate joint venture.

71

New Class A/A+ development and redevelopment properties: summary of pipeline (continued)

Market Property/Submarket	Our Ownership Interest	Book Value	Square Footage
			Development and Redevelopment				Total(1)
			Active and Near-Term Construction		Future Opportunities Subject to Market Conditions and Leasing
			Under Construction	Committed Near Term	Priority Anticipated	Future
Seattle
Mega Campus: Alexandria Center® for Life Science – South Lake Union/Lake Union	(2)	$485,628	227,577	—	869,000	188,400	1,284,977
601 and 701 Dexter Avenue North and 800 Mercer Street
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Bothell	100%	11,977	34,306	—	—	—	34,306
3301 Monte Villa Parkway
830 and 1010 4th Avenue South/SoDo	100%	59,262	—	—	—	597,313	597,313
410 West Harrison Street/Elliott Bay	100%	—	—	—	—	91,000	91,000
Mega Campus: Alexandria Center® for Advanced Technologies – Canyon Park/Bothell	100%	17,439	—	—	—	230,000	230,000
21660 20th Avenue Southeast
Other development and redevelopment projects	100%	142,484	—	—	—	706,087	706,087
		716,790	261,883	—	869,000	1,812,800	2,943,683
Maryland
Mega Campus: Alexandria Center® for Life Science – Shady Grove/Rockville	100%	54,904	29,890	—	—	296,000	325,890
9808 Medical Center Drive and 9830 Darnestown Road
		54,904	29,890	—	—	296,000	325,890
Research Triangle
Mega Campus: Alexandria Center® for Advanced Technologies and Agtech – Research Triangle/Research Triangle	100%	103,653	—	—	180,000	990,000	1,170,000
4 and 12 Davis Drive
Mega Campus: Alexandria Center® for Life Science – Durham/ Research Triangle	100%	176,524	—	—	—	2,210,000	2,210,000
41 Moore Drive
Mega Campus: Alexandria Center® for NextGen Medicines/ Research Triangle	100%	$108,035	—	—	—	1,055,000	1,055,000
3029 East Cornwallis Road
Refer to “Mega campus” under “Definitions and reconciliations” in Item 2 for additional information. (1)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property subject to market conditions and leasing. Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2 for additional information, including development and redevelopment square feet currently included in rental properties. (2)We have a 100% interest in 601 and 701 Dexter Avenue North aggregating 415,977 RSF and a 60% interest in the priority anticipated development project at 800 Mercer Street aggregating 869,000 RSF.

72

New Class A/A+ development and redevelopment properties: summary of pipeline (continued)

Market Property/Submarket	Our Ownership Interest	Book Value		Square Footage
				Development and Redevelopment					Total(1)
				Active and Near-Term Construction		Future Opportunities Subject to Market Conditions and Leasing
				Under Construction	Committed Near Term	Priority Anticipated	Future
Research Triangle (continued)
Mega Campus: Alexandria Center® for Sustainable Technologies/Research Triangle	100%	$53,326		—	—	—	750,000		750,000
120 TW Alexander Drive, 2752 East NC Highway 54, and 10 South Triangle Drive
100 Capitola Drive/Research Triangle	100%	—		—	—	—	65,965		65,965
Other development and redevelopment projects	100%	4,185		—	—	—	76,262		76,262
		445,723		—	—	180,000	5,147,227		5,327,227
New York City
Mega Campus: Alexandria Center® for Life Science – New York City/New York City	100%	165,061		—	—	—	550,000	(2)	550,000
		165,061		—	—	—	550,000		550,000
Texas
Alexandria Center® for Advanced Technologies at The Woodlands/ Greater Houston	100%	49,034		73,298	—	—	116,405		189,703
8800 Technology Forest Place
1001 Trinity Street and 1020 Red River Street/Austin	100%	10,177		—	—	126,034	123,976		250,010
Other development and redevelopment projects	100%	136,980		—	—	—	1,694,000		1,694,000
		196,191		73,298	—	126,034	1,934,381		2,133,713
Canada	100%	50,044		139,311	—	—	371,743		511,054
Other development and redevelopment projects	100%	120,411		—	—	—	724,349		724,349
Total pipeline as of September 30, 2024		$9,340,425	(3)	4,975,327	492,570	2,163,784	27,582,766		35,214,447

Refer to “Mega campus” under “Definitions and reconciliations” in Item 2 for additional information.

(1)Total square footage includes 3,376,039 RSF of buildings currently in operation that we expect to demolish or redevelop and commence future construction subject to market conditions and leasing. Refer to “Investments in real estate”

under “Definitions and reconciliations” in Item 2 for additional information, including development and redevelopment square feet currently included in rental properties.

(2)During the three months ended September 30, 2024, we filed a lawsuit against the New York City Health + Hospitals Corporation and the New York City Economic Development Corporation for fraud and breach of contract concerning our

option to ground lease a land parcel to develop a future world-class life science building within the Alexandria Center® for Life Science – New York City campus. Refer to “Legal proceedings” in Item 1 under Part II – Other Information for

additional details.

(3)Includes $4.3 billion of projects that are currently under construction and are 55% leased/negotiating. We also expect to commence construction of one committed near-term project aggregating $69.5 million, which is 51% leased/

negotiating, in the next two years after September 30, 2024.

73

Results of operations

We present a tabular comparison of items, whether gain or loss, that may facilitate a high-level understanding of our results

and provide context for the disclosures included in our annual report on Form 10-K for the year ended December 31, 2023 and our

subsequent quarterly reports on Form 10-Q. We believe that such tabular presentation promotes a better understanding for investors of

the corporate-level decisions made and activities performed that significantly affect comparison of our operating results from period to

period. We also believe that this tabular presentation will supplement for investors an understanding of our disclosures and real estate

operating results. Gains or losses on sales of real estate and impairments of assets classified as held for sale are related to corporate-

level decisions to dispose of real estate. Gains or losses on early extinguishment of debt are related to corporate-level financing

decisions focused on our capital structure strategy. Significant realized and unrealized gains or losses on non-real estate investments,

impairments of real estate and non-real estate investments, and acceleration of stock compensation expense due to the resignations of

executive officers are not related to the operating performance of our real estate assets as they result from strategic, corporate-level

non-real estate investment decisions and external market conditions. Impairments of non-real estate investments are not related to the

operating performance of our real estate as they represent the write-down of non-real estate investments when their fair values

decrease below their respective carrying values due to changes in general market or other conditions outside of our control. Significant

items, whether a gain or loss, included in the tabular disclosure for current periods are described in further detail in Item 2. Key items

included in net income attributable to Alexandria’s common stockholders for the three and nine months ended September 30, 2024 and

2023 and the related per share amounts were as follows (in millions, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024	2023	2024	2023	2024	2023	2024	2023
	Amount		Per Share – Diluted		Amount		Per Share – Diluted
Unrealized gains (losses) on non-real estate investments	$2.6	$(77.2)	$0.02	$(0.45)	$(32.5)	$(221.0)	$(0.19)	$(1.29)
Gain on sales of real estate	27.1	—	0.16	—	27.5	214.8	0.16	1.26
Impairment of non-real estate investments	(10.3)	(28.5)	(0.06)	(0.17)	(37.8)	(51.5)	(0.22)	(0.30)
Impairment of real estate	(5.7)	(20.6)	(0.03)	(0.12)	(36.5)	(189.2)	(0.22)	(1.11)
Acceleration of stock compensation expense due to executive officer resignations	—	(1.9)	—	(0.01)	—	(1.9)	—	(0.01)
Total	$13.7	$(128.2)	$0.09	$(0.75)	$(79.3)	$(248.8)	$(0.47)	$(1.45)

Refer to Note 3 – “Investments in real estate” and Note 7 – “Investments” to our unaudited consolidated financial statements in

Item 1 for additional information.

74

Same properties

We supplement an evaluation of our results of operations with an evaluation of operating performance of certain of our

properties, referred to as “Same Properties.” For additional information on the determination of our Same Properties portfolio, refer to

“Same property comparisons” under “Definitions and reconciliations” in Item 2. The following table presents information regarding our

Same Properties for the three and nine months ended September 30, 2024:

	September 30, 2024
	Three Months Ended	Nine Months Ended
Percentage change in net operating income over comparable period from prior year	1.5%	1.6%
Percentage change in net operating income (cash basis) over comparable period from prior year	6.5%	4.6%
Operating margin	68%	69%
Number of Same Properties	344	339
RSF	34,652,674	33,720,609
Occupancy – current-period average	94.8%	94.4%
Occupancy – same-period prior-year average	94.1%	94.3%

The following table reconciles the number of Same Properties to total properties for the nine months ended

September 30, 2024:

Development – under construction	Properties
201 Brookline Avenue	1
99 Coolidge Avenue	1
500 North Beacon Street and 4 Kingsbury Avenue	2
9808 Medical Center Drive	1
1450 Owens Street	1
230 Harriet Tubman Way	1
4155 Campus Point Court	1
10935, 10945, and 10955 Alexandria Way	3
10075 Barnes Canyon Road	1
421 Park Drive	1
4135 Campus Point Court	1
701 Dexter Avenue North	1
	15
Development – placed into service after January 1, 2023	Properties
751 Gateway Boulevard	1
15 Necco Street	1
325 Binney Street	1
9810 Darnestown Road	1
9820 Darnestown Road	1
1150 Eastlake Avenue East	1
	6
Redevelopment – under construction	Properties
840 Winter Street	1
40, 50, and 60 Sylvan Road	3
Alexandria Center® for Advanced Technologies – Monte Villa Parkway	6
651 Gateway Boulevard	1
401 Park Drive	1
8800 Technology Forest Place	1
311 Arsenal Street	1
One Hampshire Street	1
Canada	4
Other	2
	21

Redevelopment – placed into service after January 1, 2023	Properties
20400 Century Boulevard	1
140 First Street	1
2400 Ellis Road, 40 Moore Drive, and 14 TW Alexander Drive	3
9601 and 9603 Medical Center Drive	2
	7
Acquisitions after January 1, 2023	Properties
Other	5
	5
Unconsolidated real estate JVs	4
Properties held for sale	9
Total properties excluded from Same Properties	67
Same Properties	339
Total properties in North America as of September 30, 2024	406

75

Comparison of results for the three months ended September 30, 2024 to the three months ended September 30, 2023

The following table presents a comparison of the components of net operating income for our Same Properties and Non-Same

Properties for the three months ended September 30, 2024, compared to the three months ended September 30, 2023 (dollars in

thousands). Refer to “Definitions and reconciliations” in Item 2 for definitions of “Tenant recoveries” and “Net operating income” and

their reconciliations from the most directly comparable financial measures presented in accordance with GAAP, income from rentals and

net income, respectively.

	Three Months Ended September 30,
	2024	2023	$ Change	% Change
Income from rentals:
Same Properties	$452,417	$439,541	$12,876	2.9%
Non-Same Properties	127,152	86,811	40,341	46.5
Rental revenues	579,569	526,352	53,217	10.1
Same Properties	168,923	165,226	3,697	2.2
Non-Same Properties	27,252	15,953	11,299	70.8
Tenant recoveries	196,175	181,179	14,996	8.3
Income from rentals	775,744	707,531	68,213	9.6
Same Properties	386	619	(233)	(37.6)
Non-Same Properties	15,477	5,638	9,839	174.5
Other income	15,863	6,257	9,606	153.5
Same Properties	621,726	605,386	16,340	2.7
Non-Same Properties	169,881	108,402	61,479	56.7
Total revenues	791,607	713,788	77,819	10.9
Same Properties	199,369	189,368	10,001	5.3
Non-Same Properties	33,896	28,319	5,577	19.7
Rental operations	233,265	217,687	15,578	7.2
Same Properties	422,357	416,018	6,339	1.5
Non-Same Properties	135,985	80,083	55,902	69.8
Net operating income	$558,342	$496,101	$62,241	12.5%
Net operating income – Same Properties	$422,357	$416,018	$6,339	1.5%
Straight-line rent revenue	(4,974)	(23,981)	19,007	(79.3)
Amortization of acquired below-market leases	(14,582)	(13,792)	(790)	5.7
Net operating income – Same Properties (cash basis)	$402,801	$378,245	$24,556	6.5%

76

Income from rentals

Total income from rentals for the three months ended September 30, 2024 increased by $68.2 million, or 9.6%, to

$775.7 million, compared to $707.5 million for the three months ended September 30, 2023, as a result of an increase in rental

revenues and tenant recoveries, as discussed below.

Rental revenues

Total rental revenues for the three months ended September 30, 2024 increased by $53.2 million, or 10.1%, to $579.6 million,

compared to $526.4 million for the three months ended September 30, 2023. The increase was primarily due to an increase in rental

revenues from our Non-Same Properties related to 2.5 million RSF of development and redevelopment projects placed into service

subsequent to July 1, 2023 and four operating properties aggregating 486,610 RSF acquired subsequent to July 1, 2023.

Rental revenues from our Same Properties for the three months ended September 30, 2024 increased by $12.9 million, or

2.9%, to $452.4 million, compared to $439.5 million for the three months ended September 30, 2023. The increase was primarily due to

rental rate changes on lease renewals and re-leasing of space since July 1, 2023 and a 0.7% increase in the occupancy of our Same

Properties to 94.8% for the three months ended September 30, 2024 from 94.1% for the three months ended September 30, 2023.

Tenant recoveries

Tenant recoveries for the three months ended September 30, 2024 increased by $15.0 million, or 8.3%, to $196.2 million,

compared to $181.2 million for the three months ended September 30, 2023. This increase was primarily from our Non-Same

Properties related to our development and redevelopment projects placed into service and properties acquired subsequent to July 1,

2023, as discussed above under “Rental revenues.”

Same Properties’ tenant recoveries for the three months ended September 30, 2024 increased by $3.7 million, or 2.2%, to

$168.9 million, compared to $165.2 million for the three months ended September 30, 2023, primarily due to higher operating expenses

during the three months ended September 30, 2024, as discussed under “Rental operations” below. As of September 30, 2024, 93% of

our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes,

insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in

addition to base rent.

Rental operations

Total rental operating expenses for the three months ended September 30, 2024 increased by $15.6 million, or 7.2%, to

$233.3 million, compared to $217.7 million for the three months ended September 30, 2023. The increase was primarily due to

incremental expenses related to our Same Properties, as discussed below.

Same Properties’ rental operating expenses increased by $10.0 million, or 5.3%, to $199.4 million during the three months

ended September 30, 2024, compared to $189.4 million for the three months ended September 30, 2023, primarily as the result of

increases in (i) utility expenses and contractual costs aggregating $5.0 million, due to higher rates and increases in services, and

(ii) higher ground lease expenses aggregating $1.6 million, due to increases in contractual rates related to lease extensions and higher

ground lease percentage rent.

Depreciation and amortization

Depreciation and amortization expense for the three months ended September 30, 2024 increased by $24.6 million, or 9.1%,

to $294.0 million, compared to $269.4 million for the three months ended September 30, 2023. The increase was primarily due to

additional depreciation from development and redevelopment projects placed into service and properties acquired, as discussed above

under “Rental revenues.”

General and administrative expenses

General and administrative expenses for the three months ended September 30, 2024 decreased by $2.0 million, or 4.4%, to

$43.9 million, compared to $46.0 million for the three months ended September 30, 2023, primarily due to a reduction in compensation

costs resulting from the resignations of two executive officers in the second half of 2023. As a percentage of net operating income, our

general and administrative expenses for the trailing twelve months ended September 30, 2024 and 2023 were 8.9% and 9.3%,

respectively.

77

Interest expense

Interest expense for the three months ended September 30, 2024 and 2023 consisted of the following (dollars in thousands):

	Three Months Ended September 30,
Component	2024	2023	Change
Gross interest	$130,046	$107,530	$22,516
Capitalized interest	(86,496)	(96,119)	9,623
Interest expense	$43,550	$11,411	$32,139
Average debt balance outstanding(1)	$12,694,260	$11,193,343	$1,500,917
Weighted-average annual interest rate(2)	4.1%	3.8%	0.3%

(1)Represents the average debt balance outstanding during the respective periods.

(2)Represents annualized total interest incurred divided by the average debt balance outstanding during the respective periods.

The net change in interest expense during the three months ended September 30, 2024, compared to the three months ended

September 30, 2023, resulted from the following (dollars in thousands):

Component	Interest Rate(1)		Effective Date	Change
Increases in interest incurred due to:
Issuances of debt:
$600 million of unsecured senior notes payable due 2054		5.71%	February 2024	$8,440
$400 million of unsecured senior notes payable due 2036		5.38%	February 2024	5,264
Increases in construction borrowings and interest rates under secured notes payable		8.40%		849
Higher average outstanding balances and/or rate increases on borrowings under commercial paper program and unsecured senior line of credit				7,681
Other increase in interest				282
Change in gross interest				22,516
Decrease in capitalized interest				9,623
Total change in interest expense				$32,139

(1)Represents the weighted-average interest rate as of the end of the applicable period, including amortization of loan fees, amortization of debt premiums (discounts), and

other bank fees.

Impairment of real estate

During the three months ended September 30, 2024, we recognized real estate impairment charges aggregating $5.7 million

to adjust the carrying amount of one property in Canada that continued to meet the held-for-sale classification to the sales price under

negotiation with a potential buyer less costs to sell. We expect to sell this property within 12 months.

During the three months ended September 30, 2023, we recognized real estate impairment charges aggregating $20.6 million

to further reduce the carrying amounts of primarily three non-laboratory properties located in our Greater Boston and Texas markets to

their respective estimated fair value less costs to sell.

Investment income

During the three months ended September 30, 2024, we recognized investment income aggregating $15.2 million. This

income primarily consisted of gains of $26.2 million from increases in fair values of our non-real estate investments in publicly traded

companies and in privately held entities that do not report NAV, partially offset by impairment charges of $10.3 million primarily related

to two non-real estate investments in privately held entities that do not report NAV. During the three months ended September 30, 2023,

we recognized an investment loss aggregating $80.7 million, which consisted of $77.2 million of unrealized losses and $3.5 million of

realized losses. For more information about our investments, refer to Note 7 – “Investments” to our unaudited consolidated financial

statements. For our impairments accounting policy, refer to “Investments” in Note 2 – “Summary of significant accounting policies” to

our unaudited consolidated financial statements in Item 1.

Gain on sales of real estate

During the three months ended September 30, 2024, we recognized $27.1 million of gains primarily related the disposition of

1165 Eastlake Avenue East in our Lake Union submarket. The gains were classified in gain on sales of real estate within our

consolidated statement of operations for the three months ended September 30, 2024.

Other comprehensive income

Total other comprehensive income for the three months ended September 30, 2024 aggregated $5.1 million, compared to total

other comprehensive loss of $8.4 million for the three months ended September 30, 2023. The difference is primarily due to the

unrealized foreign currency translation gains related to our operations in Canada.

78

Comparison of results for the nine months ended September 30, 2024 to the nine months ended September 30, 2023

The following table presents a comparison of the components of net operating income for our Same Properties and Non-Same

Properties for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023 (dollars in

thousands). Refer to “Definitions and reconciliations” in Item 2 for definitions of “Tenant recoveries” and “Net operating income” and

their reconciliations from the most directly comparable financial measures presented in accordance with GAAP, income from rentals and

net income, respectively.

	Nine Months Ended September 30,
	2024	2023	$ Change	% Change
Income from rentals:
Same Properties	$1,342,463	$1,307,866	$34,597	2.6%
Non-Same Properties	395,341	274,677	120,664	43.9
Rental revenues	1,737,804	1,582,543	155,261	9.8
Same Properties	473,061	461,555	11,506	2.5
Non-Same Properties	75,592	55,721	19,871	35.7
Tenant recoveries	548,653	517,276	31,377	6.1
Income from rentals	2,286,457	2,099,819	186,638	8.9
Same Properties	1,102	1,356	(254)	(18.7)
Non-Same Properties	39,890	27,308	12,582	46.1
Other income	40,992	28,664	12,328	43.0
Same Properties	1,816,626	1,770,777	45,849	2.6
Non-Same Properties	510,823	357,706	153,117	42.8
Total revenues	2,327,449	2,128,483	198,966	9.3
Same Properties	559,427	532,942	26,485	5.0
Non-Same Properties	109,406	103,512	5,894	5.7
Rental operations	668,833	636,454	32,379	5.1
Same Properties	1,257,199	1,237,835	19,364	1.6
Non-Same Properties	401,417	254,194	147,223	57.9
Net operating income	$1,658,616	$1,492,029	$166,587	11.2%
Net operating income – Same Properties	$1,257,199	$1,237,835	$19,364	1.6%
Straight-line rent revenue	(37,251)	(73,626)	36,375	(49.4)
Amortization of acquired below-market leases	(44,993)	(40,410)	(4,583)	11.3
Net operating income – Same Properties (cash basis)	$1,174,955	$1,123,799	$51,156	4.6%

79

Income from rentals

Total income from rentals for the nine months ended September 30, 2024 increased by $186.6 million, or 8.9%, to $2.3 billion,

compared to $2.1 billion for the nine months ended September 30, 2023, as a result of increase in rental revenues and tenant

recoveries, as discussed below.

Rental revenues

Total rental revenues for the nine months ended September 30, 2024 increased by $155.3 million, or 9.8%, to $1.7 billion,

compared to $1.6 billion for the nine months ended September 30, 2023. The increase was primarily due to an increase in rental

revenues from our Non-Same Properties related to 4.1 million RSF of development and redevelopment projects placed into service

subsequent to January 1, 2023 and five operating properties aggregating 734,353 RSF acquired subsequent to January 1, 2023.

Rental revenues from our Same Properties for the nine months ended September 30, 2024 increased by $34.6 million, or

2.6%, to $1.3 billion, compared to $1.3 billion for the nine months ended September 30, 2023. The increase was primarily due to rental

rate increases on lease renewals and re-leasing of space since January 1, 2023.

Tenant recoveries

Tenant recoveries for the nine months ended September 30, 2024 increased by $31.4 million, or 6.1%, to $548.7 million,

compared to $517.3 million for the nine months ended September 30, 2023. This increase was partially from our Non-Same Properties

related to our development and redevelopment projects placed into service and properties acquired subsequent to January 1, 2023, as

discussed above under “Rental revenues.”

Same Properties’ tenant recoveries for the nine months ended September 30, 2024 increased by $11.5 million, or 2.5%, to

$473.1 million, compared to $461.6 million for the nine months ended September 30, 2023, primarily due to higher operating expenses

during the nine months ended September 30, 2024, as discussed under “Rental operations” below. As of September 30, 2024, 93% of

our leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes,

insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses (including increases thereto) in

addition to base rent.

Rental operations

Total rental operating expenses for the nine months ended September 30, 2024 increased by $32.4 million, or 5.1%, to

$668.8 million, compared to $636.5 million for the nine months ended September 30, 2023.The increase  was primarily due to

incremental expenses related to our Same Properties’ rental operating expenses as discussed below.

Same Properties’ rental operating expenses increased by $26.5 million, or 5.0%, to $559.4 million during the nine months

ended September 30, 2024, compared to $532.9 million for the nine months ended September 30, 2023, primarily as the result of (i)

the increase in utilities expenses and contractual costs aggregating $12.2 million, primarily due to higher rates and increase in services;

(ii) the increase in property taxes aggregating $7.5 million, primarily due to increases from reassessments in values; and (iii) the

increase in property insurance expenses aggregating $2.1 million, primarily due to higher insurance premiums.

Depreciation and amortization

Depreciation and amortization expense for the nine months ended September 30, 2024 increased by $64.0 million, or 7.9%, to

$872.3 million, compared to $808.2 million for the nine months ended September 30, 2023. The increase was primarily due to additional

depreciation from development and redevelopment projects placed into service and properties acquired, as discussed above under

“Rental revenues.”

General and administrative expenses

General and administrative expenses for the nine months ended September 30, 2024 decreased by $4.4 million, or 3.2%, to

$135.6 million, compared to $140.1 million for the nine months ended September 30, 2023, primarily due to a reduction in

compensation costs resulting from the resignations of two executive officers in the second half of 2023. As a percentage of net

operating income, our general and administrative expenses for the trailing twelve months ended September 30, 2024 and 2023 were

8.9% and 9.3%, respectively.

80

Interest expense

Interest expense for the nine months ended September 30, 2024 and 2023 consisted of the following (dollars in thousands):

	Nine Months Ended September 30,
Component	2024	2023	Change
Gross interest	$379,554	$317,100	$62,454
Capitalized interest	(249,375)	(274,863)	25,488
Interest expense	$130,179	$42,237	$87,942
Average debt balance outstanding(1)	$12,417,845	$11,060,327	$1,357,518
Weighted-average annual interest rate(2)	4.1%	3.8%	0.3%

(1)Represents the average debt balance outstanding during the respective periods.

(2)Represents annualized total interest incurred divided by the average debt balance outstanding during the respective periods.

The net change in interest expense during the nine months ended September 30, 2024, compared to the nine months ended

September 30, 2023, resulted from the following (dollars in thousands):

Component	Interest Rate(1)		Effective Date	Change
Increases in interest incurred due to:
Issuances of debt:
$500 million of unsecured senior notes payable due 2053		5.26%	February 2023	$3,226
$500 million of unsecured senior notes payable due 2035		4.88%	February 2023	2,983
$600 million of unsecured senior notes payable due 2054		5.71%	February 2024	21,194
$400 million of unsecured senior notes payable due 2036		5.38%	February 2024	13,219
Increases in construction borrowings and interest rates under secured notes payable		8.40%		3,380
Higher average outstanding balances and/or rate increases on borrowings under commercial paper program and unsecured senior line of credit				16,482
Other increase in interest				1,970
Change in gross interest				62,454
Decrease in capitalized interest				25,488
Total change in interest expense				$87,942

(1)Represents the weighted-average interest rate as of the end of the applicable period, including amortization of loan fees, amortization of debt premiums (discounts), and

other bank fees.

81

Impairment of real estate

During the nine months ended September 30, 2024, we recognized real estate impairment charges aggregating $36.5 million,

which primarily consisted of the following:

•Impairment charges aggregating $30.8 million primarily consisting of the pre-acquisition costs related to two potential

acquisitions aggregating 1.4 million RSF of future development in our Greater Boston market. We executed purchase

agreements for these potential acquisitions with the total purchase price aggregating $366.8 million in 2020 and 2022, and we

initially expected to close these acquisitions after 2024. Our intent for each site included the demolition of existing buildings

upon expiration of the existing in-place leases and the development of life science properties. During the three months ended

June 30, 2024, due to the existing macroeconomic environment that negatively impacted the financial outlooks for these

projects, we decided to no longer proceed with these acquisitions, resulting in the recognition of impairment charges. 

•Impairment charge of $5.7 million to adjust the carrying amount of one property in Canada that continued to meet the held-for-

sale classification to the sales price under negotiation with a potential buyer less costs to sell. We expect to sell this property

within 12 months.

During the nine months ended September 30, 2023, we recognized real estate impairment charges aggregating $189.2 million,

which primarily consisted of the following:

•Impairment charge aggregating $145.4 million to reduce the carrying amount of a three-building office campus in our Route

128 submarket to its fair value less costs to sell. We completed the sale of this campus in June 2023 for a sales price of

$109.3 million, with no gain or loss recognized in earnings.

•Impairment charge aggregating $20.6 million to further reduce the carrying amounts of primarily three non-laboratory

properties located in our Greater Boston and Texas markets to their respective estimated fair values less costs to sell. We

completed the sale of two of these properties in December 2023 and January 2024, and we expect to sell the remaining real

estate asset during the next 12 months.

•Impairment charge aggregating $17.1 million to fully write down the carrying amount of our one remaining property in Asia.

Investment income

During the nine months ended September 30, 2024, we recognized an investment income aggregating $14.9 million. This

income primarily consisted of gains of $51.2 million from increases in fair values of our non-real estate investments in privately held

entities that do not report NAV and in publicly traded companies, partially offset by impairment charges of $37.8 million primarily related

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

During the nine months ended September 30, 2023, we recognized investment loss aggregating $204.1 million, which

consisted of $16.9 million of realized gains and $221.0 million of unrealized losses.

For more information about our investments, refer to Note 7 – “Investments” to our unaudited consolidated financial statements

in Item 1. For our impairments accounting policy, refer to “Investments” in Note 2 – “Summary of significant accounting policies” to our

unaudited consolidated financial statements in Item 1.

Gain on sales of real estate

During the nine months ended September 30, 2024, we recognized $27.5 million of gains primarily related to the disposition of

1165 Eastlake Avenue East in our Lake Union submarket. The gains were classified in gain on sales of real estate within our

consolidated statement of operations for the nine months ended September 30, 2024.

During the nine months ended September 30, 2023, we recognized $214.8 million of gains related to the dispositions of six

real estate assets. The gains were classified in gain on sales of real estate within our consolidated statement of operations for the nine

months ended September 30, 2023.

Other comprehensive loss

Total other comprehensive loss for the nine months ended September 30, 2024 aggregated $6.6 million, compared to total

other comprehensive loss of $4.2 million for the nine months ended September 30, 2023. The difference is primarily due to the foreign

currency translation related to our operations in Canada.

82

Summary of capital expenditures

Our construction spending for the nine months ended September 30, 2024 and projected spending for the year ending

December 31, 2024 consisted of the following (in thousands):

	Nine Months Ended September 30, 2024		Projected Midpoint for the Year Ending December 31, 2024
Construction of Class A/A+ properties:
Active construction projects
Under construction and committed near-term projects(1) and projects expected to commence active construction in the fourth quarter of 2024(2)	$	1,448,736	$	1,913,000
Future pipeline pre-construction
Primarily mega campus expansion pre-construction work (entitlement, design, and site work)		349,082		652,000
Revenue- and non-revenue-enhancing capital expenditures		158,229		250,000
Construction spend (before contributions from noncontrolling interests or tenants)		1,956,047		2,815,000
Contributions from noncontrolling interests (consolidated real estate joint ventures)		(272,072)		(430,000)	(3)
Tenant-funded and -built landlord improvements		(107,562)		(135,000)
Total construction spending	$	1,576,413	$	2,250,000
2024 guidance range for construction spending			$1,950,000 – $2,550,000

(1)Includes projects under construction aggregating 5.0 million RSF and one committed near-term project aggregating 492,570 RSF expected to commence construction

during the next two years after September 30, 2024, which are 55% leased/negotiating and expected to generate $510 million in incremental annual net operating

income primarily commencing from the fourth quarter of 2024 through the first quarter of 2028.

(2)Includes certain priority anticipated development and redevelopment projects expected to commence active construction in the fourth quarter of 2024, subject to market

conditions and leasing. Refer to “Investments in real estate” under “Definitions and reconciliations” in Item 2 for additional details, including development and

redevelopment square feet currently included in rental properties.

(3)Represents contractual capital commitments from existing consolidated real estate joint venture partners to fund construction.

Projected capital contributions from partners in consolidated real estate joint ventures to fund construction

The following table summarizes projected capital contributions from partners in our existing consolidated joint ventures to fund

construction through 2027 (in thousands):

Timing	Amount(1)
October 1, 2024 through December 31, 2024	$157,928
2025 through 2027	885,526
Total	$1,043,454

(1)Represents contractual capital commitments from existing consolidated real estate joint venture partners to fund construction.

Average real estate basis used for capitalization of interest

Our construction spending includes capitalized interest. The table below provides key categories of real estate basis

capitalized during the nine months ended September 30, 2024:

	Nine Months Ended September 30, 2024
	Average Real Estate Basis Capitalized		Percentage of Total Average Real Estate Basis Capitalized
Construction of Class A/A+ properties:
Active construction projects
Under construction and committed near-term projects	$2,849,742			35%
Future pipeline pre-construction
Priority anticipated projects	559,815	(1)		7
Primarily mega campus expansion pre-construction work (entitlement, design, and site work)	3,692,497	(1)		45
Smaller redevelopments and repositioning capital projects	1,025,019			13
	$8,127,073			100%

(1)Average real estate basis capitalized related to our future pipeline pre-construction activities includes 31% from four key active and future development and

redevelopment projects on mega campuses.

83

Projected results

We present updated guidance for EPS attributable to Alexandria’s common stockholders – diluted, 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, based on our current view of existing market conditions and other assumptions for the

year ending December 31, 2024 as set forth in the tables below. The tables below also provide a reconciliation of EPS attributable to

Alexandria’s common stockholders – diluted, the most directly comparable financial measure presented in accordance with GAAP, to

funds from operations per share and funds from operations per share, as adjusted, non-GAAP measures, and other key assumptions

included in our updated guidance for the year ending December 31, 2024. There can be no assurance that actual amounts will not be

materially higher or lower than these expectations. Refer to our discussion of “Forward-looking statements” at the beginning of this

Item 2.

Projected 2024 Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted	As of 10/21/24		As of 7/22/24
Earnings per share(1)	$2.60 to $2.64		$2.98 to $3.10
Depreciation and amortization of real estate assets		6.05		5.95
Gain on sales of real estate(2)		(0.38)		—
Impairment of real estate – rental properties and land(2)		0.67		0.01
Allocation of unvested restricted stock awards		(0.06)		(0.05)
Funds from operations per share(3)	$8.88 to $8.92		$8.89 to $9.01
Unrealized losses on non-real estate investments		0.19		0.20
Impairment of non-real estate investments		0.22		0.16
Impairment of real estate		0.17		0.17
Allocation to unvested restricted stock awards		(0.01)		(0.01)
Funds from operations per share, as adjusted(3)	$9.45 to $9.49		$9.41 to $9.53
Midpoint		$9.47		$9.47

(1)Excludes unrealized gains or losses on non-real estate investments after September 30, 2024 that are required to be recognized in earnings and are excluded from

funds from operations per share, as adjusted.

(2)Includes $37.1 million of gain on sales of real estate and $106.8 million of real estate impairments recognized in October 2024. Refer to Note 16 – “Subsequent Events”

to our unaudited consolidated financial statements in Item 1 for additional details.

(3)Refer to “Definitions and reconciliations” in Item 2 for additional information.

Key Assumptions(1) (Dollars in millions)	2024 Guidance
	Low	High
Occupancy percentage for operating properties in North America as of December 31, 2024	94.6%	95.6%
Lease renewals and re-leasing of space:
Rental rate changes	11.0%	19.0%
Rental rate changes (cash basis)	5.0%	13.0%
Same property performance:
Net operating income changes	0.5%	2.5%
Net operating income changes (cash basis)	3.0%	5.0%
Straight-line rent revenue(2)	$147	$162
General and administrative expenses(3)	$176	$186
Capitalization of interest	$325	$355
Interest expense	$154	$184
Realized gains on non-real estate investments(4)	$95	$125

(1)Our assumptions presented in the table above are subject to a number of variables and uncertainties, including those discussed as “Forward-looking statements” under

Part I; “Item 1A. Risk factors”; and “Item 7. Management’s discussion and analysis of financial condition and results of operations” of our annual report on Form 10-K for

the year ended December 31, 2023, as well as in “Item 1A. Risk factors” within “Part II – Other information” of this quarterly report on Form 10-Q. To the extent our full-

year earnings guidance is updated during the year, we will provide additional disclosure supporting reasons for any significant changes to such guidance.

(2)Reduction in the midpoint of our guidance range for straight-line rent revenue by $22 million is primarily attributable to (i) the write-off of a deferred rent receivable of

$9 million related to the lease termination and a payment of $10 million from a tenant at 409 Illinois Street in our Mission Bay submarket, a 234,249 RSF property owned

by our consolidated real estate joint venture for which we have an ownership interest of 25%, and (ii) a change in the expected stabilization date from the fourth quarter

of 2024 to the first quarter of 2025 at our fully leased development project at 230 Harriet Tubman Way in our South San Francisco submarket as reported in our Form

10-Q for the quarterly period ended June 30, 2023.

(3)Reduction in the midpoint of our guidance range for general and administrative expense by $5 million is primarily attributable to the realization of savings associated with

overall efficiencies, including enhanced cost control measures, incremental use of technology, streamlined processes, and optimization of execution in connection with

the sale of non-core assets not integral to our mega campus strategy.

(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. Refer to Note 7 – “Investments” to our unaudited consolidated financial statements in Item 1 for additional details.

Key Credit Metric Targets(1)
Net debt and preferred stock to Adjusted EBITDA – fourth quarter of 2024 annualized	Less than or equal to 5.1x
Fixed-charge coverage ratio – fourth quarter of 2024 annualized	Greater than or equal to 4.5x

(1)Refer to “Definitions and reconciliations” in Item 2 for additional information.

84

Consolidated and unconsolidated real estate joint ventures

We present components of balance sheet and operating results information for the noncontrolling interest share of our

consolidated real estate joint ventures and for our share of investments in unconsolidated real estate joint ventures to help investors

estimate balance sheet and operating results information related to our partially owned entities. These amounts are estimated by

computing, for each joint venture that we consolidate in our financial statements, the noncontrolling interest percentage of each financial

item to arrive at the cumulative noncontrolling interest share of each component presented. In addition, for our real estate joint ventures

that we do not control and do not consolidate, we apply our economic ownership percentage to the unconsolidated real estate joint

ventures to arrive at our proportionate share of each component presented. Refer to Note 4 – “Consolidated and unconsolidated real

estate joint ventures” to our unaudited consolidated financial statements in Item 1 for further discussion.

Consolidated Real Estate Joint Ventures
Property/Market/Submarket	Noncontrolling(1) Interest Share			Operating RSF at 100%
50 and 60 Binney Street/Greater Boston/Cambridge/Inner Suburbs		66.0%			532,395
75/125 Binney Street/Greater Boston/Cambridge/Inner Suburbs		60.0%			388,270
100 and 225 Binney Street and 300 Third Street/Greater Boston/Cambridge/Inner Suburbs		70.0%			870,106
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs		25.0%			116,414	(2)
15 Necco Street/Greater Boston/Seaport Innovation District		43.3%			345,996
285, 299, 307, and 345 Dorchester Avenue/Greater Boston/Seaport Innovation District		40.0%			—	(2)
Alexandria Center® for Science and Technology – Mission Bay/San Francisco Bay Area/ Mission Bay(3)		75.0%			996,181
1450 Owens Street/San Francisco Bay Area/Mission Bay		74.6%	(4)		—	(2)
601, 611, 651(2), 681, 685, and 701 Gateway Boulevard/San Francisco Bay Area/ South San Francisco		50.0%			853,794
751 Gateway Boulevard/San Francisco Bay Area/South San Francisco		49.0%			230,592
211(2) and 213 East Grand Avenue/San Francisco Bay Area/South San Francisco		70.0%			300,930
500 Forbes Boulevard/San Francisco Bay Area/South San Francisco		90.0%			155,685
Alexandria Center® for Life Science – Millbrae/San Francisco Bay Area/South San Francisco		52.1%			—	(2)
3215 Merryfield Row/San Diego/Torrey Pines		70.0%			170,523
Campus Point by Alexandria/San Diego/University Town Center(5)		45.0%			1,342,164
5200 Illumina Way/San Diego/University Town Center		49.0%			792,687
9625 Towne Centre Drive/San Diego/University Town Center		70.0%			163,648
SD Tech by Alexandria/San Diego/Sorrento Mesa(6)		50.0%			798,858
Pacific Technology Park/San Diego/Sorrento Mesa		50.0%			544,352
Summers Ridge Science Park/San Diego/Sorrento Mesa(7)		70.0%			316,531
1201 and 1208 Eastlake Avenue East/Seattle/Lake Union		70.0%			207,774
199 East Blaine Street/Seattle/Lake Union		70.0%			115,084
400 Dexter Avenue North/Seattle/Lake Union		70.0%			290,754
800 Mercer Street/Seattle/Lake Union		40.0%			—	(2)
Unconsolidated Real Estate Joint Ventures
Property/Market/Submarket	Our Ownership Share(8)			Operating RSF at 100%
1655 and 1725 Third Street/San Francisco Bay Area/Mission Bay		10.0%			586,208
1401/1413 Research Boulevard/Maryland/Rockville		65.0%	(9)(10)		(9)(10)
1450 Research Boulevard/Maryland/Rockville		73.2%	(10)		42,679
101 West Dickman Street/Maryland/Beltsville		58.2%	(10)		135,423

Refer to “Joint venture financial information” under “Definitions and reconciliations” in Item 2 for additional details.

(1)In addition to the consolidated real estate joint ventures listed, various joint venture partners hold insignificant noncontrolling interests in three other real estate joint

ventures in North America.

(2)Represents a property currently under construction or in our development and redevelopment pipeline. Refer to “New Class A/A+ development and redevelopment

properties” in Item 2 for additional details.

(3)Includes 409 and 499 Illinois Street, 1500 and 1700 Owens Street, and 455 Mission Bay Boulevard South.

(4)During the nine months ended September 30, 2024, our equity ownership decreased from 40.6% to 25.4% based on continued funding of construction costs by our joint

venture partner and a reallocation of equity to our joint venture partner of $30.2 million from us. The noncontrolling interest share of our joint venture partner is

anticipated to increase to 75% and ours to decrease to 25% as our partner contributes additional equity to fund the construction of the project.

(5)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4135, 4155, 4161, 4165, 4224, and 4242 Campus Point Court.

(6)Includes 9605, 9645, 9675, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road.

(7)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.

(8)In addition to the unconsolidated real estate joint ventures listed, we hold an interest in one insignificant unconsolidated real estate joint venture in North America.

(9)We have executed a purchase and sale agreement to sell the unconsolidated real estate joint venture and expect to complete the sale during the fourth quarter of 2024.

(10)Represents a joint venture with a local real estate operator in which our joint venture partner manages the day-to-day activities that significantly affect the economic

performance of the joint venture.

85

The following table presents key terms related to our unconsolidated real estate joint ventures’ secured loans as of

September 30, 2024 (dollars in thousands):

	Maturity Date		Stated Rate		Interest Rate(1)	At 100%		Our Share
Unconsolidated Joint Venture						Aggregate Commitment	Debt Balance(2)
1401/1413 Research Boulevard(3)		12/23/24	2.70%		3.31%	$28,500	$28,461	65.0%
1655 and 1725 Third Street(4)		3/10/25	4.50%		4.57%	600,000	599,823	10.0%
101 West Dickman Street		11/10/26	SOFR+1.95%	(5)	7.39%	26,750	18,565	58.2%
1450 Research Boulevard		12/10/26	SOFR+1.95%	(5)	7.45%	13,000	8,616	73.2%
						$668,250	$655,465

(1)Includes interest expense and amortization of loan fees.

(2)Represents outstanding principal, net of unamortized deferred financing costs, as of September 30, 2024.

(3)We have executed a purchase and sale agreement to sell the unconsolidated real estate joint venture and expect to complete the sale during the fourth quarter of 2024.

Our net proceeds from the sale are expected to exceed our share of the outstanding debt balance and the carrying amount of this investment as of September 30, 2024.

(4)The unconsolidated real estate joint venture is in the process of working with prospective lenders to refinance this debt. In the event that all or a portion of the debt

cannot be refinanced, we may consider contributing additional equity into this unconsolidated joint venture. As of September 30, 2024, our investment in this

unconsolidated real estate joint venture was $10.8 million.

(5)This loan is subject to a fixed SOFR floor of 0.75%.

The following tables present information related to the operating results and financial positions of our consolidated and

unconsolidated real estate joint ventures as of and for the three and nine months ended September 30, 2024 (in thousands):

	Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures		Our Share of Unconsolidated Real Estate Joint Ventures
	September 30, 2024		September 30, 2024
	Three Months Ended	Nine Months Ended	Three Months Ended	Nine Months Ended
Total revenues	$113,479	$335,786	$3,141	$9,472
Rental operations	(34,697)	(97,009)	(965)	(2,984)
	78,782	238,777	2,176	6,488
General and administrative	(586)	(2,268)	(10)	(80)
Interest	(284)	(753)	(952)	(2,807)
Depreciation and amortization of real estate assets	(32,457)	(94,725)	(1,075)	(3,177)
Fixed returns allocated to redeemable noncontrolling interests(1)	201	603	—	—
	$45,656	$141,634	$139	$424
Straight-line rent and below-market lease revenue	$54	$15,588	$213	$743
Funds from operations(2)	$78,113	$236,359	$1,214	$3,601

Refer to “Joint venture financial information” under “Definitions and reconciliations” in Item 2 for additional details.

(1)Represents an allocation of joint venture earnings to redeemable noncontrolling interests primarily in one property in our South San Francisco submarket. These

redeemable noncontrolling interests earn a fixed return on their investment rather than participate in the operating results of the property.

(2)Refer to “Funds from operations and funds from operations, as adjusted, attributable to Alexandria Real Estate Equities, Inc.’s common stockholders” under “Definitions

and reconciliations” in Item 2 for the definition and its reconciliation from the most directly comparable financial measure presented in accordance with GAAP.

	As of September 30, 2024
	Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures	Our Share of Unconsolidated Real Estate Joint Ventures
Investments in real estate	$4,211,942	$125,029
Cash, cash equivalents, and restricted cash	164,756	3,346
Other assets	425,293	13,411
Secured notes payable	(36,103)	(95,603)
Other liabilities	(280,069)	(6,013)
Redeemable noncontrolling interests	(16,510)	—
	$4,469,309	$40,170

During the nine months ended September 30, 2024 and 2023, our consolidated real estate joint ventures distributed an

aggregate of $179.1 million and $192.7 million, respectively, to our joint venture partners. Refer to our consolidated statements of cash

flows and Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial statements in

Item 1 for additional information.

86

Investments

We hold investments in publicly traded companies and privately held entities primarily involved in the life science industry. The

tables below summarize components of our investment income (loss) and non-real estate investments (in thousands). Refer to Note 7 –

“Investments” to our unaudited consolidated financial statements in Item 1 for additional information.

	September 30, 2024				Year Ended December 31, 2023
	Three Months Ended		Nine Months Ended
Realized gains	$12,632	(1)	$47,336	(1)	$6,078	(2)
Unrealized gains (losses)	2,610	(3)	(32,470)	(4)	(201,475)	(5)
Investment income (loss)	$15,242		$14,866		$(195,397)

	September 30, 2024					December 31, 2023
Investments	Cost		Unrealized Gains	Unrealized Losses	Carrying Amount	Carrying Amount
Publicly traded companies	$187,085		$50,933	$(85,592)	$152,426	$159,566
Entities that report NAV	527,042		160,608	(31,225)	656,425	671,532
Entities that do not report NAV:
Entities with observable price changes	93,982		72,862	(1,337)	165,507	174,268
Entities without observable price changes	407,261		—	—	407,261	368,654
Investments accounted for under the equity method	N/A		N/A	N/A	137,708	75,498
September 30, 2024	$1,215,370	(6)	$284,403	$(118,154)	$1,519,327	$1,449,518
December 31, 2023	$1,177,072		$320,445	$(123,497)	$1,449,518

Public/Private Mix (Cost) Tenant/Non-Tenant Mix (Cost)

86%

Private

14%

Public

27%

Tenant

73%

Non-Tenant

(1)Consists of realized gains of $23.0 million and $85.2 million, partially offset by impairment charges of $10.3 million and $37.8 million during the three and nine months

ended September 30, 2024, respectively.

(2)Consists of realized gains of $80.6 million, offset by impairment charges of $74.6 million during the year ended December 31, 2023.

(3)Consists of unrealized gains of $25.8 million primarily resulting from the increase in fair values of our investments in publicly traded entities and $23.2 million resulting

from accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our realization of investments during the three months ended

September 30, 2024.

(4)Primarily relates to the accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our realization of investments during the nine

months ended September 30, 2024.

(5)Consists of unrealized losses of $111.6 million primarily resulting from the decrease in the fair value of our investments in privately held entities that report NAV and

$89.9 million resulting from accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our sales of investments, during the year

ended December 31, 2023.

(6)Represents 2.8% of gross assets as of September 30, 2024. Refer to the definition of “Gross assets” under “Definitions and reconciliations” in Item 2 for additional

details.

87

Liquidity

Liquidity		Minimal Outstanding Borrowings and Significant Availability on Unsecured Senior Line of Credit
$5.4B		(in millions)
(In millions)
Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program	$4,545
Outstanding forward equity sales agreements(1)	28
Cash, cash equivalents, and restricted cash	580
Availability under our secured construction loan	51
Investments in publicly traded companies	152
Liquidity as of September 30, 2024	$5,356

(1)Represents expected net proceeds from the future settlement of 230 thousand shares of common stock under forward equity sales agreements after underwriter

discounts.

We expect to meet certain long-term liquidity requirements, such as requirements for development, redevelopment, other

construction projects, capital improvements, tenant improvements, property acquisitions, leasing costs, non-revenue-enhancing capital

expenditures, scheduled debt maturities, distributions to noncontrolling interests, and payment of dividends through net cash provided

by operating activities, periodic asset sales, strategic real estate joint ventures, long-term secured and unsecured indebtedness,

borrowings under our unsecured senior line of credit, issuances under our commercial paper program, and issuances of additional debt

and/or equity securities.

We also expect to continue meeting our short-term liquidity and capital requirements, as further detailed in this section,

generally through our working capital and net cash provided by operating activities. We believe that the net cash provided by operating

activities will continue to be sufficient to enable us to make the distributions necessary to continue qualifying as a REIT.

For additional information on our liquidity requirements related to our contractual obligations and commitments, refer to

Note 5 – “Leases” and Note 10 – “Secured and unsecured senior debt” to our unaudited consolidated financial statements in Item 1.

Over the next several years, our balance sheet, capital structure, and liquidity objectives are as follows:

•Retain cash flows from operating activities after payment of dividends and distributions to noncontrolling interests for

investment in development and redevelopment projects and/or acquisitions;

•Maintain significant balance sheet liquidity;

•Improve credit profile and relative long-term cost of capital;

•Maintain diverse sources of capital, including sources from net cash provided by operating activities, unsecured debt,

secured debt, selective real estate asset sales, strategic real estate joint ventures, non-real estate investment sales, and

common stock;

•Maintain commitment to long-term capital to fund growth;

•Maintain prudent laddering of debt maturities;

•Maintain solid credit metrics;

•Prudently manage variable-rate debt exposure;

•Maintain a large, unencumbered asset pool to provide financial flexibility;

•Fund common stock dividends and distributions to noncontrolling interests from net cash provided by operating activities;

•Manage a disciplined level of development and redevelopment projects as a percentage of our gross real estate assets;

and

•Maintain high levels of pre-leasing and percentage leased in development and redevelopment projects.

88

The following table presents the availability under our unsecured senior line of credit, net of amounts outstanding under our

commercial paper program; outstanding forward equity sales agreements; cash, cash equivalents, and restricted cash; availability

under our secured construction loan; and investments in publicly traded companies as of September 30, 2024 (in thousands):

Description	Stated Rate	Aggregate Commitments	Outstanding Balance(1)	Remaining Commitments/ Liquidity
Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program	SOFR+0.855%	$5,000,000	$454,589	$4,545,000
Outstanding forward equity sales agreements(2)				27,508
Cash, cash equivalents, and restricted cash				579,637
Construction loan	SOFR+2.70%	$195,300	$144,413	50,773
Investments in publicly traded companies				152,426
Liquidity as of September 30, 2024				$5,355,344

(1)Represents outstanding principal, net of unamortized deferred financing costs, as of September 30, 2024.

(2)Represents expected net proceeds from the future settlement of 230 thousand shares of common stock under forward equity sales agreements after underwriter

discounts.

Cash, cash equivalents, and restricted cash

As of September 30, 2024 and December 31, 2023, we had $579.6 million and $660.8 million, respectively, of cash, cash

equivalents, and restricted cash. We expect existing cash, cash equivalents, and restricted cash, net cash provided by operating

activities, proceeds from real estate asset sales, sales of partial interests, strategic real estate joint ventures, non-real estate investment

sales, borrowings under our unsecured senior line of credit, issuances under our commercial paper program, issuances of unsecured

senior notes payable, borrowings under our secured construction loans, and issuances of common stock to continue to be sufficient to

fund our operating activities and cash commitments for investing and financing activities, such as regular quarterly dividends,

distributions to noncontrolling interests, scheduled debt repayments, acquisitions, and certain capital expenditures, including

expenditures related to construction activities.

Cash flows

We report and analyze our cash flows based on operating activities, investing activities, and financing activities. The following

table summarizes changes in our cash flows for the nine months ended September 30, 2024 and 2023 (in thousands):

	Nine Months Ended September 30,
	2024	2023	Change
Net cash provided by operating activities	$1,230,346	$1,201,933	$28,413
Net cash used in investing activities	$(1,956,959)	$(2,110,556)	$153,597
Net cash provided by financing activities	$645,405	$618,962	$26,443

Operating activities

Cash flows provided by operating activities are primarily dependent upon the occupancy level of our asset base, the rental

rates of our leases, the collectibility of rent and recovery of operating expenses from our tenants, the timing of completion of

development and redevelopment projects, and the timing of acquisitions and dispositions of operating properties. Net cash provided by

operating activities for the nine months ended September 30, 2024 increased by $28.4 million to $1.23 billion, compared to $1.20 billion

for the nine months ended September 30, 2023. The increase was primarily due to cash flows generated from our development and

redevelopment projects place into service since January 1, 2023.

89

Investing activities

Cash used in investing activities for the nine months ended September 30, 2024 and 2023 consisted of the following (in

thousands):

	Nine Months Ended September 30,		Increase (Decrease)
	2024	2023
Sources of cash from investing activities:
Proceeds from sales of real estate	$229,790	$761,321	$(531,531)
Sales of and distributions from non-real estate investments	141,762	149,299	(7,537)
	371,552	910,620	(539,068)
Uses of cash for investing activities:
Purchases of real estate	201,049	257,333	(56,284)
Additions to real estate	1,932,351	2,600,999	(668,648)
Change in escrow deposits	5,512	5,982	(470)
Investments in unconsolidated real estate joint ventures	4,039	499	3,540
Additions to non-real estate investments	185,560	156,363	29,197
	2,328,511	3,021,176	(692,665)
Net cash used in investing activities	$1,956,959	$2,110,556	$(153,597)

The decrease in net cash used in investing activities for the nine months ended September 30, 2024, compared to the nine

months ended September 30, 2023, was primarily due to a decrease in cash used for real estate purchases and additions, partially

offset by lower proceeds from sales of real estate. Refer to Note 3 – “Investments in real estate” to our unaudited consolidated financial

statements in Item 1 for additional information.

Financing activities

Cash flows provided by financing activities for the nine months ended September 30, 2024 and 2023 consisted of the following

(in thousands):

	Nine Months Ended September 30,
	2024	2023	Change
Borrowings under secured notes payable	$24,853	$49,578	$(24,725)
Repayments of borrowings under secured notes payable	(32)	(30)	(2)
Proceeds from issuance of unsecured senior notes payable	998,806	996,205	2,601
Borrowings under unsecured senior line of credit	—	375,000	(375,000)
Repayments of borrowings under unsecured senior line of credit	—	(375,000)	375,000
Proceeds from issuances under commercial paper program	7,935,600	1,705,000	6,230,600
Repayments of borrowings under commercial paper program	(7,580,600)	(1,705,000)	(5,875,600)
Payments of loan fees	(36,366)	(16,047)	(20,319)
Changes related to debt	1,342,261	1,029,706	312,555
Contributions from and sales of noncontrolling interests	251,252	436,207	(184,955)
Distributions to and purchases of noncontrolling interests	(231,072)	(193,716)	(37,356)
Dividends on common stock	(671,366)	(633,032)	(38,334)
Taxes paid related to net settlement of equity awards	(45,670)	(20,203)	(25,467)
Net cash provided by financing activities	$645,405	$618,962	$26,443

90

Capital resources

We expect that our principal liquidity needs for the year ending December 31, 2024 will be satisfied by the following multiple

sources of capital, as shown in the table below. There can be no assurance that our sources and uses of capital will not be materially

higher or lower than these expectations.

Key Sources and Uses of Capital (In millions)	2024 Guidance			Certain Completed Items
	Range		Midpoint
Sources of capital:
Incremental debt	$885	$1,185	$1,035	See below
Net cash provided by operating activities after dividends	400	500	450
Dispositions and common equity(1)	1,050	2,050	1,550	(1)
Total sources of capital	$2,335	$3,735	$3,035
Uses of capital:
Construction	$1,950	$2,550	$2,250
Acquisitions	250	750	500	$249
Ground lease prepayment(2)	135	135	135
Cash expected to be held at December 31, 2024(3)	—	300	150
Total uses of capital	$2,335	$3,735	$3,035
Incremental debt (included above):
Issuance of unsecured senior notes payable(4)	$1,000	$1,000	$1,000	$1,000	(4)
Unsecured senior line of credit, commercial paper program, and other	(115)	185	35
Incremental debt	$885	$1,185	$1,035

(1)Refer to “Dispositions” in Item 2 for additional detail. We expect to fund our remaining capital requirements for the year ending December 31, 2024 with real estate

dispositions. As of the date of this report, we completed real estate dispositions aggregating $319.2 million, have additional pending transactions subject to (i) non-

refundable deposits aggregating $577.2 million and (ii) executed letters of intent and/or purchase and sale agreements aggregating $602.5 million and forward equity

sales agreements aggregating $28 million, which in aggregate, represents 98% of the $1.55 billion midpoint of our guidance range. We do not expect to issue additional

equity in 2024 beyond the existing forward equity sales agreements outstanding.

(2)In July 2024, we executed an amendment to our existing ground lease agreement at the Alexandria Technology Square® mega campus in our Cambridge submarket,

which requires that we prepay our entire rent obligation for the extended lease term aggregating $270.0 million in two equal installments during the fourth quarter of 2024

and the first quarter of 2025.

(3)The increase in cash expected to be held at December 31, 2024 is primarily due to changes in the mix and timing of pending dispositions that are subject to non-

refundable deposits or subject to executed letters of intent and/or purchase and sale agreements that are expected to close in the fourth quarter of 2024. This cash is

expected to reduce our 2025 debt capital needs.

(4)Represents $1.0 billion of unsecured senior notes payable issued in February 2024. Subject to market conditions, we may seek additional opportunities in 2024 to fund

all or a portion of the proceeds necessary for the repayment of our $600.0 million of 3.45% unsecured senior notes payable due on April 30, 2025 through the issuance

of additional unsecured senior notes payable that is not assumed in our current 2024 guidance.

The key assumptions behind the sources and uses of capital in the table above include a favorable real estate transaction and

capital market environments, performance of our core operating properties, lease-up and delivery of current and future development

and redevelopment projects, and leasing activity. Our expected sources and uses of capital are subject to a number of variables and

uncertainties, including those discussed as “Forward-looking statements” under Part I; “Item 1A. Risk factors”; and “Item 7.

Management’s discussion and analysis of financial condition and results of operations” of our annual report on Form 10-K for the year

ended December 31, 2023; as well as in “Item 1A. Risk factors” within “Part II – Other information” of this quarterly report on Form 10-

Q. We expect to update our forecast for key sources and uses of capital on a quarterly basis.

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Sources of capital

Net cash provided by operating activities after dividends

We expect to retain $400 million to $500 million of net cash flows from operating activities after payment of common stock

dividends, and distributions to noncontrolling interests for the year ending December 31, 2024. For purposes of this calculation,

changes in operating assets and liabilities are excluded as they represent timing differences. For the year ending December 31, 2024,

we expect our recently delivered projects, our highly development and redevelopment projects expected to be delivered, contributions

from Same Properties, and recently acquired income-producing properties to contribute increases in income from rentals, net operating

income, and cash flows. We anticipate contractual near-term growth in annual net operating income (cash basis) of $57 million related

to the commencement of contractual rents on the projects recently placed into service that are near the end of their initial free rent

period. Refer to “Cash flows” in Item 2 for a discussion of cash flows provided by operating activities for the nine months ended

September 30, 2024.

Debt

We expect to fund a portion of our capital needs for 2024 from issuances under our commercial paper program, issuances of

unsecured senior notes payable, borrowings under our unsecured senior line of credit, and/or borrowings under our secured

construction loan.

As of September 30, 2024, our unsecured senior line of credit had aggregate commitments of $5.0 billion and bore an interest

rate of SOFR plus 0.855%. In addition to the cost of borrowing, the unsecured senior line of credit is subject to an annual facility fee of

0.145% based on the aggregate commitments outstanding. Based upon our ability to achieve certain annual sustainability targets, the

interest rate and facility fee rate are also subject to upward or downward adjustments of up to four basis points with respect to the

interest rate and up to one basis point with respect to the facility fee rate.

Based on certain sustainability metrics achieved in accordance with the terms of our unsecured senior line of credit

agreement, the borrowing rate was reduced for a one-year period by two basis points to SOFR plus 0.855%, from SOFR plus 0.875%,

and the facility fee was reduced by 0.5 basis point to 0.145% from 0.15%. As of September 30, 2024, we had no outstanding balance

on our unsecured line of credit.

In September 2024, we amended and restated our unsecured senior line of credit to, among other changes, extend the

maturity date from January 22, 2028 to January 22, 2030, including extension options that we control.

Our commercial paper program provides us with the ability to issue up to $2.5 billion of commercial paper notes with a maturity

of generally 30 days or less and with a maximum maturity of 397 days from the date of issuance. Our commercial paper program is

backed by our unsecured senior line of credit, and at all times we expect to retain a minimum undrawn amount of borrowing capacity

under our unsecured senior line of credit equal to any outstanding balance under our commercial paper program. We use borrowings

under the program to fund short-term capital needs. The notes issued under our commercial paper program are sold under customary

terms in the commercial paper market. They are typically issued at a discount to par, representing a yield to maturity dictated by market

conditions at the time of issuance. In the event we are unable to issue commercial paper notes or refinance outstanding commercial

paper notes under terms equal to or more favorable than those under the unsecured senior line of credit, we expect to borrow under the

unsecured senior line of credit. The commercial paper notes sold during the nine months ended September 30, 2024 were issued at a

weighted-average yield to maturity of 5.55%. As of September 30, 2024, we had an outstanding balance of $454.6 million under our

commercial paper program with a weighted-average interest rate of 5.05%.

In February 2024, we issued $1.0 billion of unsecured senior notes payable with a weighted-average interest rate of 5.48%

and a weighted-average maturity of 23.1 years. The unsecured senior notes consisted of $400.0 million of 5.25% unsecured senior

notes due 2036 and $600.0 million of 5.625% unsecured senior notes due 2054.

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The following table presents our average debt outstanding and weighted-average interest rates during the three and nine

months ended September 30, 2024 (dollars in thousands):

	Average Debt Outstanding		Weighted-Average Interest Rate
	September 30, 2024		September 30, 2024
	Three Months Ended	Nine Months Ended	Three Months Ended	Nine Months Ended
Long-term fixed-rate debt	$12,171,936	$12,008,857	3.79%	3.76%
Short-term variable-rate unsecured senior line of credit and commercial paper program debt	545,848	471,070	5.48	5.57
Blended average interest rate	12,717,784	12,479,927	3.86	3.83
Loan fee amortization and annual facility fee related to unsecured senior line of credit	N/A	N/A	0.12	0.13
Total/weighted average	$12,717,784	$12,479,927	3.98%	3.96%

Real estate dispositions and issuances of common equity

We expect to continue to focus on the disciplined execution of select sales of real estate. Future sales will provide an important

source of capital to fund a portion of pending and recently completed acquisitions and our development and redevelopment projects,

and also provide significant capital for growth. For the year ending December 31, 2024, we expect real estate dispositions and

issuances of common equity to range from $1.1 billion to $2.1 billion. The amount of asset sales necessary to meet our forecasted

sources of capital will vary depending upon the amount of EBITDA associated with the assets sold.

Refer to Note 3 – “Investments in real estate,” Note 4 – “Consolidated and unconsolidated real estate joint ventures,” and

Note 13 – “Stockholders’ equity” to our unaudited consolidated financial statements in Item 1 and to “Dispositions” in Item 2 for

additional information on our real estate dispositions.

As a REIT, we are generally subject to a 100% tax on the net income from real estate asset sales that the IRS characterizes as

“prohibited transactions.” We do not expect our sales will be categorized as prohibited transactions. However, unless we meet certain

“safe harbor” requirements, whether a real estate asset sale is a “prohibited transaction” will be based on the facts and circumstances

of the sale. Our real estate asset sales may not always meet such “safe harbor” requirements. Refer to “Item 1A. Risk factors” of our

annual report on Form 10-K for the year ended December 31, 2023 for additional information about the “prohibited transaction” tax.

Common equity transactions

During the three months ended June 30, 2024, we entered into new forward equity sales agreements aggregating $28 million

to sell 230 thousand shares of common stock under our ATM program at an average price of $122.32 (before underwriting discounts).

As of September 30, 2024, the remaining aggregate amount available under our ATM program for future sales of common stock was

$1.47 billion.

Other sources

As a well-known seasoned issuer, we may, from time to time, issue securities at our discretion based on our needs and market

conditions, including, as necessary, to balance our use of incremental debt capital.

Additionally, we, together with joint venture partners, hold interests in real estate joint ventures that we consolidate in our

financial statements. These existing joint ventures provide significant equity capital to fund a portion of our future construction spend,

and our joint venture partners may also contribute equity into these entities for financing-related activities. From October 1, 2024

through December 31, 2027, we expect to receive capital contributions aggregating $1.0 billion from existing consolidated real estate

joint venture partners to fund construction. During the year ending December 31, 2024, contributions from noncontrolling interests from

existing joint venture partners are expected to aggregate $430.0 million.

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Uses of capital

Summary of capital expenditures

One of our primary uses of capital relates to the development, redevelopment, pre-construction, and construction of properties.

We currently have projects in our development and redevelopment pipeline aggregating 5.3 million RSF of Class A/A+ properties

undergoing construction, one committed near-term project expected to commence construction in the next two years, and 1.9 million

RSF of priority anticipated development and redevelopment projects. We incur capitalized construction costs related to development,

redevelopment, pre-construction, and other construction activities. We also incur additional capitalized project costs, including interest,

property taxes, insurance, and other costs directly related and essential to the development, redevelopment, pre-construction, or

construction of a project, during periods when activities necessary to prepare an asset for its intended use are in progress. Refer to

“New Class A/A+ development and redevelopment properties: current projects” and “Summary of capital expenditures” in Item 2 for

more information on our capital expenditures.

We capitalize interest cost as a cost of the project only during the period in which activities necessary to prepare an asset for

its intended use are ongoing, provided that expenditures for the asset have been made and interest cost has been incurred. Capitalized

interest for the nine months ended September 30, 2024 and 2023 of $249.4 million and $274.9 million, respectively, was classified in

investments in real estate in our consolidated balance sheets. The decrease in capitalized interest was related to a lower weighted-

average capitalized cost basis of $8.1 billion for the nine months ended September 30, 2024, as compared to $9.6 billion for the nine

months ended September 30, 2023, partially offset by an increase in weighted-average interest rate used to capitalize interest to 3.96%

for the nine months ended September 30, 2024 from 3.74% for the nine months ended September 30, 2023. 

Property taxes, insurance on real estate, and indirect project costs, such as construction, administration, legal fees, and office

costs that clearly relate to projects under development or construction, are capitalized as incurred during the period an asset is

undergoing activities to prepare it for its intended use. We capitalized payroll and other indirect costs related to development,

redevelopment, pre-construction, and construction projects, aggregating $76.8 million and $74.5 million, and property taxes, insurance

on real estate, and indirect project costs aggregating $96.5 million and $96.7 million during the nine months ended September 30, 2024

and 2023, respectively.

The decrease in our capitalized costs for the nine months ended September 30, 2024, compared to the same period in 2023,

was primarily driven by a reduction in the average real estate basis of our development and redevelopment pipeline following significant

deliveries in 2023, most of which were placed into service during the fourth quarter of 2023. Pre-construction activities include

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

improvements. The advancement of pre-construction efforts is focused on reducing the time required to deliver projects to prospective

tenants. These critical activities add significant value for future ground-up development and are required for the vertical construction of

buildings. Should we cease activities necessary to prepare an asset for its intended use, the interest, taxes, insurance, and certain

other direct and indirect project costs related to the asset would be expensed as incurred. Expenditures for repairs and maintenance

are expensed as incurred.

Fluctuations in our development, redevelopment, and construction activities could result in significant changes to total

expenses and net income. For example, had we experienced a 10% reduction in development, redevelopment, and construction

activities without a corresponding decrease in indirect project costs, including interest and payroll, total expenses would have increased

by approximately $42.3 million for the nine months ended September 30, 2024.

We use third-party brokers to assist in our leasing activity, who are paid on a contingent basis upon successful leasing. We are

required to capitalize initial direct costs related to successful leasing transactions that result directly from and are essential to the lease

transaction and would not have been incurred had that lease transaction not been successfully executed. During the nine months

ended September 30, 2024, we capitalized total initial direct leasing costs of $67.0 million. Costs that we incur to negotiate or arrange a

lease regardless of its outcome, such as fixed employee compensation, tax, or legal advice to negotiate lease terms, and other costs,

are expensed as incurred.

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Acquisitions

During the nine months ended September 30, 2024, the purchase price of our completed acquisitions aggregated

$201.8 million. As of September 30, 2024, the total purchase price of our pending acquisitions under executed letters of intent and/or

purchase and sale agreements expected to be completed in the fourth quarter of 2024 and in 2025 aggregated $47.6 million and $47.8

million, respectively. In October 2024, we completed one acquisition pending as of September 30, 2024 for a purchase price of $47.6

million. For additional information, refer to Note 16 – “Subsequent events” to our unaudited consolidated financial statements in Item 1.

For the year ending December 31, 2024, we expect real estate acquisitions to range from $250 million to $750 million.

Refer to “Acquisitions” in Note 3 – “Investments in real estate” and to Note 4 – “Consolidated and unconsolidated real estate

joint ventures” to our unaudited consolidated financial statements in Item 1, and “Acquisitions” in Item 2 for information on our

acquisitions.

Dividends

During the nine months ended September 30, 2024 and 2023, we paid common stock dividends of $671.4 million and

$633.0 million, respectively. The increase of $38.3 million in dividends paid on our common stock during the nine months ended

September 30, 2024, compared to the nine months ended September 30, 2023, was primarily due to an increase in the number of

common shares outstanding subsequent to January 1, 2023 as a result of settled forward equity sales agreements, and an increase in

the related dividends paid to $3.84 per common share during the nine months ended September 30, 2024 from $3.66 per common

share during the nine months ended September 30, 2023.

Secured notes payable

Secured notes payable as of September 30, 2024 consisted of three notes secured by two properties. Our secured notes

payable typically require monthly payments of principal and interest and had a weighted-average interest rate of approximately 8.39%.

As of September 30, 2024, the total book value of our investments in real estate securing debt was approximately $364.3 million. As of

September 30, 2024, our secured notes payable, including unamortized discounts and deferred financing costs, comprised

approximately $587 thousand and $144.4 million of fixed-rate debt and unhedged variable-rate debt, respectively.

As of September 30, 2024, our unconsolidated real estate joint venture, in which we hold a 10% ownership interest, located at

1655 and 1725 Third Street in our Mission Bay submarket, has a $600.0 million secured loan outstanding maturing on March 10, 2025.

The unconsolidated real estate joint venture is in the process of working with prospective lenders to refinance this debt. In the event that

all or a portion of the debt cannot be refinanced, we may consider contributing additional equity into this unconsolidated real estate joint

venture.

Unsecured senior notes payable and unsecured senior line of credit

The requirements of, and our actual performance with respect to, the key financial covenants under our unsecured senior

notes payable as of September 30, 2024 were as follows:

Covenant Ratios(1)	Requirement	September 30, 2024
Total Debt to Total Assets	Less than or equal to 60%	30%
Secured Debt to Total Assets	Less than or equal to 40%	0.3%
Consolidated EBITDA(2) to Interest Expense	Greater than or equal to 1.5x	12.3x
Unencumbered Total Asset Value to Unsecured Debt	Greater than or equal to 150%	326%

(1)All covenant ratio titles utilize terms as defined in the respective debt agreements.

(2)The calculation of consolidated EBITDA is based on the definitions contained in our loan agreements and is not directly comparable to the computation of EBITDA as

described in Exchange Act Release No. 47226.

In addition, the terms of the indentures, among other things, limit the ability of the Company, Alexandria Real Estate Equities,

L.P., and the Company’s subsidiaries to (i) consummate a merger, or consolidate or sell all or substantially all of the Company’s assets,

and (ii) incur certain secured or unsecured indebtedness.

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The requirements of, and our actual performance with respect to, the key financial covenants under our unsecured senior line

of credit as of September 30, 2024 were as follows:

Covenant Ratios(1)	Requirement	September 30, 2024
Leverage Ratio	Less than or equal to 60.0%	29.7%
Secured Debt Ratio	Less than or equal to 45.0%	0.3%
Fixed-Charge Coverage Ratio	Greater than or equal to 1.50x	3.95x
Unsecured Interest Coverage Ratio	Greater than or equal to 1.75x	12.55x

(1)All covenant ratio titles utilize terms as defined in the credit agreement.

Estimated interest payments

Estimated interest payments on our fixed-rate debt are calculated based upon contractual interest rates, including interest

payment dates and scheduled maturity dates. As of September 30, 2024, 95.3% of our debt was fixed-rate debt. For additional

information regarding our debt, refer to Note 10 – “Secured and unsecured senior debt” to our unaudited consolidated financial

statements in Item 1.

Ground lease obligations

Ground lease obligations as of September 30, 2024 included leases for 36 of our properties and accounted for approximately

9% of our total number of properties. Among these 36 properties, 17 properties are subject to ground leases with a weighted-average

remaining lease term of 41 years, including extension options that we are reasonably certain to exercise. These leases are with a single

lessor in our Greater Stanford submarket, with whom we have extended three ground leases over the past 10 years.

Our remaining 19 properties subject to ground leases are located across multiple submarkets and have remaining lease terms

ranging from approximately 46 to 97 years. The weighted-average remaining lease term of these ground leases is 70 years, including

extension options that we are reasonably certain to exercise.

In many cases, we seek to extend our ground leases well ahead of their scheduled contractual expirations. If we are

successful in extending ground leases, we could see significant up-front or increased recurring future payments to the ground lessor

and/or increased ground lease expense, which may require us to increase our capital funding needs.

Operating lease agreements

As of September 30, 2024, the remaining contractual payments under ground and office lease agreements in which we are the

lessee aggregated $1.1 billion and $25.3 million, respectively. As of September 30, 2024, our operating lease liability, calculated as the

present value of the remaining payments aggregating $1.1 billion under our operating lease agreements, including our extension

options that we are reasonably certain to exercise, was $648.3 million, which was classified in accounts payable, accrued expenses,

and other liabilities in our consolidated balance sheets. As of September 30, 2024, the weighted-average remaining lease term of

operating leases in which we are the lessee was approximately 49 years, including extension options that we are reasonably certain to

exercise, and the weighted-average discount rate was 5.1%. Our corresponding operating lease right-of-use assets, adjusted for initial

direct leasing costs and other consideration exchanged with the landlord prior to the commencement of the lease, aggregated $776.7

million. We classify the right-of-use asset in other assets in our consolidated balance sheets. Refer to “Lease accounting” in Note 2 –

“Summary of significant accounting policies” to our unaudited consolidated financial statements in Item 1 for additional information.

Included in the aforementioned September 30, 2024 balances is the ground lease recorded in July 2024 upon our execution of

an amendment to our existing ground lease agreement at the Alexandria Technology Square® mega campus aggregating 1.2 million

RSF in our Cambridge submarket, which extended the term by 24 years from January 1, 2065 to December 31, 2088. The amendment

requires that we prepay our entire rent obligation for the extended lease term aggregating $270.0 million in two equal installments

during the fourth quarter of 2024 and the first quarter of 2025. Alexandria Technology Square® is a foundational mega campus in the

heart of the global life science ecosystem in Cambridge and is the Greater Boston base of operations of key strategic tenants such as

Novartis AG, GlaxoSmithKline plc, Massachusetts Institute of Technology, and Mass General Brigham. Securing this ground lease

through December 2088 significantly enhances the long-term value of our investment in this critical mega campus.

Commitments

As of September 30, 2024, remaining aggregate costs under contract for the construction of properties undergoing

development, redevelopment, and improvements under the terms of leases approximated $1.3 billion. We expect payments for these

obligations to occur over one to three years, subject to capital planning adjustments from time to time. We may have the ability to cease

the construction of certain projects, which would result in the reduction of our commitments.

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As of September 30, 2024, the purchase price of pending acquisitions under executed letters of intent and/or purchase and

sale agreements expected to be completed in the fourth quarter of 2024 and in 2025, aggregated $47.6 million and $47.8 million,

respectively. In October 2024, we completed one acquisition pending as of September 30, 2024 for a purchase price of $47.6 million.

For additional information, refer to Note 16 – “Subsequent events” to our unaudited consolidated financial statements in Item 1. In

addition, we have letters of credit and performance obligations aggregating $29.5 million primarily related to our development and

redevelopment projects.

We are committed to funding approximately $406.0 million related to our non-real estate investments. These funding

commitments are primarily associated with our investments in privately held entities that report NAV and expire at various dates over

the next 12 years, with a weighted-average expiration of 8.1 years as of September 30, 2024.

In July 2024, we executed an amendment to our existing ground lease agreement at the Alexandria Technology Square® mega

campus in our Cambridge submarket, which requires that we prepay our entire rent obligation for the extended lease term aggregating

$270.0 million in two equal installments during the fourth quarter of 2024 and the first quarter of 2025. Refer to “Operating lease

agreements” above for additional details.

Exposure to environmental liabilities

In connection with the acquisition of all of our properties, we have obtained Phase I environmental assessments to ascertain

the existence of any environmental liabilities or other issues. The Phase I environmental assessments of our properties have not

revealed any environmental liabilities that we believe would have a material adverse effect on our financial condition or results of

operations taken as a whole, nor are we aware of any material environmental liabilities that have occurred since the Phase I

environmental assessments were completed. In addition, we carry a policy of pollution legal liability insurance covering exposure to

certain environmental losses at substantially all of our properties.

Foreign currency translation gains and losses

The following table presents the change in accumulated other comprehensive loss attributable to Alexandria Real Estate

Equities, Inc.’s stockholders during the nine months ended September 30, 2024 primarily due to the changes in the foreign exchange

rates for our real estate investments in Canada (in thousands). We reclassify unrealized foreign currency translation gains and losses

into net income as we dispose of these holdings.

	Total
Balance as of December 31, 2023	$(15,896)
Other comprehensive loss before reclassifications	(6,758)
Reclassification adjustment for gains included in net income	125
Net other comprehensive loss	(6,633)
Balance as of September 30, 2024	$(22,529)

Inflation

As of September 30, 2024, approximately 93% of our leases (on an annual rental revenue basis) were triple net leases, which

require tenants to pay substantially all real estate taxes, insurance, utilities, repairs and maintenance, common area expenses, and

other operating expenses (including increases thereto) in addition to base rent. Approximately 96% of our leases (on an annual rental

revenue basis) contained effective annual rent escalations approximating 3% that were either fixed or indexed based on a consumer

price index or other indices. Accordingly, we do not believe that our cash flows or earnings from real estate operations are subject to

significant risks from inflation. A period of inflation, however, could cause an increase in the cost of our variable-rate borrowings,

including borrowings under our unsecured senior line of credit and commercial paper program, issuances of unsecured senior notes

payable, and borrowings under our secured construction loans, and secured loans held by our unconsolidated real estate joint ventures.

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Issuer and guarantor subsidiary summarized financial information

Alexandria Real Estate Equities, Inc. (the “Issuer”) has sold certain debt securities registered under the Securities Act of 1933,

as amended, that are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P. (the “LP” or the “Guarantor

Subsidiary”), an indirectly 100% owned subsidiary of the Issuer. The Issuer’s other subsidiaries, including, but not limited to, the

subsidiaries that own substantially all of its real estate (collectively, the “Combined Non-Guarantor Subsidiaries”), will not provide a

guarantee of such securities, including the subsidiaries that are partially or 100% owned by the LP. The following summarized financial

information presents, on a combined basis, balance sheet information as of September 30, 2024 and December 31, 2023, and results

of operations and comprehensive income for the nine months ended September 30, 2024 and year ended December 31, 2023 for the

Issuer and the Guarantor Subsidiary. The information presented below excludes eliminations necessary to arrive at the information on a

consolidated basis. In presenting the summarized financial statements, the equity method of accounting has been applied to (i) the

Issuer’s interests in the Guarantor Subsidiary, (ii) the Guarantor Subsidiary’s interests in the Combined Non-Guarantor Subsidiaries,

and (iii) the Combined Non-Guarantor Subsidiaries’ interests in the Guarantor Subsidiary, where applicable, even though all such

subsidiaries meet the requirements to be consolidated under GAAP. All assets and liabilities have been allocated to the Issuer and the

Guarantor Subsidiary generally based on legal entity ownership.

The following tables present combined summarized financial information as of September 30, 2024 and December 31, 2023

and for the nine months ended September 30, 2024 and year ended December 31, 2023 for the Issuer and Guarantor Subsidiary.

Amounts provided do not represent our total consolidated amounts (in thousands):

	September 30, 2024	December 31, 2023
Assets:
Cash, cash equivalents, and restricted cash	$143,087	$210,755
Other assets	151,170	115,373
Total assets	$294,257	$326,128
Liabilities:
Unsecured senior notes payable	$12,092,012	$11,096,028
Unsecured senior line of credit and commercial paper	454,589	99,952
Other liabilities	548,982	504,659
Total liabilities	$13,095,583	$11,700,639

	Nine Months Ended September 30, 2024	Year Ended December 31, 2023
Total revenues	$42,358	$54,230
Total expenses	(263,299)	(273,990)
Net loss	(220,941)	(219,760)
Net income attributable to unvested restricted stock awards	(10,717)	(11,195)
Net loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$(231,658)	$(230,955)

As of September 30, 2024, 391 of our 406 properties were held indirectly by the REIT’s wholly owned consolidated subsidiary,

Alexandria Real Estate Equities, L.P.

Critical accounting estimates

Refer to our annual report on Form 10-K for the year ended December 31, 2023 for a discussion of our critical accounting

estimates related to recognition of real estate acquired, impairment of long-lived assets, impairment of non-real estate investments, and

monitoring of tenant credit quality.

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Definitions and reconciliations

This section contains additional information on certain non-GAAP financial measures, including reconciliations to the most

directly comparable financial measure calculated and presented in accordance with GAAP and the reasons why we use these

supplemental measures of performance and believe they provide useful information to investors, as well as the definitions of other

terms used in this report.

Funds from operations and funds from operations, as adjusted, attributable to Alexandria Real Estate Equities, Inc.’s common

stockholders

GAAP-basis accounting for real estate assets utilizes historical cost accounting and assumes that real estate values diminish

over time. In an effort to overcome the difference between real estate values and historical cost accounting for real estate assets, the

Nareit Board of Governors established funds from operations as an improved measurement tool. Since its introduction, funds from

operations has become a widely used non-GAAP financial measure among equity REITs. We believe that funds from operations is

helpful to investors as an additional measure of the performance of an equity REIT. Moreover, we believe that funds from operations, as

adjusted, allows investors to compare our performance to the performance of other real estate companies on a consistent basis, without

having to account for differences recognized because of real estate acquisition and disposition decisions, financing decisions, capital

structure, capital market transactions, variances resulting from the volatility of market conditions outside of our control, or other

corporate activities that may not be representative of the operating performance of our properties.

The 2018 White Paper published by the Nareit Board of Governors (the “Nareit White Paper”) defines funds from operations as

net income (computed in accordance with GAAP), excluding gains or losses on sales of real estate, and impairments of real estate, plus

depreciation and amortization of operating real estate assets, and after adjustments for our share of consolidated and unconsolidated

partnerships and real estate joint ventures. Impairments represent the write-down of assets when fair value over the recoverability

period is less than the carrying value due to changes in general market conditions and do not necessarily reflect the operating

performance of the properties during the corresponding period.

We compute funds from operations, as adjusted, as funds from operations calculated in accordance with the Nareit White

Paper, excluding significant gains, losses, and impairments realized on non-real estate investments, unrealized gains or losses on non-

real estate investments, impairment of real estate primarily consisting of pre-acquisition costs incurred in connection with acquisitions

we decided to no longer pursue, gains or losses on early extinguishment of debt, significant termination fees, acceleration of stock

compensation expense due to the resignations of executive officers, deal costs, the income tax effect related to such items, and the

amount of such items that is allocable to our unvested restricted stock awards. We compute the amount that is allocable to our

unvested restricted stock awards using the two-class method. Under the two-class method, we allocate net income (after amounts

attributable to noncontrolling interests) to common stockholders and to unvested restricted stock awards by applying the respective

weighted-average shares outstanding during each quarter-to-date and year-to-date period. This may result in a difference of the

summation of the quarter-to-date and year-to-date amounts. Neither funds from operations nor funds from operations, as adjusted,

should be considered as alternatives to net income (determined in accordance with GAAP) as indications of financial performance, or to

cash flows from operating activities (determined in accordance with GAAP) as measures of liquidity, nor are they indicative of the

availability of funds for our cash needs, including our ability to make distributions.

The following table reconciles net income to funds from operations for the share of consolidated real estate joint ventures

attributable to noncontrolling interests and our share of unconsolidated real estate joint ventures for the three and nine months ended

September 30, 2024 (in thousands):

	Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures		Our Share of Unconsolidated Real Estate Joint Ventures
	September 30, 2024		September 30, 2024
	Three Months Ended	Nine Months Ended	Three Months Ended	Nine Months Ended
Net income	$45,656	$141,634	$139	$424
Depreciation and amortization of real estate assets	32,457	94,725	1,075	3,177
Funds from operations	$78,113	$236,359	$1,214	$3,601

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The following tables present a reconciliation of net income attributable to Alexandria Real Estate Equities, Inc.’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 attributable to Alexandria Real Estate Equities,

Inc.’s common stockholders – diluted, and funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common

stockholders – diluted, as adjusted, and the related per share amounts for the three and nine months ended September 30, 2024 and

2023 (in thousands, except per share amounts). Per share amounts may not add due to rounding.

	Three Months Ended September 30,			Nine Months Ended September 30,
	2024		2023	2024		2023
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted	$164,674		$21,855	$374,477		$184,371
Depreciation and amortization of real estate assets	291,258		266,440	864,326		798,590
Noncontrolling share of depreciation and amortization from consolidated real estate JVs	(32,457)		(28,814)	(94,725)		(85,212)
Our share of depreciation and amortization from unconsolidated real estate JVs	1,075		910	3,177		2,624
Gain on sales of real estate	(27,114)		—	(27,506)		(214,810)
Impairment of real estate – rental properties and land	5,741	(1)	19,844	7,923	(1)	186,446
Allocation to unvested restricted stock awards	(2,908)		(838)	(7,657)		(3,050)
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted(2)	400,269		279,397	1,120,015		868,959
Unrealized (gains) losses on non-real estate investments	(2,610)		77,202	32,470		220,954
Impairment of non-real estate investments	10,338	(3)	28,503	37,824		51,456
Impairment of real estate	—		805	28,581	(1)	2,778
Acceleration of stock compensation expense due to executive officer resignations	—		1,859	—		1,859
Allocation to unvested restricted stock awards	(125)		(1,330)	(1,640)		(3,503)
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted	$407,872		$386,436	$1,217,250		$1,142,503

(1)Refer to “Sales of real estate assets and impairment charges” in Note 3 – “Investments in real estate” to our unaudited consolidated financial statements in Item 1 for

additional information.

(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. Refer to Note 7 – “Investments” to our unaudited consolidated

financial statements in Item 1 for additional information.

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	Three Months Ended September 30,		Nine Months Ended September 30,
(Per share)	2024	2023	2024	2023
Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted	$0.96	$0.13	$2.18	$1.08
Depreciation and amortization of real estate assets	1.51	1.40	4.49	4.19
Gain on sales of real estate	(0.16)	—	(0.16)	(1.26)
Impairment of real estate – rental properties and land	0.03	0.12	0.05	1.09
Allocation to unvested restricted stock awards	(0.01)	(0.01)	(0.05)	(0.01)
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted	2.33	1.64	6.51	5.09
Unrealized (gains) losses on non-real estate investments	(0.02)	0.45	0.19	1.29
Impairment of non-real estate investments	0.06	0.17	0.22	0.30
Impairment of real estate	—	—	0.17	0.02
Acceleration of stock compensation expense due to executive officer resignations	—	0.01	—	0.01
Allocation to unvested restricted stock awards	—	(0.01)	(0.01)	(0.02)
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted	$2.37	$2.26	$7.08	$6.69
Weighted-average shares of common stock outstanding – diluted(1)	172,058	170,890	172,007	170,846

(1)Refer to “Weighted-average shares of common stock outstanding – diluted” in this section for additional information.

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Adjusted EBITDA and Adjusted EBITDA margin

We use Adjusted EBITDA as a supplemental performance measure of our operations, for financial and operational decision-

making, and as a supplemental means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated

as earnings before interest, taxes, depreciation, and amortization (“EBITDA”), excluding stock compensation expense, gains or losses

on early extinguishment of debt, gains or losses on sales of real estate, impairments of real estate, and significant termination fees.

Adjusted EBITDA also excludes unrealized gains or losses and significant realized gains or losses and impairments that result from our

non-real estate investments. These non-real estate investment amounts are classified in our consolidated statements of operations

outside of total revenues.

We believe Adjusted EBITDA provides investors with relevant and useful information as it allows investors to evaluate the

operating performance of our business activities without having to account for differences recognized because of investing and

financing decisions related to our real estate and non-real estate investments, our capital structure, capital market transactions, and

variances resulting from the volatility of market conditions outside of our control. For example, we exclude gains or losses on the early

extinguishment of debt to allow investors to measure our performance independent of our indebtedness and capital structure. We

believe that adjusting for the effects of impairments and gains or losses on sales of real estate, significant impairments and realized

gains or losses on non-real estate investments, and significant termination fees allows investors to evaluate performance from period to

period on a consistent basis without having to account for differences recognized because of investing and financing decisions related

to our real estate and non-real estate investments or other corporate activities that may not be representative of the operating

performance of our properties.

In addition, we believe that excluding charges related to stock compensation and unrealized gains or losses facilitates for

investors a comparison of our business activities across periods without the volatility resulting from market forces outside of our control.

Adjusted EBITDA has limitations as a measure of our performance. Adjusted EBITDA does not reflect our historical expenditures or

future requirements for capital expenditures or contractual commitments. While Adjusted EBITDA is a relevant measure of performance,

it does not represent net income (loss) or cash flows from operations calculated and presented in accordance with GAAP, and it should

not be considered as an alternative to those indicators in evaluating performance or liquidity.

In order to calculate the Adjusted EBITDA margin, we divide Adjusted EBITDA by total revenues as presented in our

consolidated statements of operations. We believe that this supplemental performance measure provides investors with additional

useful information regarding the profitability of our operating activities.

We are not able to forecast fourth quarter net income without unreasonable effort and therefore do not provide a reconciliation

for Adjusted EBITDA on a forward-looking basis. This is due to the inherent difficulty of forecasting the timing and/or amount of items

that depend on market conditions outside of our control, including the timing of dispositions, capital events, and financing decisions, as

well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-real estate investments,

impairment of real estate, and impairment of non-real estate investments. Our attempt to predict these amounts may produce significant

but inaccurate estimates, which would be potentially misleading for our investors.

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The following table reconciles net income (loss), the most directly comparable financial measure calculated and presented in

accordance with GAAP, to Adjusted EBITDA and calculates the Adjusted EBITDA margin for the three and nine months ended

September 30, 2024 and 2023 (dollars in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Net income	$213,603	$68,254	$526,828	$323,652
Interest expense	43,550	11,411	130,179	42,237
Income taxes	1,877	1,183	4,823	4,565
Depreciation and amortization	293,998	269,370	872,272	808,227
Stock compensation expense	15,525	16,288	47,157	48,266
Gain on sales of real estate	(27,114)	—	(27,506)	(214,810)
Unrealized (gains) losses on non-real estate investments	(2,610)	77,202	32,470	220,954
Impairment of real estate	5,741	20,649	36,504	189,224
Impairment of non-real estate investments	10,338	28,503	37,824	51,456
Adjusted EBITDA	$554,908	$492,860	$1,660,551	$1,473,771
Total revenues	$791,607	$713,788	$2,327,449	$2,128,483
Adjusted EBITDA margin	70%	69%	71%	69%

Annual rental revenue

Annual rental revenue represents the annualized fixed base rental obligations, calculated in accordance with GAAP, including

the amortization of deferred revenue related to tenant-funded and -built landlord improvements, for leases in effect as of the end of the

period, related to our operating RSF. Annual rental revenue is presented using 100% of the annual rental revenue from our consolidated

properties and our share of annual rental revenue for our unconsolidated real estate joint ventures. Annual rental revenue per RSF is

computed by dividing annual rental revenue by the sum of 100% of the RSF of our consolidated properties and our share of the RSF of

properties held in unconsolidated real estate joint ventures. As of September 30, 2024, approximately 93% of our leases (on an annual

rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, utilities, repairs

and maintenance, common area expenses, and other operating expenses (including increases thereto) in addition to base rent. Annual

rental revenue excludes these operating expenses recovered from our tenants. Amounts recovered from our tenants related to these

operating expenses, along with base rent, are classified in income from rentals in our consolidated statements of operations.

Capitalization rates

Capitalization rates are calculated based on net operating income and net operating income (cash basis) annualized,

excluding lease termination fees, on stabilized operating assets for the quarter preceding the date on which the property is sold, or

near-term prospective net operating income.

Capitalized interest

We capitalize interest cost as a cost of a project during periods for which activities necessary to develop, redevelop, or

reposition a project for its intended use are ongoing, provided that expenditures for the asset have been made and interest cost has

been incurred. Activities necessary to develop, redevelop, or reposition a project include pre-construction activities such as

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

improvements. The advancement of pre-construction efforts is focused on reducing the time required to deliver projects to prospective

tenants. These critical activities add significant value for future ground-up development and are required for the vertical construction of

buildings. If we cease activities necessary to prepare a project for its intended use, interest costs related to such project are expensed

as incurred.

Cash interest

Cash interest is equal to interest expense calculated in accordance with GAAP plus capitalized interest, less amortization of

loan fees and debt premiums (discounts). Refer to “Fixed-charge coverage ratio” in this section for a reconciliation of interest expense,

the most directly comparable financial measure calculated and presented in accordance with GAAP, to cash interest.

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Class A/A+ properties and AAA locations

Class A/A+ properties are properties clustered in AAA locations that provide innovative tenants with highly dynamic and

collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity,

efficiency, creativity, and success. Class A/A+ properties generally command higher annual rental rates than other classes of similar

properties. AAA locations are in close proximity to concentrations of specialized skills, knowledge, institutions, and related businesses.

Development, redevelopment, and pre-construction

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

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

collaborative mega campuses in AAA life science innovation clusters. These projects are generally focused on providing high-quality,

generic, and reusable spaces that meet the real estate requirements of a wide range of tenants. Upon completion, each development

and redevelopment project is expected to generate increases in rental income, net operating income, and cash flows. Our development

and redevelopment projects are generally in locations that are highly desirable to high-quality entities, which we believe results in higher

occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

Development projects generally consist of the ground-up development of generic and reusable laboratory facilities.

Redevelopment projects consist of the permanent change in use of acquired office, warehouse, or shell space into laboratory space.

We generally will not commence new development projects for aboveground construction of new Class A/A+ laboratory space without

first securing significant pre-leasing for such space, except when there is solid market demand for high-quality Class A/A+ properties.

Priority anticipated projects are those most likely to commence future ground-up development or first-time conversion from

non-laboratory space to laboratory space prior to our other future projects, pending market conditions and leasing negotiations.

Pre-construction activities include entitlements, permitting, design, site work, and other activities preceding commencement of

construction of aboveground building improvements. The advancement of pre-construction efforts is focused on reducing the time

required to deliver projects to prospective tenants. These critical activities add significant value for future ground-up development and

are required for the vertical construction of buildings. Ultimately, these projects will provide high-quality facilities and are expected to

generate significant revenue and cash flows.

Development, redevelopment, and pre-construction spending also includes the following costs: (i) amounts to bring certain

acquired properties up to market standard and/or other costs identified during the acquisition process (generally within two years of

acquisition) and (ii) permanent conversion of space for highly flexible, move-in-ready laboratory space to foster the growth of promising

early- and growth-stage life science companies.

Revenue-enhancing and repositioning capital expenditures represent spending to reposition or significantly change the use of

a property, including through improvement in the asset quality from Class B to Class A/A+.

Non-revenue-enhancing capital expenditures represent costs required to maintain the current revenues of a stabilized

property, including the associated costs for renewed and re-leased space.

Dividend payout ratio (common stock)

Dividend payout ratio (common stock) is the ratio of the absolute dollar amount of dividends on our common stock (shares of

common stock outstanding on the respective record dates multiplied by the related dividend per share) to funds from operations

attributable to Alexandria’s common stockholders – diluted, as adjusted.

Dividend yield

Dividend yield for the quarter represents the annualized quarter dividend divided by the closing common stock price at the end

of the quarter.

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Fixed-charge coverage ratio

Fixed-charge coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to cash interest and

fixed charges. We believe that this ratio is useful to investors as a supplemental measure of our ability to satisfy fixed financing

obligations and preferred stock dividends. Cash interest is equal to interest expense calculated in accordance with GAAP plus

capitalized interest, less amortization of loan fees and debt premiums (discounts).

The following table reconciles interest expense, the most directly comparable financial measure calculated and presented in

accordance with GAAP, to cash interest and computes fixed-charge coverage ratio for the three and nine months ended September 30,

2024 and 2023 (dollars in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Adjusted EBITDA	$554,908	$492,860	$1,660,551	$1,473,771
Interest expense	$43,550	$11,411	$130,179	$42,237
Capitalized interest	86,496	96,119	249,375	274,863
Amortization of loan fees	(4,222)	(4,059)	(12,510)	(11,427)
Amortization of debt discounts	(330)	(306)	(976)	(898)
Cash interest and fixed charges	$125,494	$103,165	$366,068	$304,775
Fixed-charge coverage ratio:
– quarter annualized	4.4x	4.8x	4.5x	4.8x
– trailing 12 months	4.5x	4.9x	4.5x	4.9x

We are not able to forecast fourth quarter net income without unreasonable effort and therefore do not provide a reconciliation

for fixed-charge coverage ratio on a forward-looking basis. This is due to the inherent difficulty of forecasting the timing and/or amount

of items that depend on market conditions outside of our control, including the timing of dispositions, capital events, and financing

decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-real estate

investments, impairment of real estate, and impairment of non-real estate investments. Our attempt to predict these amounts may

produce significant but inaccurate estimates, which would be potentially misleading for our investors.

Gross assets

Gross assets are calculated as total assets plus accumulated depreciation as of September 30, 2024 and December 31, 2023

(in thousands):

	September 30, 2024	December 31, 2023
Total assets	$38,488,128	$36,771,402
Accumulated depreciation	5,624,642	4,985,019
Gross assets	$44,112,770	$41,756,421

Initial stabilized yield (unlevered)

Initial stabilized yield is calculated as the estimated amounts of net operating income at stabilization divided by our investment

in the property. For this calculation, we exclude any tenant-funded and -built landlord improvements from our investment in the property.

Our initial stabilized yield excludes the benefit of leverage. Our cash rents related to our development and redevelopment projects are

generally expected to increase over time due to contractual annual rent escalations. Our estimates for initial stabilized yields, initial

stabilized yields (cash basis), and total costs at completion represent our initial estimates at the commencement of the project. We

expect to update this information upon completion of the project, or sooner if there are significant changes to the expected project yields

or costs.

•Initial stabilized yield reflects rental income, including contractual rent escalations and any rent concessions over the

term(s) of the lease(s), calculated on a straight-line basis, and any amortization of deferred revenue related to tenant-

funded and -built landlord improvements.

•Initial stabilized yield (cash basis) reflects cash rents at the stabilization date after initial rental concessions, if any, have

elapsed and our total cash investment in the property.

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Investment-grade or publicly traded large cap tenants

Investment-grade or publicly traded large cap tenants represent tenants that are investment-grade rated or publicly traded

companies with an average daily market capitalization greater than $10 billion for the twelve months ended September 30, 2024, as

reported by Bloomberg Professional Services. Credit ratings from Moody’s Ratings and S&P Global Ratings reflect credit ratings of the

tenant’s parent entity, and there can be no assurance that a tenant’s parent entity will satisfy the tenant’s lease obligation upon such

tenant’s default. We monitor the credit quality and related material changes of our tenants. Material changes that cause a tenant’s

market capitalization to decrease below $10 billion, which are not immediately reflected in the twelve-month average, may result in their

exclusion from this measure.

Investments in real estate

The following table presents our new Class A/A+ development and redevelopment pipeline, excluding properties held for sale,

as a percentage of gross assets and as a percentage of annual rental revenue as of September 30, 2024 (dollars in thousands):

		Percentage of
	Book Value	Gross Assets	Annual Rental Revenue
Under construction projects and one committed near-term project expected to commence construction in the next two years (55% leased/negotiating)	$4,405,094	10%	—%
Income-producing/potential cash flows/covered land play(1)	2,861,653	6	2
Land	2,073,678	5	—
	$9,340,425	21%	2%

(1)Includes projects with existing buildings that are generating or can generate operating cash flows. Also includes development rights associated with existing operating

campuses.

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The square footage presented in the table below is classified as operating as of September 30, 2024. These lease expirations

or vacant space at recently acquired properties represent future opportunities for which we have the intent, subject to market conditions

and leasing, to commence first-time conversion from non-laboratory space to laboratory space, or to commence future ground-up

development:

	Dev/Redev	RSF of Lease Expirations Targeted for Development and Redevelopment
Property/Submarket		2024	2025	Thereafter(1)		Total
Committed near-term project:
4161 Campus Point Court/University Town Center	Dev	—	159,884	—		159,884
Priority anticipated projects:
311 Arsenal Street/Cambridge/Inner Suburbs	Redev	—	25,312	—		25,312
269 East Grand Avenue/South San Francisco	Redev	107,250	—	—		107,250
1020 Red River Street/Austin	Redev	—	126,034	—		126,034
		107,250	151,346	—		258,596
Future projects:
100 Edwin H. Land Boulevard/Cambridge	Dev	104,500	—	—		104,500
446, 458, 500, and 550 Arsenal Street/Cambridge/Inner Suburbs	Dev	—	—	375,898		375,898
Other/Greater Boston	Redev	—	—	167,549		167,549
1122 and 1150 El Camino Real/South San Francisco	Dev	—	—	375,232		375,232
3875 Fabian Way/Greater Stanford	Dev	—	—	228,000		228,000
2100, 2200, and 2400 Geng Road/Greater Stanford	Dev	—	—	78,501		78,501
960 Industrial Road/Greater Stanford	Dev	—	—	112,590		112,590
Campus Point by Alexandria/University Town Center	Dev	—	109,164	226,144	(2)	335,308
Sequence District by Alexandria/Sorrento Mesa	Dev/Redev	—	—	686,290		686,290
830 4th Avenue South/SoDo	Dev	—	—	45,615		45,615
410 West Harrison Street/Elliott Bay	Dev	—	—	17,205		17,205
Other/Seattle	Dev	—	—	75,663		75,663
100 Capitola Drive/Research Triangle	Dev	—	—	34,527		34,527
1001 Trinity Street/Austin	Dev	—	72,938	—		72,938
Canada	Redev	—	—	247,743		247,743
		104,500	182,102	2,670,957		2,957,559
		211,750	493,332	2,670,957		3,376,039

(1)Includes vacant square footage as of September 30, 2024.

(2)Represents 226,144 RSF of month-to-month leases in our University Town Center submarket primarily related to space being temporarily held over by an expiring tenant

at buildings that are targeted for the future development of laboratory space, subject to market conditions and leasing.

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Joint venture financial information

We present components of balance sheet and operating results information related to our real estate joint ventures, which are

not presented, or intended to be presented, in accordance with GAAP. We present the proportionate share of certain financial line items

as follows: (i) for each real estate joint venture that we consolidate in our financial statements, which are controlled by us through

contractual rights or majority voting rights, but of which we own less than 100%, we apply the noncontrolling interest economic

ownership percentage to each financial item to arrive at the amount of such cumulative noncontrolling interest share of each component

presented; and (ii) for each real estate joint venture that we do not control and do not consolidate, and are instead controlled jointly or

by our joint venture partners through contractual rights or majority voting rights, we apply our economic ownership percentage to each

financial item to arrive at our proportionate share of each component presented.

The components of balance sheet and operating results information related to our real estate joint ventures do not represent

our legal claim to those items. For each entity that we do not wholly own, the joint venture agreement generally determines what equity

holders can receive upon capital events, such as sales or refinancing, or in the event of a liquidation. Equity holders are normally

entitled to their respective legal ownership of any residual cash from a joint venture only after all liabilities, priority distributions, and

claims have been repaid or satisfied.

We believe that this information can help investors estimate the balance sheet and operating results information related to our

partially owned entities. Presenting this information provides a perspective not immediately available from consolidated financial

statements and one that can supplement an understanding of the joint venture assets, liabilities, revenues, and expenses included in

our consolidated results.

The components of balance sheet and operating results information related to our real estate joint ventures are limited as an

analytical tool as the overall economic ownership interest does not represent our legal claim to each of our joint ventures’ assets,

liabilities, or results of operations. In addition, joint venture financial information may include financial information related to the

unconsolidated real estate joint ventures that we do not control. We believe that in order to facilitate for investors a clear understanding

of our operating results and our total assets and liabilities, joint venture financial information should be examined in conjunction with our

consolidated statements of operations and balance sheets. Joint venture financial information should not be considered an alternative

to our consolidated financial statements, which are presented and prepared in accordance with GAAP.

Mega campus

Mega campuses are cluster campuses that consist of approximately 1 million RSF or more, including operating, active

development/redevelopment, and land RSF less operating RSF expected to be demolished. The following table reconciles our annual

rental revenue and development and redevelopment pipeline RSF as of September 30, 2024 (dollars in thousands):

	Annual Rental Revenue	Development and Redevelopment Pipeline RSF
Mega campus	$1,666,759	21,957,791
Non-mega campus	517,316	9,880,617
Total	$2,184,075	31,838,408
Mega campus as a percentage of annual rental revenue and of total development and redevelopment pipeline RSF	76%	69%

Net cash provided by operating activities after dividends

Net cash provided by operating activities after dividends includes the deduction for distributions to noncontrolling interests. For

purposes of this calculation, changes in operating assets and liabilities are excluded as they represent timing differences.

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Net debt and preferred stock to Adjusted EBITDA

Net debt and preferred stock to Adjusted EBITDA is a non-GAAP financial measure that we believe is useful to investors as a

supplemental measure of evaluating our balance sheet leverage. Net debt and preferred stock is equal to the sum of total consolidated

debt less cash, cash equivalents, and restricted cash, plus preferred stock outstanding as of the end of the period. Refer to “Adjusted

EBITDA and Adjusted EBITDA margin” in this section for further information on the calculation of Adjusted EBITDA.

We are not able to forecast fourth quarter net income without unreasonable effort and therefore do not provide a reconciliation

for net debt and preferred stock to Adjusted EBITDA on a forward-looking basis. This is due to the inherent difficulty of forecasting the

timing and/or amount of items that depend on market conditions outside of our control, including the timing of dispositions, capital

events, and financing decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or losses on

non-real estate investments, impairment of real estate, and impairment of non-real estate investments. Our attempt to predict these

amounts may produce significant but inaccurate estimates, which would be potentially misleading for our investors.

The following table reconciles debt to net debt and preferred stock and computes the ratio to Adjusted EBITDA as of

September 30, 2024 and December 31, 2023 (dollars in thousands):

	September 30, 2024	December 31, 2023
Secured notes payable	$145,000	$119,662
Unsecured senior notes payable	12,092,012	11,096,028
Unsecured senior line of credit and commercial paper	454,589	99,952
Unamortized deferred financing costs	79,610	76,329
Cash and cash equivalents	(562,606)	(618,190)
Restricted cash	(17,031)	(42,581)
Preferred stock	—	—
Net debt and preferred stock	$12,191,574	$10,731,200
Adjusted EBITDA:
– quarter annualized	$2,219,632	$2,094,988
– trailing 12 months	$2,184,298	$1,997,518
Net debt and preferred stock to Adjusted EBITDA:
– quarter annualized	5.5x	5.1x
– trailing 12 months	5.6x	5.4x

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Net operating income, net operating income (cash basis), and operating margin

The following table reconciles net income to net operating income and net operating income (cash basis) and computes

operating margin for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Net income	$213,603	$68,254	$526,828	$323,652
Equity in earnings of unconsolidated real estate joint ventures	(139)	(242)	(424)	(617)
General and administrative expenses	43,945	45,987	135,629	140,065
Interest expense	43,550	11,411	130,179	42,237
Depreciation and amortization	293,998	269,370	872,272	808,227
Impairment of real estate	5,741	20,649	36,504	189,224
Gain on sales of real estate	(27,114)	—	(27,506)	(214,810)
Investment (income) loss	(15,242)	80,672	(14,866)	204,051
Net operating income	558,342	496,101	1,658,616	1,492,029
Straight-line rent revenue	(29,087)	(29,805)	(125,676)	(92,331)
Amortization of deferred revenue related to tenant-funded and -built landlord improvements	(329)	—	(329)	—
Amortization of acquired below-market leases	(17,312)	(23,222)	(70,167)	(69,647)
Net operating income (cash basis)	$511,614	$443,074	$1,462,444	$1,330,051
Net operating income (cash basis) – annualized	$2,046,456	$1,772,296	$1,949,925	$1,773,401
Net operating income (from above)	$558,342	$496,101	$1,658,616	$1,492,029
Total revenues	$791,607	$713,788	$2,327,449	$2,128,483
Operating margin	71%	70%	71%	70%

Net operating income is a non-GAAP financial measure calculated as net income (loss), the most directly comparable financial

measure calculated and presented in accordance with GAAP, excluding equity in the earnings of our unconsolidated real estate joint

ventures, general and administrative expenses, interest expense, depreciation and amortization, impairments of real estate, gains or

losses on early extinguishment of debt, gains or losses on sales of real estate, and investment income or loss. We believe net operating

income provides useful information to investors regarding our financial condition and results of operations because it primarily reflects

those income and expense items that are incurred at the property level. Therefore, we believe net operating income is a useful measure

for investors to evaluate the operating performance of our consolidated real estate assets. Net operating income on a cash basis is net

operating income adjusted to exclude the effect of straight-line rent, amortization of acquired above- and below-market lease revenue,

and amortization of deferred revenue related to tenant-funded and -built landlord improvements adjustments required by GAAP. We

believe that net operating income on a cash basis is helpful to investors as an additional measure of operating performance because it

eliminates straight-line rent revenue and the amortization of acquired above- and below-market leases and tenant-funded and -built

landlord improvements.

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Furthermore, we believe net operating income is useful to investors as a performance measure of our consolidated properties

because, when compared across periods, net operating income reflects trends in occupancy rates, rental rates, and operating costs,

which provide a perspective not immediately apparent from net income or loss. Net operating income can be used to measure the initial

stabilized yields of our properties by calculating net operating income generated by a property divided by our investment in the property.

Net operating income excludes certain components from net income in order to provide results that are more closely related to the

results of operations of our properties. For example, interest expense is not necessarily linked to the operating performance of a real

estate asset and is often incurred at the corporate level rather than at the property level. In addition, depreciation and amortization,

because of historical cost accounting and useful life estimates, may distort comparability of operating performance at the property level.

Impairments of real estate have been excluded in deriving net operating income because we do not consider impairments of real estate

to be property-level operating expenses. Impairments of real estate relate to changes in the values of our assets and do not reflect the

current operating performance with respect to related revenues or expenses. Our impairments of real estate represent the write-down in

the value of the assets to the estimated fair value less cost to sell. These impairments result from investing decisions or a deterioration

in market conditions. We also exclude realized and unrealized investment gain or loss, which results from investment decisions that

occur at the corporate level related to non-real estate investments in publicly traded companies and certain privately held entities.

Therefore, we do not consider these activities to be an indication of operating performance of our real estate assets at the property

level. Our calculation of net operating income also excludes charges incurred from changes in certain financing decisions, such as

losses on early extinguishment of debt, as these charges often relate to corporate strategy. Property operating expenses included in

determining net operating income primarily consist of costs that are related to our operating properties, such as utilities, repairs, and

maintenance; rental expense related to ground leases; contracted services, such as janitorial, engineering, and landscaping; property

taxes and insurance; and property-level salaries. General and administrative expenses consist primarily of accounting and corporate

compensation, corporate insurance, professional fees, rent, and supplies that are incurred as part of corporate office management. We

calculate operating margin as net operating income divided by total revenues.

We believe that in order to facilitate for investors a clear understanding of our operating results, net operating income should

be examined in conjunction with net income or loss as presented in our consolidated statements of operations. Net operating income

should not be considered as an alternative to net income or loss as an indication of our performance, nor as an alternative to cash flows

as a measure of our liquidity or our ability to make distributions.

Operating statistics

We present certain operating statistics related to our properties, including number of properties, RSF, occupancy percentage,

leasing activity, and contractual lease expirations as of the end of the period. We believe these measures are useful to investors

because they facilitate an understanding of certain trends for our properties. We compute the number of properties, RSF, occupancy

percentage, leasing activity, and contractual lease expirations at 100%, excluding RSF at properties classified as held for sale, for all

properties in which we have an investment, including properties owned by our consolidated and unconsolidated real estate joint

ventures. For operating metrics based on annual rental revenue, refer to “Annual rental revenue” in this section.

Same property comparisons

As a result of changes within our total property portfolio during the comparative periods presented, including changes from

assets acquired or sold, properties placed into development or redevelopment, and development or redevelopment properties recently

placed into service, the consolidated total income from rentals, as well as rental operating expenses in our operating results, can show

significant changes from period to period. In order to supplement an evaluation of our results of operations over a given quarterly or

annual period, we analyze the operating performance for all consolidated properties that were fully operating for the entirety of the

comparative periods presented, referred to as same properties. We separately present quarterly and year-to-date same property results

to align with the interim financial information required by the SEC in our management’s discussion and analysis of our financial

condition and results of operations. These same properties are analyzed separately from properties acquired subsequent to the first day

in the earliest comparable quarterly or year-to-date period presented, properties that underwent development or redevelopment at any

time during the comparative periods, unconsolidated real estate joint ventures, properties classified as held for sale, and corporate

entities (legal entities performing general and administrative functions), which are excluded from same property results. Additionally,

termination fees, if any, are excluded from the results of same properties. Refer to “Same properties” in Item 2 for additional information.

Stabilized occupancy date

The stabilized occupancy date represents the estimated date on which the project is expected to reach occupancy of 95% or

greater.

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Tenant recoveries

Tenant recoveries represent revenues comprising reimbursement of real estate taxes, insurance, utilities, repairs and

maintenance, common area expenses, and other operating expenses and earned in the period during which the applicable expenses

are incurred and the tenant’s obligation to reimburse us arises.

We classify rental revenues and tenant recoveries generated through the leasing of real estate assets within revenues in

income from rentals in our consolidated statements of operations. We provide investors with a separate presentation of rental revenues

and tenant recoveries in “Results of operations” in Item 2 because we believe it promotes investors’ understanding of our operating

results. We believe that the presentation of tenant recoveries is useful to investors as a supplemental measure of our ability to recover

operating expenses under our triple net leases, including recoveries of utilities, repairs and maintenance, insurance, property taxes,

common area expenses, and other operating expenses, and of our ability to mitigate the effect to net income for any significant

variability to components of our operating expenses.

The following table reconciles income from rentals to tenant recoveries for the three and nine months ended September 30,

2024 and 2023 (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Income from rentals	$775,744	$707,531	$2,286,457	$2,099,819
Rental revenues	(579,569)	(526,352)	(1,737,804)	(1,582,543)
Tenant recoveries	$196,175	$181,179	$548,653	$517,276

Total equity capitalization

Total equity capitalization is equal to the outstanding shares of common stock multiplied by the closing price on the last trading

day at the end of each period presented.

Total market capitalization

Total market capitalization is equal to the sum of total equity capitalization and total debt.

Unencumbered net operating income as a percentage of total net operating income

Unencumbered net operating income as a percentage of total net operating income is a non-GAAP financial measure that we

believe is useful to investors as a performance measure of the results of operations of our unencumbered real estate assets as it

reflects those income and expense items that are incurred at the unencumbered property level. Unencumbered net operating income is

derived from assets classified in continuing operations, which are not subject to any mortgage, deed of trust, lien, or other security

interest, as of the period for which income is presented.

The following table summarizes unencumbered net operating income as a percentage of total net operating income for the

three and nine months ended September 30, 2024 and 2023 (dollars in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Unencumbered net operating income	$553,589	$495,012	$1,644,687	$1,488,795
Encumbered net operating income	4,753	1,089	13,929	3,234
Total net operating income	$558,342	$496,101	$1,658,616	$1,492,029
Unencumbered net operating income as a percentage of total net operating income	99.1%	99.8%	99.2%	99.8%

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Weighted-average shares of common stock outstanding – diluted

From time to time, we enter into capital market transactions, including forward equity sales agreements (“Forward

Agreements”), to fund acquisitions, to fund construction of our development and redevelopment projects, and for general working

capital purposes. We are required to consider the potential dilutive effect of our Forward Agreements under the treasury stock method

while the Forward Agreements are outstanding. As of September 30, 2024, we had Forward Agreements outstanding to sell an

aggregate of 230 thousand shares of common stock. Refer to Note 13 – “Stockholders’ equity” to our unaudited consolidated financial

statements in Item 1 for additional information.

The weighted-average shares of common stock outstanding used in calculating EPS – diluted, funds from operations per

share – diluted, and funds from operations per share – diluted, as adjusted, for the three and nine months ended September 30, 2024

and 2023 are calculated as follows. Also shown are the weighted-average unvested shares associated with restricted stock awards

used in calculating the amounts allocable to unvested stock award holders pursuant to the two-class method for each of the respective

periods presented below (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Basic shares for earnings per share	172,058	170,890	172,007	170,846
Forward Agreements	—	—	—	—
Diluted shares for earnings per share	172,058	170,890	172,007	170,846
Basic shares for funds from operations per share and funds from operations per share, as adjusted	172,058	170,890	172,007	170,846
Forward Agreements	—	—	—	—
Diluted shares for funds from operations per share and funds from operations per share, as adjusted	172,058	170,890	172,007	170,846
Weighted-average unvested restricted shares used in calculating the allocations of net income, funds from operations, and funds from operations, as adjusted	2,838	2,124	2,901	2,187

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest rate risk

The primary market risk to which we believe we may be exposed is interest rate risk, which may result from many factors,

including government monetary and tax policies, domestic and international economic and political considerations, and other factors

that are beyond our control.

In order to modify and manage the interest rate characteristics of our outstanding debt and to limit the effects of interest rate

risks on our operations, we may utilize a variety of financial instruments, including interest rate hedge agreements, caps, floors, and

other interest rate exchange contracts. The use of these types of instruments to hedge a portion of our exposure to changes in interest

rates may carry additional risks, such as counterparty credit risk and the legal enforceability of hedge agreements. As of September 30,

2024, we did not have any outstanding interest rate hedge agreements.

Our future earnings and fair values relating to our outstanding debt are primarily dependent upon prevalent market rates of

interest. The following tables illustrate the effect of a 1% change in interest rates, assuming a zero percent interest rate floor, on our

fixed- and variable-rate debt as of September 30, 2024 (in thousands):

Annualized effect on future earnings due to variable-rate debt:
Rate increase of 1%	$(1,166)
Rate decrease of 1%	$1,166
Effect on fair value of total consolidated debt:
Rate increase of 1%	$(824,796)
Rate decrease of 1%	$945,937

These amounts are determined by considering the effect of the hypothetical interest rates on our borrowings as of

September 30, 2024. These analyses do not consider the effects of the reduced level of overall economic activity that could exist in

such an environment. Furthermore, in the event of a change of such magnitude, we would consider taking actions to further mitigate our

exposure to the change. Because of the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity

analyses assume no changes in our capital structure.

Equity price risk

We have exposure to equity price market risk because we hold equity investments in publicly traded companies and privately

held entities. All of our investments in actively traded public companies are reflected in our consolidated balance sheets at fair value.

Our investments in privately held entities that report NAV per share are measured at fair value using NAV as a practical expedient to fair

value. Our equity investments in privately held entities that do not report NAV per share are measured at cost less impairments,

adjusted for observable price changes during the period. Changes in fair value of public investments, changes in NAV per share

reported by privately held entities, and observable price changes of privately held entities that do not report NAV per share are

classified as investment income in our consolidated statements of operations. There is no assurance that future declines in value will

not have a material adverse effect on our future results of operations. The following table illustrates the effect that a 10% change in the

value of our equity investments would have on earnings as of September 30, 2024 (in thousands):

Equity price risk:
Fair value increase of 10%	$151,933
Fair value decrease of 10%	$(151,933)

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Foreign currency exchange rate risk

We have exposure to foreign currency exchange rate risk related to our subsidiaries operating in Canada. The functional

currencies of our foreign subsidiaries are the local currencies in each respective country. Gains or losses resulting from the translation

of our foreign subsidiaries’ balance sheets and statements of operations are classified in accumulated other comprehensive income

(loss) as a separate component of total equity and are excluded from net income (loss). Gains or losses will be reflected in our

consolidated statements of operations when there is a sale or partial sale of our investment in these operations or upon a complete or

substantially complete liquidation of the investment. The following tables illustrate the effect that a 10% change in foreign currency rates

relative to the U.S. dollar would have on our potential future earnings and on the fair value of our net investment in foreign subsidiaries

based on our current operating assets outside the U.S. as of September 30, 2024 (in thousands):

Effect on potential future earnings due to foreign currency exchange rate:
Rate increase of 10%	$223
Rate decrease of 10%	$(223)
Effect on the fair value of net investment in foreign subsidiaries due to foreign currency exchange rate:
Rate increase of 10%	$40,407
Rate decrease of 10%	$(40,407)

The sensitivity analyses assume a parallel shift of all foreign currency exchange rates with respect to the U.S. dollar; however,

foreign currency exchange rates do not typically move in such a manner, and actual results may differ materially.

Our exposure to market risk elements for the nine months ended September 30, 2024 was consistent with the risk elements

presented above, including the effects of changes in interest rates, equity prices, and foreign currency exchange rates.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

As of September 30, 2024, we had performed an evaluation, under the supervision of our principal executive officers and

principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. These controls and

procedures have been designed to ensure that information required for disclosure is recorded, processed, summarized, and reported

within the requisite time periods. Based on our evaluation, the principal executive officers and principal financial officer concluded that

our disclosure controls and procedures were effective as of September 30, 2024.

Changes in internal control over financial reporting

There has not been any change in our internal control over financial reporting during the three months ended September 30,

2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In 2006, ARE-East River Science Park, LLC, a subsidiary of Alexandria Real Estate Equities, Inc., was granted an option to

incorporate a land parcel adjacent to and north of the Alexandria Center® for Life Science – New York City (“ACLS-NYC”) campus

(“Option Parcel”) into the existing ground lease of that campus. The Option Parcel will allow ARE-East River Science Park, LLC to

develop a future world-class life science building within the ACLS-NYC campus. ARE-East River Science Park, LLC’s investment in pre-

construction costs related to the development of the Option Parcel, including costs related to design, engineering, environmental,

survey/title, and permitting and legal costs, aggregate $165.1 million as of September 30, 2024.

On August 6, 2024, ARE-East River Science Park, LLC filed a lawsuit in the United States District Court for the Southern

District of New York against its landlord, New York City Health + Hospitals Corporation (“H+H”), and the New York City Economic

Development Corporation (“EDC”). The lawsuit alleges two principal claims against H+H and EDC: fraud in the inducement, and, in the

alternative, breach of contract in violation of the implied covenant of good faith and fair dealing. As alleged in the complaint, ARE-East

River Science Park, LLC’s claims arise from H+H’s and EDC’s misrepresentations and concealment of material facts in connection with

a floodwall, which H+H and EDC are seeking to require ARE-East River Science Park, LLC to integrate into the development of the

Option Parcel. ARE-East River Science Park, LLC alleges that H+H’s and EDC’s misconduct have prevented it from commencing the

development of the Option Parcel. In light of the pending litigation, the closing date for the option and thus the commencement date for

construction of the third tower at the campus are presently indeterminate. Among other things, ARE-East River Science Park, LLC is

seeking significant damages and equitable relief to maintain the option.

This matter exposes us to potential losses ranging from zero to the full amount of the investment in the project aggregating

$165.1 million as of September 30, 2024, depending on any collection of damages and/or the ability to develop the project. We

performed a probability-weighted recoverability analysis based on initial estimates of various possible outcomes and determined no

impairment was present as of September 30, 2024.

ITEM 1A. RISK FACTORS

In addition to the information set forth in this quarterly report on Form 10-Q, one should also carefully review and consider the

information contained in the other reports and periodic filings that we make with the SEC, including, without limitation, the information

contained under the caption “Item 1A. Risk factors” in our annual report on Form 10-K for the year ended December 31, 2023. Those

risk factors could materially affect our business, financial condition, and results of operations. The risks that we describe in our public

filings are not the only risks that we face. Additional risks and uncertainties not currently known to us, or that we presently deem to be

immaterial, also may materially adversely affect our business, financial condition, and results of operations.

There have been no material changes in our risk factors from those disclosed under the caption “Item 1A. Risk factors” in our

annual report on Form 10-K for the year ended December 31, 2023, except for the following updates:

The increased use of artificial intelligence (“AI”) and automation in life science research and development

(“R&D”) activities may change the uses, space configurations and tenant requirements for our laboratory properties

in currently unforeseen ways.

In recent years, some life science companies have augmented their traditional laboratory-based R&D efforts by

integrating AI, cloud computing, quantum computing and other advanced computational technologies into their R&D programs. 

It is expected that such technologies will accelerate and streamline a number of R&D functions, including, for example, through

the targeted design and evaluation of clinical trials and the efficient identification of the most promising drug development

candidates from among multiple possible drugs. In addition, life science companies, like companies in many other industries,

are increasingly integrating new technologies, such as robotics and advanced automation of recurring tasks, into their

businesses, including their R&D activities. It is widely thought that the life science and healthcare industries, like most

industries, are in only the early stages of an advanced technology revolution that may have profound, and largely currently

unknown, impacts on their businesses, including the processes and strategies underlying R&D and commercialization of new

products. 

We have always strived to provide our tenants with state-of-the-art laboratory facilities incorporating cutting-edge

infrastructure features (including energy delivery, environmental, sustainability, security, and waste disposal features) to enable

our tenants to perform at the highest levels. It is currently unknown how the ongoing adoption of advanced technologies and

automation in the life science industry will impact the optimal space configurations and infrastructure features of the “laboratory

of the future,” and we may face new tenant requirements and requests that will require significant expenditures that may not be

entirely recoverable through increased rents. For example, the adoption of AI by our tenants may lead to infrastructure

requirements that our buildings currently do not accommodate, such as increased power needs due to high-performance

computing. Infrastructure upgrades may necessitate substantial capital expenditures and could potentially impact the

environmental footprint of our building operations.

116

If technological developments result in a reduction or reconfiguration in space requirements by our tenants, demand by

individual tenants and prospective tenants for space may decrease over time. If we are not able to offset any reduction in demand from

the foregoing developments through repurposing space, property dispositions, or other means, the realization of any of the

aforementioned risks could have a material adverse impact on our revenues, net operating income, results of operations, funds from

operations, operating margins, occupancy, earnings per share, FFO per share, our overall business, and the market value of our

common stock.

ITEM 5. OTHER INFORMATION

Disclosure of 10b5-1 plans

None of our officers or directors had any contract, instruction, or written plan for the purchase or sale of our securities that was

intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement” in effect at any

time during the three months ended September 30, 2024.

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ITEM 6. EXHIBITS

Exhibit Number	Exhibit Title	Incorporated by Reference to:	Date Filed
3.1*	Articles of Amendment and Restatement of the Company, dated May 21, 1997	Form 10-Q	August 14, 1997
3.2*	Certificate of Correction of the Company, dated June 20, 1997	Form 10-Q	August 14, 1997
3.3*	Articles of Amendment of the Company, effective as of May 10, 2017	Form 8-K	May 12, 2017
3.4*	Articles of Amendment of the Company, effective as of May 18, 2022	Form 8-K	May 19, 2022
3.5*	Articles Supplementary, dated June 9, 1999, relating to the 9.50% Series A Cumulative Redeemable Preferred Stock	Form 10-Q	August 13, 1999
3.6*	Articles Supplementary, dated February 10, 2000, relating to the election to be subject to Subtitle 8 of Title 3 of the Maryland General Corporation Law	Form 8-K	February 10, 2000
3.7*	Articles Supplementary, dated February 10, 2000, relating to the Series A Junior Participating Preferred Stock	Form 8-K	February 10, 2000
3.8*	Articles Supplementary, dated January 18, 2002, relating to the 9.10% Series B Cumulative Redeemable Preferred Stock	Form 8-A	January 18, 2002
3.9*	Articles Supplementary, dated June 22, 2004, relating to the 8.375% Series C Cumulative Redeemable Preferred Stock	Form 8-A	June 28, 2004
3.10*	Articles Supplementary, dated March 25, 2008, relating to the 7.00% Series D Cumulative Convertible Preferred Stock	Form 8-K	March 25, 2008
3.11*	Articles Supplementary, dated March 12, 2012, relating to the 6.45% Series E Cumulative Redeemable Preferred Stock	Form 8-K	March 14, 2012
3.12*	Articles Supplementary, effective as of May 10, 2017, relating to Reclassified Preferred Stock	Form 8-K	May 12, 2017
3.13*	Amended and Restated Bylaws of the Company (Amended September 21, 2023)	Form 8-K	September 21, 2023
10.1	Third Amended and Restated Credit Agreement, dated as of September 19, 2024, among the Company, as Borrower, Alexandria Real Estate Equities, L.P., as a Guarantor, Citibank, N.A., as Administrative Agent, and the lenders and other parties thereto	N/A	Filed herewith
22.1	List of Guarantor Subsidiaries of the Company	N/A	Filed herewith
31.1	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	N/A	Filed herewith
31.2	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	N/A	Filed herewith
31.3	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	N/A	Filed herewith
32.0	Certification of Principal Executive Officers and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	N/A	Filed herewith
101.1	The following materials from the Company’s quarterly report on Form 10-Q for the quarterly period ended September 30, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (unaudited), (ii) Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (unaudited), (iii) Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 (unaudited), (iv) Consolidated Statements of Changes in Stockholders’ Equity and Noncontrolling Interests for the three and nine months ended September 30, 2024 and 2023 (unaudited), (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited), and (vi) Notes to Consolidated Financial Statements (unaudited)	N/A	Filed herewith
104	Cover Page Interactive Data File – the cover page from this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 is formatted in Inline XBRL and contained in Exhibit 101.1	N/A	Filed herewith

(*) Incorporated by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed

on its behalf by the undersigned, thereunto duly authorized, on October 21, 2024.

ALEXANDRIA REAL ESTATE EQUITIES, INC.

/s/ Joel S. Marcus

Joel S. Marcus

Executive Chairman

(Principal Executive Officer)

/s/ Peter M. Moglia

Peter M. Moglia

Chief Executive Officer and Chief Investment Officer

(Principal Executive Officer)

/s/ Marc E. Binda

Marc E. Binda

Chief Financial Officer and Treasurer

(Principal Financial Officer)