ALEXANDRIA REAL ESTATE EQUITIES INC
For the period ended Dec 31, 2024. Filed Jan 27, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Jan 27, 2025
ARE$44.80-0.8%Stored close · as of Nov 6, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-K
Period ended 2023-12-31; filed 2024-01-29.
0001035443-24-000072
ITEM 1A. RISK FACTORSCurrent report: 10-K
Period ended 2024-12-31; filed 2025-01-27.
0001035443-25-000067
ITEM 1A. RISK FACTORSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 685 previous paragraphs and 2167 current paragraphs.
233 unchanged; 424 reworded; 270 added; 27 removed; 1 previous and 1240 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (270)
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Removed paragraphs (27)
Previous report
The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations, our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our common stock, and our ability to satisfy our debt service obligations.
Previous report
The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations, our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our common stock, and our ability to satisfy our debt service obligations.
Previous report
During the year ended December 31, 2023, the consumer price index (“CPI”) rose by approximately 3.4%. During the past three years, the CPI peaked at 9.1%.
Previous report
•Changes in the life science, agtech, and technology industries;
Previous report
•Our joint venture partners may have rights to sell their interests to us, which we may face challenges in fulfilling due to potential capital constraints, or alternatively, if we elect not to buy their interests, we may be forced to sell the underlying asset when we otherwise would not decide to do so;
Previous report
The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations, our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our common stock, and our ability to satisfy our debt service obligations.
Previous report
•Inability to access capital on terms favorable to our tenants because of changes in company valuation and/or investor appetite due to a general downturn in economic and financial conditions and the volatility of the market.
Previous report
In addition, to combat the cause of global warming domestically, President Biden identified climate change as one of his administration’s top priorities and pledged to seek measures that would pave the path for the U.S. to eliminate net greenhouse gas (“GHG”) pollution by 2050. In April 2021, President Biden announced the administration’s plan to reduce U.S. GHG emissions by at least 50% by 2030.
Previous report
•Interruption in the operation of our systems, which may result in operational inefficiencies and a loss of profits;
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•Significant management attention and resources required to remedy any damages;
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•Significant exposure to litigation and regulatory fines, penalties, or other sanctions;
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•Damage to our reputation among our tenants, business partners, and investors;
Previous report
It may not always be possible to anticipate, detect, or recognize threats to our systems, or to implement effective preventive measures against all security incidents. We may not be able to immediately address the consequences of a security incident. A successful breach of our computer systems, software, networks, or other technology assets could occur and persist for an extended period of time before being detected due to, among other things:
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•The breadth of our operations and the high volume of transactions that our systems process;
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•The wide breadth of software required to run our business, and the increase in supply chain attacks by advanced persistent threats;
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•The frequency and wide variety of sources from which a cyberattack can originate;
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•The proliferation and increasing sophistication and types of cyberattacks.
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In March 2022, President Biden signed into law the Cyber Incident Reporting for Critical Infrastructure Act (“CIRCIA”), which will require critical infrastructure entities to report to the Cybersecurity and Infrastructure Security Agency (“CISA”) of the U.S. Department of Homeland Security any substantial cyber incidents within 72 hours and ransomware payments made within 24 hours of occurrence, among other items. CISA has until September 2025 to release a final rule, and it is yet unknown whether we will be subject to these rules under CIRCIA.
Previous report
Since approving the Basel III Standards, U.S. regulators also issued rules that impose upon the most systemically significant banking organizations in the U.S. supplementary leverage ratio standards (the “SLR Standards”) more stringent than those of the Basel III Standards. In addition, the U.S. Federal Reserve adopted a final rule that establishes a methodology to identify whether a U.S. bank holding company is a global systemically important banking organization (“GSIB”). Any firm identified as a GSIB would be subject to a risk-based capital surcharge that is calibrated based on its systemic risk profile. Under the final rule, the capital surcharge began phasing in on January 1, 2016 and became fully effective on January 1, 2019.
Previous report
On September 3, 2014, U.S. banking regulators issued a final rule to implement the Basel Committee’s liquidity coverage ratio (the “LCR”) in the U.S. (the “LCR Final Rule”). The LCR is intended to promote the short-term resilience of internationally active banking organizations to improve the banking industry’s ability to absorb shocks arising from idiosyncratic or market stress, and to improve the measurement and management of liquidity risk. The LCR Final Rule contains requirements that are in certain respects more stringent than the Basel Committee’s LCR. The LCR measures an institution’s high-quality liquid assets against its net cash outflows. Under the LCR Final Rule, the LCR transition period occurred from 2015 through 2017.
Previous report
U.S. regulators have also issued and proposed rules that impose additional restrictions on the business activities of financial institutions, including their trading and investment activities. For example, with effect in April 2014, U.S. regulators adopted a final rule implementing a section of the Dodd-Frank Wall Street Reform and Consumer Protection Act known as the “Volcker Rule.” The Volcker Rule generally restricts certain U.S. and foreign financial institutions from engaging in proprietary trading and from investing in sponsoring or having certain relationships with “covered funds,” which include private equity funds and hedge funds. Amendments effective in January 2020 have provided a certain level of regulatory relief, particularly pertaining to proprietary trading restrictions, by tailoring the Volker Rule’s application, simplifying certain standards and requirements, and reducing compliance burden. Additional amendments related to “covered funds” are expected. The effects of the Volcker Rule are uncertain, but it is in any event likely to curtail various banking activities, which in turn could result in uncertainties in the financial markets.
Previous report
In March 2020, the Basel Committee announced a deferral of Basel III implementation to January 1, 2023 due to impacts from the COVID-19 pandemic. In 2023, the U.S. regulators proposed July 2025 for compliance with the new requirements.
Previous report
The implementation of the Basel III Standards, the SLR Standards, the GSIB capital surcharge, the LCR Final Rule, the Volcker Rule, and other similar rules and regulations could cause an increase in capital requirements for, and place other financial constraints on, both U.S. and foreign financial institutions from which we borrow, which may negatively impact our access to financing or affect the terms of our future financing arrangements.
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Previous wording
The following risk factors may adversely affect our overall business, financial condition, results of operations, and cash flows; our ability to make distributions to our stockholders; our access to capital; or the market price of our common stock, as further described in each risk factor below. In addition to the information set forth in this annual report on Form 10-K, one should carefully review and consider the information contained in our other reports and periodic filings that we make with the SEC. Those risk factors could materially affect our overall business, financial condition, results of operations, and cash flows; our ability to make distributions to our stockholders; our access to capital; or the market price of our common stock. The risks that we describe in our public filings are not the only risks that we face. Additional risks and uncertainties not presently known to us, or that we currently consider immaterial, also may materially adversely affect our business, financial condition, and results of operations. Additional information regarding forward-looking statements is included in the beginning of Part I in this annual report on Form 10-K.
Current wording
The following risk factors may adversely affect our overall business, financial condition, results of operations, and cash flows;
Previous wording
An investment in our securities involves various risks. Such risks, including those set forth in the summary of material risks in this Item 1A, should be carefully considered before purchasing our securities.
Current wording
An investment in our securities involves various risks. Such risks, including those set forth in the summary of material risks in
Previous wording
•We may be unable to identify and complete acquisitions, investments, or development or redevelopment projects or to successfully and profitably operate properties.
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•We may be unable to identify and complete acquisitions, investments, or development or redevelopment projects or to
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•We could default on our ground leases or be unable to renew or re-lease our land or space on favorable terms or at all. Our tenants may also be unable to pay us rent.
Current wording
•We could default on our ground leases or be unable to renew or re-lease our land or space on favorable terms or at all.
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•The cost of maintaining and improving the quality of our properties may be higher than anticipated, and we may be unable to pass any increased operating costs through to our tenants, which can result in reduced cash flows and profitability.
Current wording
•The cost of maintaining and improving the quality of our properties may be higher than anticipated, and we may be unable
Previous wording
•We could be held liable for environmental damages resulting from our tenants’ use of hazardous materials, or from harmful mold, poor air quality, or other defects from our properties, or we could face increased costs in complying with other environmental laws.
Current wording
harmful mold, poor air quality, or other defects from our properties, or we could face increased costs in complying with
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•The loss of services of any of our senior officers or key employees and increased competition for skilled personnel could adversely affect us and/or increase our labor costs.
Current wording
•The loss of services of any of our senior officers or key employees and increased competition for skilled personnel could
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•We rely on a limited number of vendors to provide utilities and other services at our properties, and disruption in such services may have an adverse effect on our operations and financial condition.
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•We rely on a limited number of vendors to provide utilities and other services at our properties, and disruption in such
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•Our insurance policies may not adequately cover all of our potential losses, or we may incur costs due to the financial condition of our insurance carriers.
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•Our insurance policies may not adequately cover all of our potential losses, or we may incur costs due to the financial
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•If we failed to qualify as a REIT, we would be taxed at corporate rates and would not be able to take certain deductions when computing our taxable income.
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•If we failed to qualify as a REIT, we would be taxed at corporate rates and would not be able to take certain deductions
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•We may not be able to raise sufficient capital to fund our operations due to adverse changes in our credit ratings, our inability to refinance our existing debt or issue new debt, or our inability to sell existing real estate and non-real estate assets timely or at optimal prices.
Current wording
•We may not be able to raise sufficient capital to fund our operations due to adverse changes in our credit ratings, our
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•We may invest or spend the net proceeds from our equity or debt offerings in ways with which our investors may not agree and in ways that may not earn a profit.
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•We may invest or spend the net proceeds from our equity or debt offerings in ways with which our investors may not agree
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•Our debt service obligations may restrict our ability to engage in some business activities or cause other adverse effects on our business.
Current wording
•Our debt service obligations may restrict our ability to engage in some business activities or cause other adverse effects
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•We face risks and liabilities associated with our investments (including those in connection with short-term liquid investments) and the companies in which we invest (including properties owned through partnerships, limited liability companies, and joint ventures, as well as through our non-real estate venture investment portfolio), which expose us to risks similar to those of our tenant base and additional risks inherent in venture capital investing. We may be limited in our ability to diversify our investments.
Current wording
•We face risks and liabilities associated with our investments (including those in connection with short-term liquid
Previous wording
•There are limits on ownership of our stock under which a stockholder may lose beneficial ownership of its shares, as well as certain provisions of our charter and bylaws that may delay or prevent transactions that otherwise may be desirable to our stockholders.
Current wording
•There are limits on ownership of our stock under which a stockholder may lose beneficial ownership of its shares, as well
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•We are dependent on the health of the life science, agtech, and technology industries, and changes within these industries, increased competition, or the inability of our tenants and non-real estate equity investments within these industries to obtain funding for research, development, and other operations may adversely impact their ability to make rental payments to us or adversely impact their value.
Current wording
•We are dependent on the health of the life science industry, and changes within this industry, increased competition, or the
Previous wording
•Market disruption and volatility, poor economic conditions in the capital markets and global economy, including in connection with a widespread pandemic or outbreak of a highly infectious or contagious disease, and tight labor markets could adversely affect the value of the companies in which we hold equity investments or the ability of tenants and the companies in which we invest to continue operations, raise additional capital, or access capital from venture capital investors or financial institutions on favorable terms or at all.
Current wording
•Market disruption and volatility, poor economic conditions in the capital markets and global economy, including in
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•Actions, policy, or key leadership changes in government agencies, or changes to laws or regulations, including those related to tax, accounting, debt, derivatives, government spending, or funding (including those related to the FDA, the National Institutes of Health (the “NIH”), the SEC, and other agencies), and drug and healthcare pricing, costs, and programs could have a significant negative impact on the overall economy, our tenants and companies in which we invest, and our business.
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•Actions, policy, or key leadership changes in government agencies, or changes to laws or regulations, including those
Previous wording
Changes to the U.S. tax laws could have a significant negative impact on the overall economy, our tenants, and our business.
Current wording
programs could have a significant negative impact on the overall economy, our tenants and companies in which we invest,
Previous wording
•Partial or complete government shutdown resulting in temporary closures of agencies could adversely affect our tenants (some of which are also government agencies) and the companies in which we invest, including delays in the commercialization of such companies’ products, decreased funding of research and development, or delays surrounding approval of budget proposals.
Current wording
•Partial or complete government shutdown resulting in temporary closures of agencies could adversely affect our tenants
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•The outbreak of any highly infectious or contagious disease could adversely impact our financial condition and results of operations, and/or that of our tenants and non-real estate investments.
Current wording
•The outbreak of any highly infectious or contagious disease could adversely impact our financial condition and results of
Previous wording
•Social, political, and economic instability, unrest, significant changes, and other circumstances beyond our control, including circumstances related to changes in the U.S. political landscape, could adversely affect our business operations.
Current wording
including circumstances related to changes in the U.S. political landscape, could adversely affect our business operations.
Previous wording
•Seasonal weather conditions, climate change and severe weather, changes in the availability of transportation or labor, and other related factors may affect our ability to conduct business, the products and services of our tenants, or the availability of such products and services of our tenants and the companies in which we invest.
Current wording
•Seasonal weather conditions, climate change and severe weather, changes in the availability of transportation or labor,
Previous wording
•Changes in privacy and information security laws, regulations, policies, and contractual obligations related to data privacy and security, or our failure to comply with such requirements, could subject us to fines or penalties or increase our cost of doing business, compliance risks, and potential liability and otherwise adversely affect our business or results of operations.
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•Changes in privacy and information security laws, regulations, policies, and contractual obligations related to data privacy
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•System failures or security incidents through cyberattacks, intrusions, or other methods could disrupt our information technology networks, enterprise applications, and related systems, cause a loss of assets or data, give rise to remediation or other expenses, expose us to liability under federal and state laws, and subject us to litigation and investigations, which could result in substantial reputational damage and adversely affect our business and financial condition.
Current wording
•System failures or security incidents through cyberattacks, intrusions, or other methods could disrupt our information
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•The enactment of legislation, including the Inflation Reduction Act of 2022, may adversely impact our financial condition and results of operations.
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•The enactment of legislation, including the Inflation Reduction Act of 2022, may adversely impact our financial condition
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We attempt to mitigate the foregoing risks. However, if we are unable to effectively manage the impact of these and other risks, our ability to meet our investment objectives may be substantially impaired and any of the foregoing risks could materially adversely affect our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, or the market price of our common stock.
Current wording
We attempt to mitigate the foregoing risks. However, if we are unable to effectively manage the impact of these and other risks,
Previous wording
We continually evaluate the market of available properties and may acquire properties when opportunities exist. Our ability to acquire properties on favorable terms and successfully operate them may be exposed to significant risks, including, but not limited to, the following:
Current wording
acquire properties on favorable terms and successfully operate them may be exposed to significant risks, including, but not limited to,
Previous wording
•We may be unable to acquire a desired property because of competition from other real estate investors with significant capital, including both publicly traded REITs and institutional funds.
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•We may be unable to acquire a desired property because of competition from other real estate investors with significant
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•Even if we are able to acquire a desired property, competition from other potential acquirers may significantly increase the purchase price or result in other less favorable terms.
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•Even if we are able to acquire a desired property, competition from other potential acquirers may significantly increase the
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•Even if we enter into agreements for the acquisition of properties, these agreements are subject to customary conditions to closing, including completion of due diligence investigations to our satisfaction.
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•Even if we enter into agreements for the acquisition of properties, these agreements are subject to customary conditions
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•We may be unable to complete an acquisition because we cannot obtain debt and/or equity financing on favorable terms or at all.
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•We may be unable to complete an acquisition because we cannot obtain debt and/or equity financing on favorable terms
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•We may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of operating properties or portfolios of properties, into our existing operations.
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•We may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of operating properties or
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•Acquired properties may be subject to tax reassessment, which may result in higher-than-expected property tax payments.
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•Acquired properties may be subject to tax reassessment, which may result in higher-than-expected property tax
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•We may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities, such as liabilities for the remediation of undisclosed environmental contamination; claims by tenants, vendors, or other persons dealing with the former owners of the properties; and claims for indemnification by general partners, directors, officers, and others indemnified by the former owners of the properties.
Current wording
•We may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to
Previous wording
We may pursue selective acquisitions of properties in markets where we have not previously owned properties. These acquisitions may entail risks in addition to those we face in other acquisitions where we are familiar with the markets, such as the risk of not correctly anticipating conditions or trends in a new market and therefore not being able to generate profit from the acquired property. If this occurs, it could adversely affect our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, our ability to satisfy our debt service obligations, and the market price of our common stock.
Current wording
We may pursue selective acquisitions of properties in markets where we have not previously owned properties. These
Previous wording
We may continue to acquire additional properties and/or land and may seek to develop our existing land holdings strategically as warranted by market conditions. These acquisitions and developments could fail to perform in accordance with expectations. If we fail to accurately estimate occupancy levels, rental rates, lease commencement dates, operating costs, or costs of improvements to bring an acquired property or a development property up to the standards established for our intended market position, the performance of the property may be below expectations. Acquired properties may have characteristics or deficiencies affecting their valuation or revenue potential that we have not yet discovered. We cannot assure our stockholders that the performance of properties acquired or developed by us will increase or be maintained under our management.
Current wording
We may continue to acquire additional properties and/or land and may seek to develop our existing land holdings strategically
Previous wording
There are significant risks associated with development and redevelopment projects, including, but not limited to, the following possibilities:
Current wording
There are significant risks associated with development and redevelopment projects, including, but not limited to, the following
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•We may expend funds on, and devote management’s time to, development and redevelopment projects that we may not complete.
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•We may expend funds on, and devote management’s time to, development and redevelopment projects that we may not
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•We may abandon development or redevelopment projects after we begin to explore them, and as a result, we may lose deposits or fail to recover costs already incurred.
Current wording
•We may abandon development or redevelopment projects after we begin to explore them, and as a result, we may lose
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our ability to make distributions to our stockholders; our access to capital; or the market price of our common stock, as further described
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in each risk factor below. In addition to the information set forth in this annual report on Form 10-K, one should carefully review and
Current report — wording carried from elsewhere
consider the information contained in our other reports and periodic filings that we make with the SEC. Those risk factors could
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materially affect our overall business, financial condition, results of operations, and cash flows; our ability to make distributions to our
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stockholders; our access to capital; or the market price of our common stock. The risks that we describe in our public filings are not the
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only risks that we face. Additional risks and uncertainties not presently known to us, or that we currently consider immaterial, also may
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materially adversely affect our business, financial condition, and results of operations. Additional information regarding forward-looking
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statements is included in the beginning of Part I in this annual report on Form 10-K.
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this Item 1A, should be carefully considered before purchasing our securities.
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Our tenants may also be unable to pay us rent.
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to pass any increased operating costs through to our tenants, which can result in reduced cash flows and profitability.
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•We could be held liable for environmental damages resulting from our tenants’ use of hazardous materials, or from
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adversely affect us and/or increase our labor costs.
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services may have an adverse effect on our operations and financial condition.
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inability to refinance our existing debt or issue new debt, or our inability to sell existing real estate and non-real estate
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assets timely or at optimal prices.
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and in ways that may not earn a profit.
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investments) and the companies in which we invest (including properties owned through partnerships, limited liability
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companies, and joint ventures, as well as through our non-real estate venture investment portfolio), which expose us to
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risks similar to those of our tenant base and additional risks inherent in venture capital investing. We may be limited in our
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as certain provisions of our charter and bylaws that may delay or prevent transactions that otherwise may be desirable to
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inability of our tenants and non-real estate equity investments within this industry to obtain funding for research,
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development, and other operations may adversely impact their ability to make rental payments to us or adversely impact
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connection with a widespread pandemic or outbreak of a highly infectious or contagious disease, and tight labor markets
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could adversely affect the value of the companies in which we hold equity investments or the ability of tenants and the
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companies in which we invest to continue operations, raise additional capital, or access capital from venture capital
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investors or financial institutions on favorable terms or at all.
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related to tax, accounting, debt, derivatives, government spending, or funding (including those related to the FDA, the
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National Institutes of Health (the “NIH”), the SEC, and other agencies), and drug and healthcare pricing, costs, and
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(some of which are also government agencies) and the companies in which we invest, including delays in the
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commercialization of such companies’ products, decreased funding of research and development, or delays surrounding
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operations, and/or that of our tenants and non-real estate investments.
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•Social, political, and economic instability, unrest, significant changes, and other circumstances beyond our control,
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and other related factors may affect our ability to conduct business, the products and services of our tenants, or the
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availability of such products and services of our tenants and the companies in which we invest.
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and security, or our failure to comply with such requirements, could subject us to fines or penalties or increase our cost of
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doing business, compliance risks, and potential liability and otherwise adversely affect our business or results of
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technology networks, enterprise applications, and related systems, cause a loss of assets or data, give rise to remediation
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or other expenses, expose us to liability under federal and state laws, and subject us to litigation and investigations, which
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could result in substantial reputational damage and adversely affect our business and financial condition.
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•Some of our technology industry tenants and venture investment portfolio companies may not be able to successfully manufacture their products economically.