Investments in real estate


	September 30, 2026	December 31, 2025
Rental properties:
Land (related to rental properties)	$3,677,185	$3,204,479
Buildings and building improvements	21,200,081	19,738,825
Other improvements	4,861,970	4,371,720
Rental properties	29,739,236	27,315,024
Current and future development and redevelopment projects	4,627,533	6,788,464
Gross investments in real estate	34,366,769	34,103,488
Less: accumulated depreciation	(6,521,199)	(5,970,171)
Investments in real estate assets held for sale, less accumulated depreciation(1)	581,429	556,679
Investments in real estate	$28,426,999	$28,689,996

(1)Refer to “Assets held for sale” below.

Assets held for sale

As of September 30, 2026, we had 18 operating properties and one development project aggregating 1.3 million RSF, and land

parcels aggregating 2.1 million SF that were classified as held for sale.

The disposal of the properties classified as held for sale does not represent a strategic shift that has, or will have, a major

effect on our operations or financial results, as the dispositions relate to an individual asset or a group of assets across multiple markets

and do not represent the exit from any significant market. Accordingly, these assets do not meet the criteria for classification as

discontinued operations. We cease depreciation of our properties upon their classification as held for sale.

The following table presents the components of net assets related to real estate investments that met the criteria for

classification as held for sale as of September 30, 2026 and December 31, 2025 (in thousands):


	September 30, 2026	December 31, 2025
Investments in real estate, less accumulated depreciation	$581,429	$556,679
Other assets	122,913	37,859
Total assets	704,342	594,538

Total liabilities	(3,767)	(12,235)
Total accumulated other comprehensive loss (income)	2,205	(566)
Net assets classified as held for sale	$702,780	$581,737

For additional information, refer to “Real estate sales” in Note 2 – “Summary of significant accounting policies” to our unaudited

consolidated financial statements.

Our completed dispositions of real estate assets during the nine months ended September 30, 2026 and in October 2026

consisted of the following (dollars in thousands):


				Square Footage		Sales Price (Our Share)
Property	Submarket/Market	Date of Sale	Interest Sold	Operating	Land and Future	Sales Price (Our Share)
Completed during nine months ended September 30, 2026:
3825 and 3875 Fabian Way	Palo Alto/San Francisco Bay Area	7/14/26	100%	228,000	250,000	$163,000
One Hampshire Street	Cambridge/Greater Boston	8/21/26	100%	104,956	—	44,900
3911, 3931, 4025, 4031, 4045, and 4075 Sorrento Valley Boulevard	Sorrento Valley/San Diego	9/23/26	100%	95,814	144,000	26,500
Other	Various					7,350
						241,750	(1)
Completed in October 2026:
Campus Point by Alexandria(2)	University Town Center/San Diego	10/23/26	(2)	1,586,697	366,816	475,000
						$716,750

(1)Represents the aggregate contractual sales price of our dispositions, which differs from the sum of sales proceeds disclosed in our consolidated statement of cash flows

under “Investing activities” (proceeds from sales of real estate), amounts under “Financing activities” (contributions from and sales of noncontrolling interests), and

amounts under “Supplemental disclosure and non-cash investing and financing activities” (non-cash consideration) primarily due to the timing of payment, closing costs,

and other sales adjustments such as prorations of rents and expenses.

(2)Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our unaudited consolidated financial statements in Item 1 for additional details.

Impairment of real estate

During the nine months ended September 30, 2026, we recognized impairment charges aggregating $865.9 million, classified

within impairment of real estate in our consolidated statement of operations, primarily related to the following assets:

Greater Boston market

•During the three months ended June 30, 2026, we recognized an additional impairment charge of $24.8 million related to one

vacant office property, aggregating 104,956 RSF, in the Cambridge submarket of our Greater Boston market, to reduce its

carrying amount to its updated estimated fair value less costs to sell of approximately $43.7 million based on recent

negotiations with a potential buyer. This asset was classified as held for sale in December 2025 following our assessment of

the project’s financial outlook, including the significant capital required to redevelop and lease the property. As a result, we

decided to sell this asset and reinvest the sales proceeds in other projects with greater value-creation opportunities, and

recognized an impairment charge of $105.7 million in December 2025. The sale was completed in August 2026, with no gain

•Impairment charge of $343.3 million was recognized to reduce the carrying amount of one development property at 421 Park

Drive in our Fenway submarket, to its estimated fair value less costs to sell of approximately $238.9 million based on recent

negotiations with an institutional user for the sale of 339,668 RSF, representing substantially all of the 392,011 RSF

development project at this location. The asset met the criteria for classification as held for sale as of September 30, 2026,

following our decision to sell and reallocate the substantial near-term capital that the asset would have required to complete

the development toward other projects with greater value-creation opportunities. We expect to complete the sale within the

•During the three months ended June 30, 2026, an impairment charge of $64.2 million was recognized to reduce the carrying

amount of a land parcel located outside of a Megacampus aggregating 425,000 SF in the Sorrento Mesa submarket of our

San Diego market, to its estimated fair value less costs to sell of approximately $43.3 million. The land parcel met the criteria

for classification as held for sale as of June 30, 2026, following our reevaluation of the capital required to develop the site and

its alignment with our Megacampus strategy, resulting in our decision to monetize the asset and reallocate capital to other

projects with greater value-creation opportunities. The asset is expected to be sold to a residential developer and we expect to

complete the sale within the next 12 months.

•During the three months ended June 30, 2026, an impairment charge of $28.2 million was recognized to reduce the carrying

amounts of five operating properties, primarily comprising non-laboratory space, aggregating 95,814 RSF and one land parcel

aggregating 144,000 SF in the Sorrento Valley submarket of our San Diego market, to their estimated fair values less costs to

sell of approximately $26.7 million. These assets met the criteria for classification as held for sale as of June 30, 2026,

following our evaluation of the significant capital that would have been required to convert these properties through

redevelopment for laboratory use and their lack of alignment with our Megacampus strategy, resulting in our decision to

monetize these assets and reallocate capital to other projects with greater value-creation opportunities. The sale was

completed in September 2026, with no gain or loss recognized.

•Impairment charge of $9.4 million was recognized during the three months ended September 30, 2026 to reduce the carrying

amount of one operating property aggregating 27,689 RSF in the Sorrento Valley submarket of our San Diego market, to its

estimated fair value less costs to sell of approximately $10.9 million. This asset met the criteria for classification as held for

sale as of September 30, 2026, following our evaluation of the asset’s lack of alignment with our Megacampus strategy,

resulting in our decision to sell this asset and reallocate capital to other projects with greater value-creation opportunities. We

expect to complete the sale within the next 12 months.

•During the three months ended September 30, 2026, we recognized an additional impairment charge of $8.5 million related to

four operating properties, aggregating 157,449 RSF in the Sorrento Mesa and Sorrento Valley submarkets of our San Diego

market, to reduce the carrying amounts to their estimated fair values less costs to sell of approximately $54.7 million based on

updated negotiations with prospective buyers. These assets were classified as held for sale as of June 30, 2026, following our

decision to dispose of these properties and reinvest the sales proceeds in other projects with greater value-creation

opportunities, at which time we recognized an impairment charge of $4.2 million. We expect to complete the sales within the

next 12 months.

San Francisco Bay Area market

•During the three months ended June 30, 2026, we recognized an additional impairment charge of $29.3 million related to one

future development project, aggregating 1.1 million SF, in the SoMa submarket of our San Francisco Bay Area market. The

additional impairment charge was recognized to reduce the carrying amount of this asset to its updated estimated fair value

less costs to sell of approximately $41.8 million based on recent negotiations with a potential buyer. The asset was classified

as held for sale in December 2025 following our commitment to dispose of it and reinvest the sales proceeds in other projects

with greater value-creation opportunities, resulting in an impairment charge of $333.4 million recognized in December 2025.

We expect to complete the sale within the next 12 months.

•In June 2026, we entered into a purchase and sale agreement to sell a previously impaired future development project

aggregating 250,000 SF and one operating property aggregating 228,000 RSF in the Palo Alto submarket of our San

Francisco Bay Area market. These assets were classified as held for sale in December 2025, at which time we recognized an

impairment charge of $144.7 million. During the three months ended June 30, 2026, we recognized a $23.3 million partial

reversal of the impairment charge to increase the carrying values of the assets to their aggregate sales price of $163.0 million,

less costs to sell. This adjustment was recorded as a partial offset to impairment of real estate in our consolidated statements

of operations and did not exceed the cumulative impairment previously recognized on these assets. The sale was completed

in July 2026, with no gain or loss recognized.

•Impairment charge of $135.3 million was recognized to reduce the carrying amounts of four vacant office properties,

aggregating 292,746 RSF, located on a non-Megacampus in the Palo Alto submarket of our San Francisco Bay Area market,

to their estimated fair values less costs to sell of approximately $95.3 million. These assets met the criteria for classification as

held for sale as of September 30, 2026. We acquired these office properties in 2022 with the intent to redevelop them into

laboratory space. Following our evaluation of the significant capital that would have been required to convert these properties

and to lease the vacant spaces, we decided to sell these assets and reallocate capital to other projects with greater value-

creation opportunities. We expect to complete the sale within the next 12 months.

•Impairment charge of $79.2 million was recognized to reduce the carrying amounts of six non-Megacampus properties

aggregating 103,325 RSF in the San Carlos submarket of our San Francisco Bay Area market, to their estimated fair values

less costs to sell of approximately $39.4 million. These assets met the criteria for classification as held for sale as of

September 30, 2026. We acquired these office-flex assets in 2021 with the intent to redevelop them into laboratory space.

Following our evaluation of the significant capital that would have been required to convert these properties, we decided to sell

the assets and reallocate the proceeds to other projects with greater value-creation opportunities. We expect to complete the

sale within the next 12 months.

•Impairment charge of $41.6 million was recognized to reduce the carrying amount of one future development project

aggregating 240,000 SF in the Palo Alto submarket of our San Francisco Bay Area market, to its estimated fair value less

costs to sell of approximately $124.2 million. This non-Megacampus asset met the criteria for classification as held for sale as

of September 30, 2026, following our decision to sell the property. Originally acquired in 2018 to support the expansion of our

Megacampus ecosystem, the project was evaluated based on an updated assessment of its financial outlook, including the

capital required to complete the development and lease the property. As a result, we decided to sell the asset and reallocate

the proceeds to other projects with greater value-creation opportunities. We expect to complete the sale within the next 12

months.

Texas market

•Impairment charge of $50.4 million was recognized to reduce the carrying amount of a non-Megacampus land parcel

aggregating 344,000 SF in the Austin submarket of our Texas market, to its estimated fair value less costs to sell of

approximately $11.1 million. The land parcel met the criteria for classification as held for sale as of September 30, 2026,

following our reevaluation of the capital required to develop the site and its alignment with our Megacampus strategy, resulting

in our decision to sell the asset and reallocate capital to other projects with greater value-creation opportunities. We expect to

complete the sale within the next 12 months.

Canada (Non-cluster) market

•During the nine months ended September 30, 2026, we recognized a $55.0 million impairment charge related to a 247,743

RSF non-laboratory property in Canada. The property was classified as held for sale as of June 30, 2026, and written down to

its estimated fair value less costs to sell of approximately $42.5 million. We decided to sell the property rather than make the

significant near-term investment required to redevelop it, and we intend to redeploy the capital to other projects with greater

value-creation opportunities. We expect to complete the sale within the next 12 months.

During the six months ended June 30, 2026, we recognized an additional impairment charge of $27.8 million on our Montreal

portfolio following an amendment to the sales agreement, reducing its carrying amount to its estimated fair value less costs to

sell of approximately $134.5 million. This portfolio had been classified as held for sale since the fourth quarter of 2025, when

we recognized the initial impairment charge of $107.1 million.

During the three months ended September 30, 2026, the sales agreement was terminated and we decided to retain the

portfolio. Accordingly, we reclassified the portfolio from held for sale to held and used and remeasured the assets as required

under GAAP. As a result, we reversed $31.5 million of previously recognized impairment, primarily related to foreign currency

translation losses that were no longer expected to be recognized in earnings. The reversal increased the carrying amount of

the applicable real estate assets and was recorded as a reduction of impairment of real estate in our consolidated statements

ARE‑East River Science Park, LLC (“ARE”), a subsidiary of Alexandria Real Estate Equities, Inc., holds an option granted in

2006 to incorporate a land parcel adjacent to and north of the Alexandria Center® for Life Science – New York City campus (the “Option

Parcel”) into the existing ground lease, which would allow for the future development of an additional life science building within the

campus. ARE’s investment in pre‑construction costs related to the Option Parcel aggregated $185.9 million as of September 30, 2026.

On August 6, 2024, ARE filed a lawsuit in the U.S. District Court for the Southern District of New York against New York City

Health + Hospitals Corporation (“H+H”) and the New York City Economic Development Corporation (“EDC”) relating to disputes under

the ground lease and option arrangements governing the Option Parcel. ARE filed an amended complaint on January 24, 2025,

asserting claims for fraudulent inducement, breach of contract, breach of the implied covenant of good faith and fair dealing, and

declaratory relief concerning the continued validity of the option.

On March 27, 2026, the court granted defendants’ partial motion to dismiss the fraud in the inducement and implied covenant

of good faith and fair dealing claims. ARE intends to appeal this order at the appropriate time and to vigorously pursue its claims. The

court did not dismiss ARE’s claim for declaratory relief, which remains pending.

On April 10, 2026, H+H and EDC answered the amended complaint and asserted counterclaims seeking, among other things,

declaratory relief relating to the alleged expiration of the option and entitlement to a $5.0 million security deposit, and damages of at

least $3.8 million. The case remains pending.

As a result of the foregoing matters, the timing of any development of the Option Parcel is currently indeterminate. Excluding

the potential impact of the counterclaims filed by H+H and EDC, this matter exposes us to potential losses ranging from zero to the full

amount of the investment in the project aggregating $185.9 million as of September 30, 2026, depending on the resolution of the

remaining declaratory relief proceedings, the outcome of any appeal, and/or the ability to develop the project. We performed a

probability-weighted recoverability analysis based on initial estimates of various possible outcomes and determined no impairment was

present as of September 30, 2026.

Separately from, and not as part of, the pending litigation related to the Option Parcel, EDC, on behalf of H+H as the landlord

and itself as lease administrator, delivered on April 20, 2026, a notice alleging that ARE is in default of certain information delivery

obligations under the ground lease relating to the existing operating towers at the Alexandria Center for Life Science – New York City

campus, including sublease, tax, and financial information. The notice asserts that the failure to cure the alleged defaults within the

applicable 30-day cure period would result in daily charges of $1,000 increasing thereafter up to $2,000. ARE disputes the allegations

set forth in the notice of default and intends to vigorously defend against them.

On May 12, 2026, ARE filed a lawsuit in the Commercial Division of the New York State Supreme Court against H+H and EDC,

seeking a Yellowstone injunction, a preliminary injunction, and a temporary restraining order to toll all cure periods under the notice of

default and to enjoin EDC and H+H from issuing a notice of termination (the “NYS Action”). The court denied ARE’s request for a

temporary restraining order on May 13, 2026, and denied ARE’s request for a Yellowstone injunction and a preliminary injunction on

June 15, 2026. On June 17, 2026, ARE filed a notice of appeal from the court’s order, dated June 15, 2026. On July 1, 2026, ARE filed

an application for interim relief pending appeal. Following oral arguments before a single justice, the application was denied without

prejudice to determination by a full panel. On September 10, 2026, the Appellate Division, First Department, denied ARE’s request for

relief pending the determination of its merits appeal. ARE’s merits appeal remains pending.

On July 2, 2026, ARE filed an amended complaint in the NYS Action, adding claims for breach of contract, breach of the

implied covenant of good faith and fair dealing, tortious interference, and unfair competition, and is seeking declaratory and injunctive

relief, based on the defendants’ alleged misuse of ARE’s confidential subtenant information and diversion of an ARE subtenant to a

competing City-sponsored project. On August 6, 2026, EDC and H+H moved to dismiss the amended complaint in its entirety, and the

motion has been fully briefed; oral arguments are scheduled for January 15, 2027. The NYS Action remains pending.