AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat25
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 1/4 · Campus differentiation and repeat leasing support customer preference, but competing conversions and developments demonstrate contestable supply. No exclusive location rights, cost advantage or network effect is established.
durability · 1/4 · Long executed lease terms support contractual persistence, but negative renewal pricing and falling occupancy demonstrate fragile protection at expiration.
customer dependency · 2/4 · The existing-tenant share of leasing and major expansion demonstrate repeat demand. Dependency is inferred indirectly and remains mixed given expiration-driven vacancies and concessions.
erosion resilience · 0/4 · Realized occupancy fell from 94.6% in 2024 to 86.9% in June 2026, while renewal pricing turned negative and same-property NOI declined. These are observed erosion despite reported relative occupancy outperformance.
Pricing power19
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 0/4 · Positive 2025 renewal and re-leasing increases gave way to a realized 7.4% decline in first-half 2026. Additional concessions further weaken effective pricing.
retention · 2/4 · Existing tenants generated 82% of 2025 leasing activity, a long-standing tenant expanded, and historical collections were high. These indirectly support repeat demand, but vacancy and concessions prevent a strong retention assessment.
margin resilience · 0/4 · First-half 2026 same-property revenues declined 7.8% while rental operating expenses rose 0.3%, producing an 11.5% NOI decline. Predominantly triple-net contracts did not prevent realized compression; rising leasing capital costs add pressure.
contractual freedom · 1/4 · Long leases secure terms but constrain frequent repricing. At renewal and re-leasing, actual rent reductions and concessions demonstrate limited bargaining freedom. Specific escalation, termination and renewal-option provisions are not supplied.
Predictability—
Missing exact annual revenue, free cash flow or FCF margin; operating cash flow and capex must both be reported for all five years.
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade, currentRatioGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- interestCoverageGrade
- 53.91
- cashInterestPaid
- 204.03
- cashInterestCoverage
- 6.93
Capital allocation—
Missing required inputs: operatingReturn, cashConversionGrade. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 1.79
- 3-year average SBC / revenue (%)
- 2.05
Management44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 1/4 · Spending declined and financing remained predominantly fixed-rate with long maturities; no first-half 2026 ATM issuance occurred. However, $2.20 billion of 2025 real estate impairments, the dividend cut and first-half 2026 real estate investment spending exceeding operating cash generation demonstrate weak capital outcomes and continuing financing dependence.
incentive alignment · 2/4 · Actual stock awards, vesting and forfeitures, performance-conditioned awards, post-vesting sale restrictions and disclosed clawback and hedging safeguards support alignment. Incomplete executive ownership and award-level payout evidence prevent a strong conclusion about overall pay alignment.
execution · 1/4 · Repeat leasing, a major tenant expansion and realized overhead savings show operating achievements. Overall execution is weak given realized vacancy, falling same-property NOI, substantial impairments and the dividend reduction. Leasing and occupancy are indirect execution measures, not complete project-return evidence.
governance · 3/4 · Disclosed existing arrangements include annual director elections, majority voting, proxy access, one-share-one-vote rights, independent key committees, a lead independent director and clawback safeguards. Seven independent nominees are a nomination disclosure, not proof of their subsequent election; exceptional governance outcomes are not established.
Evidence
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, which we believe is a key driver of tenant demand for our properties.
Business: campus locations, amenities and management's tenant-demand rationale · Filed 26/01/2026
•Weighted-average lease term of 11.9 years for leases executed during the year ended December 31, 2025.
2025 leasing performance: weighted-average executed lease term · Filed 26/01/2026
•In July 2025, we executed the largest life science lease in Company history with a long-standing multinational pharmaceutical tenant for a 16-year build-to-suit lease expansion aggregating 466,598 RSF on the Campus Point by Alexandria Megacampus in our University Town Center submarket.
2025 leasing performance: existing pharmaceutical tenant expansion · Filed 26/01/2026
•In 2025, tenant relationships and collections remained strong: ◦82% of our leasing activity was generated from our existing tenant base.
Proxy page 81: share of leasing activity from existing tenants · Filed 01/04/2026
The strength of this strategy is reflected in the 2026 performance metrics below, achieved despite challenging macroeconomic, regulatory, policy, and geopolitical environments: •Our occupancy of 86.9% as of June 30, 2026: •Outperforms market occupancy levels in our top three markets: Greater Boston, San Diego, and San Francisco Bay Area.
2026 performance: issuer-reported occupancy outperformance · Filed 03/08/2026
Our properties are leased predominantly through triple-net lease agreements and share key characteristics, including generic and reusable improvements, consistent lease structures, and business strategy.
Segment information: triple-net leases and generic, reusable improvements · Filed 26/01/2026
These conversions and speculative developments led to a significant influx of new laboratory properties in our top three markets: Greater Boston, San Diego, and the San Francisco Bay Area.
Compensation discussion: influx of conversions and speculative developments · Filed 01/04/2026
To remain competitive, we have realized lower rental rate changes on renewed and re-leased spaces and have offered more tenant improvement allowances or additional tenant concessions, including free rent, to retain existing tenants or attract new tenants.
Business conditions: realized pricing pressure and tenant concessions · Filed 03/08/2026
The table also presents the trend, on a per RSF basis, of increasing tenant improvement allowance, leasing commissions, and free rent concessions, and of less favorable changes in rental rates related to our renewed/re-leased spaces, as well as decreases in our operating occupancy (dollars in thousands, except per RSF amounts): Revenue- and Non-Revenue- Enhancing Capital Expenditures Tenant Improvements/ Leasing Commissions per RSF Free Rent Concessions per Annum (leases executed in trailing 12 months) Rental Rate Changes (on renewed/ re-leased spaces) Operating Occupancy (as of each period end) 2024 $273,377 $46.89 0.7 months 16.9% 94.6% 2025 $324,293 $55.34 1.5 months 7.0% 90.9% Six months ended June 30, 2026 $269,067 $50.92 1.5 months (7.4)% 86.9% Midpoint of 2026 guidance range $510,000 N/A (5.0)% 87.0% Additionally, we have key lease expirations with expected downtime in 2026, primarily in the Greater Boston, San Francisco Bay Area, and Seattle markets, aggregating 451,450 RSF as of June 30, 2026 with a weighted-average lease expiration date of August 2026.
Business conditions: historical occupancy, pricing, concessions and capital expenditure table · Filed 03/08/2026
Six Months Ended June 30, 2026 2025 $ Change % Change Income from rentals: Same Properties $855,554 $940,034 $(84,480) (9.0%) Non-Same Properties 105,821 165,455 (59,634) (36.0) Rental revenues 961,375 1,105,489 (144,114) (13.0) Same Properties 312,684 327,564 (14,880) (4.5) Non-Same Properties 22,164 47,401 (25,237) (53.2) Tenant recoveries 334,848 374,965 (40,117) (10.7) Income from rentals 1,296,223 1,480,454 (184,231) (12.4) Same Properties — — — — Non-Same Properties 37,583 39,744 (2,161) (5.4) Other income 37,583 39,744 (2,161) (5.4) Same Properties 1,168,238 1,267,598 (99,360) (7.8) Non-Same Properties 165,568 252,600 (87,032) (34.5) Total revenues 1,333,806 1,520,198 (186,392) (12.3) Same Properties 395,913 394,692 1,221 0.3 Non-Same Properties 35,565 56,136 (20,571) (36.6) Rental operations 431,478 450,828 (19,350) (4.3) Same Properties 772,325 872,906 (100,581) (11.5) Non-Same Properties 130,003 196,464 (66,461) (33.8) Net operating income $902,328 $1,069,370 $(167,042) (15.6%) Net operating income – Same Properties $772,325 $872,906 $(100,581) (11.5%) Straight-line rent revenue (16,624) (26,420) 9,796 (37.1) Amortization of acquired below-market leases and deferred revenue related to tenant-funded and -built landlord improvements (22,677) (20,999) (1,678) 8.0 Net operating income – Same Properties (cash basis) $733,024 $825,487 $(92,463) (11.2%) 87 Income from rentals Total income from rentals for the six months ended June 30, 2026 decreased by $184.2 million, or 12.4%, to $1.30 billion, compared to $1.48 billion for the six months ended June 30, 2025, due to a decrease in rental revenues, as discussed below.
Six-month operating results: same-property revenues, expenses and NOI · Filed 03/08/2026
Although capital markets and leasing activity showed early signs of improvement in 2026, the recovery remained uneven, and laboratory demand continued to be constrained by disciplined capital allocation and significant excess supply.
Industry conditions: uneven recovery and significant excess supply · Filed 03/08/2026
This decrease primarily reflects a decrease in Same Properties’ average occupancy to 88.2% for the six months ended June 30, 2026 from 93.5% for the six months ended June 30, 2025, primarily driven by previously disclosed key lease expirations 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.
Rental revenues: realized occupancy decline associated with lease expirations · Filed 03/08/2026
•Rental rates on lease renewals and re-leasing of space increased by 7.0% and 3.5% (cash basis) for the year ended December 31, 2025.
2025 leasing performance: renewal and re-leasing rental increases · Filed 26/01/2026
Consolidated Financial Statement Schedule of Rental Properties and Accumulated Depreciation December 31, 2025 (Dollars in thousands) A summary of activity of consolidated investments in real estate and accumulated depreciation is as follows: December 31, Real Estate 2025 2024 2023 Balance at beginning of period $37,735,218 $36,618,530 $34,299,503 Acquisitions (including real estate, land, and joint venture consolidation) — 248,378 296,694 Additions to real estate 1,933,158 2,591,154 3,568,726 Real estate impairment (2,202,818) (223,068) (461,114) Deductions (including dispositions and direct financing and sales-type leases) (2,648,037) (1,499,776) (1,085,279) Balance at end of period $34,817,521 $37,735,218 $36,618,530 December 31, Accumulated Depreciation 2025 2024 2023 Balance at beginning of period $5,625,179 $4,985,019 $4,354,063 Depreciation expense on properties 1,167,011 996,550 841,893 Sale of properties (664,665) (356,390) (210,937) Balance at end of period $6,127,525 $5,625,179 $4,985,019
Financial statement schedule: real estate additions, deductions and impairments · Filed 26/01/2026
During the three months ended December 31, 2025, we cut our quarterly common stock dividend to $0.72 per share from $1.32 for the three months ended September 30, 2025, representing a 45% reduction.
Dividends: fourth-quarter 2025 dividend reduction · Filed 26/01/2026
Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, 2026 2025 Operating Activities: Net income (loss) $359,408 $(23,527) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 609,825 688,185 Impairment of real estate 227,969 161,760 Gain on sales of real estate — (13,165) Gain on early extinguishment of debt (366,435) — Equity in (earnings) losses of unconsolidated real estate joint ventures (266) 9,528 Distributions of earnings from unconsolidated real estate joint ventures 599 1,289 Amortization of loan fees 8,845 9,306 Amortization of debt discounts 672 684 Amortization of acquired above- and below-market leases (13,996) (25,418) Deferred rent (18,763) (40,559) Stock compensation expense 21,178 22,594 Investment (income) losses (128,645) 80,614 Changes in operating assets and liabilities: Tenant receivables (1,018) 168 Deferred leasing costs (38,593) (43,727) Other assets 423 (10,750) Accounts payable, accrued expenses, and other liabilities (127,611) (148,792) Net cash provided by operating activities 533,592 668,190 Investing Activities: Proceeds from sales of real estate 4,766 149,027 Additions to investments in real estate (949,318) (1,081,006) Sale of interests in unconsolidated real estate joint ventures 1,917 — Investments in unconsolidated real estate joint ventures (557) (11,055) Change in escrow deposits — (8,108) Return of capital from unconsolidated real estate joint ventures 113 — Additions to non-real estate investments (127,740) (120,645) Sales of and distributions from non-real estate investments 76,273 42,134 Net cash used in investing activities $(994,546) $(1,029,653) 9 Alexandria Real Estate Equities, Inc.
Cash flow statement: operating cash generation and investment spending · Filed 03/08/2026
Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, 2026 2025 Financing Activities: Borrowings under secured note payable $— $4,029 Repayments of borrowings under secured notes payable (8,892) — Proceeds from issuance of unsecured senior notes payable 747,592 548,532 Repayments of unsecured senior notes payable (1,602,203) (600,000) Proceeds from issuances under commercial paper program 24,727,914 8,468,015 Repayments of borrowings under commercial paper program (23,084,555) (7,368,015) Payments of loan fees (8,813) (5,406) Taxes paid related to net settlement of equity awards (6,438) (6,271) Repurchase of common stock — (208,187) Dividends on common stock (247,594) (457,217) Contributions from and sales of noncontrolling interests 27,636 96,055 Distributions to noncontrolling interests (111,860) (123,618) Purchases and redemptions of noncontrolling interests (49,822) (17,818) Net cash provided by financing activities 382,965 330,099 Effect of foreign exchange rate changes on cash and cash equivalents (627) (535) Net decrease in cash, cash equivalents, and restricted cash (78,616) (31,899) Cash, cash equivalents, and restricted cash as of the beginning of period 553,755 559,847 Cash, cash equivalents, and restricted cash as of the end of period $475,139 $527,948 Supplemental Disclosure and Non-Cash Investing and Financing Activities: Cash paid during the period for interest, net of interest capitalized $126,481 $87,986 Accrued construction for current-period additions to real estate $216,572 $206,036 Transfer of real estate assets and/or equipment from tenants $371,746 $171,153 Acquisition of real estate and other assets in connection with the assumption of related secured notes payable of an unconsolidated real estate joint venture $8,892 $— Notes receivable issued in connection with sales of real estate $— $91,000 Derecognition of net investment in real estate from sales-type lease $— $4,677 The accompanying notes are an integral part of these consolidated financial statements.
Cash flow statement: financing, distributions and cash balances · Filed 03/08/2026
42 10.SECURED AND UNSECURED SENIOR DEBT (continued) The following table summarizes our unsecured senior debt and amounts outstanding under our unsecured senior line of credit and commercial paper program as of June 30, 2026 (dollars in thousands): Fixed-Rate Debt Variable-Rate Debt Weighted-Average Interest Remaining Term (in years) Total Percentage Rate(1) Unsecured senior notes payable $10,818,366 $— $10,818,366 84.4% 4.04% 10.9 Unsecured senior line of credit and commercial paper program — 1,994,508 1,994,508 (2) 15.6 4.27 (2) 3.6 (3) Total/weighted average $10,818,366 $1,994,508 $12,812,874 100.0% 4.08% 9.7 (3) Percentage of total debt 84.4% 15.6% 100% (1)Represents the weighted-average interest rate as of the end of the applicable period, including expense/income related to the amortization of loan fees, amortization of debt premiums (discounts), and other bank fees.
Debt note: fixed-rate share, financing rates and remaining terms · Filed 03/08/2026
2026 Proxy Statement 7 PROXY STATEMENT SUMMARY (continued) Stockholder Rights and Accountability Board Refreshment •Stockholders right to amend our Bylaws by the affirmative vote of a majority of all votes entitled to be cast on the matter •Director removal by the affirmative vote of a majority of all votes entitled to be cast on the matter •Annual election of all directors •Majority voting in uncontested elections of directors •Proxy access right for stockholders (market standard 3% ownership threshold, held continuously for 3 years; aggregation of up to 20 stockholders permitted) •Robust stockholder engagement process •No stockholder rights plan •One class of Common Stock, with each share entitled to one vote since the inception of our Company •Comprehensive, ongoing board succession planning process •Regular refreshment of the Board, with two new independent directors appointed since 2023 •Annual self-evaluations by the Board and its committees •New director orientation and continuing director education on key topics and issues Independent Oversight Policies and Practices •Seven of our eight director nominees are independent •Lead independent director has clearly delineated duties •All Audit, Compensation, and Nominating & Governance Committee members are independent •Active board oversight of corporate strategy and risk management •Robust stock ownership requirements and holding periods for directors and executive officers •Hedging prohibited •Robust clawback policy •99% attendance of directors at board and committee meetings in 2025 •Business Integrity Policy applicable to directors and all employees, with annual compliance certification •No director should serve on more than four other public company boards 2026 Proxy Statement 8 PROXY STATEMENT SUMMARY (continued) Board Nominees Our first priority in the director nomination process is ensuring that the Board as a whole has expertise in areas aligned with our unique business activities, namely owning and operating essential real estate for the broad and diverse life science industry.
Proxy governance summary: shareholder rights, oversight and compensation safeguards · Filed 01/04/2026
The following is a summary of the stock awards activity under our equity incentive plan and related information for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands, except per share information): Number of Share Awards Weighted-Average Grant Date Fair Value per Share Outstanding at December 31, 2022 2,087,521 $ 149.96 Granted 1,522,058 $ 108.22 Vested (798,729) $ 149.41 Forfeited (56,689) $ 104.65 Outstanding at December 31, 2023 2,754,161 $ 127.34 Granted 615,192 $ 102.96 Vested (951,195) $ 136.09 Forfeited (180,253) $ 109.63 Outstanding at December 31, 2024 2,237,905 $ 118.34 Granted 1,032,861 $ 73.84 Vested (817,304) $ 131.47 Forfeited (81,412) $ 109.34 Outstanding at December 31, 2025 2,372,050 $ 94.75 Year Ended December 31, 2025 2024 2023 Total grant date fair value of stock awards vested $107,449 $129,449 $119,335 Total gross share-based compensation recognized $94,685 $118,439 $139,675 Capitalized share-based compensation $53,566 $58,805 $56,817 Certain restricted stock awards granted during 2025, 2024, and 2023 are subject to performance and market conditions.
Equity incentive plan: actual grants, vesting, forfeitures and compensation · Filed 26/01/2026
This outcome underscores our long-term pay-for- performance philosophy, which extends beyond the vesting date through an additional one-year post-vesting sale restriction.
Compensation discussion: post-vesting sale restriction · Filed 01/04/2026
◦Our tenant collections have remained consistently high, averaging 99.8% since the beginning of 2021 through December 31, 2025.
Proxy page 82: historical tenant collections · Filed 01/04/2026
Notwithstanding this increase compared to the three months ended June 30, 2025, general and administrative expenses for the three months ended June 30, 2026 decreased by $7.8 million, or 17.4%, compared to $44.6 million for the three months ended June 30, 2024.
General and administrative expenses: realized reduction versus 2024 · Filed 03/08/2026
During the six months ended June 30, 2026, we had no activity under our ATM program.
Stockholders' equity: no ATM issuance activity in first-half 2026 · Filed 03/08/2026
In addition, we compete for investment opportunities with other REITs, insurance companies, pension and investment funds, private equity entities, partnerships, developers, investment companies, owners/occupants, and foreign investors.
Competition: generic competing investor categories · Filed 26/01/2026
