ALEXANDRIA REAL ESTATE EQUITIES, INC.

Alexandria Real Estate Equities, Inc. is a best-in-class, mission-driven life science REIT that pioneered the life science real estate niche with its founding in 1994 ¹. The company operates as the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City ². As of December 31, 2025, Alexandria has a total market capitalization of $20.75 billion ³ and an asset base in North America that includes 35.9 million RSF of operating properties and 3.5 million RSF of Class A/A+ properties undergoing construction ⁴. The company's tenants include multinational pharmaceutical companies, public and private biotechnology companies, life science product and service companies, medical device companies, digital health and advanced technology companies, academic and medical research institutions, U.S. government research agencies, non-profit organizations, and venture capital firms ⁵.

Alexandria faces competition from other laboratory and technology properties in close proximity to its properties, as well as from other REITs, insurance companies, pension and investment funds, private equity entities, partnerships, developers, investment companies, owners/occupants, and foreign investors, many of which have substantially greater financial resources ⁶. The company believes it has differentiated itself as the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus ecosystems in AAA life science innovation cluster locations, maintaining and cultivating many of the most important and strategic relationships in the life science industry ⁷. As of December 31, 2025, investment-grade or publicly traded large cap tenants represented 53% of total annual rental revenue ⁸, and the 10-year average occupancy percentage of operating properties was 95% ⁹.

Alexandria generates revenue primarily through the ownership, operation, management, and selective acquisition, development, and redevelopment of Class A/A+ properties located in collaborative Megacampus ecosystems in AAA life science innovation clusters ¹⁰. The company's business model focuses on developing dynamic Megacampus ecosystems that enable and inspire innovation, with a strategy that includes drawing upon deep, broad, and long-standing real estate and life science industry relationships to retain tenants, identify and attract new tenants, and source additional real estate ¹¹. As of December 31, 2025, approximately 92% of leases (on an annual rental revenue basis) were triple net leases, which require tenants to pay substantially all real estate and other rent-related taxes, insurance, utilities, security, common area expenses, and other operating expenses in addition to base rent ¹², and approximately 97% of leases contained effective annual rent escalations approximating 3% that were either fixed or indexed ¹³. Alexandria also provides strategic capital to transformative life science companies through its venture capital platform ¹⁴.

As of December 31, 2025, Alexandria had 340 properties in North America consisting of approximately 39.4 million RSF of operating properties and new Class A/A+ development and redevelopment properties under construction, including 47 operating properties and development projects held by consolidated real estate joint ventures and three properties held by unconsolidated real estate joint ventures ¹⁵. The occupancy percentage of operating properties in North America was 90.9% as of December 31, 2025 ¹⁶. The company's operating segments consist of the following geographic markets: Greater Boston, San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, New York City, and Texas ¹⁷. As of December 31, 2025, the company had approximately 850 leases and 142, or 42%, of the 340 properties were single-tenant properties ¹⁸. Leases in multi-tenant buildings typically have initial terms of 3 to 9 years, while leases in single-tenant buildings typically have initial terms of 5 to 15 years ¹⁹.

During the year ended December 31, 2025, Alexandria engaged in significant capital events including the issuance of unsecured senior notes and the repayment of debt. On February 13, 2025, the company issued $500.0 million of 5.50% unsecured senior notes due 2035 ²⁰. On April 30, 2025, the company repaid $345.0 million of 3.45% unsecured senior notes at maturity ²¹. In August 2025, the company repaid $99.0 million of secured notes payable at maturity ²². The company also maintained an at-the-market common stock offering program established in February 2024, with forward equity sales agreements entered into in June 2024 ²³. As of December 31, 2025, the aggregate noncontrolling interest balance in the consolidated balance sheet was $3.63 billion ²⁴, with six consolidated real estate joint ventures having aggregate noncontrolling interests of approximately $1.17 billion where partners currently have the ability to exercise certain rights ²⁵, and 16 other consolidated real estate joint ventures with aggregate noncontrolling interests of approximately $1.91 billion where these rights become exercisable upon expiration of respective lockout provisions during 2026 through 2031 ²⁶.

For the fiscal year ended December 31, 2025, total revenues were $3,024,114,000 ²⁷ compared to $2,888,637,000 ²⁸ for the fiscal year ended December 31, 2024. Net income attributable to Alexandria Real Estate Equities, Inc. common stockholders was $1,016,248,000 ²⁹ for 2025 compared to $1,040,252,000 ³⁰ for 2024. Diluted earnings per share was $5.87 ³¹ for 2025 compared to $6.03 ³² for 2024. Net cash provided by operating activities was $1,608,145,000 ³³ for 2025 compared to $1,543,614,000 ³⁴ for 2024. Funds from operations attributable to Alexandria Real Estate Equities, Inc. common stockholders — diluted was $2,131,575,000 ³⁵ for 2025 compared to $2,097,656,000 ³⁶ for 2024.

A key growth vector for Alexandria is its disciplined allocation of capital to the development and redevelopment of new Class A/A+ properties, primarily concentrated in collaborative Megacampus ecosystems within AAA life science innovation clusters ³⁷. As of December 31, 2025, the company had 3.5 million RSF of Class A/A+ properties undergoing construction ³⁸, including 1,998,915 RSF of development properties and 1,564,239 RSF of redevelopment properties ³⁹. The company 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 ⁴⁰. Pre-construction activities including entitlements, permitting, design, and site work are focused on reducing the time required to deliver projects to prospective tenants ⁴¹.

Another growth vector is the company's redevelopment of acquired office, warehouse, or shell space into high-quality, generic, and reusable laboratory space that can be leased at higher rental rates ⁴². This redevelopment strategy generally includes significant pre-leasing of projects prior to the commencement of redevelopment ⁴³. The company also seeks to identify and acquire high-quality properties in its cluster markets, evaluating factors including proximity to centers of innovation, location and Megacampus strategy, quality of existing and prospective tenants, condition and capacity of building infrastructure, and opportunities for future ground-up development ⁴⁴. Additionally, Alexandria holds investments in publicly traded companies and privately held entities primarily involved in the life science industry through its venture capital platform, investing primarily in highly innovative entities whose focus on developing therapies and products that advance human health is aligned with the company's purpose ⁴⁵.

The filing discusses margin and cost dynamics primarily in the context of operating expense recovery. As of December 31, 2025, approximately 92% of leases (on an annual rental revenue basis) were triple net leases, which allow the company to recover operating expenses, and approximately 92% of leases also provided for the recapture of capital expenditures ⁴⁶. The company's triple net leases allow it to pass through substantially all real estate taxes, insurance, utilities, security, common area expenses, and other operating expenses to tenants ⁴⁷. Due to this ability to largely recover increases in operating expenses from triple net leases, inflation typically does not have a significant adverse effect on net operating income, results of operations, and operating cash flows at the property level ⁴⁸. However, general and administrative expenses, consisting primarily of compensation costs, technology services, and professional service fees, are subject to inflation and may increase over time ⁴⁹.

The filing describes the company's operational outlook in terms of its development and redevelopment pipeline and construction activities. The company relies on a number of third-party suppliers and contractors to supply raw materials and skilled labor for construction projects ⁵⁰. The company has not encountered significant difficulty collaborating with suppliers and contractors or obtaining materials and skilled labor, nor experienced significant delays due to disputes, work stoppages, or contractors' misconduct or failure to perform ⁵¹. However, the company notes that the price of commodities and skilled labor for construction projects may increase unpredictably due to external factors including overall market supply and demand, inflationary pricing, government regulation, international trade, and changes in general business, economic, or political conditions ⁵². As of December 31, 2025, the company had 514 employees ⁵³.

The filing discusses capital allocation in the context of the company's balance sheet and financial strategy. The company seeks to maximize balance sheet liquidity and flexibility through maintaining access to diverse sources of capital including net cash flows from operating activities after dividends, incremental leverage-neutral debt supported by growth in EBITDA, strategic value harvesting and asset recycling through real estate dispositions and sales of partial interests, non-real estate investment sales, sales of equity, and joint venture capital ⁵⁴. The company maintains significant liquidity through borrowing capacity under its unsecured senior line of credit and commercial paper program, secured construction loans, marketable securities, issuances of forward equity contracts, and cash, cash equivalents, and restricted cash ⁵⁵. The company's strategy includes maintaining low to modest leverage, minimizing variable interest rate risk, and minimizing the amount of debt maturing in a single year ⁵⁶. On December 3, 2025, the Board of Directors declared a quarterly cash dividend of $0.72 per common share for the fourth quarter of 2025, representing a $0.60, or 45%, reduction from the dividend declared for the third quarter of 2025 ⁵⁷.

The filing identifies several structural headwinds and constraints. The life science industry is undergoing a prolonged period of structural and cyclical challenges, with the venture capital ecosystem experiencing several years of contraction as investors look to more de-risked later-stage assets that may not require significant R&D laboratory requirements ⁵⁸. Historical performance data increasingly shows that life science venture capital returns have underperformed relative to technology-focused funds and broader public market indices, leading institutional investors to reassess their long-term allocations to the sector ⁵⁹. The high failure rate of private biotechnology companies, coupled with the increasing cost and complexity of drug development, has led many investors to shift focus toward more de-risked clinical-stage assets, often sourced internationally ⁶⁰. Additionally, the private life science market has become increasingly selective, with available capital chasing a limited number of high-quality opportunities, compressing potential returns on average ⁶¹.

The filing identifies significant regulatory and policy headwinds. In 2025, the FDA laid off approximately 3,500 employees, representing approximately 19% of its workforce at the beginning of the year, creating additional uncertainty and delay in drug and device approval processes ⁶². The NIH experienced a budget freeze and workforce cuts, laying off approximately 5,000 employees and contractors across its approximately 20,000-person workforce during the first half of 2025 ⁶³. The White House introduced a budget proposal for fiscal year 2026 that would reduce the NIH budget by approximately 40%, from $48 billion to $27.5 billion ⁶⁴. The U.S. administration implemented a 15% cap on indirect cost reimbursements for all NIH grants on February 7, 2025, which was later blocked by a permanent injunction on April 7, 2025, and affirmed by the U.S. Court of Appeals for the First Circuit on January 5, 2026 ⁶⁵. The OBBB Act, signed into law on July 4, 2025, includes an estimated $1 trillion in cuts to Medicaid spending ⁶⁶. Tariff escalation beginning in March 2025 included a 25% tariff on certain imports from Mexico and Canada and a 10% tariff on all products from China, later increased to 20% on March 3, 2025 ⁶⁷, and on April 2, 2025, a 10% universal import tariff was imposed with higher rates for 57 trading partners ⁶⁸.

Alexandria faces material risks from the prolonged structural and cyclical challenges in the life science industry, including a contraction in venture capital funding for early-stage biotechnology companies, with historical performance data showing life science venture capital returns have underperformed relative to technology-focused funds and broader public market indices, leading institutional investors to reassess long-term allocations to the sector ⁶⁹. The company is exposed to significant regulatory and policy risks, including the FDA's layoff of approximately 3,500 employees, representing approximately 19% of its workforce ⁷⁰, and the NIH's layoff of approximately 5,000 employees and contractors ⁷¹, with a proposed budget reduction of approximately 40% from $48 billion to $27.5 billion ⁷². The OBBB Act includes an estimated $1 trillion in cuts to Medicaid spending ⁷³, and tariff escalation has created significant uncertainty, including a 100% tariff on all branded and patented drugs imported into the U.S. announced on September 25, 2025 ⁷⁴. The company's properties are concentrated in seismically active regions including the San Francisco Bay Area, San Diego, and Seattle, with earthquake insurance for California properties providing $335 million per occurrence subject to a 5% deductible of the property's replacement value, and for the Seattle region providing $200 million per occurrence subject to a 2% deductible ⁷⁵. The company's all-risk property insurance provides a $2.0 billion per-occurrence limit for the operating portfolio ⁷⁶. As of December 31, 2025, the aggregate noncontrolling interest balance was $3.63 billion ⁷⁷, with partners in six consolidated real estate joint ventures having aggregate noncontrolling interests of approximately $1.17 billion currently able to exercise certain rights, and partners in 16 other consolidated real estate joint ventures with aggregate noncontrolling interests of approximately $1.91 billion having rights exercisable upon expiration of lockout provisions during 2026 through 2031 ⁷⁸.

Management's message emphasizes Alexandria's position as a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world, with a founding in 1994 that pioneered the life science real estate niche ⁷⁹. The company is led by an executive and senior management team with extensive experience in the real estate and life science industries, with the executive and senior management teams represented by 59 individuals at the senior vice president level and above having an average of 24 years of real estate experience, including 13 years with Alexandria ⁸⁰. The executive management team alone averages 15 years of experience with the Company ⁸¹. Key strategic priorities emphasized include the disciplined allocation of capital to the development and redevelopment of new Class A/A+ properties in collaborative Megacampus ecosystems within AAA life science innovation clusters ⁸², maintaining a strong balance sheet with low to modest leverage and diverse sources of capital ⁸³, and drawing upon deep, broad, and long-standing real estate and life science industry relationships to retain tenants and identify new opportunities ⁸⁴.