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Investments in real estate
 9 Months Ended
Sep. 30, 2025
Real Estate [Abstract]  
Investments in real estate Our consolidated investments in real estate consisted of the following as of September 30, 2025 and December 31, 2024 (in
thousands):
September 30, 2025
December 31, 2024
Rental properties:
Land (related to rental properties)
$3,242,824
$3,863,027
Buildings and building improvements
20,715,991
20,377,935
Other improvements
4,609,447
4,354,785
Rental properties
28,568,262
28,595,747
Current and future development and redevelopment projects
8,596,264
8,618,727
Gross investments in real estate
37,164,526
37,214,474
Less: accumulated depreciation
(6,120,878)
(5,477,082)
Investments in real estate assets held for sale(1)
700,269
372,647
Investments in real estate
$31,743,917
$32,110,039
(1)Refer to “Assets held for sale” below.
Assets held for sale
As of September 30, 2025, we had 14 operating properties aggregating 1.8 million RSF and land parcels aggregating 939,756
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 September 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):
September 30, 2025
December 31, 2024
Investments in real estate
$700,269
$372,647
Other assets
84,515
9,488
Total assets
784,784
382,135
Total liabilities
(20,028)
(13,462)
Total accumulated other comprehensive income
1,877
2,584
Net assets classified as held for sale
$766,633
$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 nine months ended September 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)
$—
Pacific Technology Park(2)
Sorrento Mesa/San Diego
9/9/25
50%
544,352
—
96,000
(2)
9,290
5505 Morehouse Drive
Sorrento Mesa/San Diego
8/26/25
100%
79,945
—
45,000
—
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
Various
87,584
13,241
$436,871
(3)
$22,531
(1)As 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 unaudited consolidated financial statements for additional information.
(2)$94.4 million of the sales price represents non-cash consideration. Refer to “Pacific Technology Park and 199 East Blaine Street” in Note 4 – “Consolidated and
unconsolidated real estate joint ventures” to our unaudited consolidated financial statements for additional information regarding this sale.
(3)Represents the aggregate contractual sales price of our dispositions, which differs from the sum of amounts disclosed in our consolidated statement of cash flows under
“Investing activities” (proceeds from sales of real estate), “Financing activities” (contributions from and sales of noncontrolling interests), and “Supplemental disclosure
and non-cash investing and financing activities" (non-cash sales) 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 nine months ended September 30, 2025, we recognized impairment charges aggregating $485.6 million, classified
in impairment of real estate in our consolidated statement of operations, primarily related to the following assets:
•Impairment charge of $206.2 million was recognized to reduce the carrying amount of a non-Megacampus property
aggregating 179,100 RSF in Long Island City, a non-core location within our New York City submarket, to its estimated fair
value less costs to sell of approximately $31.1 million upon meeting the criteria for classification as held for sale. This property
met the held for sale criteria in September 2025, when we committed to dispose of it following our reevaluation of its alignment
with our Megacampus strategy and decided to allocate sales proceeds toward other projects with higher value-creation
opportunities. As of September 30, 2025, the property is 52% occupied. We expect to complete the sale of this property within
the next 12 months.
•Impairment charge of $43.4 million was recognized to reduce the carrying amount of a retail shopping center aggregating
249,275 RSF with a future development opportunity aggregating 281,592 SF in our Cambridge/Inner Suburbs submarket of
Greater Boston to its estimated fair value less costs to sell of approximately $96.3 million upon meeting the criteria for
classification as held for sale.This property met the held for sale criteria in September 2025 upon our commitment to dispose
of this asset and allocate sales proceeds toward other projects with higher value-creation opportunities and our obtaining of all
required approvals to sell. In October 2025, we completed the sale of this asset, with no gain or loss recognized upon sale.
•Impairment charge of $47.3 million was recognized to reduce the carrying amount of land parcels aggregating 374,349 SF in a
non-cluster/other market to its estimated fair value less costs to sell of approximately $28.9 million upon meeting the criteria for
classification as held for sale. The held for sale criteria were met in June 2025 upon our decision to dispose of this asset. In
September 2025, we completed the sale, with no gain or loss recognized upon sale.
•Impairment charge of $42.8 million was recognized to reduce the carrying amount of an office property aggregating 182,276
RSF in Carlsbad, San Diego to its estimated fair value less costs to sell. This property met the criteria for classification as held
for sale in April 2025 upon our commitment to sell, at which time we recognized an impairment of $35.4 million based on
negotiations with a potential buyer at that time. In September 2025, we recognized an additional impairment charge of $7.3
million to adjust the asset’s carrying amount to the currently negotiated reduced sales price less costs to sell of approximately
$61.8 million. We expect to complete this sale within the next 12 months.
•Impairment charge of $32.2 million was recognized during the three months ended March 31, 2025 related to a ground lease
entered into in 2021 for a future development opportunity in the San Francisco Bay Area market. Refer to “Lessee operating
costs” in Note 5 – “Leases” to our unaudited consolidated financial statements for additional information.
•Impairment charge of $31.8 million was recognized to reduce the carrying amount of one vacant property aggregating 104,531
RSF in the Research Triangle market to its estimated fair value less costs to sell of approximately $1.2 million upon meeting
the criteria for classification as held for sale in September 2025. The held for sale criteria were met upon our decision to sell
this asset, due to its noncontiguous location relative to most other properties on the Alexandria Center® for Sustainable
Technologies Megacampus, and to allocate the sales proceeds, and other capital necessary to lease the property, toward
other projects with greater value-creation opportunities. We expect to complete the sale within the next 12 months.
•Impairment charge of $27.8 million was recognized to reduce the carrying amounts of land parcels aggregating 154,308 SF on
a non-Megacampus in our Sorrento Mesa submarket of San Diego to their estimated fair values less costs to sell of
approximately $13.9 million upon meeting the criteria for classification as held for sale in September 2025. These assets met
the criteria for classification as held for sale upon our reevaluation of their alignment with our Megacampus strategy and our
decision to reallocate capital toward our other projects with greater value-creation opportunities. We expect to complete the
sale of these assets within the next 12 months.
•Impairment charge of $17.3 million was recognized to reduce the carrying amounts of two operating properties aggregating
210,481 RSF in our Sorrento Mesa submarket of San Diego to their estimated fair values less costs to sell of approximately
$112.3 million upon meeting the criteria for classification as held for sale. The held for sale criteria were met in June 2025 upon
our commitment to dispose of these properties. In August 2025, we completed the sale of one of the properties aggregating
79,945 RSF for a sales price of $45.0 million, with no gain or loss recognized upon sale. We expect to complete the sale of the
remaining property within the next 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 $175.7 million as of September 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
$175.7 million as of September 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 September 30, 2025.