Alexandria Real Estate Equities, Inc. Reports 3Q26 and YTD 3Q26 Net Loss per Share - Diluted of $3.74 and $2.06, respectively, and 3Q26 and YTD 3Q26 FFO per Share - Diluted, as Adjusted, of $1.54 and $5.00, respectively

PASADENA, Calif., Oct. 26, 2026 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the third quarter ended September 30, 2026.

KEY HIGHLIGHTS

Operating results

3Q26

3Q25

YTD 3Q26

YTD 3Q25

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

In millions

$ (638.5)

(1)

$ (234.9)

$ (351.4)

$ (356.1)

Per share

$ (3.74)

$ (1.38)

$ (2.06)

$ (2.09)

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

In millions

$ 264.4

$ 377.8

$ 856.5

$ 1,166.3

Per share

$ 1.54

$ 2.22

$ 5.00

$ 6.85

(1)

Includes $637.9 million of real estate impairment charges related to assets held for sale for 3Q26. Refer to

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

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

(As of or for the three months ended September 30, 2026, unless stated otherwise)

Occupancy of operating properties

87.1 %

Occupancy of operating properties, including executed leases with future occupancy

90.8 %

Percentage of annual rental revenue in effect from Megacampus platform

80 %

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

traded large cap tenants

57 %

Operating margin

66 %

Adjusted EBITDA margin

65 %

Percentage of leases containing annual rent escalations

97 %

Weighted-average remaining lease term:

All tenants

7.7

years

Top 20 tenants

10.0

years

Strong 3Q26 tenant collections:

3Q26 rents and receivables collected as of October 26, 2026

99.9 %

Strong and flexible balance sheet with significant liquidity; top 20% credit rating ranking among all publicly traded U.S. REITs; long-duration remaining debt term (as of 9/30/26)

Solid 3Q26 total leasing volume exceeding 1.2 million RSF; highest total quarterly volume since 4Q24

Leasing Volume in RSF:

3Q26

2Q26

1Q26

YTD 3Q26

Leasing of previously vacant space

450,961

329,148

148,734

928,843

Leasing of development and

redevelopment space

—

68,771

117,935

186,706

450,961

397,919

266,669

1,115,549

Lease renewals and re-leasing of space

785,069

640,998

380,687

1,806,754

Total leasing volume

1,236,030

1,038,917

647,356

2,922,303

Lease renewals and re-leasing of space:

Rental rate changes

(2.4) %

(0.7) %

(15.0) %

(5.1) %

Rental rate changes (cash basis)

(3.3) %

(4.3) %

(15.8) %

(6.9) %

Ongoing execution of Alexandria's capital recycling strategy

We plan to continue funding a significant portion of our capital requirements for the year ending December 31, 2026 through dispositions of land, non-core dispositions, and sales of partial interests. In October 2026, we completed the sale of an approximately 29% noncontrolling interest in Campus Point by Alexandria Megacampus for $475.0 million to a new joint venture partner.

Sources of capital: transactions

Sales Price

(dollars in millions)

Non-core and land dispositions

$ 242

Sales of partial interests

475

Completed as of October 26, 2026

717

Pending transactions subject to:

Non-refundable deposits

355

Signed letters of intent and/or purchase and sale agreement late-stage negotiations

1,548

2,620

Proceeds from dispositions and sales of partial interests in excess of 2026 guidance

midpoint which may be deferred into 2027

(720)

2026 guidance midpoint for dispositions and sales of partial interests

$ 1,900

Refer to "Definitions and reconciliations" in the Supplemental Information.

Occupancy of operating properties and leasing progress

Occupancy of operating properties as of June 30, 2026

86.9 %

Key changes to occupancy of operating properties:

Reclassification of 339,020 RSF at 311 Arsenal Street from redevelopment to

operating in 3Q26, including 167,543 RSF of executed leases and leases under

negotiation for space not yet delivered

(0.9)

(1)

Reclassification of held-for-sale properties with vacancy

0.6

Net increase in occupancy primarily due to lease commencements during 3Q26

0.5

Occupancy of operating properties as of September 30, 2026

87.1

Vacant operating space with executed leases and future occupancy

3.7

(2)

Occupancy of operating properties as of September 30, 2026, including executed

leases with future occupancy

90.8 %

(1)

Refer to "Resolution of certain construction projects under evaluation and reduction of capital spend and funding needs" in this Earnings Press Release for additional details.

(2)

Represents executed leases aggregating 1.3 million RSF within our operating portfolio, with occupancy expected upon completion of building and/or tenant improvements. The weighted-average expected occupancy date is approximately June 2027, with expected annual rental revenue of approximately $52 million. We expect 32% of the total 1.3 million RSF to be occupied by December 31, 2026. The RSF presented excludes 686 thousand RSF of pre-leased space related to development and redevelopment projects under construction with future delivery. Refer to "New Class A/A+ development and redevelopment properties: under construction" in the Supplemental Information for additional details.

KEY OPERATING METRICS

Operating metrics

3Q26

YTD 3Q26

Same property performance:

Net operating income changes

(6.7) %

(1)

(9.2) %

(1)

Net operating income changes (cash basis)

(2.8) %

(1)

(8.4) %

(1)

Occupancy – current-period average

88.1 %

88.6 %

Occupancy – same-period prior-year average

91.7 %

92.8 %

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

(1)

The decline was due to a decrease in same property occupancy, primarily driven by previously disclosed key lease expirations with expected downtime aggregating 282,878 RSF and 1.2 million RSF in 3Q26 and YTD 3Q26, respectively, with weighted-average lease expiration dates of August 2026 and April 2026, respectively.

Resolution of certain construction projects under evaluation and reduction of capital spend and funding needs

Alexandria's development and redevelopment pipeline delivered incremental annual net operating income of $40 million during 3Q26, with an additional $85 million expected from projects to be delivered by 4Q28

Development and Redevelopment

Projects

Incremental

Annual Net

Operating

Income

RSF

Occupied/

Leased/

Negotiating

Percentage

(dollars in millions)

Placed into service:

1H26

$ 58

532,219

91 %

3Q26

529,061

Placed into service in YTD 3Q26

$ 98

(1)

1,061,280

87 %

Expected to be placed into service: (2)

2027

$ 24

905,582

77 %

2028

$ 85

(1)

Excludes future incremental annual net operating income from spaces placed into service that were vacant and/or unleased at delivery.

(2)

Excludes 667,002 RSF of redevelopment projects currently under evaluation.

Continued successful management of general and administrative expenses

Key capital events

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

Investments

2026 Guidance

September 30, 2026

(Dollars in millions, except per share amounts)

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

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

As of 10/26/26

As of 8/3/26

Key Changes

Funds from operations per share, as adjusted (1)

$6.38 to $6.42

$6.35 to $6.45

No change to the midpoint,

range narrowed by 6 cents

Midpoint

$6.40

Key Credit Metrics Targets

As of 10/26/26

As of 8/3/26

Key Changes

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

5.6x to 6.2x

No Change

Fixed-charge coverage ratio – 4Q26 annualized

3.4x to 3.9x

3.6x to 4.1x

0.2x reduction (2)

As of 10/26/26

As of 8/3/26

Midpoint

Key Sources and Uses of Capital

Range

Midpoint

Certain

Completed Items

Sources of capital:

Net cash provided by operating activities, as adjusted

$ 475

$ 575

$ 525

Dispositions and sales of partial interests

1,100

2,700

1,900

(3)

2,900

Total sources of capital

$ 1,575

$ 3,275

$ 2,425

$ 3,425

Uses of capital:

Construction (4)

$ 1,500

$ 2,000

$ 1,750

Reduction in unsecured debt

1,275

675

See below

1,675

Total uses of capital

$ 1,575

$ 3,275

$ 2,425

$ 3,425

Reduction in unsecured debt (included above):

Repayment of unsecured senior notes payable with 2026 maturities

$ 650

650

$ 650

Tender offers for partial principal repayments of unsecured senior notes payable

952

Issuance of unsecured senior notes payable

(750)

Issuance of junior subordinated notes payable (3)

(1,000)

—

Unsecured senior line of credit, commercial paper, and other

223

1,423

823

Reduction in unsecured debt

$ 75

$ 1,275

$ 675

$ 1,675

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

(1)

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

(2)

Reduction primarily reflects the $1.00 billion issuance of 7.250% Series A fixed-to-fixed reset rate junior subordinated notes due 2057, as further discussed in footnote 3 below.

(3)

In August 2026, we issued $1.00 billion of 7.250% Series A fixed-to-fixed reset rate junior subordinated notes due 2057, allowing us to reduce the midpoint of our 2026 dispositions and sales of partial interests guidance by $1.0 billion. The proceeds from this issuance support our capital structure and deleveraging objectives, and the notes receive 50% equity treatment from key rating agencies for the computation of key credit metrics. Refer to the Earnings Press Release in the Supplemental Information for additional details. We do not anticipate the issuance of any common equity during 2026. As of October 26, 2026, completed dispositions and sales of partial interests aggregated $716.8 million, our share of pending dispositions and sales of partial interests subject to non-refundable deposits aggregated $355.4 million and signed letters of intent and/or purchase and sale agreement late-stage negotiations aggregated $1.55 billion. These transactions aggregate approximately $2.62 billion, exceeding the $1.90 billion midpoint of our 2026 guidance and potentially providing advanced funding of our 2027 capital needs, whereby certain dispositions and sales of partial interests may be completed in 2026 with proceeds deferred or available to be drawn in 2027, subject to timing and market conditions.

(4)

We continue to apply a disciplined approach to reduce construction spending for 2027 and seek to prioritize leased projects with high incremental returns. We expect 2027 construction spending to primarily focus on: (i) revenue- and non-revenue-enhancing capital expenditures, which are expected to represent the majority of spend, approximately half of which is associated with space that is already leased or under lease negotiations, in order to support the leasing of vacant space and renewals and re-leasing of space at our operating properties and (ii) construction spending required to complete our development and redevelopment projects that are expected to stabilize through 2028 and are 77% leased/negotiating.

As of 10/26/26

As of 8/3/26

Key Changes

to Midpoint

Key Assumptions

Low

High

Low

High

Occupancy of operating properties as of December 31, 2026

86.2 %

87.8 %

86.2 %

87.8 %

No Change

Same property performance:

Net operating income changes

(10.5) %

(8.5) %

(10.5) %

(8.5) %

Net operating income changes (cash basis)

(10.5) %

(8.5) %

(10.5) %

(8.5) %

Lease renewals and re-leasing of space:

Rental rate changes

(9.0) %

(1.0) %

(9.0) %

(1.0) %

Rental rate changes (cash basis)

(15.0) %

(7.0) %

(15.0) %

(7.0) %

Straight-line rent revenue

$ 40

$ 70

$ 45

$ 75

$5 million reduction (1)

General and administrative expenses

$ 134

$ 154

$ 134

$ 154

No Change

Capitalization of interest

$ 220

$ 260

$ 220

$ 260

Interest expense

$ 260

$ 300

$ 260

$ 300

No Change (2)

Realized gains on non-real estate investments (3)

$ 50

$ 80

$ 60

$ 90

$10 million reduction (3)

(1)

Reduction driven primarily by write-offs and reserves of deferred rent related to tenant wind-downs. Our 2026 guidance assumes a $30 million to $35 million reduction in funds from operations related to potential tenant wind-downs, of which approximately $30 million was recognized YTD through 3Q26, including approximately $16 million recognized in 3Q26.

(2)

We expect 2026 interest expense to be near the high-end of the range, reflecting, in part, interest expense associated with the $1.0 billion issuance of junior subordinated notes in August 2026.

(3)

Represents realized gains and losses included in funds from operations per share – diluted, as adjusted. Excludes unrealized gains and losses and significant gains and impairments realized on non-real estate investments, if any. The midpoint of our revised guidance range for 2026 realized gains on non-real estate investments was reduced by $10 million, primarily due to certain transactions previously expected to close in 2026 that are now expected to close in 2027. Refer to "Investments" in the Supplemental Information for additional details.

Summary of key items that may impact 2026 and 2027 results

1) Potential tenant wind-downs

2) Development-related other income

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

4) Capitalization of interest

5) 2027 Key lease expirations

2027 Key Lease Expirations

RSF

Annual Rental

Revenue

Weighted-Average

Expiration Date

Weighted-Average

Downtime

1,377,960

$100.5 million

March 2027

9 to 24 months

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

Summary of key items that may impact 2027 and 2028 results

The following key considerations for 2027 and 2028 reflect our preliminary expectations based on current market conditions. These expectations could change materially and are subject to a variety of factors, including industry, governmental, geopolitical, and macroeconomic conditions, including changes in interest rates, as well as other factors described in our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

1) Operating occupancy

2) Same property performance

3) Construction spending

4) Transactional and other capital sources

Dispositions and Sales of Partial Interests

September 30, 2026

(Dollars in thousands)

Date of

Transaction

Interest

Sold

Square Footage

Price

(Our Share)

Property

Submarket/Market

Operating

Future

Development

Completed in 1H26

$ 7,350

Non-core and land dispositions completed in 3Q26:

3825 and 3875 Fabian Way (1)

Palo Alto/San Francisco Bay Area

7/14/26

100 %

228,000

250,000

163,000

One Hampshire Street (2)

Cambridge/Greater Boston

8/21/26

100 %

104,956

—

44,900

3911, 3931, 4025, 4031, 4045, and 4075 Sorrento Valley Boulevard (3)

Sorrento Valley/San Diego

9/23/26

100 %

95,814

144,000

26,500

Dispositions completed in 3Q26

234,400

(4)

Total dispositions completed in YTD 3Q26

241,750

Completed in October 2026:

Sales of partial interests:

Campus Point by Alexandria (5)

University Town Center/San Diego

10/23/26

(5)

1,586,697

366,816

475,000

Total completed 2026 dispositions and sales of partial interests as of October 26, 2026

716,750

Our share of pending dispositions and sales of partial interests subject to:

Non-refundable deposits

355,400

Signed letters of intent and/or purchase and sale agreement late-stage negotiations

1,547,850

2,620,000

Proceeds from dispositions and sales of partial interests in excess of 2026 guidance

midpoint which may be deferred into 2027 (6)

(720,000)

2026 guidance midpoint for dispositions and sales of partial interests

$ 1,900,000

2026 guidance range for dispositions and sales of partial interests

$1,100,000 – $2,700,000

Weighted-average projected completion date of 2026 dispositions and sales of partial interests

November 2026

(7)

(1)

Represents one future development project aggregating 250,000 SF at 3825 Fabian Way and one fully leased operating building aggregating 228,000 RSF at 3875 Fabian Way in our Palo Alto submarket. These assets were acquired in 2019 with the intent to develop them for life science use. However, due to the project's macroeconomic outlook, the assets no longer aligned with our strategy and were sold to a residential developer.

(2)

Represents one vacant office property that was originally acquired with the intent to redevelop for life science use and expand our Megacampus ecosystem. The asset was sold due to the macroeconomic outlook for the project and the significant capital required to redevelop and lease the property.

(3)

Represents five operating properties, primarily comprising non-laboratory space, and one land parcel. As of 2Q26, these operating properties were 30% occupied with a weighted-average lease term of 2.4 years, and were sold due to the significant capital that would have been required to convert these properties through redevelopment for laboratory use and their misalignment with our Megacampus strategy.

(4)

Our share of dispositions completed during the three months ended September 30, 2026 had annual net operating income of $4.4 million (based on 2Q26 annualized results) with a weighted-average disposition date of July 29, 2026.

(5)

In October 2026, we completed the sale of an approximately 29% noncontrolling interest in the Campus Point by Alexandria Megacampus for $475.0 million. We expect our new partner's initial share of the annual distributions to approximate 5.5% of its $475.0 million capital contribution. Upon completion of the sale, our ownership interest decreased from 59% as of September 30, 2026 to approximately 30%. We expect to fund the majority of future construction costs at the Megacampus, which is expected to reduce the ownership interests of our new joint venture partner and existing joint venture partner over time to below 20% and 30%, respectively, and increase our ownership interest to over 50%. We retained control and therefore continue to consolidate the properties held by the real estate joint venture. Accordingly, we accounted for the $44.2 million difference between the consideration received and the book value of our interest sold as an increase to additional paid-in capital, with no gain recognized in earnings.

(6)

Refer to "Key Sources and Uses of Capital" under "2026 Guidance" in the Earnings Press Release for additional details.

(7)

Including the impact of the $1.0 billion junior subordinated notes issued during 3Q26, the weighted-average projected completion date of these sources of capital is expected to be October 2026.

Earnings Call Information and About the Company

September 30, 2026

We will host a conference call on Tuesday, October 27, 2026, at 2:00 p.m. Eastern Time ("ET")/11:00 a.m. Pacific Time ("PT"), which is open to the general public, to discuss our financial and operating results for the third quarter ended September 30, 2026. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 2:00 p.m. ET/11:00 a.m. PT and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the "For Investors" section. A replay of the call will be available for a limited time from 4:00 p.m. ET/1:00 p.m. PT on Tuesday, October 27, 2026, through 4:00 p.m. ET on Tuesday, November 3, 2026. The replay number is (855) 669-9658 or (412) 317-0088, and the access code is 6457127.

Additionally, a copy of this Earnings Press Release and Supplemental Information for the third quarter ended September 30, 2026 is available in the "For Investors" section of our website at www.are.com or by following this link: https://www.are.com/fs/2026q3.pdf.

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

About the Company

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 ® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus ecosystems in AAA life science and advanced technology innovation cluster locations, including Greater Boston, San Diego, the San Francisco Bay Area, Seattle, Maryland, Research Triangle, and New York City. As of September 30, 2026, Alexandria has a total market capitalization of $21.01 billion and an asset base that includes 36.5 million RSF of operating properties and 1.9 million RSF of Class A/A+ properties undergoing construction. Alexandria has a long-standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants' ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For more information on Alexandria, please visit www.are.com.

Forward-Looking Statements

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

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

Consolidated Statements of Operations

September 30, 2026

(Dollars in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

9/30/26

9/30/25

Revenues:

Income from rentals

$ 653,618

$ 643,210

$ 653,013

$ 728,872

$ 735,849

$ 1,949,841

$ 2,216,303

Other income

17,564

19,574

18,009

25,542

16,095

55,147

55,839

Total revenues

671,182

662,784

671,022

754,414

751,944

2,004,988

2,272,142

Expenses:

Rental operations

227,931

207,336

224,142

232,543

239,234

659,409

690,062

General and administrative

40,915

36,861

34,685

28,020

29,224

112,461

89,027

Interest

79,687

64,342

64,584

65,674

54,852

208,613

161,024

Depreciation and amortization

304,419

304,384

305,441

322,063

340,230

914,244

1,028,415

Impairment of real estate

637,904

(1)

222,470

5,499

1,717,188

323,870

865,873

485,630

Total expenses

1,290,856

835,393

634,351

2,365,488

987,410

2,760,600

2,454,158

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

413

(147)

(304)

201

341

(9,327)

Investment income (losses)

23,990

133,227

(4,582)

(3,890)

28,161

152,635

(52,453)

(Loss) gain on early extinguishment of debt

(3,323)

—

366,435

—

(107)

363,112

(107)

Gain on sales of real estate

—

619,914

9,366

—

22,531

Net (loss) income

(598,932)

(38,969)

398,377

(995,354)

(197,845)

(239,524)

(221,372)

Net income attributable to noncontrolling interests

(38,754)

(33,814)

(36,724)

(85,521)

(34,909)

(109,292)

(127,323)

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

stockholders

(637,686)

(72,783)

361,653

(1,080,875)

(232,754)

(348,816)

(348,695)

Net income attributable to unvested restricted stock awards

(766)

(908)

(2,779)

(965)

(2,183)

(2,603)

(7,452)

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

common stockholders

$ (638,452)

$ (73,691)

$ 358,874

$ (1,081,840)

$ (234,937)

$ (351,419)

$ (356,147)

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

Inc.'s common stockholders:

Basic

$ (3.74)

$ (0.43)

$ 2.10

$ (6.35)

$ (1.38)

$ (2.06)

$ (2.09)

Diluted

$ (3.74)

$ (0.43)

$ 2.10

$ (6.35)

$ (1.38)

$ (2.06)

$ (2.09)

Weighted-average shares of common stock outstanding:

Basic

170,751

170,718

170,598

170,394

170,181

170,689

170,278

Diluted

170,751

170,718

170,867

170,394

170,181

170,689

170,278

Dividends declared per share of common stock

$ 0.72

$ 1.32

$ 2.16

$ 3.96

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

Consolidated Balance Sheets

September 30, 2026

(In thousands)

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

Assets

Investments in real estate

$ 28,426,999

$ 29,125,895

$ 28,830,116

$ 28,689,996

$ 31,743,917

Investments in unconsolidated real estate joint ventures

28,580

28,910

30,520

30,677

39,601

Cash and cash equivalents

508,855

470,449

418,720

549,062

579,474

Restricted cash

4,908

4,690

4,665

4,693

4,705

Tenant receivables

6,168

7,661

7,362

6,672

6,409

Deferred rent

1,210,911

1,209,722

1,200,047

1,179,403

1,257,378

Deferred leasing costs

452,164

453,761

456,405

458,311

505,241

Investments

1,735,673

1,685,695

1,536,419

1,501,249

1,537,638

Other assets

1,677,464

1,645,443

1,683,143

1,661,772

1,700,785

Total assets

$ 34,051,722

$ 34,632,226

$ 34,167,397

$ 34,081,835

$ 37,375,148

Liabilities, Noncontrolling Interests, and Equity

Unsecured senior notes payable

$ 10,820,687

$ 10,818,366

$ 11,166,009

$ 12,047,394

$ 12,044,999

Junior subordinated notes payable

985,143

—

Unsecured senior line of credit and commercial paper

1,091,166

1,994,508

1,353,986

353,161

1,548,542

Accounts payable, accrued expenses, and other liabilities

2,604,418

2,513,526

2,154,782

2,397,073

2,432,726

Dividends payable

131,999

130,468

128,880

127,771

230,603

Total liabilities

15,633,413

15,456,868

14,803,657

14,925,399

16,256,870

Commitments and contingencies

Redeemable noncontrolling interests

9,119

9,234

58,788

58,662

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

Common stock

1,708

1,707

1,705

1,703

Additional paid-in capital

14,839,182

15,585,296

15,763,321

15,497,760

16,669,802

Accumulated other comprehensive loss

(33,691)

(33,027)

(30,936)

(29,395)

(32,203)

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

14,807,199

15,553,976

15,734,092

15,470,070

16,639,302

Noncontrolling interests

3,601,991

3,612,263

3,620,414

3,627,578

4,420,314

Total equity

18,409,190

19,166,239

19,354,506

19,097,648

21,059,616

Total liabilities, noncontrolling interests, and equity

$ 34,051,722

$ 34,632,226

$ 34,167,397

$ 34,081,835

$ 37,375,148

Funds From Operations and Funds From Operations per Share

September 30, 2026

(In thousands)

The following table presents a reconciliation of net income (loss) attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with U.S.

generally accepted accounting principles ("GAAP"), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria's

common stockholders – diluted, and funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below:

Three Months Ended

Nine Months Ended

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

9/30/26

9/30/25

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

$ (638,452)

$ (73,691)

$ 358,874

$(1,081,840)

$ (234,937)

$ (351,419)

$ (356,147)

Depreciation and amortization of real estate assets

302,240

302,238

303,296

319,865

338,182

907,774

1,021,292

Noncontrolling share of depreciation and amortization from consolidated real estate JVs

(32,458)

(31,518)

(29,473)

(39,942)

(45,327)

(93,449)

(114,785)

Our share of depreciation and amortization from unconsolidated real estate JVs

858

805

914

855

852

2,577

2,848

Gain on sales of real estate

—

(307,132)

(9,824)

—

(22,989)

Impairment of real estate – rental properties and land

637,904

(1)

222,470

5,499

1,439,303

323,870

865,873

454,960

Allocation to unvested restricted stock awards

(1,042)

(2,201)

(2,181)

(1,903)

(1,648)

(7,141)

(3,590)

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

269,050

418,103

636,929

329,206

371,168

1,324,215

981,589

Unrealized (gains) losses on non-real estate investments

(21,563)

(131,933)

10,332

(98,548)

(18,515)

(143,164)

71,568

Significant realized losses on non-real estate investments

—

103,329

—

Impairment of non-real estate investments

13,580

(3)

8,998

12,448

20,181

25,139

35,026

75,535

Impairment of real estate

—

12,619

—

39,343

Loss (gain) on early extinguishment of debt

3,323

—

(366,435)

—

107

(363,112)

107

Acceleration of stock compensation expense due to executive officer resignation

—

2,455

—

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

—

(341)

—

285

Allocation to unvested restricted stock awards

909

2,674

(363)

(74)

3,496

(2,156)

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

adjusted

$ 264,423

$ 296,077

$ 295,948

$ 368,538

$ 377,825

$ 856,461

$ 1,166,271

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

(1)

Primarily reflects impairment charges to reduce the carrying amounts of real estate assets classified as held for sale as of 3Q26 to their respective estimated fair values less costs to sell, including (i) $343.3 million related to a development project in our Fenway submarket that is expected to be sold to an institutional user which would have required significant capital to complete and lease, (ii) $135.3 million related to four non-Megacampus vacant office properties in our Palo Alto submarket that would have required significant capital investment to convert to laboratory use, (iii) $79.2 million related to six non-Megacampus operating properties in our San Carlos submarket that would have required significant capital investment to convert to laboratory use, (iv) $50.4 million related to a land parcel located outside of a Megacampus aggregating 344,000 SF in our Austin submarket, and (v) $41.6 million related to one future development project in our Palo Alto submarket that, due to the project's financial outlook, would have required significant capital to complete the development and lease the properties.

(2)

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

(3)

Primarily relates to one non-real estate investment in a privately held entity that does not report NAV.

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

Three Months Ended

Nine Months Ended

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

9/30/26

9/30/25

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

$ (3.74)

$ (0.43)

$ 2.10

$ (6.35)

$ (1.38)

$ (2.06)

$ (2.09)

Depreciation and amortization of real estate assets

1.58

1.59

1.61

1.65

1.73

4.77

5.34

Gain on sales of real estate

—

(1.80)

(0.06)

—

(0.14)

Impairment of real estate – rental properties and land

3.74

1.30

0.03

8.45

1.90

5.07

2.67

Allocation to unvested restricted stock awards

(0.01)

(0.02)

(0.01)

(0.02)

(0.01)

(0.04)

(0.02)

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

diluted

1.57

2.44

3.73

1.93

2.18

7.74

5.76

Unrealized (gains) losses on non-real estate investments

(0.13)

(0.77)

0.06

(0.58)

(0.11)

(0.84)

0.42

Significant realized losses on non-real estate investments

—

0.61

—

Impairment of non-real estate investments

0.08

0.05

0.07

0.12

0.15

0.20

0.45

Impairment of real estate

—

0.07

—

0.23

Loss (gain) on early extinguishment of debt

0.02

—

(2.14)

—

(2.12)

—

Acceleration of stock compensation expense due to executive officer resignation

—

0.01

—

Allocation to unvested restricted stock awards

—

0.01

—

0.02

(0.01)

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

diluted, as adjusted

$ 1.54

$ 1.73

$ 2.16

$ 2.22

$ 5.00

$ 6.85

Weighted-average shares of common stock outstanding – diluted

Earnings per share – diluted

170,751

170,718

170,867

170,394

170,181

170,689

170,278

Funds from operations – diluted, per share

171,418

171,210

170,867

170,504

170,305

171,169

170,351

Funds from operations – diluted, as adjusted, per share

171,418

171,210

170,867

170,504

170,305

171,169

170,351

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

SOURCE Alexandria Real Estate Equities, Inc.