Earnings per share (Notes)

12 Months Ended

Dec. 31, 2024

We account for unvested restricted stock awards (“RSAs”) that contain nonforfeitable rights to dividends as participating

securities and include these securities in the computation of EPS using the two-class method. Under the two-class method, we allocate

net income (after amounts attributable to noncontrolling interests) to common stockholders and unvested RSAs with nonforfeitable

rights to dividends by using the weighted-average shares of each class outstanding for quarter-to-date and year-to-date periods

independently, based on their respective participation rights to dividends declared (or accumulated) and undistributed earnings.

Unvested RSAs that contain forfeitable rights to dividends do not qualify as participating securities under the two-class method

because the dividend rights are forfeited if the awards do not vest. As a result, undistributed earnings are not allocated to these awards

prior to vesting, and these awards have no effect on the computation of basic EPS while unvested. Once these awards vest, they are

included in the denominator of basic EPS, weighted for the portion of the reporting period they were vested. Prior to vesting, these

awards are included in the denominator of diluted EPS if they are dilutive, which is determined using the treasury stock method. Under

this method, incremental shares are calculated as the difference between the total unvested shares and the number of shares that

could hypothetically be repurchased using the assumed proceeds (including unrecognized compensation cost related to these awards).

These incremental shares are weighted for the portion of the reporting period they were unvested, and are included in the diluted EPS

denominator only if their inclusion reduces EPS (i.e., if they are not antidilutive).

In addition, from time to time, we enter into forward equity sales agreements, which are discussed in Note 15 – “Stockholders’

equity” to our consolidated financial statements. We consider the potential dilution resulting from the forward equity sales agreements

on the EPS calculations. At inception, the agreements do not have an effect on the computation of basic EPS as no shares are

delivered until settlement. The common shares issued upon the settlement of the forward equity sales agreements, weighted for the

period these common shares were outstanding, are included in the denominator of basic EPS. To determine the dilution resulting from

the forward equity sales agreements during the period of time prior to settlement, we calculate the number of weighted-average shares

outstanding – diluted using the treasury stock method.

The table below reconciles the numerators and denominators of the basic and diluted EPS computations for the years ended

December 31, 2024, 2023, and 2022 (in thousands, except per share amounts):


	Year Ended December 31,
	2024	2023	2022
Net income	$510,733	$280,994	$670,701
Net income attributable to noncontrolling interests	(187,784)	(177,355)	(149,041)
Net income attributable to unvested RSAs with nonforfeitable rights to dividends	(13,394)	(11,195)	(8,392)
Numerator for basic and diluted EPS – net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$309,555	$92,444	$513,268

Denominator for basic EPS – weighted-average shares of common stock outstanding	172,071	170,909	161,659
Dilutive effect of unvested RSAs with forfeitable rights to dividends	—	—	—
Dilutive effect of forward equity sales agreements	—	—	—
Denominator for diluted EPS – weighted-average shares of common stock outstanding	172,071	170,909	161,659
Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders:
Basic	$1.80	$0.54	$3.18
Diluted	$1.80	$0.54	$3.18