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Investments in real estate | 6 Months Ended
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Jun. 30, 2025
Real Estate [Abstract] |
Investments in real estate | Our consolidated investments in real estate consisted of the following as of June 30, 2025 and December 31, 2024 (in thousands):
|  | June 30, 2025 |  | December 31, 2024
Rental properties: |  |  |  |
Land (related to rental properties) |  | $3,536,029 |  | $3,863,027
Buildings and building improvements |  | 21,218,380 |  | 20,377,935
Other improvements |  | 4,585,085 |  | 4,354,785
Rental properties |  | 29,339,494 |  | 28,595,747
Current and future development and redevelopment projects |  | 8,543,083 |  | 8,618,727
Gross investments in real estate |  | 37,882,577 |  | 37,214,474
Less: accumulated depreciation |  | (6,034,352) |  | (5,477,082)
Investments in real estate assets held for sale(1) |  | 312,375 |  | 372,647
Investments in real estate |  | $32,160,600 |  | $32,110,039
(1)Refer to “Assets held for sale” below. Assets held for sale As of June 30, 2025, we had eight operating properties aggregating 679,383 RS F and land parcels aggregating 878,205 SF that were classified as held for sale. 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 June 30, 2025 and December 31, 2024 for our real estate investments that were classified as held for sale as of each respective date (in thousands):
| June 30, 2025 |  | December 31, 2024
Investments in real estate | $312,375 |  | $372,647
Other assets | 20,274 |  | 9,488
Total assets | 332,649 |  | 382,135
Total liabilities | (11,040) |  | (13,462)
Total accumulated other comprehensive income | 2,057 |  | 2,584
Net assets classified as held for sale | $323,666 |  | $371,257
For additional information, refer to “Real estate sales” in Note 2 – “Summary of significant accounting policies” to our unaudited consolidated financial statements. Sales of real estate assets and impairment of real estate Our completed dispositions of real estate assets during the six months ended June 30, 2025 consisted of the following (dollars in thousands):
|  |  |  |  |  |  |  | Square Footage |  |  |  | Gain on Sales of Real Estate
Property |  | Submarket/Market |  | Date of Sale |  | Interest Sold |  | Operating |  | Land and Future |  | Sales Price |
Costa Verde by Alexandria |  | University Town Center/ San Diego |  | 1/31/25 |  | 100% |  | 8,730 |  | 537,000 |  | $124,000 | (1) | $—
2425 Garcia Avenue and 2400/2450 Bayshore Parkway |  | Greater Stanford/San Francisco Bay Area |  | 6/30/25 |  | 100% |  | 95,901 |  | — |  | 11,000 |  | —
Land parcel |  | Texas |  | 5/7/25 |  | 100% |  | — |  | 1,350,000 |  | 73,287 |  | —
Other |  |  |  |  |  |  |  |  |  |  |  | 52,352 |  | 13,165
|  |  |  |  |  |  |  |  |  |  |  | $260,639 | (2) | $13,165
(1)A s part of the transaction, we provided $91.0 million of seller financing during the three months ended March 31, 2025. 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. (2)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. Impairment of real estate During the six months ended June 30, 2025, we recognized impairment of real estate aggre gating $161.8 million, which primarily included the following: •During the three months ended March 31, 2025, we recognized an impairment charge of $32.2 million related to a ground lease entered into in 2021 for a future development site in our San Francisco Bay Area market. Refer to “Lessee operating costs” in Note 5 – “Leases” to our unaudited consolidated financial statements for additional information. •In April 2025, an office property aggregating 182,276 RS F, located in Carlsbad, San Diego, met the criteria for classification as held for sale based on our decision to dispose of this property. We expect to complete the sale within 12 months. Upon our decision to commit to sell this property, we recognized an impairment charge of $35.4 million to reduce the carrying amount of this asset to its estimated fair value less costs to sell of approximately $68.8 million. •In June 2025, two operating properties aggregating 210,481 RSF located in our Sorrento Mesa submarket met the criteria for classification as held for sale based on current negotiations with prospective buyers and our decision to dispose of these properties. We expect to complete these sales within 12 months. Upon our decision to commit to sell these properties, we recognized impairment charges aggregating $18.1 million to reduce the carrying amounts of these assets to their estimated fair values less costs to sell of approximately $112.7 million. •In June 2025, land parcels aggregating 374,349 SF in our non-cluster/other submarket met the criteria for classification as held for sale based on current negotiations with a prospective buyer and our decision to dispose of this asset. We expect to complete this sale within 12 months. Upon our decision to sell this land parcel, we recognized an impairment charge of $47.5 million to reduce the carrying amount of the asset to its estimated fair value less costs to sell of approximately $28.5 million. 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 $173.8 million as of June 30, 2025. 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 our investment in the project aggregating $173.8 million as of June 30, 2025, 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 June 30, 2025.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 974 -SubTopic 720 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477728/974-720-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/976/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/978/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/970/tableOfContent Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/972/tableOfContent Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 974 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/974/tableOfContent + Details
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