Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Inve ...

Every morning I start the day by reading the newspapers. Multiple ones, because I want to avoid getting into an "information echo chamber." Previously, you could skip a day and not miss anything noteworthy. ButI'm Luuk Wierenga, an economics teacher from the Netherlands with a strong focus on income investing. My investment journey began during COVID-19, and since then, I've specialized in identifying high-yield Real Estate Investment Trusts (REITS) that provide stable passive income and/or a possible mean ...

Financial Data and Key Metrics Changes - Total revenues increased by 4% and adjusted EBITDA rose by 5% for Q1 2025 compared to Q1 2024, after excluding the impact of dispositions completed since the beginning of 2024 [38] - FFO per share diluted as adjusted was $2.30 for Q1 2025, with collections remaining high at 99.9% [39][40] - Same property NOI decreased by 3.1% but increased by 5.1% on a cash basis for the quarter [42] Business Line Data and Key Metrics Changes - The company reported that 75% of annual rental revenue comes from collaborative mega campuses, with 89% of leasing activity in Q1 2025 originating from existing tenants [40] - The average lease term for completed leases was ten years, above the historical average [40] - The first quarter saw 1,030,553 square feet leased at a rental rate increase of 18.57.5% on a cash basis [31] Market Data and Key Metrics Changes - The life science industry continues to face a massive unmet medical need, with nine out of ten diseases lacking approved therapies [20] - U.S. headquartered companies account for 55% of global biopharmaceutical R&D investment [21] - The demand for innovation in the life science sector remains strong, with drug approvals moving forward [14] Company Strategy and Development Direction - The company aims to deepen relationships with strong tenants and capture future growth opportunities in the life science sector [27] - Alexandria is focusing on transforming its asset base into predominantly mega campuses to capture a greater share of future demand [35] - The company is strategically disposing of non-core assets to fund high-quality development and redevelopment projects [35] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting that the demand for life science innovation remains robust despite challenges [19][26] - The company is positioned to benefit from ongoing M&A activity in the life science industry and anticipates positive developments in FDA approvals [14][19] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to navigate challenging market conditions [49] Other Important Information - The company has a strong balance sheet with a corporate credit rating in the top 10% of all publicly traded U.S. REITs [48] - The average remaining debt term is 12.2 years, with low debt maturities over the next three years [49] - The company has completed $176 million in dispositions and has another $434 million subject to nonrefundable deposits or letters of intent [36] Q&A Session Summary Question: Is the new guidance a worst-case scenario regarding the biotech market? - Management clarified that the guidance reflects their best estimate based on current facts, not a worst-case or best-case scenario [54][55] Question: Is the current pace of leasing in private biotech sustainable for 2025? - Management indicated that venture funds have significant dry capital and are deploying it judiciously, suggesting sustainability in leasing activity [56][58] Question: What does "doing the right thing at the worst time" mean for Alexandria now? - Management emphasized the importance of aligning with innovative companies and continuing to develop mega campuses despite the current market sentiment [63][64] Question: What is the outlook for capitalized interest adjustments this year? - Management stated that the current estimate for capitalized interest is their best guess, with good visibility for the remainder of the year [66] Question: How is the capital markets environment affecting dispositions? - Management expressed confidence in the buyer pool for land and non-core assets, noting strong demand from residential developers and private equity [70][72]

Investors were bearish on the equity of Alexandria Real Estate Equities (ARE -5.68%) throughout Tuesday's trading session. After the office space-focused real estate investment trust (REIT) reported its latest quarterly results, its stock fell and continued to wallow. It closed the day almost 6% lower in price. Meanwhile, the benchmark S&P 500 (^GSPC 0.58%) crawled 0.6% higher. Flipping into the red The company missed badly on the bottom line; analysts tracking Alexandria's stock were anticipating a profit ...

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Financial Data and Key Metrics Changes - Total revenues increased by 4% and adjusted EBITDA rose by 5% for Q1 2025 compared to Q1 2024, after excluding the impact of dispositions completed since the beginning of 2024 [38] - FFO per share diluted as adjusted was $2.30 for Q1 2025, with collections remaining high at 99.9% [39][40] - Same property NOI decreased by 3.1% but increased by 5.1% on a cash basis for the quarter [42] Business Line Data and Key Metrics Changes - The company reported 1,030,553 square feet leased in Q1 2025, with rental rate increases for renewed and released space averaging 18.57.5% on a cash basis [31][40] - The average lease term was strong at 10.1 years, with 75% of annual rental revenue coming from collaborative mega campuses [40] - The development pipeline for 2025 and 2026 is expected to add approximately $171 million in annual NOI by the end of 2026 [29] Market Data and Key Metrics Changes - The life science industry continues to face a massive unmet medical need, with nine out of ten diseases lacking approved therapies [20] - U.S. headquartered companies account for 55% of global biopharmaceutical R&D investment [21] - The demand for innovation in the life science sector remains strong, with drug approvals moving forward [14] Company Strategy and Development Direction - The company aims to reinforce its position in the biotech sector by focusing on its mega campus strategy and maintaining strong relationships with tenants [7][39] - Alexandria is committed to capturing and retaining strong tenants while deepening relationships with current tenants to position the portfolio for future growth [26] - The company is strategically disposing of non-core assets to fund high-quality development and redevelopment projects [35] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting that the demand for life science innovation remains robust despite challenges [19][26] - The company is focused on aligning with innovative and disruptive companies to capture future growth opportunities [64] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to navigate challenging market conditions [49] Other Important Information - The company has a conservative FFO payout ratio of 57% and an attractive dividend yield of 5.7% as of the end of Q1 [51] - Alexandria's balance sheet ranks in the top 10% of all publicly traded U.S. REITs, with a long weighted average remaining debt term [48][49] Q&A Session Summary Question: Is the new guidance a worst-case scenario regarding the biotech market? - Management clarified that the guidance reflects their best estimate based on current facts, not specifically a worst-case or best-case scenario [55] Question: Is the current pace of leasing within private biotech sustainable for 2025? - Management indicated that venture funds still have significant capital to deploy, and while they are being judicious, strong companies continue to receive funding [58][59] Question: What does "doing the right thing at the worst time" mean for Alexandria now? - Management emphasized the importance of aligning with innovative companies and continuing to develop mega campuses, viewing current market conditions as an opportunity rather than a setback [64][65] Question: What is the potential for adjustments in capitalized versus expense interest this year? - Management stated that the current estimate for capitalized interest is their best guess, with good visibility for the remainder of the year [66] Question: How is the capital markets environment affecting dispositions? - Management noted a healthy demand for land in prime locations and a strong buyer pool for non-core assets, indicating confidence in completing dispositions [70][72]

Alexandria Real Estate Equities (ARE) reported $758.2 million in revenue for the quarter ended March 2025, representing a year-over-year decline of 1.4%. EPS of $2.30 for the same period compares to $0.97 a year ago. View all Key Company Metrics for Alexandria Real Estate Equities here>>> The reported revenue compares to the Zacks Consensus Estimate of $749.53 million, representing a surprise of +1.16%. The company delivered an EPS surprise of +0.88%, with the consensus EPS estimate being $2.28. Shares of A ...

Alexandria Real Estate Equities (ARE) came out with quarterly funds from operations (FFO) of $2.30 per share, beating the Zacks Consensus Estimate of $2.28 per share. This compares to FFO of $2.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 0.88%. A quarter ago, it was expected that this life science real estate company would post FFO of $2.39 per share when it actually produced FFO of $2.39, delivering no surprise.Over the las ...

[Company Highlights](index=3&type=section&id=COMPANY%20HIGHLIGHTS) [Mission and Cluster Model](index=3&type=section&id=Mission%20and%20Cluster%20Model) Alexandria focuses on its mission to advance human health by creating and connecting life science ecosystems, employing a cluster model to concentrate assets in top innovation hubs for collaboration and growth - The company's mission is to create, develop, and operate dynamic ecosystems that advance and accelerate life-changing innovation for human health[9](index=9&type=chunk) [Alexandria's Megacampus™ Platform](index=4&type=section&id=ALEXANDRIA%27S%20MEGACAMPUS%20PLATFORM) The Megacampus™ platform is central to Alexandria's strategy, accounting for a significant majority of its revenue and operating square footage, demonstrating superior operating performance with higher average occupancy - The Megacampus™ platform is a core driver of superior operating results, generating **75% of the company's annual rental revenue** and comprising **71% of its operating rentable square feet (RSF)**[14](index=14&type=chunk) - Megacampus properties have shown a **4% occupancy outperformance** compared to non-megacampus properties, with an average occupancy of **95% since 2021**[15](index=15&type=chunk) [Sector-Leading Client Base](index=5&type=section&id=SECTOR-LEADING%20CLIENT%20BASE) Alexandria boasts a high-quality, diverse client base of approximately 750 tenants, providing stable and long-duration cash flows, with a significant portion of revenue from investment-grade or large-cap tenants - **51% of the company's annual rental revenue** is derived from investment-grade or publicly traded large-cap tenants[27](index=27&type=chunk) - **87% of the top 20 tenants' annual rental revenue** is from investment-grade or publicly traded large-cap tenants[19](index=19&type=chunk)[27](index=27&type=chunk) - The company has a long-duration weighted-average remaining lease term of **7.6 years for all tenants** and **9.6 years for its top 20 tenants**[27](index=27&type=chunk) - Lease structures are favorable, with **98% containing annual rent escalations** and **91% being triple net leases**[28](index=28&type=chunk)[29](index=29&type=chunk) [Operational Excellence and Value Creation](index=6&type=section&id=OPERATIONAL%20EXCELLENCE%20AND%20VALUE%20CREATION) Alexandria demonstrates strong long-term value creation, significantly outperforming major REIT and market indices since its 1997 IPO, achieving sector-leading FFO per share growth and exceptional operational metrics - Since its IPO in May 1997, Alexandria has delivered a total shareholder return of **1,427%**, outperforming indices like the S&P 500 (**1,001%**) and MSCI US REIT Index (**881%**)[23](index=23&type=chunk)[24](index=24&type=chunk) - The company projects leading five-year FFO per share growth (2020-2025) compared to other FTSE NAREIT Equity Health Care REITs[25](index=25&type=chunk)[26](index=26&type=chunk) - Tenant rent collections have been consistently strong, averaging **99.8% from Q1 2021 to Q1 2025**[31](index=31&type=chunk) [Balance Sheet and Dividends](index=8&type=section&id=BALANCE%20SHEET%20AND%20DIVIDENDS) Alexandria maintains a strong and flexible fortress balance sheet, characterized by significant liquidity, a high percentage of fixed-rate debt, and one of the longest weighted-average remaining debt terms among S&P 500 REITs, with a consistent history of strong and increasing dividends Key Balance Sheet Metrics as of March 31, 2025 | Metric | Value | | :--- | :--- | | **Liquidity** | $5.3 billion | | **Target Net Debt/Adj. EBITDA (4Q25)** | ≤5.2x | | **Fixed-Rate Debt (Avg. since 2021)** | 97.9% | | **Debt Maturing in Next 3 Years** | 13% | | **Weighted-Average Remaining Debt Term** | 12.2 years | | **Weighted-Average Debt Interest Rate** | 3.95% | - Alexandria has the longest weighted-average remaining debt term (**12.2 years**) among S&P 500 REITs, which is double the S&P 500 REIT average of **6.1 years**[35](index=35&type=chunk)[36](index=36&type=chunk) Dividend Highlights (1Q25) | Metric | Value | | :--- | :--- | | **Dividend Yield** | 5.7% | | **Average Annual Dividend Per-Share Growth** | 4.5% | | **Payout Ratio** | 57% | | **Net Cash from Ops After Dividends (2021-2025E)** | $2.3 billion | [Earnings Press Release](index=10&type=section&id=EARNINGS%20PRESS%20RELEASE) [First Quarter Ended March 31, 2025 Financial and Operating Results](index=10&type=section&id=First%20Quarter%20Ended%20March%2031%2C%202025%20Financial%20and%20Operating%20Results) For the first quarter of 2025, Alexandria reported a net loss per share of $0.07 and Funds From Operations (FFO) per share, as adjusted, of $2.30, marked by solid leasing volume, strong rental rate increases, capital recycling progress, and new development project deliveries Q1 2025 Financial Results vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues (in millions) | $758.2 | $769.1 | | Net Loss per Share - Diluted | $(0.07) | $0.97 (income) | | FFO per Share - Diluted, as Adjusted | $2.30 | $2.35 | Q1 2025 Leasing Activity | Metric | Value | | :--- | :--- | | **Total Leasing Activity** | 1,030,553 RSF | | **Lease Renewals/Re-leasing** | 884,408 RSF | | **Rental Rate Increase** | 18.5% | | **Rental Rate Increase (Cash Basis)** | 7.5% | - The company maintains a strong balance sheet with **$5.3 billion in liquidity** and a Net Debt and Preferred Stock to Adjusted EBITDA ratio of **5.9x for Q1 2025 annualized**[42](index=42&type=chunk)[43](index=43&type=chunk) - Development and redevelopment projects placed into service in Q1 2025 are expected to generate an incremental **$37 million in annual net operating income**[48](index=48&type=chunk)[49](index=49&type=chunk) - Occupancy declined from **94.6% at year-end 2024 to 91.7% at the end of Q1 2025**, primarily due to **2.9% of RSF becoming vacant** from lease expirations. Of this vacancy, **1.3% is already re-leased** for future delivery or is under negotiation[50](index=50&type=chunk) [Guidance](index=11&type=section&id=Guidance) Alexandria updated its full-year 2025 guidance, reducing the midpoint for FFO per share, as adjusted, by $0.07 to $9.26, primarily due to slower leasing impacting occupancy and NOI forecasts, and increased interest expense, partially offset by reduced G&A expenses 2025 FFO Per Share Guidance Change | Metric | As of 4/28/25 | As of 1/27/25 | Change | | :--- | :--- | :--- | :--- | | **FFO per share, as adjusted** | $9.16 to $9.36 | $9.23 to $9.43 | - | | **Midpoint** | $9.26 | $9.33 | Reduction of $0.07 | Key Changes to 2025 Guidance Midpoints | Assumption | Change | | :--- | :--- | | **Occupancy Percentage (Year-End)** | 70 bps reduction | | **Same Property NOI** | 70 bps reduction | | **Same Property NOI (Cash Basis)** | 20 bps reduction | | **Straight-Line Rent Revenue** | $15 million reduction | | **General & Administrative Expenses** | $17 million reduction | | **Interest Expense** | $20 million increase | - The guidance for dispositions and sales of partial interests was increased by **$250 million at the midpoint**, primarily to fund a **$150 million increase** in the midpoint for acquisitions and other opportunistic capital uses[71](index=71&type=chunk) [Dispositions and Sales of Partial Interests](index=13&type=section&id=Dispositions%20and%20Sales%20of%20Partial%20Interests) As of April 28, 2025, Alexandria has made significant progress towards its capital recycling goals, completing $176 million in dispositions and having an additional $433 million in pending transactions, totaling $609 million, representing 31% of its updated 2025 guidance midpoint 2025 Dispositions and Sales of Partial Interests (in millions) | Status | Our Share | | :--- | :--- | | **Completed in 1Q25** | $176.4 | | **Pending Transactions** | $432.5 | | **Total Completed and Pending** | $608.9 | | **2025 Guidance Range** | $1,450 - $2,450 | - A notable completed transaction in Q1 2025 was the sale of Costa Verde land for **$124 million**, for which Alexandria provided **$91 million in seller financing**[72](index=72&type=chunk)[73](index=73&type=chunk) [Consolidated Statements of Operations](index=14&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statement of Operations for Q1 2025 shows total revenues of $758.2 million, a slight decrease from Q1 2024, and a net loss attributable to common stockholders of $11.6 million, a significant shift from prior-year net income, primarily due to unrealized losses on investments and impairment charges Consolidated Statements of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $758,158 | $769,108 | | **Total Expenses** | $682,162 | $593,763 | | **Impairment of Real Estate** | $32,154 | $0 | | **Investment (Loss) Income** | $(49,992) | $43,284 | | **Net (Loss) Income Attributable to Common Stockholders** | $(11,599) | $166,886 | [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Alexandria's consolidated balance sheet shows total assets of $37.60 billion, a slight increase from year-end 2024, while total liabilities increased and total equity decreased, reflecting share repurchases and the net loss for the quarter Consolidated Balance Sheet Highlights (in thousands) | Line Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Investments in Real Estate** | $32,121,712 | $32,110,039 | | **Total Assets** | $37,600,428 | $37,527,449 | | **Total Liabilities** | $15,600,870 | $15,128,988 | | **Total Equity** | $21,989,946 | $22,378,489 | [Funds From Operations and Funds From Operations per Share](index=15&type=section&id=Funds%20From%20Operations%20and%20Funds%20From%20Operations%20per%20Share) For Q1 2025, Funds From Operations (FFO) attributable to common stockholders, as adjusted, was $392.0 million, or $2.30 per diluted share, with reconciliation from net loss including significant add-backs for depreciation, unrealized investment losses, and real estate impairment FFO Reconciliation Highlights - Q1 2025 (in thousands) | Line Item | Amount | | :--- | :--- | | **Net Loss Attributable to Common Stockholders** | $(11,599) | | Depreciation and Amortization of Real Estate | $339,381 | | Unrealized Losses on Non-Real Estate Investments | $68,145 | | Impairment of Real Estate | $32,154 | | **FFO Attributable to Common Stockholders - Diluted, As Adjusted** | **$392,009** | FFO Per Share - Diluted, As Adjusted (Quarterly Trend) | Quarter | FFO/Share (Adj.) | | :--- | :--- | | **Q1 2025** | $2.30 | | **Q4 2024** | $2.39 | | **Q3 2024** | $2.37 | | **Q2 2024** | $2.36 | | **Q1 2024** | $2.35 | [Supplemental Information](index=16&type=section&id=SUPPLEMENTAL%20INFORMATION) [Company Profile](index=16&type=section&id=Company%20Profile) This section provides a corporate overview of Alexandria Real Estate Equities, Inc., highlighting its position as a leading life science REIT focused on collaborative Megacampus™ ecosystems in AAA innovation clusters, supported by a high-quality tenant base and experienced management - As of March 31, 2025, Alexandria has a total market capitalization of **$28.8 billion** and an asset base of **39.6 million RSF of operating properties** and **4.0 million RSF of properties under construction**[89](index=89&type=chunk) - The executive and senior management team consists of **62 individuals** with an average of **24 years of real estate experience**, including **13 years with Alexandria**[91](index=91&type=chunk)[92](index=92&type=chunk) [Financial and Asset Base Highlights](index=17&type=section&id=Financial%20and%20Asset%20Base%20Highlights) This section presents a five-quarter summary of key financial data and operating statistics, including a 70% operating margin, a Net Debt and Preferred Stock to Adjusted EBITDA ratio of 5.9x, 91.7% operating property occupancy, and 18.5% rental rate increase on renewed/re-leased space for Q1 2025 Selected Financial and Operating Metrics (Q1 2025) | Metric | Value | | :--- | :--- | | **Operating Margin** | 70% | | **Adjusted EBITDA Margin** | 71% | | **Net Debt & Pref. Stock to Adj. EBITDA (Qtr Ann.)** | 5.9x | | **Total Debt & Pref. Stock to Gross Assets** | 30% | | **Fixed-Charge Coverage Ratio (Qtr Ann.)** | 4.3x | | **Occupancy of Operating Properties** | 91.7% | | **Rental Rate Change (Renewals/Re-leasing)** | 18.5% | [High-Quality and Diverse Client Base](index=18&type=section&id=High-Quality%20and%20Diverse%20Client%20Base) Alexandria's stability is underpinned by its diverse base of approximately 750 tenants, with 51% of annual rental revenue from investment-grade or publicly traded large-cap companies, highlighting strong tenant relationships, long-duration leases, and exceptional rent collection rates - The tenant base is diversified across multinational pharma, public and private biotech, institutions, and other high-credit entities[110](index=110&type=chunk)[111](index=111&type=chunk) - Tenant collections remained robust, with **99.9% of Q1 2025 rents** and **99.8% of April 2025 rents collected** as of April 28, 2025[111](index=111&type=chunk) - The weighted-average remaining lease term is **9.6 years for the top 20 tenants** and **7.6 years for the entire portfolio**[111](index=111&type=chunk) [Internal Growth](index=19&type=section&id=Internal%20Growth) This section details the drivers of Alexandria's internal growth, including same-property performance, leasing activity, and lease structure, noting a decline in same-property NOI in Q1 2025 due to specific large expirations, offset by strong rental rate growth and long-term leases with embedded annual rent escalations [Same Property Performance](index=20&type=section&id=Same%20Property%20Performance) For Q1 2025, same-property net operating income (NOI) decreased by 3.1% on a GAAP basis but increased by 5.1% on a cash basis compared to Q1 2024, with the GAAP decline significantly impacted by 768,080 RSF of lease expirations Q1 2025 Same Property Performance vs. Q1 2024 | Metric | % Change | | :--- | :--- | | **Net Operating Income (GAAP)** | (3.1)% | | **Net Operating Income (Cash Basis)** | 5.1% | - Excluding the impact of six specific properties with large lease expirations, the same property NOI change would have been **0.1% (GAAP)** and **9.0% (cash basis)**[116](index=116&type=chunk) [Leasing Activity](index=21&type=section&id=Leasing%20Activity) In Q1 2025, Alexandria executed leases for a total of 1,030,553 RSF, achieving a significant rental rate increase of 18.5% on a straight-line basis and 7.5% on a cash basis for renewed or re-leased space, with a weighted-average lease term of 10.1 years Q1 2025 Leasing Activity on Renewed/Re-leased Space | Metric | Value | | :--- | :--- | | **RSF** | 884,408 | | **Rental Rate Change (Straight-Line)** | 18.5% | | **Rental Rate Change (Cash Basis)** | 7.5% | | **Weighted-Average Lease Term** | 10.1 years | [Contractual Lease Expirations](index=21&type=section&id=Contractual%20Lease%20Expirations) The company has a well-staggered lease expiration schedule, with 5.6% of occupied RSF scheduled to expire for the remainder of 2025, and proactive management of expirations evident as 34% of 2025 expiring RSF is already re-leased Contractual Lease Expirations by Year (% of Occupied RSF) | Year | % of Occupied RSF | | :--- | :--- | | **2025** | 5.6% | | **2026** | 8.5% | | **2027** | 8.7% | | **2028** | 11.3% | | **2029** | 6.8% | - Of the leases expiring in 2025, **34% of the RSF has been leased** and **6% is under negotiation**, indicating proactive management of expirations[125](index=125&type=chunk) [Top 20 Tenants](index=22&type=section&id=Top%2020%20Tenants) Alexandria's top 20 tenants account for 36.2% of its annual rental revenue and are of very high credit quality, with 87% of this revenue coming from investment-grade or publicly traded large-cap tenants, led by Eli Lilly, Moderna, and Bristol-Myers Squibb - **87% of the annual rental revenue** from the top 20 tenants is from investment-grade or publicly traded large-cap companies[130](index=130&type=chunk) Top 5 Tenants by Annual Rental Revenue | Rank | Tenant | % of Annual Rental Revenue | | :--- | :--- | :--- | | 1 | Eli Lilly and Company | 4.3% | | 2 | Moderna, Inc. | 4.3% | | 3 | Bristol-Myers Squibb Company | 3.7% | | 4 | Takeda Pharmaceutical Company Limited | 2.3% | | 5 | Eikon Therapeutics, Inc. | 1.8% | [Summary of Properties and Occupancy](index=22&type=section&id=Summary%20of%20Properties%20and%20Occupancy) As of March 31, 2025, Alexandria's North American portfolio comprised 39.6 million operating RSF with an occupancy rate of 91.7%, a decline primarily due to previously disclosed lease expirations across four submarkets, with Greater Boston, San Francisco Bay Area, and San Diego remaining key revenue contributors Occupancy by Market (Operating Properties) | Market | Occupancy 3/31/25 | Occupancy 12/31/24 | | :--- | :--- | :--- | | **Greater Boston** | 91.8% | 94.8% | | **San Francisco Bay Area** | 90.3% | 93.3% | | **San Diego** | 94.3% | 96.3% | | **North America Total** | **91.7%** | **94.6%** | - The decline in occupancy was primarily driven by **768,080 RSF of previously disclosed Q1 2025 lease expirations** in the Cambridge, Mission Bay, Research Triangle, and Austin submarkets[135](index=135&type=chunk) - Of the total vacancy, **0.7% of RSF is already leased for future delivery** (average end of 2025) and another **0.6% is subject to ongoing negotiations**[137](index=137&type=chunk) [External Growth / Investments in Real Estate](index=26&type=section&id=External%20Growth%20%2F%20Investments%20in%20Real%20Estate) This section outlines Alexandria's external growth strategy, centered on its development and redevelopment pipeline, with projects delivered in Q1 2025 expected to generate $37 million in incremental annual NOI, and a robust pipeline poised to deliver significant future growth, heavily concentrated in Megacampus ecosystems [Investments in Real Estate](index=26&type=section&id=Investments%20in%20Real%20Estate) Alexandria's development and redevelopment pipeline is a key driver of future growth, with projects placed into service in Q1 2025 set to add $37 million in annual NOI, and further significant incremental annual net operating income anticipated from deliveries through 2028 Incremental Annual NOI from Development/Redevelopment Pipeline | Delivery Period | Incremental Annual NOI | RSF | Leased/Negotiating % | | :--- | :--- | :--- | :--- | | **1Q25 (Placed in Service)** | $37M | 309,494 | 100% | | **2Q25 – 4Q26 (Near-Term)** | $171M | 1.6M | 75% | | **2027 – 2Q28 (Intermediate-Term)** | $179M | 2.4M | 16% | [New Class A/A+ Development and Redevelopment Properties](index=27&type=section&id=New%20Class%20A%2FA%2B%20Development%20and%20Redevelopment%20Properties) The company details its active construction pipeline of 4.0 million RSF, with projects stabilizing in 2025-2026 being 75% leased or under negotiation, and the total pipeline, including future projects, heavily concentrated in Megacampus locations Active Development/Redevelopment Pipeline Summary | Stabilization Year | RSF Under Construction | % Leased/Negotiating | | :--- | :--- | :--- | | **2025 and 2026** | 1,597,920 | 75% | | **2027 and beyond** | 2,449,862 | 16% | | **Total** | **4,047,782** | **43%** | - The total development and redevelopment pipeline (including future projects) amounts to **28.9 million RSF**, with **71% of this square footage** located within the company's Megacampus ecosystems[161](index=161&type=chunk)[270](index=270&type=chunk) [Construction Spending and Capitalization of Interest](index=32&type=section&id=Construction%20Spending%20and%20Capitalization%20of%20Interest) Alexandria projects total construction spending for 2025 to be $1.75 billion at the midpoint of its guidance, including active construction and pre-construction activities, partially funded by contributions from noncontrolling interests and tenant-funded improvements Projected 2025 Construction Spending (Midpoint) | Category | Amount (in thousands) | | :--- | :--- | | **Active Construction Projects** | $1,220,000 | | **Future Pipeline Pre-construction** | $500,000 | | **Capital Expenditures** | $415,000 | | *Less: NCI & Tenant Contributions* | *($385,000)* | | **Total Construction Spending** | **$1,750,000** | - The company has **$414.9 million in contractual capital commitments** from existing real estate joint venture partners to fund construction from 2Q25 through 2027 and beyond[174](index=174&type=chunk) [Joint Venture Financial Information](index=35&type=section&id=Joint%20Venture%20Financial%20Information) This section provides financial details for Alexandria's consolidated and unconsolidated real estate joint ventures, highlighting key consolidated JVs in Greater Boston and San Diego, and the primary unconsolidated JV in Mission Bay, San Francisco - As of March 31, 2025, the noncontrolling interest share of consolidated real estate JVs totaled **$4.53 billion in net assets**[194](index=194&type=chunk) - Alexandria's share of unconsolidated real estate JVs totaled **$50.1 million in net assets**[194](index=194&type=chunk) [Balance Sheet Management](index=36&type=section&id=Balance%20Sheet%20Management) This section details Alexandria's balance sheet management, covering its non-real estate investments, key credit metrics, and debt structure, maintaining a $1.5 billion investment portfolio, significant liquidity of $5.3 billion, and a well-structured debt profile with a long weighted-average maturity and minimal near-term maturities [Investments](index=36&type=section&id=Investments) As of March 31, 2025, Alexandria held $1.5 billion in non-real estate investments, primarily in private life science companies, with the portfolio composed of 87% private and 13% public company investments by cost, and a total investment loss of $50.0 million recognized in Q1 2025 Non-Real Estate Investments as of March 31, 2025 | Metric | Value (in thousands) | | :--- | :--- | | **Cost Basis** | $1,223,221 | | **Carrying Amount** | $1,479,688 | | **Gross Unrealized Gains** | $204,917 | | **Gross Unrealized Losses** | $(173,054) | - The investment portfolio is composed of **87% private** and **13% public companies**, based on cost[198](index=198&type=chunk)[199](index=199&type=chunk) [Key Credit Metrics](index=37&type=section&id=Key%20Credit%20Metrics) Alexandria highlights its strong credit profile with significant liquidity of $5.3 billion as of March 31, 2025, and prudent leverage targets, maintaining a target for Net Debt and Preferred Stock to Adjusted EBITDA of less than or equal to 5.2x for year-end 2025 Liquidity as of March 31, 2025 (in millions) | Source | Amount | | :--- | :--- | | **Unsecured Senior Line of Credit** | $4,700 | | **Cash and Restricted Cash** | $484 | | **Secured Construction Loan Availability** | $45 | | **Investments in Public Companies** | $85 | | **Total Liquidity** | **$5,314** | - The company's Net Debt and Preferred Stock to Adjusted EBITDA was **5.9x (quarter annualized)** for Q1 2025, with a target of **≤5.2x for 4Q25**[204](index=204&type=chunk) [Summary of Debt](index=37&type=section&id=Summary%20of%20Debt) As of March 31, 2025, Alexandria's total debt was $13.1 billion, with a weighted-average remaining term of 12.2 years and a weighted-average interest rate of 3.95%, with the debt being 96.6% fixed-rate and a well-laddered maturity profile ensuring compliance with all debt covenants - The total debt of **$13.1 billion** has a weighted-average remaining term of **12.2 years**[212](index=212&type=chunk)[213](index=213&type=chunk) Debt Maturity Schedule (Principal Payments) | Year | Amount (in thousands) | | :--- | :--- | | **2025** | $600,034 | | **2026** | $800,454 | | **2027** | $350,038 | | **2028** | $425,041 | | **2029** | $700,044 | - The company is in compliance with all its debt covenants, with significant headroom on key ratios such as Total Debt to Total Assets (**31% vs. ≤60% requirement**)[218](index=218&type=chunk) [Definitions and Reconciliations](index=39&type=section&id=Definitions%20and%20Reconciliations) This section provides definitions for key terms and non-GAAP financial measures used throughout the report, such as Adjusted EBITDA, Funds From Operations (FFO), Net Operating Income (NOI), and various leverage ratios, including detailed reconciliations to their most directly comparable GAAP counterparts

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 March 31, 2025 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) Maryl ...