ALEXANDRIA REAL ESTATE EQUITIES, INC. (ARE) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that ALEXANDRIA REAL ESTATE EQUITIES, INC. surfaced in its latest filing.

• On December 3, 2025, the Board declared a quarterly cash dividend of $0.72 per common share for Q4 2025, a $0.60 or 45% reduction from the previous quarter.2025-12-03
• Federal Reserve raised benchmark rate from near zero in March 2022 to 3.50%–3.75% as of December 31, 2025.2022-03
• On March 10, 2023, Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation, and the FDIC appointed as receiver.2023-03-10
• On March 12, 2023, the New York State Department of Financial Services closed Signature Bank and appointed the FDIC as receiver.2023-03-12
• On May 1, 2023, regulators seized control of First Republic Bank and sold the majority of its assets and deposits to JPMorgan Chase.2023-05-01
• PG&E initiated Chapter 11 bankruptcy reorganization in January 2019 and emerged in July 2020.2019-01
• In September 2025, Congress failed to enact a budget, resulting in a partial government shutdown that lasted 43 days.2025-09
• On January 27, 2025, the U.S. administration issued a memorandum to suspend NIH grant funding, freezing much of the NIH's nearly $48 billion budget for 2025.2025-01-27
• During the first half of 2025, the NIH laid off approximately 5,000 employees and contractors across its approximately 20,000-person workforce.2025
• In May 2025, the White House introduced a budget proposal for fiscal year 2026 that would reduce the NIH budget by approximately 40%, from $48 billion to $27.5 billion.2025-05
• On January 5, 2026, the U.S. Court of Appeals for the First Circuit affirmed a nationwide injunction blocking the administration's attempt to impose a 15% cap on indirect cost reimbursements for NIH grants.2026-01-05
• On January 20, 2025, President Trump issued an executive order directing every U.S. agency to terminate all grants relating to diversity, equity, and inclusion.2025-01-20
• On February 7, 2025, the NIH introduced a policy limiting indirect cost reimbursements to 15% for all NIH grants.2025-02-07
• A coalition of 22 state attorneys general challenged the NIH's 15% cap on indirect costs; on April 7, 2025, a federal court issued a permanent injunction blocking enforcement of the cap.2025-04-07
• On May 12, 2025, President Trump issued an executive order directing HHS to set U.S. drug price benchmarks at the lowest prices paid in comparable developed countries.2025-05-12
• In July 2025, the White House sent letters to the CEOs of 17 major drug manufacturers demanding compliance with most-favored-nation pricing within 60 days, noting noncompliance could result in enforcement.2025-07
• The Trump administration reached public agreements with AstraZeneca and Pfizer under which both companies will offer many drugs at most-favored-nation pricing through Medicaid and a new direct-to-consumer platform, receiving a three-year tariff reprieve.
• On July 4, 2025, the OBBB Act was signed into law, including an estimated $1 trillion in cuts to Medicaid spending implemented through Medicaid work requirements, patient cost-sharing, and a phase-down of Medicaid provider taxes and state-directed payments.2025-07-04
• On February 1, 2025, President Trump imposed a 25% tariff on certain imports from Mexico and Canada and a 10% tariff on all products from China.2025-02-01
• On March 3, 2025, the President increased tariffs on all products from China from 10% to 20%.2025-03-03
• On April 2, 2025, the President imposed a 10% universal import tariff on all goods, with higher rates for 57 trading partners.2025-04-02
• On April 9, 2025, the President raised the tariff rate on Chinese imports to 125%, and on June 12, 2025, replaced it with a 55% tariff on select Chinese goods.2025-04-09
• On April 14, 2025, the U.S. government launched an investigation into pharmaceuticals to justify tariffs; it is estimated that U.S. tariffs could add $46 billion in costs to the pharmaceutical industry.2025-04-14
• On August 21, 2025, the U.S. and the European Union reached a trade agreement establishing a 15% ceiling on tariffs applied to pharmaceutical products traded between the two regions.2025-08-21
• On September 25, 2025, President Trump announced, effective October 1, 2025, pharmaceutical manufacturers would be subject to a 100% tariff on all branded and patented drugs imported into the U.S., with an exemption for companies developing or constructing domestic manufacturing facilities.2025-09-25
• SEC adopted new standards on March 6, 2024 requiring quantitative climate-related disclosures, but the rules were stayed on April 4, 2024 pending judicial review; the SEC withdrew its defense in March 2025, leaving them stayed indefinitely.2024-03-06
• California introduced SB 253 requiring reporting of greenhouse gas emissions and SB 261 requiring biennial climate-related financial risk reports.
• S&P Global Ratings lowered its long-term sovereign credit rating of the U.S. from 'AAA' to 'AA+' in 2011 and affirmed it in August 2025. Fitch Ratings downgraded the U.S. from 'AAA' to 'AA+' in 2023 and affirmed it in August 2025.2011
• Final Basel III regulations from the Federal Reserve are expected by early 2026 following a September 2025 announcement by the vice chair for supervision.2025-09
• The OBBB Act changed the business interest expense limitation from 30% of EBIT to 30% of EBITDA, restored and made permanent 100% bonus depreciation, created Section 174A reinstating 100% expensing for domestic research expenditures, and made permanent a 20% deduction for pass-through entity income.
• In 2025, the FDA laid off approximately 3,500 employees, representing approximately 19% of its workforce; the CDC underwent significant restructuring and workforce reduction.2025
• On January 29, 2025, the President issued an executive order to combat anti-Semitism; as a result the NIH has withheld funding from certain U.S. research institutions.2025-01-29
• The Inflation Reduction Act of 2022 allows U.S. HHS to negotiate Medicare drug prices, introduces penalties for price increases above inflation, and caps out-of-pocket expenses.
• In June 2023, a short seller published reports with negative and false allegations about the company's business and financial prospects.2023-06
• As of December 31, 2025, approximately 92% of leases are triple net, and approximately 97% contain annual rent escalations approximating 3%, either fixed or CPI-indexed.2025-12-31
• The company has six consolidated real estate joint ventures with aggregate noncontrolling interests of approximately $1.17 billion where partners have put, buy/sell, or forced sale rights, and 16 others with $1.91 billion where rights become exercisable upon lockup expiration during 2026 through 2031.2025-12-31
• Our all-risk property insurance provides a $2.0 billion per-occurrence limit; earthquake insurance for California properties is $335 million per occurrence with a 5% deductible, and for Seattle region, $200 million with a 2% deductible.
• The unsecured senior line of credit requires compliance with financial and non-financial covenants, including maintenance of financial coverage ratios and a pool of qualified unencumbered assets, and restricts certain business activities.
• The company's charter imposes a 9.8% ownership limit on outstanding shares and provides for voiding/exchange of transfers that violate the limit or cause the company to be closely held.
• The company has a small portfolio of operating properties in Canada.