Risk Factors Update Summary

• Departure of executive officers resulted in accelerated recognition of unamortized compensation expense of approximately $15.6 million and $4.6 million.
• Issued $1.0 billion unsecured senior notes at 3.95% with a weighted-average maturity of 21 years.
• Accumulated depreciation rose from $3.8 billion in 2022 to $4.9 billion in 2023.
• Projected capital contributions from partners in consolidated real estate joint ventures to fund construction through 2027 increased significantly from $1,246,000 to $1,449,518.
• Real estate and non-real estate assets were added to the risk factors disclosure.
• Sales of real estate assets and impairment charges changed significantly, with a decrease in sales from $615 million to $461 million and an increase in impairment charges from $65 million to $461 million.
• Established Labspace ® asset base predominantly concentrated in markets with high barriers to entry.
• The Inflation Reduction Act of 2022 allows direct negotiation of Medicare drug prices, impacting select drugs covered by Medicare Part B and Part D.
• Added new development projects aggregating 467,567 RSF, generating $57 million incremental annual net operating income.
• Leasing activity increased significantly with 336 leases executed, a weighted-average lease term increase from 8 to 11 years.
• Enhanced cybersecurity risk management processes implemented, including incident detection, response, and vulnerability management.
• Stockholders' equity increased significantly from $20,812 to $15,896 million.
• Long-Term Incentive Grants amended to increase target LTI grant value to $3,600,000.
• 90% of top 20 tenants set net-zero carbon goals by Dec 31, 2023, up from unspecified.
• The property at 651 Gateway Boulevard is projected to have a 47.1% occupancy rate.
• Repaid $500.0 million of 5.15% unsecured senior notes due 2053 with an effective interest rate.
• Sales of 10935, 10945, and 10955 Alexandria Way are expected to generate $177,828,000.
• Total equity decreased from $972,387 to $606,513 million, a significant change.
• Focus on creating new and enhancing existing mega campuses to defend against competitive supply.
• The Inflation Reduction Act of 2022 led to over $278 billion in new green investments and jobs in the U.S.
• The number of properties classified as held for sale decreased from 10 to seven.
• Updated guidance for EPS attributable to Alexandria's common stockholders - diluted for the year ending December 31, 2023, increased from $3.41 to $3.49.
• The estimated annual amortization of in-place leases decreased from $133,000 to $107,000, indicating a reduction in amortization expenses.
• Increased rental rates by 29.4%, 31.0%, and 37.9% for the years ended December 31, 2023, 2022, and 2021, respectively.
• Increase in the number of properties held for sale from 297 to 1,284, representing a significant change.
• Long-Term Incentive Grants now include a Trading Restriction on vested shares for one year.
• The consumer price index rose by approximately 6% in the past twelve months.
• COP28 reaffirmed limiting global temp rise to 1.5°C, impacting climate change policies.
• Investment loss increased by $195.4 million to $195.4 million for the year ended December 31, 2023.
• Rental rate growth improved from 31% to 29% and 22% to 15% (cash basis) on renewed and re-leased space.
• Forecasting challenges prevent providing reconciliation for fixed-charge coverage ratio due to market-dependent items.
• Net debt and preferred stock rose from $8.4 billion in 2022 to $10.7 billion in 2023.
• Depreciation and amortization of real estate assets increased from $5.50 to $5.69.
• Acquisitions in 2023 totaled $433,419, with completed acquisitions including $202,997 and pending acquisitions of $250,000 to $750,000.
• Impairment charges increased notably, with new impairment charges totaling $461 million compared to $65 million previously.
• Revenues increased from $2,576,040 to $2,842,456, a notable rise of $266 million.
• Anticipated growth in funds from operations per share from $8.97 in 2023 to $9.47 in 2024.
• Gross assets increased from $30.2 billion in 2022 to $35.5 billion in 2023.
• Reduction in ground lease rental expense as a percentage of net operating income from 7% to 5%.
• Legislation in California and cities like New York and San Francisco mandates net-zero GHG emissions by 2045.
• Unsecured senior notes payable increased from $8.3 billion in 2022 to $11.1 billion in 2023.
• The development project at 401 Park Drive is anticipated to total 133,578 RSF.
• Capital plan included $1.4 billion funding from dispositions and partial interest sales, with $439.0 million completed in Q4 2023.
• Legislation in California requires GHG disclosures, affecting climate risk management.
• The federal funds rate was raised from nearly zero to a range between 0.25% and 0.50%.
• The total cost of real estate assets increased from $34 billion to $36 billion.
• Expect real estate dispositions and sales of partial interests ranging from $900 million to $2.4 billion.
• Unrealized losses on investments increased by $18 million to $77 million for the year ended December 31, 2023.
• Deposits increased by $5 million to $25 million as of December 31, 2023.
• Title Change for Peter M. Moglia to Chief Executive Officer and Chief Investment Officer.
• The California Privacy Rights Act expanded privacy rights, affecting personal data handling and compliance costs.
• Total equity capitalization increased from $1.3 billion in 2022 to $2 billion in 2023.
• The weighted-average remaining lease term decreased from approximately 8.0 years to 7.9 years, impacting lease obligations.
• Climate resilience roadmap developed to assess physical risks associated with climate change.
• Other income increased from $7,429 to $43,243, a substantial increase of $35,814.
• Net investment in direct financing lease decreased by $1.3 million to $40 million as of December 31, 2023.
• Allocation of unvested restricted stock awards increased from $0.05 to $0.07.
• The annual rent escalations approximating 3% were fixed or indexed based on the CPI.
• Deferred compensation plan increased by $6.8 million to $40.4 million for the year ended December 31, 2023.
• Solid same property net operating income growth of 3.4% in 2023 and anticipated growth of 1.5% in 2024.
• Total assets surged from $30.2 billion in 2022 to $35.5 billion in 2023.
• Expect to incur $2.2 billion to $3.3 billion in construction spending in 2024, funded partially through bond issuances.
• Expect to receive $1.2 billion in capital contributions from existing consolidated real estate joint venture partners.
• Accumulated depreciation increased from $4.35 billion to $4.98 billion.
• Dispositions included the sale of 100 Binney Street in Cambridge for $228,000, with a gain of $1,186 per RSF.
• Additions to real estate increased from $1.5 billion to $3.1 billion.
• Placed into service development and redevelopment projects aggregating 1.2 million RSF, generating $145 million incremental annual net operating income.
• GHG emissions mitigation strategy aligns with sustainability goals of innovative tenants.
• Total expenses increased from $1,642,024 to $2,687,325, a significant rise of $1,045,301.
• Operating lease right-of-use assets decreased by $42 million to $516 million as of December 31, 2023.
• Total future lease payments under operating leases decreased from $904 million to $848 million, reflecting changes in lease obligations.
• Future development projects increased to 5,592,452 square feet, with a total of 74,566,128 square feet upon completion.
• Funds from operations per share increased from $8 to $9.
• Potential future federal government shutdowns due to disagreements over the debt ceiling could disrupt operations.
• Completed acquisitions in 2024 with strong occupancy of 94.6% in 2023 and anticipated range of 94.6% to 95.6% in 2024.
• Completed acquisitions of five properties for $2.8 billion, accounted for as asset acquisitions.
• Deferred financing costs decreased by $0.9 million to $30.9 million for the year ended December 31, 2023.
• The loss of services of executive and senior officers could adversely affect the company.
• Investment loss in 2023 increased to $195.4 million from $52.3 million in 2022.
• Net income attributable to stockholders increased from $513,268 to $103,639 million.
• Rental rate increases of 29.4% in 2023 and anticipated increases of 15.0% in 2024.
• Short sellers' manipulative activities may lead to increased stock price volatility and regulatory inquiries.
• Expect to settle remaining outstanding forward equity sales agreements for approximately $102.4 million in 2023.
• Depreciation expense on properties increased from $530 million to $893 million.
• Investments in limited partnerships increased from $65 million to $75.5 million, indicating a higher investment commitment.
• Total square footage for acquisitions in 2023 was 433,419, with a total of 1,633,485 in value and $258,976 in gain.
• Net operating income increased from 4% to 5%.
• The company may experience substantial unanticipated delays that could impact revenue.
• Expect capitalized interest to range from $325 million to $355 million in 2024, reflecting a focus on completing highly leased projects.
• Disruptions at the FDA and other agencies may affect the ability of the healthcare industry.
• Sale of properties decreased from $56.7 million to $19.1 million.
• Lease expirations in 2023 included 3,876,007 RSF, with a percentage of expiring leases at 9.9% and $52.08 per RSF.
• Strategic investments in life science, agtech, and technology industries subject to market risks and sector-specific challenges.
• Leasing activity in 2023 normalized to historical average of 4.2 million RSF executed annually from 2013 to 2020.
• Established a new ATM program during Q1 2023 to issue common stock, preferred stock, debt, and other securities.
• Concentration of credit risk related to cash deposits exceeding FDIC insurance coverage may impact short-term liquidity.
• Straight-line rent revenue increased from $145 to $184.
• Total construction spending for 2024 projected at $2.975 billion, up from $2.672 billion.
• Deferred leasing costs decreased from $1,035,339 million to $996,116 million, showing a reduction in leasing-related expenses.
• Net income per share decreased from $3.18 to $0.54, a notable decrease.