What Alexandria Real Estate Equities reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
The rest of Item 2
During the three months ended December 31, 2025 · 1,471
Total 2025 dispositions and sales of partial interests(1) · $1,812
Types of dispositions during the year ended December 31, 2025(1) · % of Sales Price
Land · 21%
Non-stabilized properties · 59
Stabilized properties · 20
Total 2025 dispositions · 100%
(1)Excludes the exchange of partial interests in two consolidated real estate joint ventures, Pacific Technology Park and 199 East Blaine Street, during the three months
ended September 30, 2025.
Increased occupancy and leasing progress on temporary vacancy
Operating occupancy as of September 30, 2025 · 90.6%
Assets with vacancy designated as held for sale during the three months ended December 31, 2025 · 0.5
Early termination of one lease aggregating 170,618 RSF at 259 East Grand Avenue in South San Francisco, originally set to expire in 2027, which is already fully re-leased to a multinational pharmaceutical tenant with occupancy expected to commence in 2H26 · (0.5) · (1)
Reclassification of 401 Park Avenue from redevelopment to operating upon our decision to pursue leasing as office space rather than convert to laboratory space · (0.3)
Other changes in occupancy, primarily due to the commencement of leases during 4Q25 · 0.6
Operating occupancy as of December 31, 2025 · 90.9
Key vacant space leased with future delivery · 2.5 · (2)
Operating occupancy as of December 31, 2025, including leased but not yet delivered space · 93.4%
(1)Refer to “Projected results” in item 7 for key considerations on guidance for the three months ending March 31, 2026.
(2)Represents temporary vacancies as of December 31, 2025 aggregating 899,259 RSF, primarily in the Greater Boston, San Francisco Bay Area, and Seattle markets,
that are leased and expected to be occupied upon completion of building and/or tenant improvements. The weighted-average expected delivery date is approximately
August 2026 and the expected annual rental revenue is approximately $52 million.
Reduction of capital spend and funding needs
•During the three months ended December 31, 2025, we reduced future construction funding requirements across our active
pipeline by: i) selling or designating three projects as held for sale and ii) pivoting one project to a lower investment strategy;
enabling us to redeploy future construction savings and sale proceeds into opportunities aligned with our long‑term
Megacampus™ strategy.
•We reduced the overall size of our future construction funding needs on current development and redevelopment projects
by more than $300 million over the next few years.
•3% reduction in non-income-producing assets to 17% as a percentage of gross assets.
•We are evaluating business strategy for four additional projects.
Alexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $10 million, commencing
during the three months ended December 31, 2025, with an additional $97 million of incremental annual net operating income
anticipated to deliver by 4Q26 primarily from projects that are 86% leased/negotiating.
•During the three months ended December 31, 2025, we placed into service one development project aggregating 139,979
RSF that is 100% occupied at 10075 Barnes Canyon Road in our Sorrento Mesa submarket and delivered incremental annual
net operating income of $10 million.
•Annual net operating income (cash basis) from recently delivered projects is expected to increase by $26 million upon the
burn-off of initial free rent, which has a weighted-average remaining period of approximately six months.
•77% of the RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.
(dollars in millions) · Incremental Annual Net Operating Income · RSF · Leased/Negotiating Percentage
Expected to be placed into service:
Fiscal year 2026 · $97 · (1) · 699,933 · (2) · 86% · (3)
Fiscal years 2027-2028 · 123 · 1,614,994 · 51%
$220
Projects under business strategy evaluation:
Fiscal years 2026-2028 · $113 · 1,248,227 · 8%
(1)Includes expected partial deliveries through 2026 from projects expected to stabilize in 2027-2028, including speculative future leasing that is not yet fully
committed. Refer to the initial and stabilized occupancy years under “New Class A/A+ development and redevelopment properties: current projects” in Item 2 for
(2)Represents the RSF of projects expected to stabilize in 2026. Does not include RSF for partial deliveries through 2026 from projects expected to stabilize in
2027-2028.
(3)Represents the current leased/negotiating percentage of development and redevelopment projects that are expected to stabilize through 2026.
Trends that may affect our future results
Currently identified key market trends and uncertainties that had or may have a negative effect on our business are discussed
below. Although we seek to minimize the risks posed by these trends and uncertainties as discussed in the mitigating factors section
below, there can be no assurance that these measures will be successful in preventing material impacts on our future results of
operations, financial position, and cash flows. Refer to “Item 1A. Risk factors” in this annual report on Form 10-K for discussion of
additional risks we face.
New supply and reduced demand for life science space may continue to negatively affect our rental rates, occupancy, and
operating results.
•Influx of supply. During and after the COVID-19 pandemic, the shift toward hybrid and remote work arrangements as well as
exceptionally strong demand for life science space, driven by public health urgency and supported by historically low interest
rates, prompted certain office and other real estate investors to repurpose underutilized office spaces into laboratory facilities,
