ARE 10-K & 10-Q changes, risk factors and insider trading
Alexandria Real Estate Equities, Inc. · NYSE · Real Estate Investment Trusts · CIK 1035443 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “The market price and volatility of our common stock may be adversely affected by our financial performance, our ability to meet market expectations, and a wide range of external factors outside of our control.”
Removed heading “Failure to meet market expectations for our financial performance would likely adversely affect the market price and volatility of our stock.”
Removed heading “The price per share of our stock may fluctuate significantly.”
Removed heading “We may invest or spend the net proceeds from the offerings of our unsecured senior notes payable earmarked for”
Removed heading “Eligible Green Projects (the “Green Bonds”) in ways investors may not agree with and in ways that may not earn a profit.”
Largest changes
“Our employees and personnel use generative artificial intelligence (“AI”) and/or automated decision-making technologies to perform their work, and the disclosure and use of personal information in AI technologies is subject to various privacy laws and other privacy obligations. Governments have passed and are likely to pass additional laws and regulations regulating AI and/or automated decision-making technologies. Our use of this technology could result in additional compliance costs, regulatory investigations and actions, and lawsuits. …”see in full comparison
“The U.S. federal government has cautioned Americans on the possibility of Russia targeting the U.S. with cyberattacks in retaliation for sanctions that the U.S. has imposed and has urged both the public and private sectors to strengthen their cyber defenses and protect critical services and infrastructure. Additionally, President Biden directed government bodies to mandate cybersecurity and network defense measures within their respective jurisdictions and has initiated action plans to reinforce cybersecurity within the electricity, pipeline, and water sectors. …”see in full comparison
“Furthermore, the incoming administration of President Trump has included as part of its agenda a potential reform of U.S. tax laws. The details of the potential reform have not yet emerged, but during his 2024 presidential campaign, President Trump outlined several intended reforms, including reducing the corporate tax rate for domestic oil and gas production, repealing green energy tax credits, extending certain provisions of the Tax Cuts and Jobs Act of 2017 (“TCJA”), and imposing new tariffs. …”see in full comparison
“Additionally, under various privacy laws and other obligations, we may be required to obtain certain consents to process personal information. For example, some of our data processing practices have been and may in the future be subject to challenges or lawsuits under data privacy and communications laws, including for example under wiretapping laws, if we share personal information with third parties through various methods, including cookies or via third-party marketing pixels. These practices may be subject to increased challenges by class action plaintiffs. …”see in full comparison
“The CCPA, which became effective on January 1, 2020, applies to consumers, business entities, and residents of California. It broadly defined “personal information,” providing California residents with expanded privacy rights and protections, and established civil penalties for violations for certain data breaches. It also enabled California residents to opt out of the sales of their personal information, with noncompliant businesses facing significant penalties.”see in full comparison
“Drug pricing regulation — Most-Favored-Nation Executive Order On May 12, 2025, President Trump issued an executive order titled “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients,” directing the U.S. HHS to set U.S. drug price benchmarks at the lowest prices paid in comparable developed countries. Although the President projected price reductions of 30%–80%, most reforms would require formal rulemaking and are likely to face legal obstacles. …”see in full comparison
Full comparison: every changed paragraph (205)
•We face risks and liabilities associated with our investments (including those in connection with short-term liquid investments) and the companies in which we invest (including properties owned through partnerships, limited liability companies, and joint ventures, as well as through our non-real estate venture investment portfolio), which expose us to risks similar to those of our tenant base and additional risks inherent in venture capital investing. We may be limited in our ability to diversify or monetize our investments.
•Actions, policy, or key leadership changes in government agencies, or changes to laws or regulations, including those related to tax, accounting, debt, derivatives, government spending, or funding (including those related to the FDA, the National Institutes of Health (the “NIH”),NIH, the SEC, and other agencies), support of early stage research, FDA effectiveness, tariffs, and drug and healthcare pricing, costs, and programs could have a significant negative impact on the overall economy, our tenants and companies in which we invest, and our business.
•Partial or complete government shutdown resulting in temporary closures of agencies could adversely affect our tenants (some of which are also government agencies) and the companies in which we invest, including delays in the commercialization of such companies’ products, decreased funding of research and development,development (“R&D”), or delays surrounding approval of budget proposals.
•The enactment of legislation, including the Inflation Reduction Act of 2022,2022 (“IRA”), may adversely impact our financial condition and results of operations.
Our general and administrative expenses consist primarily of compensation costs, technology services, and professional service fees. Annually, our employee compensation is adjusted to reflect merit increases; however, to maintain our ability to successfully retain and compete for the best talent, especially in a talent shortage environment, rising inflation rates may require us to provide compensation increases beyond historical annual merit increases, which may unexpectedly and/or significantly increase our compensation costs. Similarly, technology services and professional service fees are also subject to the impact of inflation and generally increase proportionately with increasing market prices for such services. Consequently, inflation may increase our general and administrative expenses over time.
Similarly, technology services and professional service fees are also subject to the impact of inflation and generally increase proportionately with increasing market prices for such services. Consequently, inflation may increase our general and administrative expenses over time.
During inflationary periods, interest rates have historically increased. For instance, to control the rate of inflation, the Board of Governors of the Federal Reserve System (the “U.S. Federal Reserve”) raised its benchmark federal funds rate from nearly zero in March 2022 to a range between 4.25%3.50% and 4.50%3.75% as of December 31, 2024. Although there are expectations that the U.S. Federal Reserve will be reducing the federal funds rate in 2025, these expectations might not materialize.2025. Interest rates at elevated levels could increase our financing costs over time, either through near-term borrowings on our variable-rate unsecured senior line of credit and commercial paper program, refinancing of our existing borrowings, or the issuance of new debt. In addition, elevated market interest rates may result in a decrease in the value of our real estate and could also adversely affect the securities markets in general, which could impact the market price of our common stock without regard to our operating performance. Any such unfavorable changes to our borrowing costs and stock price could significantly impact our ability to raise new debt and equity capital going forward.
Additionally, inflationary pricing may increase the construction costs necessary to complete our development and redevelopment projects, including, but not limited to, costs of construction materials, labor, and services from third-party contractors and suppliers. These pressures are expected to intensify in 2026 due to tariff‑driven material‑cost volatility. Certain increases in the costs of construction materials, however, can often be managed in our development and redevelopment projects through either (i) general budget contingencies built into our overall construction costs estimates for each of our projects or (ii) guaranteed maximum price construction contracts, which stipulate a maximum price for certain construction costs and shift inflation risk to our construction general contractors. However, it is not guaranteed that our budget contingencies would accurately account for potential construction cost increases. Nor is it guaranteed that our general contractors would be able to absorb such increases in costs and complete our construction projects timely, within budget, or at all.
Our inability to renew leases or re-lease space on favorable terms as leases expire may significantly affect our business.
There is no assurance that we will be able to continue to access the unsecured bond market on favorable terms. Our ability to borrow additional amounts through the issuance of unsecured bonds may be negatively impacted by periods of illiquidity in the bond market. Aggregate borrowings under our unsecured senior line of credit require compliance with certain financial and non-financial covenants.
Aggregate borrowings under our unsecured senior line of credit require compliance with certain financial and non-financial covenants. Borrowings under our unsecured senior line of credit are funded by a group of banks. Our ability to borrow additional amounts under our unsecured senior line of credit and commercial paper program may be negatively impacted by a decrease in cash flows from our properties, a default or cross-default under our unsecured senior line of credit and commercial paper program, non-compliance with one or more loan covenants associated with our unsecured senior line of credit, and non-performance or failure of one or more lenders under our unsecured senior line of credit. In addition, we may not be able to refinance or repay outstanding borrowings on our unsecured senior line of credit or commercial paper program.
Our unsecured senior line of credit restricts our ability to engage in somecertain business activities.
The market price and volatility of our common stock may be adversely affected by our financial performance, our ability to meet market expectations, and a wide range of external factors outside of our control.
Our actual financial results may differ materially from expectations and/or the guidance we provide. Failure to meet market expectations, including with respect to earnings estimates, funds from operations per share, operating cash flows, and revenues, or the occurrence of a wide range of operational and external factors beyond our control, including, but not limited to, those provided below, has adversely affected, and may in the future adversely affect the market price and volatility of our common stock:
Failure to meet market expectations for our financial performance would likely adversely affect the market price and volatility of our stock.
Our actual financial results may differ materially from expectations and/or the guidance we provide. This may be a result of various factors, including, but not limited to:
•The condition of the financial and banking industries, disruptions in the banking sector, or failures of financial institutions that we or our tenants may or may not have business relationships with;
•The status of capital markets, including availability and cost of capital;
•ChangesThe availability and cost of debt and/or equity capital and changes in financing terms available to us;
•Our ability to execute planned asset dispositions at our targeted pricing levels and to effectively reinvest the resulting proceeds in a manner that supports our strategic and financial objectives;
•Actual or anticipated variations in our quarterly or annual operating results, dividends, net income, funds from operations, or guidance;
•Actual or anticipated changes in rental rates, leasing activity, occupancy levels, or real estate valuations;
•Our ability to re-leasere‑lease space at similar rates as leases expire;
•Our ability to reinvest sale proceeds in a timely manner at rates similar to the rate at which assets are sold;
•Our ability to procure third-partythird‑party suppliers or providers of necessary construction materials for our developments and redevelopments of properties;
•Changes in rules or practices governing our financial reporting; and
•Other legal and operational matters, including REIT qualification and key management personnel recruitment and retention.
Failure to meet market expectations, particularly with respect to earnings estimates, funds from operations per share, operating cash flows, and revenues, would likely result in a decline and/or increased volatility in the market price of our common stock or other outstanding securities.
The price per share of our stock may fluctuate significantly.
The market price per share of our common stock may fluctuate significantly in response to a variety of factors, many of which are beyond our control, including, but not limited to:
•The availability and cost of debt and/or equity capital;
•The condition of the financial and banking industries;
•Actual or anticipated variations in our quarterly operating results or dividends;
•Changes in our netanalyst income, funds from operations, or guidanceratings;
•Changes in our analyst ratings;
•Terrorist activity adversely affecting the markets in which our securities trade, possibly increasing market volatility and causing the further erosion of business and consumer confidence and spending;
•Changes in rules or practices governing our financial reporting;
•Other legal and operational matters, including REIT qualification and key management personnel recruitment and retention;
•Disruptions in the banking sector or failures of financial institutions that we or our tenants may or may not have business relationships with;
•Terrorist activity adversely affecting the markets in which our securities trade, possibly increasing market volatility and causing the further erosion of business and consumer confidence and spending; and
•General market and economic conditions; and
Any of these factors may adversely affect the market price and volatility of our common stock.
These factors may cause the market price of shares of our common stock to decline, regardless of our financial condition, results of operations, business, or prospects.
We may not continue our current level of distributions to our stockholders. Our Board of Directors will determinedetermines future distributions based on a number of factors, including, but not limited to:
On December 3, 2025, our 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. Our Board of Directors may reduce or suspend our quarterly dividends in the future. Any further reduction in distributions to stockholders may further negatively impact our stock price.
A reduction in distributions to stockholders may negatively impact our stock price.
We have a small portfolio of operating properties outside the U.S., primarily in Canada. Acquisition, development, redevelopment, ownership, and operating activitiesActivities outside the U.S. involve risks that are different from those we face with respect to our domestic properties and operations. These risks include, but are not limited to:
•Challenges and/or taxation with respect to the repatriation of foreign earnings or repatriation of proceeds from the sale of one or more of our foreign investments;
•Our partners may have economic or other business interests or goals that are inconsistent with our business interests or goals and that could affect our ability to lease or re-leasere-lease, thedevelop property,or redevelop, and operate the property,properties, or maintain our qualification as a REIT;
In addition, in some of our real estate joint ventures, predominantly consolidated, our partners hold contractual rights that allow them to sell their interests, initiate a buy/sell process, or force the sale of a property. As of December 31, 2024,2025, the aggregate noncontrolling interest balance in our consolidated balance sheet is $4.5$3.63 billion. In six consolidated real estate joint ventures with aggregate noncontrolling interests of approximately $1.0$1.17 billion, our partners currently have the ability to exercise these rights. In 2316 other consolidated real estate joint ventures with aggregate noncontrolling interests of approximately $3.0$1.91 billion, these rights become exercisable upon the expiration of respective lockout provisions during 20252026 through 2031.
If a joint venture partner elects to initiate a transaction relating to its interest in the joint venture or the property, we generally have a right of first refusal or buy right which may allow us to achieve full ownership of the property. However, if we decline to exercise such right, the partner generally has a right to sell to a third party or force a sale of the property with minimal to no input from us.
If a joint venture partner elects to sell their interest, we have the right of first refusal to acquire the partner’s interest at the partner’s specified price. If we decline, the partner has the right to sell to a third party with minimal to no input from us. Alternatively, some agreements allow the partner to force a sale of the underlying property. In such cases, we typically have a right of first offer.
However, if we choose not to proceed, the property may be sold to a third party under terms that are outside of our control. A price offered to the third party is generally subject to certain limitations, and if it falls below a specified threshold, the partner must offer the reduced price to us before proceeding.
We have consolidated and unconsolidated real estate joint ventures in which we share certain ownership and decision-making powers with one or more parties. Our joint venture partners must agree in order for the applicable joint venture to take specific major actions, including budget approvals, acquisitions, sales of assets, debt financing, execution of lease agreements, and vendor approvals.
We have consolidated and unconsolidated real estate joint ventures in which we share certain ownership and decision-making powers with one or more parties. Our joint venture partners must agree in order for the applicable real estate joint venture to take specific major actions, including budget approvals, acquisitions, sales of assets, debt financing, execution of lease agreements, and vendor approvals. Under these joint venture arrangements, any disagreements between our partners and us may result in delayed or unfavorable decisions. Our inability to take unilateral actions that we believe are in our best interests may result in missed opportunities and an ineffective allocation of resources and could have an adverse effect on the financial performance of our real estate joint ventures and our operating results.
As a part of Alexandria’s risk management program, we maintain all-risk property insurance for our portfolio to mitigate risks posed by extreme weather events, natural disasters (including floods, wildfires, earthquakes, and wind events), and terrorism. Our all-risk property insurance currently provides a $2.0 billion per occurrenceper-occurrence limit for our operating portfolio. However, it may not fully cover all potential losses. There is no assurance that we will maintain current levels of insurance coverage in the future.
A significant portion of our real estate portfolio is located in seismically active regions, including the San Francisco Bay Area, San Diego, and Seattle, and a damaging earthquake in any region could significantly impact multiple properties. For these properties, we have obtained earthquake insurance in an amount and with deductibles we believe are commercially reasonable. For properties in California, coverage is $335 million,million per occurrence and has an annual aggregate limit, subject to a 5% deductible of the property’s replacement value. For the Seattle region, the coverage is $200 million,million per occurrence and has an annual aggregate limit, subject to a 2% deductible. Nevertheless, a major earthquake in any region could lead to substantial losses, potentially exceeding our insurance coverage and resulting in material aggregate deductible amounts. This could adversely affect our business, financial condition, results of operations, and cash flows.
If we experience a loss at any of our properties that is not covered by insurance, exceeds our insurance policy limits, or is subject to a policy deductible, we could lose the capital invested in the affected property and, possibly, future revenues from that property. In addition, we could continue to be obligated on any mortgage indebtedness or be responsible for other obligations related to the affected properties. All of our wholly owned properties, including properties partially owned through real estate joint ventures that are managed by our joint venture partners, carry comprehensive liability, fire, extended coverage, and rental loss insurance.
We depend upon the services and contributions of relatively few executive and senior officers. The loss of services or contributions of any one of them may adversely affect our business, financial condition, and prospects. We use the extensive personal and business relationships that members of our management have developed over time with owners of life science properties and with major tenants and venture investment portfolio companies in the life science industry. We cannot assure our stockholders that our executive and senior officers will remain employed with us. In California and certain other regions where we have operations, there is intense competition for individuals with skill sets needed for our business. Moreover, in California, where our headquarters and many of our properties are located, high state and local taxes and increased home prices contribute to thea high cost of living, which may impair our ability to attract and retain employees locally in the future. Due to the long-term nature of our investments and properties, we are unable to predict and may be unable to effectively control such costs. If we do not succeed in attracting new personnel and retaining and motivating existing personnel, our business may suffer, and we may be unable to implement our current initiatives or grow effectively.
We rely on a limited number of vendors to provide key services, including, but not limited to, utilities, security, and construction services, at certain of our properties. Our business and property operations may be adversely affected if key vendors fail to adequately provide key services at our properties as a result of natural disasters (such as fires, floods, earthquakes, etc.), power interruptions, bankruptcies, war, acts of terrorism, public health emergencies, cyberattacks, pandemics, or other unanticipated catastrophic events. If a vendor encounters financial difficulty such as bankruptcy or otherotherwise eventsbecomes beyond our control that cause itunable to failprovide to adequately providecritical utilities, security, construction, or other importantessential services, we may experience significant interruptions in service and disruptions to business operations at our properties, incur remediation costs, and become subject to claims and damage to our reputation.
Management's Discussion & Analysis (MD&A)
New heading “A best-in-class REIT with a high-quality, diverse tenant base, strong margins, and long lease terms”
New heading “Key operating metrics”
New heading “Increased occupancy and leasing progress on temporary vacancy”
New heading “Reduction of capital spend and funding needs”
New heading “New supply and reduced demand for life science space may continue to negatively affect our rental rates, occupancy, and operating results.”
New heading “Dispositions for the three months ended December 31, 2025”
New heading “2026 key lease expirations with expected downtime”
New heading “Certain items included in fourth quarter 2025 results not expected to reoccur in the first quarter of 2026”
New heading “Potential tenant wind-downs”
New heading “Realized gains on non-real estate investments”
Removed heading “Continued operational excellence and solid results amid challenging macroeconomic environment”
Removed heading “Continued solid net operating income and internal growth”
Removed heading “$118 million, commencing during the three months and year ended December 31, 2024, respectively, and is expected to deliver incremental annual net operating income aggregating $395 million by the second quarter of 2028.”
Removed heading “•Megacampus strategy: focus on premier Class A/A+ assets in AAA life science innovation cluster locations.”
Removed heading “Industry and corporate responsibility leadership: catalyzing and leading the way for positive change to benefit human health and society”
Removed heading “General and administrative expenses”
Largest changes
“◦Prolonged biotech bear market and capital constraints. The life science sector experienced the fifth consecutive year of a broad-based biotech bear market in 2025. Life science venture capital fundraising declined to its lowest level since 2016, reducing overall levels of capital venture funds available to deploy in the future. Life science venture funds also continue to be highly risk averse, focusing investments on clinical-stage and asset based opportunities that may not drive significant labspace needs. …”see in full comparison
“Exacerbating the recent demand trend, the life science industry faced an unusual convergence of macroeconomic, regulatory, policy, and political challenges in 2025, all of which are critical facets of the life science industry. …”see in full comparison
“We present a tabular comparison of items, whether gain or loss, that may facilitate a high-level understanding of our results and provide context for the disclosures included in this annual report on Form 10-K. We believe that such tabular presentation promotes a better understanding for investors of the corporate-level decisions made and activities performed that significantly affect comparison of our operating results from period to period. We also believe that this tabular presentation will supplement for investors an understanding of our disclosures and real estate operating results. …”see in full comparison
“The realization of any of the aforementioned risks could have a material adverse impact on our revenues and operating performance, including but not limited to our income from rentals, net operating income, results of operations, funds from operations, operating margins, initial stabilized yields (unlevered) on new or existing construction projects, occupancy, EPS, FFO per share, FFO per share, as adjusted, and net cash provided by operating activities. …”see in full comparison
see in full comparisonAlthoughIn addition to the factors discussed above specifically affecting demand for life science space, broader real estate demand as well has been impacted by macroeconomic conditions, particularly elevated interest rates. Following the onset of the COVID-19 pandemic, the U.S. Federal Reserveloweredreduced the federal funds target rangeduringto20240%–0.25% in March 2020 and maintained that near-zero range until March 2022. To address inflation concerns, the U.S. Federal Reserve then increased the target range rapidly, reaching 5.25%–5.50% in July 2023, where it remained for an extended period. Although the U.S. Federal Reserve reduced the federal funds target range to 4.25%–4.50%fromduring5.25%2024, and to 3.50%–3.75%5.50%duringat the end of 2023,2025, interest rates remain elevated. This could continue to limit access to debt and/or equity financing fortheprospective buyers ofourreal estateassets,assets.potentiallyAlleliminatingothertheiraspectsparticipationbeinginequal,the market or forcing them to seek more expensive alternative funding options. Suchsuch challenges for buyerscouldlead toaanriseexcessinof properties available for sale,andwhichcould exertexerts downward pressure on property valuations andelevateelevates capitalization rates,potentiallyadversely impacting the sales proceeds weexpectcan generate from our real estate assetsales in 2025.sales.
•see in full comparisonNewInfluxcompetitiveofsupply may exert pressure on our rental rates and adversely affect our operating results.supply. During and after the COVID-19 pandemic, the shift toward hybrid and remote work arrangementshasasledwell 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 estatecompaniesinvestors to repurposetheirunderutilized office spaces into laboratoryfacilities.facilities, initiating a wave of new development activity across the sector. Our success and the success of other laboratory operatorshavepromptedand may continue to promptnew and existinglife sciencedevelopers to commence speculative redevelopment and/or development laboratory projects in anticipation of demand forlaboratorysuch facilities. These conversion and speculative development projects have contributed to a significant influx of new laboratory properties inkeyour top three marketssuch as—Greater Boston, San Diego, and the SanFrancisco,FranciscoheighteningBaycompetitiveArea.pressuresLifeandsciencedilutingrealpricingestatepoweravailability incertainthesesubmarkets.top markets—measured as the percentage of life-science RSF available relative to total life-science RSF—rose to approximately 29% during the year ended December 31, 2025, from approximately 4% in 2021. This surge created supply that materially exceeded current demand. As pandemic-driven urgency faded, the amount of available space became the dominant factor influencing tenant activity, with absorption unable to match the influx of supply.
Full comparison: every changed paragraph (464)
A best-in-class REIT with a high-quality, diverse tenant base, strong margins, and long lease terms
Continued operational excellence and solid results amid challenging macroeconomic environment
Continued solidSolid leasing volume and rental rate increases
•Continued solid leasingLeasing volume aggregating 5.14.2 million RSF for the year ended December 31, 2024, up 19% compared to our 2014–2020 average of 4.3 million RSF.2025.
•Leasing of previously vacant space aggregating 393,376 RSF, up 98%, over the quarterly average over the last five quarters.
•Rental rate increasesrates on lease renewals and re-leasing of space wereincreased 16.9%by 7.0% and 7.2%3.5% (cash basis) for the year ended
•84%82% of our leasing activity duringin the last twelve months2025 was generated from our existing tenant base.
Key operating metrics
•Tenant improvements and leasing commissions on renewed and re-leased space executed during the year ended December 31, 2024 represented only 8.4% of total lease term rents, the second lowest percentage of total lease term rents in the past five years.
Continued solid net operating income and internal growth
•Total revenues of $3.1$3.03 billion, updown 8.0%,2.9%, for the year ended December 31, 2024,2025, compared to $2.9$3.12 billion for the year ended December 31, 2023.2024. Excluding dispositions completed after January 1, 2024, total revenues would have increased by 2.3% for the year ended December 31, 2025.
•Net operating income (cash basis) of $2.0$1.98 billion for the year ended December 31, 2024,2025 upincreased $176.9by $1.7 million, or 9.8%,0.1%, compared to the year ended December 31, 2023.2024.
•Change in net operating income (cash basis) includes the impact of operating properties disposed of after January 1, 2024. Excluding these dispositions, net operating income (cash basis) for the year ended December 31, 2025 would have increased by 6.2% compared to 2024.
•Same property net operating income growthdecreased ofby 1.2%3.5% and 4.6%increased by 0.9% (cash basis) for the year ended December 31, 2024,2025, compared to the year ended December 31, 2023.2024.
•92.5% same properties’ average occupancy for the year ended December 31, 2025, compared to 95.2% average occupancy for the year ended December 31, 2024.
•97% of our leases contain contractual annual rent escalations approximating 3%.
Continued rigorous focus onsuccessful management and reduction of general and administrative costsexpenses
•General and administrative expenses as a percentage of net operating income for the year ended December 31, 2025 were 5.6%—the lowest level in the past ten years for the Company and approximately half the average of other S&P 500 REITs. In 2025, we realized cost reductions of $51.3 million, or 30%, compared to the year ended December 31, 2024, primarily from cost-control and efficiency initiatives. Some of these cost savings are temporary in nature, and we anticipate that approximately half of the cost reduction achieved in 2025 will continue in 2026.
•Compared to the general and administrative expenses for the year ended December 31, 2024, we expect to achieve a savings of $76 million of cumulative general and administrative expense in 2025 and 2026 based upon the midpoint of our guidance range for 2026 general and administrative expenses.
•General and administrative expenses as a percentage of net operating income of 7.6% for the year ended December 31, 2024, compared to 9.8% for the year ended December 31, 2023.
•We expect general and administrative cost savings of approximately $32 million in 2025, based on the midpoint of our guidance, compared to 2024, from a variety of cost-control and efficiency initiatives, including:
•Personnel-related matters: reduction in headcount over the last two years and restructuring of compensation plans.
•Streamlining of business processes: systems upgrades, process improvements, and cost reduction in legal, technology, and operational support services.
Attractive dividendDividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment
•Common stock dividend declared of $0.72 per share for the three months ended December 31, 20242025, representing a 45% reduction from the quarterly dividend declared of $1.32 per common share, aggregating $5.19 per common share for the yearthree months ended DecemberSeptember 31,30, 2024, up 23 cents, or 5%, over the year ended December 31, 2023.2025.
•The decision to reduce the declared dividend per common share reflects our commitment to maintaining the strength of our balance sheet, enhancing financial flexibility, and preserving liquidity of approximately $410 million on an annual basis, which will be used to support our 2026 capital plan.
•Dividend yield of 5.4% as of December 31, 2024.
•Dividend payout ratio of 55% for the three months ended December 31, 2024.
•Average annual dividend per-share growth of 5.4% from 2020 to 2024.
•Significant net cash flows fromprovided by operating activities after dividends retained for reinvestment aggregating $2.2$2.36 billion for the years ended December 31, 20192021 through 2024.2025.
•Dividend yield of 5.9% as of December 31, 2025 and dividend payout ratio of 33% for the three months ended December 31, 2025.
StrongSuccessful execution of Alexandria’s 2024 capital recycling strategy
We exceeded the midpoint of our 2025 guidance for dispositions and sales of partial interests by completing $1.81 billion of funding, primarily from sales of non-core assets and land, as well as sales to owner/users. During the three months ended December 31, 2025, we completed $1.47 billion of dispositions. As of December 31, 2025, the book value of our real estate assets designated as held for sale aggregated $581.7 million. We expect to sell these assets in 2026. Refer to “Dispositions and sales of partial interests” in Item 2 in this annual report Form 10-K for additional details.
(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
(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.
Our 2024 capital plan included $1.4 billion in funding from strategic dispositions that focused on a portfolio of diversified assets, of which $1.1 billion was completed during the three months ended December 31, 2024. Refer to “Dispositions” in Item 2 in this annual report Form 10-K for additional details.
As of the date of this report, our share of pending dispositions subject to negotiations aggregated $539.5 million. These transactions represent approximately 32% of the $1.7 billion midpoint of our 2025 guidance range for dispositions and sales of partial interests.
External growth and investments in real estate
Alexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $55$10 million, commencing during the three months ended December 31, 2025, with an additional $97 million andof incremental annual net operating income anticipated to deliver by 4Q26 primarily from projects that are 86% leased/negotiating.
$118 million, commencing during the three months and year ended December 31, 2024, respectively, and is expected to deliver incremental annual net operating income aggregating $395 million by the second quarter of 2028.
•During the three months ended December 31, 2024,2025, we placed into service Megacampusone development and redevelopment projectsproject aggregating 602,593139,979 RSF that areis 98%100% occupied acrossat multiple10075 submarketsBarnes Canyon Road in our Sorrento Mesa submarket and delivered incremental annual net operating income of $55$10 million. Key deliveries during the three months ended December 31, 2024 include:
•171,102 RSF at 4155 Campus Point Court located on the Campus Point by Alexandria Megacampus in our University Town Center submarket;
•139,984 RSF at 840 Winter Street located on the Alexandria Center® for Life Science – Waltham Megacampus in our Route 128 submarket; and
•93,492 RSF at 10935, 10945, and 10955 Alexandria Way located on the One Alexandria Square Megacampus in our Torrey Pines submarket.
•Annual net operating income (cash basis) from recently delivered projects is expected to increase by $70$26 million upon the burn-off of initial free rent, withwhich has a weighted-average burn-offremaining period of approximately threesix months, from recently delivered projects.months.
•68%77% of the RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.
(1)Includes (i) 461,101 RSF that is expected to stabilize through 2025 and is 89% leased/negotiating and (ii) expected partial deliveries through fourth quarter of 20252026 from projects expected to stabilize in 20262027-2028, andincluding beyond.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 additional(2)Represents information.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.
In 2024, weCurrently identified key market trends and uncertainties that had or may have a negative effect on our business.business are discussed below. Although we have mitigating strategiesseek to minimize the risks posed by these trends and uncertainties,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.
•NewInflux competitiveof supply may exert pressure on our rental rates and adversely affect our operating results.supply. During and after the COVID-19 pandemic, the shift toward hybrid and remote work arrangements hasas ledwell 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 companiesinvestors to repurpose their underutilized office spaces into laboratory facilities.facilities, initiating a wave of new development activity across the sector. Our success and the success of other laboratory operators have prompted and may continue to prompt new and existing life science developers to commence speculative redevelopment and/or development laboratory projects in anticipation of demand for laboratorysuch facilities. These conversion and speculative development projects have contributed to a significant influx of new laboratory properties in keyour top three markets such as—Greater Boston, San Diego, and the San Francisco,Francisco heighteningBay competitiveArea. pressuresLife andscience dilutingreal pricingestate poweravailability in certainthese submarkets.top markets—measured as the percentage of life-science RSF available relative to total life-science RSF—rose to approximately 29% during the year ended December 31, 2025, from approximately 4% in 2021. This surge created supply that materially exceeded current demand. As pandemic-driven urgency faded, the amount of available space became the dominant factor influencing tenant activity, with absorption unable to match the influx of supply.
•Decrease in demand. Adding to these challenges, life science tenant demand—after reaching historically high levels in 2021— has moderated significantly. The average tenant demand, measured by life-science tenants’ RSF requirements, has declined by more than 60% during the year ended December 31, 2025 compared to 2021 across our top three markets: Greater Boston, San Francisco Bay Area, and San Diego. This reflected a shift from extraordinary tenant demand driven by pandemic-related urgency to levels more consistent with historical pre-pandemic norms, particularly those observed during 2016-2018.
What changed in the latest 10-Q
Risk Factors
In addition to the information set forth in this quarterly report on Form 10-Q, one should also carefully review and consider the
information contained in the other reports and periodic filings that we make with the SEC, including, without limitation, the information
contained under the caption “Item 1A. Risk factors” in our annual report on Form 10-K for the year ended December 31, 2025. Those
risk factors could materially affect our business, financial condition, and results of operations. The risks that we describe in our public
filings are not the only risks that we face. Additional risks and uncertainties not currently known to us, or that we presently deem to be
immaterial, also may materially adversely affect our business, financial condition, and results of operations.
There have been no material changes in our risk factors from those disclosed under the caption “Item 1A. Risk factors” in our
annual report on Form 10-K for the year ended December 31, 2025.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Alexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $57 million during 2Q26, with an additional $42 million anticipated to be delivered by 4Q26”
New heading “Stable Cash Flows From Our High-Quality and Diverse Tenants”
New heading “Other comprehensive loss”
New heading “2026 and fourth quarter of 2026 FFO per share – diluted, as adjusted”
New heading “1)Development-related other income”
New heading “2)Development and redevelopment projects under business and financial strategy evaluation”
New heading “3)Capitalization of interest”
New heading “4)Second quarter of 2026 key lease expirations”
New heading “5)Dispositions, sales of partial interests, and other capital sources”
New heading “Construction spending”
Removed heading “Solid leasing of development and redevelopment space”
Removed heading “Alexandria’s development and redevelopment pipeline is anticipated to deliver $92 million of incremental annual net operating income by 4Q26 primarily from projects that are 93% leased/negotiating.”
Removed heading “Rental revenues”
Removed heading “General and administrative expenses”
Removed heading “Capital resources”
Removed heading “Summary of capital expenditures”
Removed heading “Real estate acquisitions and common stock repurchase program”
Largest changes
“Alexandria’s development and redevelopment pipeline is anticipated to deliver $92 million of incremental annual net operating income by 4Q26 primarily from projects that are 93% leased/negotiating.”see in full comparison
“Alexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $57 million during 2Q26, with an additional $42 million anticipated to be delivered by 4Q26”see in full comparison
“2)Development and redevelopment projects under business and financial strategy evaluation”see in full comparison
“5)Dispositions, sales of partial interests, and other capital sources”see in full comparison
“2026 and fourth quarter of 2026 FFO per share – diluted, as adjusted”see in full comparison
Full comparison: every changed paragraph (468)
This list of risks and uncertainties is not exhaustive. Additional information regarding risk factors that may affect us is included under Part I;I, “Item 1A. Risk factors”; and Part II, “Item 7. Management’s discussion and analysis of financial condition and results of operations” in our annual report on Form 10-K for the year ended December 31, 20252025, and under respective sections in this quarterly report on Form 10-Q. Readers of this quarterly report on Form 10-Q should also read our other documents filed publicly with the SEC for further discussion regarding such factors.
We are a Maryland corporation formed in October 1994 that has elected to be taxed as a REIT for federal income tax purposes. 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, San Diego, Seattle, Maryland, Research Triangle, and New York City. As of MarchJune 31,30, 2026, Alexandria has a total market capitalization of $20.44$21.84 billion and an asset base that includes 35.836.0 million RSF of operating properties and 3.42.8 million RSF of Class A/A+ properties undergoing construction.
As of MarchJune 31,30, 2026:
A key element of our business and financial strategy is our unique focus on Class A/A+ properties primarily located in collaborative Megacampus ecosystems in AAA life science and advanced technology innovation clusters. Our Megacampus ecosystems are designed for optionality and scalability, offering our tenants a clear path to address their growth requirements, including through our future developments and redevelopments. Strategically located near top academic and medical research institutions and equipped with curated amenities and services and convenient access to transit, our Megacampus ecosystems are designed to support our tenants in attracting and retaining top talent and in meeting our tenants’ growth needs, which we believe is a key driver of tenant demand for our properties. Our strategy also includes drawing upon our deep, broad, and long-standing real estate and life science industry relationships in order to retain tenants, identify and attract new and leading tenants, and source additional real estate.
A best-in-class REIT with a high-quality,high-quality and diverse tenant base, strong margins, and long lease terms
Strong and flexible balance sheet with significant liquidity; top 15%20% credit rating ranking among all publicly traded U.S. REITs; long-duration remaining debt term (as of June 30, 2026)
•Net debt and preferred stock to Adjusted EBITDA of 6.8x7.0x and fixed-charge coverage ratio of 3.4x3.3x for the three months ended MarchJune 31,30, 2026 annualized,annualized; withthe respective targets for the three months ending December 31, 20262026, annualizedannualized, ofare 5.6x-6.2x5.6x–6.2x and 3.6x-4.1x, respectively.3.6x–4.1x.
•We expect improvement in our quarter annualizedquarter-annualized net debt and preferred stock to Adjusted EBITDA ratio in the second half of 2026 as we complete dispositions anddispositions, sales of partial interests.interests, and other capital sources.
•As of March 31, 2026:
•Our credit ratings from S&P Global Ratings and Moody’s Ratings were BBB+ and Baa1, respectively, which rank in the top 15% among all publicly traded U.S. REITs.
•Significant liquidity of $4.17$3.60 billion,billion orand 3.7xextension of our debt$5.0 maturitiesbillion throughunsecured 2028.senior line of credit to 2032.
•Intermediate-term goal for leverage: mid-5x range.
Solid leasing of development and redevelopment space
•LeasingSolid leasing volume ofexceeding 647,3561.0 million RSF during the three months ended MarchJune 31,30, 2026.2026
•Total leasing volume surpassed 1.0 million RSF during the three months ended June 30, 2026, increasing 60% from the three months ended March 31, 2026 and exceeding the average quarterly leasing volume for the period from the second quarter of 2025 through the first quarter of 2026 of 952,365 RSF by approximately 87,000 RSF.
•Includes 397,919 RSF of combined previously vacant and development and redevelopment space; second-highest amount since the second quarter of 2024, excluding the 466,598 RSF build-to-suit lease signed in the third quarter of 2025.
•Leasing of development and redevelopment space aggregating 117,935 RSF during the three months ended March 31, 2026, up 135% from the prior five quarter average, excluding a build-to-suit lease executed in July 2025 with a long-standing multinational pharmaceutical tenant.
•From April 1, 2026 through the date of this report, we have executed leases and/or letters of intent aggregating 276,188 RSF related to our development and redevelopment pipeline.
•72%75% of our leasing activity during the threelast twelve months ended March 31, 2026 was generated from our existing tenant base.
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 assets, sales of partial interests, and other capital sources.
We expect to allocate this capital as follows (based on guidance midpoints):
(1)Refer to “Reduction of capital spend and funding needs” within this section for additional details regarding the 159,947 RSF lease executed during the three months ended June 30, 2026.
(2)Represents executed leases aggregating 1.4 million RSF with occupancy expected upon completion of building and/or tenant improvements. The weighted-average expected occupancy date is approximately November 2026, with expected annual rental revenue of approximately $69 million. We expect 64% of the total 1.4 million RSF to be occupied by December 31, 2026. These spaces are located primarily in the Greater Boston, San Diego, and San Francisco Bay Area markets.
•Excluding the impact of one lease aggregating 47,719 RSF at 480 Arsenal Street in our Cambridge/Inner Suburbs submarket, rental rates for renewed and re-leased space for the three months ended March 31, 2026 would have decreased by 10.1% and 9.1% (cash basis). The space at 480 Arsenal Street was re-leased to an entertainment studio user to accommodate their expansion needs and secure a long-term extension. In addition, the reorientation of this building layout provides flexibility to market the remaining available space to a broader range of user demand.
•Same property net operating income changes
•Total revenues of $671.0 million, down 11.5%, for the three months ended March 31, 2026, compared to $758.2 million for the three months ended March 31, 2025. Excluding dispositions completed after January 1, 2025, total revenues would have decreased by 5.1% for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
•Net operating income (cash basis) of $1.7 billion for the three months ended March 31, 2026, annualized, decreased by $300.6 million, or 15.2%, compared to the three months ended March 31, 2025, annualized.
•Change in net operating income (cash basis) reflects the impact of operating properties disposed of after January 1, 2025.
Excluding these dispositions, net operating income (cash basis), annualized, for the three months ended March 31, 2026, would have decreased by 8.9%.
•Same property net operating income decreasedDecreased by 11.9%10.6% and 11.7%8.6% (cash basis) for the three months ended MarchJune 31,30, 2026, compared to the three months ended MarchJune 31,30, 2025.
•The quarter-over-quarter decline was due to a decrease in same property occupancy, primarily driven by the previously disclosed 2026 key lease expirations aggregating 657,492 RSF that became vacant during the three months ended March 31, 2026, with a weighted-average lease expiration date of January 2026, and by vacancy during the three months ended December 31, 2025 at one property aggregating 170,618 RSF at Alexandria Center® for Advanced Technologies – South San Francisco in our South San Francisco submarket. We expect our same property performance to improve in the second half of 2026, primarily due to changes in same property occupancy, including the anticipated delivery of 1.1 million RSF of vacant space that was leased but not yet delivered as of March 31, 2026, which has a weighted-average expected delivery date of approximately September 2026, and is expected to generate annual rental revenue of approximately $68 million.
•SameDecreased propertiesby average11.5% occupancyand 11.2% (cash basis) for the threesix months ended MarchJune 31,30, 2026 was 88.9%,2026, compared to 94.0% average same properties occupancy for the threesix months ended MarchJune 31,30, 2025.
•The decline was due to a decrease in same property occupancy, primarily driven by previously disclosed key lease expirations with expected downtime aggregating 657,492 RSF during the three months ended March 31, 2026 and 260,888 RSF during the three months ended June 30, 2026, with weighted-average lease expiration dates of January 2026 and April 2026, respectively.
•Same properties average occupancy:
•87.1% for the three months ended June 30, 2026, compared to 92.6% same properties average occupancy for the three months ended June 30, 2025.
•88.2% for the six months ended June 30, 2026, compared to 93.5% same properties average occupancy for the six months ended June 30, 2025.
•During the three months ended June 30, 2026, we executed a lease aggregating 159,947 RSF with an advanced technology tenant at our redevelopment project at 3000 Minuteman Road in our Greater Boston market. The lease enables us to pivot a portion of the redevelopment project from future laboratory and/or biomanufacturing use to a lower-cost advanced technology use, reducing the project’s expected aggregate construction budget by approximately $80 million. We expect to deliver the 159,947 RSF of leased space in the second quarter of 2027 upon completion of building and tenant improvements.
•As a result, the leased space was reclassified from redevelopment to operating, reducing the redevelopment project from 431,550 RSF as of March 31, 2026 to 271,603 RSF as of June 30, 2026.
•We continue to evaluate the business and financial strategy for five projects aggregating 1.4 million RSF, which may allow us to further reduce future construction funding requirements within our active pipeline.
•As of June 30, 2026, we executed letters of intent aggregating 108,800 RSF for advanced technology use at our redevelopment project at 311 Arsenal Street. If we are successful in executing these potential leases, we expect to evaluate whether all or a portion of this project will be placed back into operation without the need to further redevelop for laboratory use.
•Non-income-producing assets as of June 30, 2026 are 16% of gross assets, a 4% reduction since December 31, 2024; we are targeting a range of 11% to 16% by December 31, 2026.
Alexandria’s development and redevelopment pipeline delivered incremental annual net operating income of $57 million during 2Q26, with an additional $42 million anticipated to be delivered by 4Q26
•During the three months ended June 30, 2026, we placed into service one development project aggregating 426,927 RSF that is 100% occupied by Bristol Myers Squibb at 4135 Campus Point Court in our University Town Center submarket and delivered incremental annual net operating income aggregating $57 million.
•Annual net operating income (cash basis) from recently delivered projects is expected to increase by $40 million upon the burn-off of initial free rent, which has a weighted-average remaining period of approximately five months.
•79% of the RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.
(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: under construction” in Item 2 for additional information.
(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 our 174,662 RSF development project that is expected to stabilize in 4Q26.
Continued successful reduction and management of general and administrative expenses
•General and administrative expenses for the three months ended June 30, 2026 aggregated $36.9 million, an increase of $7.7 million, or 26.5%, compared with the three months ended June 30, 2025, but a decrease of $7.8 million, or 17.4%, compared with the three months ended June 30, 2024. The decrease relative to 2024 reflects the continued benefit from cost-efficiency initiatives implemented in prior years. The increase relative to 2025 primarily reflects the expected return of a portion of the cost reductions achieved in 2025 that were temporary in nature, while approximately half of the cost reductions achieved in 2025 have continued into 2026 and are expected to continue through the remainder of 2026.
•Compared to 2024, we continue to expect approximately $76 million of cumulative general and administrative expense savings in 2025 and 2026 (based on the midpoint of our 2026 guidance range).
•General and administrative expenses for the three months ended March 31, 2026 aggregated $34.7 million, which represents a decrease of $7.4 million, or 18%, compared to the quarterly average for 2024. For the trailing twelve months ended MarchJune 31,30, 2026, general and administrative expenses asrepresented a percentage6.6% of net operating income were 6.0%,income, approximately half the average of other S&P 500 REITs for 2023–2025.
•In July 2026, we executed an agreement to amend our $5.0 billion unsecured senior line of credit. The amendment is expected to become effective in September 2026, upon the satisfaction of certain conditions. The amendment extends the maturity date from January 22, 2030 to January 22, 2032, including extension options that we control. In addition, the amendment reduces the applicable borrowing rate to SOFR plus 0.725% from the currently applicable SOFR plus 0.835%. In connection with the amendment, we expect to recognize a loss on early extinguishment of debt of approximately $3.3 million related to the partial write-off of unamortized loan fees during the three months ended September 30, 2026.
•In April 2026, we repaid, upon maturity, $350.0 million of 3.80% unsecured senior notes payable. The repayment was funded temporarily with borrowings under our commercial paper program, which will be repaid through planned dispositions, sales of partial interests, and other capital sources included in our 2026 guidance. No gain or loss was incurred in connection with this repayment.
•Under our common stock repurchase program authorized in December 2025, we may repurchase up to $500.0 million of our common stock through December 31, 2026. As of the date of this report, no shares have been repurchased under this program and $500.0 million remains available for future share repurchases.
•During the year ended December 31, 2025, we achieved general and administrative expense reduction of $51.3 million, or 30%, compared to the year ended December 31, 2024, primarily as a result of cost-control and efficiency initiatives. Some of these cost savings were temporary, and we anticipate that approximately half of the cost reduction achieved in 2025 will continue in 2026.
•Common stock dividend declared of $0.72 per share for the three months ended MarchJune 31,30, 2026, consistent with the preceding quarter. The declared dividend per common share reflects our commitment to maintaining the strength of our balance sheet, enhancing financial flexibility, preserving liquidity, and sharing cash flows with our stockholders.
•Dividend yield of 6.2%5.4% as of MarchJune 31,30, 2026 and dividend payout ratio of 42% for the three months ended MarchJune 31,30, 2026.
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 assets, and core assets (primarily sales of partial interests).
(1)Represents previously disclosed key lease expirations aggregating 657,492 RSF, with a weighted-average lease expiration date of January 2026 and prior annual rental revenue of approximately $41.6 million. These vacant spaces are currently 48% leased or under negotiation and the remaining 52% is being actively marketed for re-lease.
ARE insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 6 Form 4 filings (2 insiders, 6 trade dates, 38,500 shares, about $1.7M) and open-market sales in 4 filings (4 insiders, 4 trade dates, 29,346 shares, about $1.5M; 2 of these filings say the sales were made under a Rule 10b5-1 trading plan). Net open-market shares: 9,154 (purchases minus sales); net value about $209.3K.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-30 | Moglia Peter M |
Shares withheld for tax | 1,068 | $47.46 | $50.7K |
| 2026-09-30 | Woronoff Michael A |
Grant/award | 896 | — | — |
| 2026-09-15 | Kuhn Hallie E. |
Shares withheld for tax | 914 | $52.93 | $48.4K |
| 2026-09-15 | Gossett Bret E. |
Shares withheld for tax | 584 | $52.93 | $30.9K |
| 2026-09-15 | Thomas Gregory Calvin |
Shares withheld for tax | 1,096 | $52.93 | $58.0K |
| 2026-09-15 | Stevens Blake L. |
Shares withheld for tax | 471 | $52.93 | $24.9K |
| 2026-09-15 | Foger Jenna R. |
Shares withheld for tax | 1,086 | $52.93 | $57.5K |
| 2026-09-15 | Boss Michael E. |
Shares withheld for tax | 1,462 | $52.93 | $77.4K |
| 2026-09-15 | Cole John Hart |
Shares withheld for tax | 2,208 | $52.93 | $116.9K |
| 2026-09-15 | Nelson Jesse J. |
Shares withheld for tax | 3,611 | $52.93 | $191.1K |
| 2026-09-11 | Fukuzaki-Carlson Kristina |
Open-market sale | 16,810 | $50.51 | $849.1K |
| 2026-09-11 | Marcus Joel S |
Open-market purchase | 5,000 | $49.68 | $248.4K |
| 2026-08-31 | Moglia Peter M |
Shares withheld for tax | 1,068 | $51.29 | $54.8K |
| 2026-08-31 | Gavinet Andres |
Open-market sale | 10,000 | $50.93 | $509.3K |
| 2026-08-17 | Marcus Joel S |
Open-market purchase | 5,000 | $46.28 | $231.4K |
| 2026-07-31 | Moglia Peter M |
Shares withheld for tax | 1,068 | $51.45 | $54.9K |
| 2026-07-15 | Cain James P |
Grant/award | 144 | — | — |
| 2026-07-15 | Hash Steve |
Grant/award | 340 | — | — |
| 2026-07-15 | Klein Richard Hunter |
Grant/award | 111 | — | — |
| 2026-07-15 | Mcgrath Sheila K. |
Grant/award | 128 | — | — |
| 2026-07-15 | Woronoff Michael A |
Grant/award | 415 | — | — |
| 2026-06-30 | Moglia Peter M |
Shares withheld for tax | 1,068 | $52.85 | $56.4K |
| 2026-06-30 | Woronoff Michael A |
Grant/award | 804 | — | — |
| 2026-06-09 | Binda Marc E |
Open-market sale |
2,000 | $54.00 | $108.0K |
| 2026-05-29 | Moglia Peter M |
Shares withheld for tax | 1,067 | $49.68 | $53.0K |
| 2026-05-06 | Marcus Joel S |
Open-market purchase | 3,511 | $46.74 | $164.1K |
| 2026-05-06 | Marcus Joel S |
Open-market purchase | 3,989 | $45.99 | $183.5K |
| 2026-05-05 | Marcus Joel S |
Open-market purchase | 2,062 | $41.89 | $86.4K |
| 2026-05-05 | Marcus Joel S |
Open-market purchase | 1,606 | $43.70 | $70.2K |
| 2026-05-05 | Marcus Joel S |
Open-market purchase | 3,832 | $42.76 | $163.9K |
| 2026-05-04 | Marcus Joel S |
Open-market purchase | 10,000 | $41.02 | $410.2K |
| 2026-04-30 | Thomas Gregory Calvin |
Open-market purchase | 3,500 | $41.00 | $143.5K |
| 2026-04-30 | Moglia Peter M |
Shares withheld for tax | 1,069 | $40.51 | $43.3K |
| 2026-04-17 | Kuhn Hallie E. |
Open-market sale |
536 | $48.20 | $25.8K |
| 2026-04-15 | Hash Steve |
Grant/award | 343 | — | — |
| 2026-04-15 | Mcgrath Sheila K. |
Grant/award | 129 | — | — |
| 2026-04-15 | Cain James P |
Grant/award | 145 | — | — |
| 2026-04-15 | Woronoff Michael A |
Grant/award | 407 | — | — |
| 2026-04-15 | Klein Richard Hunter |
Grant/award | 112 | — | — |
Well-known investors holding ARE (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Davis Selected Advisers (Chris Davis) | 2026-06-30 | 80,467 | $4.3M | 0.02% | Reduced 55% |