Alexandria Real Estate Equities (ARE) Risk Factor Changes

social media.

future could, lead to further adverse effects on the U.S.

consequences on our tenants in the pharmaceutical industry.

especially at such unprecedented rates, could potentially raise the cost of generic drugs in the U.S., which would in turn have direct

impacted by the tariffs on the EU due to increased costs on operations and supply chains.

macroeconomic scale, including steel, pharmaceuticals, and construction equipment, all of which are critical to our and our tenant’s

Canada, Mexico, and China.

administration or protests, demonstrations, strikes, riots, civil disturbance, disobedience, insurrection, or social and other political

region in which we operate, regardless of cause, including legal, regulatory, and policy changes by a new U.S.

are anticipated.

implementation timeline has been extended multiple times.

market price of our common stock.

In addition, the lowered credit rating could create broader financial turmoil and uncertainty, which may exert downward pressure on the

increases in interest rates and borrowing costs, which may negatively impact our ability to access the debt markets on favorable terms.

unpredictable and could adversely affect the U.S.

impact of any further downgrades to the U.S.

“AA+” rating in August 2025.

August 2025.

operations.

space configurations, and tenant requirements for our laboratory properties in currently unforeseen ways.

The increased use of AI and automation in life science research and development activities may change the uses,

our tenants could be leaked, disclosed, or revealed as a result of or in connection with our employees’, personnel’s, or vendors’ use of

undermine our competitive advantage or market position.

In addition to experiencing a security incident, third parties may gather, collect, or infer sensitive data about us from public

loss; and other similar harms.

monetary fund diversions; diversion of management attention; interruptions in our operations (including availability of data); financial

(including personal information); litigation (including class claims); indemnification obligations; negative publicity; reputational harm;

payments due to, for example, applicable laws or regulations prohibiting such payments.

whom we work, to a variety of evolving threats, including, but not limited to, ransomware attacks, which could cause security incidents.

processing of confidential and other sensitive data in our computer systems and networks and subject us, and the third parties with

materially and adversely impact our business, financial condition, and results of operations.

Changes in the aforementioned laws and obligations may subject us to increased compliance risks and potential liability, and

Our actual or perceived failure to comply with applicable federal, state, and local privacy laws could lead to:

The data privacy and security landscape is becoming increasingly complex.

However, there is no guarantee that we will adequately address the requirements of the CCPA, or evolving laws in other

California residents, including our employees, regarding their personal information;

•Implementing procedures to comply with the CCPA, including procedures to effectively address potential requests from

vendors, and employees.

In the ordinary course of business, we process personal information and other sensitive data, including that of our tenants,

business, financial condition, and results of operations.

increased costs of doing business, compliance risks, and potential liability and could materially and adversely affect our

regulations, policies, and contractual obligations related to data privacy and security.

We and the third parties with whom we work are subject to evolving privacy and information security laws,

including expenses to procure renewable electricity, and comply with requirements stipulated under building certification

market dynamics for renewable energy may impact our ability to procure renewable energy to reduce GHG emissions

adverse effect on our properties and our tenants’ operations, as well as on our financial condition, results of operations, and cash flows.

climate change and severe weather will not adversely affect PG&E or any of our other key vendors, which in turn could have a material

shutoffs of power may impact the reliability of access to a stable power supply at our properties.

conditions.

areas of Central and Northern California.

utilities services.

bankruptcy in July 2020, there is no guarantee that PG&E will be able to sustain safe operations and continue to provide consistent

2018, PG&E initiated voluntary reorganization proceedings under Chapter 11 of the U.S.

2019, in response to potential liabilities arising from a series of catastrophic wildfires that occurred in Northern California in 2017 and

properties located in our San Francisco Bay Area market depend on PG&E for the delivery of electric and gas services.

progressively warmer and drier weather associated with ideal conditions for highly destructive wildfires.

Nearly 33% of the properties we own and operate are located in California, where climate change has been linked to the

properties, incur remediation costs, and become subject to claims and damage to our reputation.

adequately provide key services, we may experience significant interruptions in service and disruptions to business operations at our

at certain of our properties.

international programs and initiatives will be taken and what support U.S.

Agreement, marking a significant shift in U.S.

Numerous states and municipalities have adopted state and local laws and policies on climate change and emission reduction

from the IRA are still to be determined.

and 334,000 new green jobs across the U.S.

investment in clean energy, transport, and manufacturing.

spending toward reducing carbon emissions and funding clean energy over the next 10 years and was designed to encourage private

In August 2022, the U.S.

(SB 253) and the Climate-Related Financial Risk Act (SB 261), which were signed into law in October 2023.

In addition, California introduced climate-related reporting requirements under the Climate Corporate Data Accountability Act

originally set to take effect in May 28, 2024.

metrics and greenhouse gas (“GHG”) emissions, including within the footnotes to our consolidated financial statements, which were

On March 6, 2024, the SEC adopted new standards that would require quantitative disclosures of certain climate-related

maintenance, repair of water and/or wind damage, and snow removal at our properties.

the cost of, or decreasing the availability of, property insurance on terms we find acceptable, by increasing the costs of energy,

inability to operate the buildings at all.

could result in declining demand for space at our properties, delays in construction, resulting in increased construction costs, or in our

Certain of our properties are also located along shorelines and may be vulnerable to coastal hazards, such as water stress, severe

of-pocket expenses for Medicare beneficiaries.

noncompliance, introduces penalties for drug manufacturers that increase drug prices over the rate of inflation, and caps additional out-

negotiated “maximum fair price” for select drugs covered by Medicare Part B and Part D or be subject to an excise tax for

U.S.

These risks may also impact our overall liquidity, our borrowing costs, or the market price of our common stock.

Failure of the U.S.

business operations or those of our tenants and our venture investment portfolio companies.

approximately 1.5% of our aggregate annual rental revenue in effect as of December 31, 2025.

their customers.

Additionally, the inability of the U.S.

or delay or forgo leasing our rental space, which could adversely affect our business, financial condition, or results of operations.

deficits have included reduced NIH and other research and development budgets.

allocations to government agencies that fund research and development activities, such as the NIH.

that they will renew their leases with us.

again in the coming years, could also adversely affect the ability of these tenants to fulfill lease obligations or decrease the likelihood

spending, particularly a sudden decrease due to tax reform or a sequestration process, which has occurred in the past and may occur

future regulatory and government interference with the healthcare systems may adversely impact our tenants’ businesses and our

business.

cause us to achieve lower-than-expected yields on the spaces leased by these tenants.

portfolio companies or cause us to expend more funds and resources on the spaces leased by these tenants than we originally

at our properties, incur remediation costs, and become subject to claims and damage to our reputation.

construction, or other essential services, we may experience significant interruptions in service and disruptions to business operations