Consolidated and unconsolidated real estate joint ventures

9 Months Ended

Sep. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

Consolidated and unconsolidated real estate joint ventures

From time to time, we enter into joint venture agreements through which we own a partial interest in real estate entities that

own, develop, and operate real estate properties. As of September 30, 2025, our real estate joint ventures held the following properties:


	Property(1)	Market	Submarket	Our Ownership Interest
Consolidated real estate joint ventures(2):
	50 and 60 Binney Street	Greater Boston	Cambridge/Inner Suburbs		34.0%
	75/125 Binney Street	Greater Boston	Cambridge/Inner Suburbs		40.0%
	100 and 225 Binney Street and 300 Third Street	Greater Boston	Cambridge/Inner Suburbs		30.0%
	15 Necco Street	Greater Boston	Seaport Innovation District		56.7%
	285, 299, 307, and 345 Dorchester Avenue	Greater Boston	Seaport Innovation District		60.0%
	Alexandria Center® for Science and Technology – Mission Bay(3)	San Francisco Bay Area	Mission Bay		25.0%
	601, 611, 651, 681, 685, and 701 Gateway Boulevard	San Francisco Bay Area	South San Francisco		50.0%
	751 Gateway Boulevard	San Francisco Bay Area	South San Francisco		51.0%
	211 and 213 East Grand Avenue	San Francisco Bay Area	South San Francisco		30.0%
	500 Forbes Boulevard	San Francisco Bay Area	South San Francisco		10.0%
	Alexandria Center® for Life Science – Millbrae	San Francisco Bay Area	South San Francisco		48.5%
	3215 Merryfield Row	San Diego	Torrey Pines		30.0%
	Campus Point by Alexandria(4)	San Diego	University Town Center		55.0%	(5)
	5200 Illumina Way	San Diego	University Town Center		51.0%
	9625 Towne Centre Drive	San Diego	University Town Center		30.0%
	SD Tech by Alexandria(6)	San Diego	Sorrento Mesa		50.0%
	Summers Ridge Science Park(7)	San Diego	Sorrento Mesa		30.0%
	1201 and 1208 Eastlake Avenue East	Seattle	Lake Union		30.0%
	400 Dexter Avenue North	Seattle	Lake Union		30.0%
	800 Mercer Street	Seattle	Lake Union		60.0%

Unconsolidated real estate joint ventures(8):
	1655 and 1725 Third Street	San Francisco Bay Area	Mission Bay		10.0%
	1450 Research Boulevard	Maryland	Rockville		73.2%	(9)
	101 West Dickman Street	Maryland	Beltsville		58.4%	(9)

(1)Refer to the table on the next page that shows the categorization of our real estate joint ventures under the consolidation framework.

(2)In addition to the real estate joint ventures listed, we have one consolidated real estate joint venture in Greater Boston market in which a partner holds a $48.7 million

redeemable noncontrolling interest earning a fixed return.

(3)Includes 409 and 499 Illinois, 1450, 1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South.

(4)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4135, 4155, 4161, 4165, 4224, and 4242 Campus Point Court.

(5)The noncontrolling interest share of our joint venture partner is anticipated to decrease to 25%, as we expect to fund the majority of future construction costs at the

campus until our ownership interest increases to 75%, after which future capital would be contributed pro rata with our partner.

(6)Includes 9605, 9645, 9675, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road.

(7)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.

(8)In addition to the real estate joint ventures listed, we hold an interest in one insignificant unconsolidated real estate joint venture.

(9)Represents a joint venture with a local real estate operator in which our joint venture partner manages the day-to-day activities that significantly affect the economic

performance of the joint venture.

Our consolidation policy is described under “Consolidation” in Note 2 – “Summary of significant accounting policies” to our

unaudited consolidated financial statements. Consolidation accounting is highly technical, but its framework is primarily based on the

controlling financial interests and benefits of the joint ventures. We generally consolidate a joint venture that is a legal entity that we

control (i.e., we have the power to direct the activities of the joint venture that most significantly affect its economic performance)

through contractual rights, regardless of our ownership interest, and where we determine that we have benefits through the allocation of

earnings or losses and fees paid to us that could be significant to the joint venture (the “VIE model”).

We also generally consolidate joint ventures when we have a controlling financial interest through voting rights and where our

voting interest is greater than 50% (the “voting model”). Voting interest differs from ownership interest for some joint ventures. We

account for joint ventures that do not meet the consolidation criteria under the equity method of accounting by recognizing our share of

income and losses.

The table below shows the categorization of our real estate joint ventures under the consolidation framework:


Property(1)	Consolidation Model	Voting Interest	Consolidation Analysis		Conclusion

50 and 60 Binney Street	VIE model	Not applicable under VIE model			Consolidated
75/125 Binney Street			We have:
100 and 225 Binney Street and 300 Third Street
15 Necco Street			(i)	The power to direct the activities of the joint venture that most significantly affect its economic performance; and
285, 299, 307, and 345 Dorchester Avenue
Alexandria Center® for Science and Technology – Mission Bay
601, 611, 651, 681, 685, and 701 Gateway Boulevard
751 Gateway Boulevard
211 and 213 East Grand Avenue			(ii)	Benefits that can be significant to the joint venture.
500 Forbes Boulevard			(ii)
Alexandria Center® for Life Science – Millbrae
3215 Merryfield Row
Campus Point by Alexandria
5200 Illumina Way			Therefore, we are the primary beneficiary of each VIE
9625 Towne Centre Drive
SD Tech by Alexandria
Summers Ridge Science Park
1201 and 1208 Eastlake Avenue East
400 Dexter Avenue North
800 Mercer Street
1450 Research Boulevard			We do not control the joint venture and are therefore not the primary beneficiary.		Equity method of accounting
101 West Dickman Street
1655 and 1725 Third Street	Voting model	Does not exceed 50%	Our voting interest is 50% or less.
1655 and 1725 Third Street	Voting model	Does not exceed 50%	Our voting interest is 50% or less.

(1)In addition to the real estate joint ventures listed, we have one real estate joint venture that we control and consolidate under the VIE model, in which the partner holds a

$48.7 million redeemable noncontrolling interest earning a fixed preferred return. We also hold an interest in one insignificant unconsolidated real estate joint venture.

99 Coolidge Avenue

In July 2025, we amended the agreement for our consolidated real estate joint venture at 99 Coolidge Avenue in our

Cambridge/Inner Suburbs submarket. Pursuant to the amended agreement, the carrying amount of our partner’s noncontrolling interest

was adjusted from $42.0 million to $48.7 million. We continued to control and consolidate the joint venture. Accordingly, we accounted

for the $6.7 million adjustment as an equity transaction and recognized it in additional paid-in capital.

Pursuant to the amended agreement, our partner’s noncontrolling interest was converted into a $48.7 million redeemable

noncontrolling interest that accrues a fixed 4.05% annual preferred return (“distributions”) and no longer participates in the joint

venture’s earnings or distributions in excess of preferred return. Further, under the amended agreement, our partner has a put option

beginning January 2026 to require us to purchase its preferred interest for $48.7 million plus any unpaid distributions. As of September

30, 2025, the contractual preferred interest amount of $48.7 million and accrued distribution of $340 thousand were classified as

redeemable noncontrolling interests within temporary equity in our consolidated balance sheet and consolidated statement of

stockholders equity.

Pacific Technology Park and 199 East Blaine Street

Prior to September 2025, we had two consolidated real estate joint ventures with one partner through its affiliates: (i) a joint

venture that owned Pacific Technology Park, a non-Megacampus of five non-laboratory properties aggregating 544,352 RSF in our

Sorrento Mesa submarket, in which we had a 50% ownership interest and our partner held the remaining 50% ownership interest, and

(ii) a joint venture that owned a laboratory building at 199 East Blaine Street, aggregating 115,084 RSF on the Alexandria Center® for

Life Science – Eastlake Megacampus in our Lake Union submarket, in which we had a 30% ownership interest and our partner held the

remaining 70% ownership interest.

In September 2025, we completed the following transaction with our partner through its affiliates:

(i)We sold our 50% controlling interest in the consolidated joint venture that owned Pacific Technology Park for a sales price

of $96.0 million. In connection with this disposition, we derecognized our partner’s noncontrolling interest of $82.4 million

and recognized a gain on sale of real estate of $9.3 million in our consolidated statements of operations for the three and

nine months ended September 30, 2025; and

(ii)We acquired our partner’s 70% noncontrolling interest at 199 East Blaine Street for a purchase price of $94.4 million. We

accounted for this acquisition as an equity transaction, with the $66.3 million excess of the purchase price over the $30.3

million book value of the noncontrolling interest acquired less costs to sell, recognized in additional paid-in capital and no

gain or loss recognized in earnings.

As a result of this transaction, we received proceeds of $1.6 million. As of September 30, 2025, we own 100% of 199 East

Blaine Street and no longer have an ownership interest in Pacific Technology Park.

Consolidated VIEs’ balance sheet information

We, together with joint venture partners, hold interests in real estate joint ventures that we consolidate in our financial

statements. These existing joint ventures provide significant equity capital to fund a portion of our future construction spending, and our

joint venture partners may also contribute equity into these entities for financing-related activities.

The table below aggregates the balance sheet information of our consolidated VIEs (in thousands):


	September 30, 2025	December 31, 2024
Investments in real estate	$7,570,226	$8,917,718
Cash and cash equivalents	298,135	335,223
Other assets	778,271	777,033
Total assets	$8,646,632	$10,029,974

Secured note payable	$—	$149,321
Other liabilities	424,752	626,460
Total liabilities	424,752	775,781
Redeemable noncontrolling interests	49,050	10,360
Alexandria Real Estate Equities, Inc.’s share of equity	3,752,516	4,754,386
Noncontrolling interests’ share of equity	4,420,314	4,489,447
Total liabilities and equity	$8,646,632	$10,029,974

In determining whether to aggregate the balance sheet information of consolidated VIEs, we considered the similarity of each

VIE, including the primary purpose of these entities to own, manage, operate, and lease real estate properties owned by the VIEs, and

the similar nature of our involvement in each VIE as a managing member. Due to the similarity of the characteristics, we present the

balance sheet information of these entities on an aggregated basis. None of our consolidated VIEs’ assets have restrictions that limit

their use to settle specific obligations of the VIE. Other than a put option described in “99 Coolidge Avenue” above, there are no

creditors or other partners of our consolidated VIEs that have recourse to our general credit, and our maximum exposure to our

consolidated VIEs is limited to our variable interests in each VIE.

Noncontrolling interests in consolidated real estate joint ventures

Noncontrolling interests represent the third-party interests in consolidated joint ventures in which we have a controlling interest.

Noncontrolling interests are adjusted for additional contributions and distributions, the proportionate share of the net earnings or losses,

and other comprehensive income or loss. Distributions, profits, and losses related to these entities are allocated in accordance with the

respective operating agreements. During the nine months ended September 30, 2025 and 2024, we distributed $186.8 million and

$179.1 million, respectively, to our consolidated real estate joint venture partners.

In March 2025, we redeemed our partner’s entire noncontrolling interests in three real estate joint ventures in the Greater

Boston market, with a book value aggregating $10.4 million, and recognized $7.0 million of consideration in excess of the book value in

additional paid-in capital.

Unconsolidated real estate joint ventures

Our maximum exposure to our unconsolidated VIEs is limited to our investment in each VIE, except for our 1450 Research

Boulevard and 101 West Dickman Street unconsolidated real estate joint ventures in which we guarantee up to $6.7 million of the

outstanding balance related to each VIE’s secured loan. Our investments in unconsolidated real estate joint ventures, accounted for

under the equity method and classified in investments in unconsolidated real estate joint ventures in our consolidated balance sheets,

consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):


Property	September 30, 2025	December 31, 2024
1655 and 1725 Third Street	$19,904	$10,574
1450 Research Boulevard	8,355	9,193
101 West Dickman Street	9,717	9,749
Other	1,625	10,357
	$39,601	$39,873

Below are key terms of unconsolidated real estate joint ventures’ secured loans as of September 30, 2025 (dollars in thousands):


					Interest Rate(1)	At 100%		Our Share
Unconsolidated Joint Venture	Maturity Date		Stated Rate		Interest Rate(1)	Aggregate Commitment	Debt Balance(2)	Our Share
101 West Dickman Street		10/29/26	SOFR+1.95%	(3)	6.20%	$26,750	$18,999	58.4%
1450 Research Boulevard		12/6/26	SOFR+1.95%	(3)	6.26%	13,000	8,932	73.2%
1655 and 1725 Third Street(4)		2/10/35	6.37%		6.44%	500,000	496,794	10.0%
						$539,750	$524,725

(1)Includes interest expense and amortization of loan fees.

(2)Represents outstanding principal, net of unamortized deferred financing costs, as of September 30, 2025.

(3)This loan is subject to a fixed SOFR floor of 0.75%.

(4)During the three months ended March 31, 2025, the unconsolidated real estate joint venture refinanced $500 million of its $600 million existing fixed-rate debt with a new

secured note payable maturing in 2035. The remaining debt balance of approximately $100 million was repaid through contributions from the unconsolidated joint

venture partners, including our share of $10.8 million.