Financial Data and Key Metrics Changes - FFO per share diluted as adjusted was $2.22 for Q3 2025, reflecting a decline due to lower occupancy and rental income adjustments [15][16] - Occupancy at the end of the quarter was 90.6%, down 20 basis points from the prior quarter, with a decline of 110 basis points on an apples-to-apples basis [18][19] - Same Property NOI decreased by 6% and 3.1% on a cash basis for the quarter, primarily driven by lower occupancy [20] Business Line Data and Key Metrics Changes - Leasing volume for the quarter was solid at 1.2 million square feet, consistent with the five-quarter average, including a significant build-to-suit lease [16][12] - Rental rate growth for lease renewals was strong at 15.2% and 6.1% on a cash basis, at the high end of guidance [17] - The company aims to reduce non-income-producing assets from 20% to 10-15% of gross assets [11] Market Data and Key Metrics Changes - The life science industry is experiencing a challenging supply and demand dynamic, with institutional demand hindered by NIH funding issues [13][16] - The company’s mega campus platform, representing 77% of annual rental revenue, outperformed overall market occupancy by 18% in key markets [18] Company Strategy and Development Direction - The company is transitioning from substantial development to a build-to-suit model, focusing on preserving capital and reducing construction spending [11][29] - The strategy includes evaluating land dispositions to reduce the size of the land bank and capitalized interest [23][28] - The company remains committed to its core life science real estate focus, leveraging its strong tenant base and high-quality assets [31] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for the FDA to resume operations and for earlier-stage venture-backed companies to commit to space to improve demand [36] - The company anticipates a challenging environment for the biotech sector, with a five-year bear market impacting public and private companies [24] - Future guidance for FFO per share diluted as adjusted for 2025 was reduced by $0.25 to a midpoint of $9.01, reflecting lower investment gains and occupancy [30] Other Important Information - The company recognized impairments of real estate totaling $323.9 million during the quarter, primarily from a redevelopment property in Long Island City [26] - The company has a strong balance sheet with over $4 billion in liquidity and the longest average remaining debt maturity among S&P 500 REITs at 11.6 years [10][25] Q&A Session Summary Question: Update on occupancy expectations - The company provided an update indicating potential occupancy benefits from 617,000 square feet of space expected to deliver around May 1, 2026 [35] Question: Factors for increased optimism in biotech market - Key factors include the reopening of the FDA, commitments from earlier-stage companies, and a resurgence in the public biotech sector [36] Question: Details on equity-like capital sources - The majority of capital for next year's plan will come from asset sales, with a focus on land and non-stabilized assets [38] Question: Development process and focus on build-to-suit leases - The company plans to focus more on build-to-suit leases and reduce the development pipeline, aiming to decrease non-income-producing assets [41][47] Question: Dividend policy and comfort level for payout ratio - The board will evaluate future dividend levels based on retained cash flows and capital needs for the upcoming year [49][51] Question: Tenant activity and leasing dynamics - Demand varies by submarket, with a mix of lab and tech tenants, but overall activity remains flat despite market improvements [66][70]

Financial Data and Key Metrics Changes - FFO per share diluted as adjusted was $2.22 for Q3 2025, reflecting a decline in occupancy and rental income [21][22][24] - Occupancy at the end of the quarter was 90.6%, down 20 basis points from the prior quarter, with a decline of 110 basis points on an apples-to-apples basis [24][25] - Same property NOI was down 63.1% on a cash basis for the quarter, primarily driven by lower occupancy [25][26] Business Line Data and Key Metrics Changes - Leasing volume for the quarter remained solid at 1,200,000 square feet, consistent with the five-quarter average [22] - Rental rate growth for lease renewals was 15.2% and 6.1% on a cash basis, at the high end of the guidance range [23] - 53% of leases are to investment-grade or large-cap tenants, with an average lease term of 9.5 years for the top 20 tenants [17] Market Data and Key Metrics Changes - The life science industry is facing a challenging supply and demand dynamic, with institutional demand still impacted by NIH issues [19][21] - The company noted that its mega campus platform, representing 77% of annual rental revenue, outperformed overall market occupancy by 18% [24] - The biotech sector is experiencing a bear market, which has lasted five years, but signs of recovery are beginning to emerge [13][29] Company Strategy and Development Direction - The company plans to transition from substantial development to a build-to-suit model, aiming to reduce non-income producing assets from 20% to 10-15% [15][16] - The focus will remain on mega campuses, which are expected to capture premium economics as demand improves [37] - The company intends to continue evaluating its development pipeline and may pause or curtail projects based on market conditions [28][34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for the FDA to resume operations and for venture-backed companies to commit to space to improve demand [45] - The company anticipates a challenging environment for 2026, with various factors impacting earnings, including capitalized interest and realized gains [36] - Management expressed confidence in the intrinsic value of its mega campus assets, which are significantly above current trading prices [36][37] Other Important Information - The company recognized impairments of real estate totaling $323.9 million during the quarter, primarily related to a Long Island City redevelopment property [31] - The guidance for FFO per share diluted as adjusted for 2025 was reduced by $0.25 to a midpoint of $9.01 per share [35] - The company expects to provide detailed guidance for 2026 at its Investor Day on December 3 [36] Q&A Session Summary Question: Update on occupancy expectations - Management provided an update indicating potential annual rental revenue of $46 million from 617,000 square feet of assets expected to deliver around May 1 [44] Question: Factors that could improve optimism in the biotech market - Key factors include the reopening of the FDA, commitments from venture-backed companies, and a resurgence in the public biotech sector [45] Question: Details on capital sources for next year's plan - The majority of capital for next year's plan will come from asset sales, with a significant portion from land and non-stabilized assets [48] Question: Development focus going forward - The company will focus more on build-to-suit projects and aims to reduce its land bank from 20% to 10-15% over the coming years [60] Question: Dividend policy and payout ratio - The Board will evaluate future dividend levels based on various factors, including retained cash flows and capital needs for the next year [64]

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]