Investments in real estate (Notes)

12 Months Ended

Dec. 31, 2024

Our consolidated investments in real estate consisted of the following as of December 31, 2024 and 2023 (in thousands):


	December 31,
	2024	2023
Rental properties:
Land (related to rental properties)	$3,863,027	$4,296,048
Buildings and building improvements	20,377,935	20,153,572
Other improvements	4,354,785	3,674,251
Rental properties	28,595,747	28,123,871
Development and redevelopment projects	8,618,727	8,220,672
Gross investments in real estate	37,214,474	36,344,543
Less: accumulated depreciation	(5,477,082)	(4,896,479)
Investments in real estate assets held for sale(1)	372,647	185,447
Investments in real estate	$32,110,039	$31,633,511

(1)See “Assets held for sale” below.

Assets held for sale

As of December 31, 2024, we had 10 properties aggregating 600,870 RSF and land parcels aggregating 2.4 million SF that

were classified as held for sale in our consolidated financial statements.

The disposal of 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 and therefore does not meet the criteria for classification as a discontinued operation. We cease

depreciation of our properties upon their classification as held for sale.

The following is a summary of net assets as of December 31, 2024 and 2023 for our real estate investments that were

classified as held for sale as of each respective date (in thousands):


	December 31,
	2024	2023
Investments in real estate	$372,647	$185,447
Other assets	9,488	8,776
Total assets	382,135	194,223

Total liabilities	(13,462)	(4,750)
Total accumulated other comprehensive income	2,584	1,960
Net assets classified as held for sale	$371,257	$191,433

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

consolidated financial statements.

Acquisitions

Our real estate asset acquisitions during the year ended December 31, 2024 consisted of the following (dollars in thousands):


				Square Footage
Property	Submarket/Market	Date of Purchase	Number of Properties	Future Development	Operating With Future Development/ Redevelopment	Purchase Price(1)
285, 299, 307, and 345 Dorchester Avenue(2)	Seaport Innovation District/Greater Boston	1/30/24	—	1,040,000	—	$155,321
428 Westlake Avenue North	Lake Union/Seattle	10/1/24	1	—	90,626	47,600
Other						46,490
Total				1,040,000	90,626	$249,411

(1)Represents the aggregate contractual purchase price of our acquisitions, which differs from purchases of real estate in our consolidated statements of cash flows

due to the timing of payment, closing costs, and other acquisition adjustments such as prorations of rents and expenses.

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

Based upon our evaluation of each acquisition, we determined that substantially all of the fair value related to each acquisition

was concentrated in a single identifiable asset or a group of similar identifiable assets, or was associated with a land parcel with no

operations. Accordingly, each transaction did not meet the definition of a business and therefore was accounted for as an asset

acquisition. In each of these transactions, we allocated the total consideration for each acquisition to the individual assets and liabilities

acquired on a relative fair value basis.

During the year ended December 31, 2024, we acquired real estate assets for an aggregate purchase price of $249.4 million.

In connection with our acquisitions, we recorded in-place lease assets aggregating $4.4 million and above-market lease asset in which

we are the lessor aggregating $492 thousand. As of December 31, 2024, the weighted-average amortization period remaining on our in-

place leases and above-market leases acquired during the year ended December 31, 2024 was 2.5 years and 5.1 years, respectively,

and 2.8 years in total.

Acquired below-market leases

The balances of acquired below-market tenant leases existing as of December 31, 2024 and 2023 and related accumulated

amortization, classified in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheets as of

December 31, 2024 and 2023, were as follows (in thousands):


	December 31,
	2024	2023
Acquired below-market leases	$652,757	$696,875
Accumulated amortization	(472,350)	(374,835)
	$180,407	$322,040

For the years ended December 31, 2024, 2023, and 2022, we recognized in rental revenues approximately $89.4 million,

$96.9 million, and $78.0 million, respectively, related to the amortization of acquired below-market leases existing as of the end of each

respective year.

The weighted-average amortization period of the value of acquired below-market leases existing as of December 31, 2024

was approximately 7.0 years, and the estimated annual amortization of the value of acquired below-market leases as of December 31,

2024 is as follows (in thousands):


Year		Amount
2025		$38,074
2026		25,502
2027		24,674
2028		12,822
2029		10,333
Thereafter		69,002
Total		$180,407

Acquired in-place leases

The balances of acquired in-place leases and related accumulated amortization, classified in other assets in our consolidated

balance sheets as of December 31, 2024 and 2023, were as follows (in thousands):


	December 31,
	2024	2023
Acquired in-place leases	$1,032,744	$1,115,259
Accumulated amortization	(727,600)	(653,646)
	$305,144	$461,613

Amortization for these intangible assets, classified in depreciation and amortization expense in our consolidated statements of

operations, was approximately $108.7 million, $160.6 million, and $169.5 million for the years ended December 31, 2024, 2023, and

2022, respectively. The weighted-average amortization period of the value of acquired in-place leases was approximately 6.8 years, and

the estimated annual amortization of the value of acquired in-place leases as of December 31, 2024 is as follows (in thousands):


Year		Amount
2025		$71,513
2026		58,706
2027		46,211
2028		33,983
2029		28,407
Thereafter		66,324
Total		$305,144

Sales of real estate assets and impairment charges

Our completed dispositions of real estate assets during the year ended December 31, 2024 consisted of the following (dollars

in thousands):


Property	Submarket/Market	Date of Sale	Interest Sold	RSF	Land and Future SF	Sales Price		Gain on Sales of Real Estate
4755 and 4757 Nexus Center Drive and 4796 Executive Drive	University Town Center/San Diego	12/30/24	100%	177,804	—	$120,000	(1)	$47,511
14225 Newbrook Drive	Northern Virginia/Maryland	10/15/24	100%	248,186	—	80,500		37,074
1165 Eastlake Avenue East	Lake Union/Seattle	9/12/24	100%	100,086	—	149,985		21,535
9444 Waples Street (50% consolidated JV)	Sorrento Mesa/San Diego	12/23/24	100%	—	149,000	31,000	(2)	8,175	(2)
6040 George Watts Hill Drive	Research Triangle/Research Triangle	12/10/24	100%	149,585	—	93,500		5,004
100 Minuteman Road	Other/Greater Boston	11/15/24	100%	308,970	—	67,300		4,042
849 and 863 Mitten Road and 866 Malcolm Road	South San Francisco/San Francisco Bay Area	11/20/24	100%	103,857	—	24,000		—
99 A Street	Seaport Innovation District/ Greater Boston	3/8/24	100%	—	235,000	13,350		—
219 East 42nd Street	New York City/New York City	7/9/24	100%	349,947	—	60,000		—
6101 Quadrangle Drive	Research Triangle/Research Triangle	12/16/24	100%	31,600	—	11,310		—
Other						38,617		5,971
								$129,312

One Moderna Way	Route 128/Greater Boston	12/17/24	100%	722,130	—	369,439		(3)
215 First Street, 150 Second Street, and 11 Hurley Street	Cambridge/Greater Boston	12/20/24	100%	552,513	—	245,539
10048 and 10219 Meanley Drive and 10277 Scripps Ranch Boulevard	Sorrento Mesa/San Diego	12/20/24	100%	—	444,041	55,000	(1)
						$1,359,540	(4)

1401/1413 Research Boulevard (65% unconsolidated JV)	Rockville/Maryland	10/31/24	100%	(5)	—	$22,913	(5)	$3,328	(5)

(1)As part of the transaction, we provided partial seller financing. Refer to Note 8 – “Other assets” to our consolidated financial statements for additional information.

(2)Our share of the sales price is $15.5 million, and our share of gain on sale is $3.2 million.

(3)Refer to “Impairment charges” below for details on impairments recognized in connection with these transactions during the year ended December 31, 2024.

(4)Represents the aggregate contractual sales price of our dispositions, which differs from proceeds from sales of real estate and contributions from and sales of

noncontrolling interests in our consolidated statement of cash flows under “Investing activities” and “Financing activities,” respectively, primarily due to the timing of

payment, closing costs, and other sales adjustments such as prorations of rents and expenses.

(5)The unconsolidated real estate joint venture completed the sale of a retail shopping center aggregating 84,837 RSF. We received cash proceeds, net of our $18.6 million

share of the debt balance, approximating our $3.3 million share of the gain on sale, which is classified in equity in earnings of unconsolidated real estate joint ventures in

our consolidated statement of operations. Refer to Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements for

additional information.

Impairment charges

During the year ended December 31, 2024, we recognized real estate impairment charges aggregating $223.1 million, which

primarily consisted of the following:

•In October 2024, four properties at One Moderna Way in our Route 128 submarket met the criteria for classification as held for

sale, when a single tenant, occupying 100% of these properties with a weighted-average remaining lease term of 18 years,

committed to purchasing them. Due to our important long-established relationship with this tenant and the strategic nature of

these properties, there were no other buyers to whom we would be willing to sell these properties. As a result, the sale of these

assets became probable and all criteria for classification as held for sale were met when the tenant’s commitment to acquire

these properties was confirmed in October 2024. Upon meeting the asset held for sale criteria, we recognized an impairment

charge of $40.9 million to reduce the carrying amounts of these properties to the expected sales price less costs to sell. In

December 2024, we completed the sale of these properties for a sales price of $369.4 million, with no incremental gain or loss

recognized.

•In October 2024, five operating properties aggregating 203,223 RSF and land parcels aggregating 1.5 million SF in our

Sorrento Mesa and University Town Center submarkets met the criteria for classification as held for sale. In October 2024,

after meeting all criteria for classification as held for sale, including (i) our commitment to sell these assets, (ii) Board of

Directors’ approval, and (iii) our determination that the sale of each property was probable within one year, we recognized

impairment charges aggregating $65.9 million to reduce the carrying amounts of these properties to the expected aggregate

sales price less costs to sell. Subsequent to October 2024, we had the following additional developments related to these

transactions:

•In December 2024, we completed the sale of land parcels aggregating 444,041 SF (included in the 1.5 million SF

discussed above) in our Sorrento Mesa submarket for a sales price of $55.0 million, with no gain or loss recognized in

earnings, to a buyer that is expected to develop residential properties on this site. As part of the transaction, we provided

$25.0 million of seller financing. This note receivable is classified within “Other assets” in our consolidated balance sheet.

Refer to Note 8 – “Other assets” to our consolidated financial statements for additional information.

•In December 2024, based on an executed purchase and sale agreement, we recognized an additional $36.9 million

impairment charge related to three operating properties aggregating 100,831 RSF and land parcels aggregating

1.0 million SF (included in the aforementioned 203,223 RSF and 1.5 million SF, respectively) in our University Town

Center submarket to further reduce the carrying amounts of these properties to their estimated fair values less costs to

sell of approximately $200 million. As of December 31, 2024, these assets were classified as held for sale, and we expect

to complete the sales of these assets within 12 months.

•We continue to hold two operating properties aggregating 102,392 RSF (included in the aforementioned 203,223 RSF) in

our Sorrento Mesa submarket with a carrying amount of $18.2 million as held for sale as of December 31, 2024. We

expect to complete the sale of these properties within 12 months.

•During the three months ended December 31, 2024, three properties aggregating 552,513 RSF in our Cambridge submarket

met the criteria for classification as held for sale upon our decision to dispose of them as a result of our determination that they

were not core to our Megacampus strategy due to their size, location, and existing use. Upon meeting the criteria for

classification as held for sale, we recognized an impairment charge of $6.3 million to reduce the carrying amounts of these

properties to their estimated fair values less costs to sell. In December 2024, we completed the sale of these properties for a

sales price of $245.5 million.

•In addition, we recognized impairment charges aggregating $30.8 million primarily consisting of the pre-acquisition costs

related to two potential acquisitions aggregating 1.4 million RSF of future development in our Greater Boston market. We

executed purchase agreements for these potential acquisitions with the total purchase price aggregating $366.8 million in 2020

and 2022 and initially expected to close these acquisitions after 2024. Our intent for each site included the demolition of

existing buildings upon expiration of the existing in-place leases and the development of life science properties. During the

three months ended June 30, 2024, due to the existing macroeconomic environment that negatively impacted the financial

outlook for these projects, we decided to no longer proceed with these acquisitions, resulting in the recognition of impairment

charges.

•In December 2024, we recognized an impairment charge of $13.7 million to reduce the carrying amount of a property

aggregating 45,615 RSF in our Seattle market to its estimated fair value less costs to sell of approximately $8 million, upon

meeting the criteria for classification as held for sale. We expect to sell this project within 12 months.

•In December 2024, we recognized an impairment charge of $6.1 million to reduce the carrying amount of a development

project aggregating 1.4 million SF in our Texas market to its estimated fair value less costs to sell of approximately $70 million,

upon meeting the criteria for classification as held for sale. We expect to sell this project within 12 months.

Other

In 2006, ARE-East River Science Park, LLC, a subsidiary of Alexandria Real Estate Equities, Inc., was granted an option to

incorporate a land parcel adjacent to and north of the Alexandria Center® for Life Science – New York City (“ACLS-NYC”) campus

(“Option Parcel”) into the existing ground lease of that campus. The Option Parcel will allow ARE-East River Science Park, LLC to

develop a future world-class life science building within the ACLS-NYC campus. ARE-East River Science Park, LLC’s investment in pre-

construction costs related to the development of the Option Parcel, including costs related to design, engineering, environmental,

survey/title, and permitting and legal costs, aggregated $168.4 million as of December 31, 2024.

On August 6, 2024, ARE-East River Science Park, LLC filed a lawsuit in the United States District Court for the Southern

District of New York against its landlord, New York City Health + Hospitals Corporation (“H+H”), and the New York City Economic

Development Corporation (“EDC”). On January 24, 2025, ARE-East River Science Park, LLC filed a First Amended Complaint. The

lawsuit alleges two principal claims against H+H and EDC: fraud in the inducement, and, in the alternative, breach of contract in

violation of the implied covenant of good faith and fair dealing. As alleged in the complaint, ARE-East River Science Park, LLC’s claims

arise from H+H’s and EDC’s misrepresentations and concealment of material facts in connection with a floodwall, which H+H and EDC

are seeking to require ARE-East River Science Park, LLC to integrate into the development of the Option Parcel. ARE-East River

Science Park, LLC alleges that H+H’s and EDC’s misconduct have prevented it from commencing the development of the Option

Parcel. In light of the pending litigation, the closing date for our option and thus the commencement date for construction of the third

tower at the campus are presently indeterminate. Among other things, ARE-East River Science Park, LLC is seeking significant

damages and equitable relief from the court to confirm our understanding that the option is in full force and effect.

This matter exposes us to potential losses ranging from zero to the full amount of the investment in the project aggregating

$168.4 million as of December 31, 2024, depending on any collection of damages and/or the ability to develop the project. We

performed a probability-weighted recoverability analysis based on estimates of various possible outcomes and determined no

impairment was present as of December 31, 2024.