ALEXANDRIA REAL ESTATE EQUITIES, INC.
For the period ended Dec 31, 2025. Filed Jan 26, 2026.
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.
FY2025 · Filed Jan 26, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-01-27.
0001035443-25-000067
ITEM 1A. RISK FACTORSCurrent report: 10-K
Period ended 2025-12-31; filed 2026-01-26.
0001035443-26-000013
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.
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1815 unchanged; 166 reworded; 336 added; 171 removed; 15 previous and 21 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 (336)
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ability to diversify or monetize our investments.
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March 2022 to a range between 3.50% and 3.75% as of December 31, 2025. Interest rates at elevated levels could increase our
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suppliers. These pressures are expected to intensify in 2026 due to tariff‑driven material‑cost volatility. Certain increases in the costs of
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The market price and volatility of our common stock may be adversely affected by our financial performance, our
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ability to meet market expectations, and a wide range of external factors outside of our control.
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occurrence of a wide range of operational and external factors beyond our control, including, but not limited to, those provided below,
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has adversely affected, and may in the future adversely affect the market price and volatility of our common stock:
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•Our ability to execute planned asset dispositions at our targeted pricing levels and to effectively reinvest the resulting
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proceeds in a manner that supports our strategic and financial objectives;
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•Actual or anticipated changes in rental rates, leasing activity, occupancy levels, or real estate valuations;
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Any of these factors may adversely affect the market price and volatility of our common stock.
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On December 3, 2025, our Board of Directors declared a quarterly cash dividend of$0.72 per common share for the fourth
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quarter of 2025, representing a $0.60, or 45%, reduction from the dividend declared for the third quarter of 2025. Our Board of Directors
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If a joint venture partner elects to initiate a transaction relating to its interest in the joint venture or the property, we generally
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have a right of first refusal or buy right which may allow us to achieve full ownership of the property. However, if we decline to exercise
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portfolio companies or cause us to expend more funds and resources on the spaces leased by these tenants than we originally
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On July 3, 2025, the U.S. House of Representatives and the Senate passed the One Big Beautiful Bill Act, which the U.S.
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President signed into law on July 4, 2025 (the “OBBB Act”). Among other things, the OBBB Act:
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•Changed the business interest expense limitation from 30% of EBIT to 30% of EBITDA. This limitation does not apply to,
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among others, real property businesses electing out of such restriction. We generally believe our business activities
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qualify as real property businesses, but businesses conducted by our taxable REIT subsidiaries may not qualify;
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•Restored and made permanent 100% bonus depreciation for qualified short-lived business property placed in service after
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•Created Section 174A of the Internal Revenue Code, which reinstated 100% expensing for domestic research and
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•For individuals, made permanent a deduction equal to 20% of certain income from pass-through entities, including
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ordinary dividends distributed by a REIT (excluding capital gain dividends and qualified dividend income), which was set
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•Made permanent many of the provisions of the 2017 Tax Cuts and Jobs Act that were set to expire at the end of 2025.
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The long-term impact of the OBBB Act on the overall economy, government revenues, our tenants, us, and the real estate
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industry cannot be reliably predicted. Furthermore, the OBBB Act may negatively impact certain of our tenants’ operating results,
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March 2022 to a range between 4.25% and 4.50% as of December 31, 2024. Although there are expectations that the U.S. Federal
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Reserve will be reducing the federal funds rate in 2025, these expectations might not materialize. Interest rates at elevated levels could
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Failure to meet market expectations for our financial performance would likely adversely affect the market price and
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•The status of capital markets, including availability and cost of capital;
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•Our ability to reinvest sale proceeds in a timely manner at rates similar to the rate at which assets are sold;
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operating cash flows, and revenues, would likely result in a decline and/or increased volatility in the market price of our common stock
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The price per share of our stock may fluctuate significantly.
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The market price per share of our common stock may fluctuate significantly in response to a variety of factors, many of which
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•Changes in our net income, funds from operations, or guidance;
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These factors may cause the market price of shares of our common stock to decline, regardless of our financial condition,
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We may not continue our current level of distributions to our stockholders. Our Board of Directors will determine future
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If a joint venture partner elects to sell their interest, we have the right of first refusal to acquire the partner’s interest at the
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some agreements allow the partner to force a sale of the underlying property. In such cases, we typically have a right of first offer.
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However, if we choose not to proceed, the property may be sold to a third party under terms that are outside of our control. A price
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offered to the third party is generally subject to certain limitations, and if it falls below a specified threshold, the partner must offer the
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Furthermore, the incoming administration of President Trump has included as part of its agenda a potential reform of U.S. tax
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laws. The details of the potential reform have not yet emerged, but during his 2024 presidential campaign, President Trump outlined
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several intended reforms, including reducing the corporate tax rate for domestic oil and gas production, repealing green energy tax
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credits, extending certain provisions of the Tax Cuts and Jobs Act of 2017 (“TCJA”), and imposing new tariffs. Many political and
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economic commentators believe that the combined impact of extending certain tax benefits pursuant to the TCJA and the
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implementation of new tariffs could potentially lead to increases in the U.S. deficit, inflation, and interest rates, all of which could
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contribute to increases in market interest rates and a decrease in U.S. economic growth with a possibility of a recession. However, we
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cannot predict whether, when, or to what extent these new regulations or rulings will be issued, nor the long-term impact of 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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NIH, the SEC, and other agencies), support of early stage research, FDA effectiveness, tariffs, and drug and healthcare
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programs could have a significant negative impact on the overall economy, our tenants and companies in which we invest,
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pricing, costs, and programs could have a significant negative impact on the overall economy, our tenants and companies
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commercialization of such companies’ products, decreased funding of research and development, or delays surrounding
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commercialization of such companies’ products, decreased funding of research and development (“R&D”), or delays
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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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•The enactment of legislation, including the Inflation Reduction Act of 2022 (“IRA”), may adversely impact our financial
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agreements with our tenants, of which 3%–11% (based on occupied RSF) expire each year. We believe that these annual lease
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agreements with our tenants, of which 3%–12% (based on occupied RSF) expire each year. We believe that these annual lease
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compete for the best talent, especially in a talent shortage environment, rising inflation rates may require us to provide compensation
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retain and compete for the best talent, especially in a talent shortage environment, rising inflation rates may require us to provide
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increases beyond historical annual merit increases, which may unexpectedly and/or significantly increase our compensation costs.
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compensation increases beyond historical annual merit increases, which may unexpectedly and/or significantly increase our
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Similarly, technology services and professional service fees are also subject to the impact of inflation and generally increase
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compensation costs. Similarly, technology services and professional service fees are also subject to the impact of inflation and
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proportionately with increasing market prices for such services. Consequently, inflation may increase our general and administrative
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generally increase proportionately with increasing market prices for such services. Consequently, inflation may increase our general
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increase our financing costs over time, either through near-term borrowings on our variable-rate unsecured senior line of credit and
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financing costs over time, either through near-term borrowings on our variable-rate unsecured senior line of credit and commercial
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commercial paper program, refinancing of our existing borrowings, or the issuance of new debt. In addition, elevated market interest
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paper program, refinancing of our existing borrowings, or the issuance of new debt. In addition, elevated market interest rates may
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rates may result in a decrease in the value of our real estate and could also adversely affect the securities markets in general, which
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result in a decrease in the value of our real estate and could also adversely affect the securities markets in general, which could impact
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could impact the market price of our common stock without regard to our operating performance. Any such unfavorable changes to our
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the market price of our common stock without regard to our operating performance. Any such unfavorable changes to our borrowing
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borrowing costs and stock price could significantly impact our ability to raise new debt and equity capital going forward.
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costs and stock price could significantly impact our ability to raise new debt and equity capital going forward.
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suppliers. Certain increases in the costs of construction materials, however, can often be managed in our development and
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construction materials, however, can often be managed in our development and redevelopment projects through either (i) general
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redevelopment projects through either (i) general budget contingencies built into our overall construction costs estimates for each of our
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budget contingencies built into our overall construction costs estimates for each of our projects or (ii) guaranteed maximum price
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projects or (ii) guaranteed maximum price construction contracts, which stipulate a maximum price for certain construction costs and
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construction contracts, which stipulate a maximum price for certain construction costs and shift inflation risk to our construction general
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shift inflation risk to our construction general contractors. However, it is not guaranteed that our budget contingencies would accurately
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contractors. However, it is not guaranteed that our budget contingencies would accurately account for potential construction cost
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account for potential construction cost increases. Nor is it guaranteed that our general contractors would be able to absorb such
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increases. Nor is it guaranteed that our general contractors would be able to absorb such increases in costs and complete our
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increases in costs and complete our construction projects timely, within budget, or at all.
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construction projects timely, within budget, or at all.
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Aggregate borrowings under our unsecured senior line of credit require compliance with certain financial and non-financial
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market. Aggregate borrowings under our unsecured senior line of credit require compliance with certain financial and non-financial
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covenants. Borrowings under our unsecured senior line of credit are funded by a group of banks. Our ability to borrow additional
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Borrowings under our unsecured senior line of credit are funded by a group of banks. Our ability to borrow additional amounts
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amounts under our unsecured senior line of credit and commercial paper program may be negatively impacted by a decrease in cash
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under our unsecured senior line of credit and commercial paper program may be negatively impacted by a decrease in cash flows from
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flows from our properties, a default or cross-default under our unsecured senior line of credit and commercial paper program, non-
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our properties, a default or cross-default under our unsecured senior line of credit and commercial paper program, non-compliance with
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compliance with one or more loan covenants associated with our unsecured senior line of credit, and non-performance or failure of one
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one or more loan covenants associated with our unsecured senior line of credit, and non-performance or failure of one or more lenders
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or more lenders under our unsecured senior line of credit. In addition, we may not be able to refinance or repay outstanding borrowings
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under our unsecured senior line of credit. In addition, we may not be able to refinance or repay outstanding borrowings on our
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Our unsecured senior line of credit restricts our ability to engage in some business activities.
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Our unsecured senior line of credit restricts our ability to engage in certain business activities.
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Our actual financial results may differ materially from expectations and/or the guidance we provide. This may be a result of
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Our actual financial results may differ materially from expectations and/or the guidance we provide. Failure to meet market
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Failure to meet market expectations, particularly with respect to earnings estimates, funds from operations per share,
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expectations, including with respect to earnings estimates, funds from operations per share, operating cash flows, and revenues, or the
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•The condition of the financial and banking industries;
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•The condition of the financial and banking industries, disruptions in the banking sector, or failures of financial institutions
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•Disruptions in the banking sector or failures of financial institutions that we or our tenants may or may not have business
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that we or our tenants may or may not have business relationships with;
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•The availability and cost of debt and/or equity capital;
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•The availability and cost of debt and/or equity capital and changes in financing terms available to us;
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•Actual or anticipated variations in our quarterly operating results or dividends;
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•Actual or anticipated variations in our quarterly or annual operating results, dividends, net income, funds from operations,
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•Changes in rules or practices governing our financial reporting; and
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•Changes in rules or practices governing our financial reporting;
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causing the further erosion of business and consumer confidence and spending;
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causing the further erosion of business and consumer confidence and spending; and
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distributions based on a number of factors, including, but not limited to:
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Our Board of Directors determines future distributions based on a number of factors, including, but not limited to:
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A reduction in distributions to stockholders may negatively impact our stock price.
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may reduce or suspend our quarterly dividends in the future. Any further reduction in distributions to stockholders may further negatively
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We have a small portfolio of operating properties outside the U.S., primarily in Canada. Acquisition, development,
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We have a small portfolio of operating properties in Canada. Activities outside the U.S. involve risks that are different from
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our domestic properties and operations. These risks include, but are not limited to:
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those we face with respect to our domestic properties and operations. These risks include, but are not limited to:
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goals and that could affect our ability to lease or re-lease the property, operate the property, or maintain our qualification
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goals and that could affect our ability to lease or re-lease, develop or redevelop, and operate properties, or maintain our
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unsecured senior line of credit or commercial paper program.
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or delay or forgo leasing our rental space, which could adversely affect our business, financial condition, or results of operations.
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federal government shutdowns could adversely impact demand for our services by limiting federal funding available to our tenants and
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portfolio companies include entities in the pharmaceutical, biotechnology, medical device, life science, and related industries, academic
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tenants and venture investment portfolio companies.
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Failure of the U.S. federal government to manage its fiscal matters may negatively impact the economic environment and adversely
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If any of our tenants becomes a debtor in a case under the U.S. Bankruptcy Code, as amended, we cannot evict that tenant
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solely because of its bankruptcy. The bankruptcy court may authorize the tenant to reject and terminate its lease with us. Our claim
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against such a tenant for uncollectible future rent would be subject to a statutory limitation that will likely be substantially less than the
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remaining rent actually owed to us under the tenant’s lease. Any shortfall in rent payments could adversely affect our cash flows and our
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ability to make distributions to our stockholders.
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We hold equity investments in certain publicly traded companies, limited partnerships, and privately held entities primarily
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involved in the life science and technology industries. The valuation of these investments is affected by many external factors beyond
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our control, including, but not limited to, market prices, market conditions, healthcare legislation, prospects for favorable or unfavorable
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clinical trial results, new product initiatives, the manufacturing and distribution of new products, product safety and efficacy issues, and
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Unfavorable developments with respect to any of these factors may have an adverse impact on the valuation of our equity investments.
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These risks may also impact our overall liquidity, our borrowing costs, or the market price of our common stock.
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standards such as LEED, Fitwel, and WELL.
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business, financial condition, and results of operations.
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materially and adversely impact our business, financial condition, and results of operations.
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financial condition, and results of operations.
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on our unsecured senior line of credit or commercial paper program.
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various factors, including, but not limited to:
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•Changes in financing terms available to us;
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are beyond our control, including, but not limited to:
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•General market and economic conditions; and
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redevelopment, ownership, and operating activities outside the U.S. involve risks that are different from those we face with respect to
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portfolio companies or cause us to expend more funds and resources on the space leased by these tenants than we originally
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adversely impact our tenants’ businesses and our business.
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which became effective on March 1, 2013. Past proposals to reduce budget deficits have included reduced NIH and other research and
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affect our business, financial condition, or results of operations. Additionally, the inability of the U.S. Congress to enact a budget for a
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future fiscal year or the occurrence of partial or complete U.S. federal government shutdowns could adversely impact demand for our
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companies, which could negatively impact our business.
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research and development activities is subject to the political process, which is inherently fluid and unpredictable.
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adversely affect our business, financial condition, and results of operations.
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adversely impact our business, financial condition, and results of operations.