Life science tenant base
Customer Exposure
Rental revenue depends on a diverse life science tenant base including pharma, biotech, academic institutions, and U.S. government research agencies.
Relevance 95·Dependency 90·Confidence 95
Source evidence
“Our tenants include multinational pharmaceutical companies; public and private biotechnology companies; life science product, service, and medical device companies”
Life science tenants
Customer Exposure
Significant tenants' failure to pay rent would adversely affect financial condition and cash flows; some tenants are government agencies dependent on federal funding.
Relevance 95·Dependency 88·Confidence 95
Source evidence
“If our tenants, especially significant tenants, fail to make rental payments under their leases, our financial condition, cash flows, and ability to make distributions to our stockholders could be adversely affected.”
Biotechnology / life science tenants
Customer Exposure
Private biotechnology companies represent a meaningful portion of the tenant base; high failure rates and venture capital contraction threaten rental payments
Relevance 95·Dependency 85·Confidence 93
Source evidence
“This reassessment may result in a long-term reduction in capital available to private biotechnology companies, which represent a meaningful portion of our tenant base.”
AAA life science innovation clusters (Greater Boston, SF Bay Area, San Diego, Seattle, Maryland, Research Triangle, NYC)
Revenue Exposure
Entire portfolio of 340 North American properties concentrated in AAA life science innovation cluster markets drives rental income and development returns.
Relevance 92·Dependency 88·Confidence 95
Source evidence
“including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City”
Investment-grade / large cap tenants
Customer Exposure
53% of annual rental revenue from investment-grade or publicly traded large cap tenants supports revenue quality and credit profile.
Relevance 90·Dependency 85·Confidence 95
Source evidence
“Investment-grade or publicly traded large cap tenants represented 53% of our total annual rental revenue in effect as of December 31, 2025.”
Reduced NIH funding and government shutdowns reduce tenant formation and demand for Alexandria's lab space
Relevance 85·Dependency 75·Confidence 90
Source evidence
“Established tenants may face financial strain due to reduced grant support, drug pricing pressures, and increased operational costs from tariffs”
FDA/NIH funding and policy
Regulatory Exposure
Changes in FDA/NIH policies and government funding affect tenants' R&D and commercialization, impacting rent-paying capacity.
Relevance 85·Dependency 75·Confidence 93
Source evidence
“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 NIH, the SEC, and other agencies)”
Interest rates
Cost Driver
Variable interest rate increases on line of credit, secured construction loan, and commercial paper could raise debt service costs and hurt cash flows.
Relevance 80·Dependency 70·Confidence 92
Source evidence
“We may be subject to a significant increase in the variable interest rates on our unsecured senior line of credit, secured construction loan, or commercial paper program”
San Francisco Bay Area
Supplier Dependency
Most Bay Area properties rely on PG&E for electric and gas delivery; bankruptcy history and preemptive power shutoffs threaten stable power supply for the company and its tenants.
Relevance 80·Dependency 70·Confidence 95
Source evidence
“most of our properties located in our San Francisco Bay Area market depend on PG&E for the delivery of electric and gas services”
Tenant talent attraction/retention
Demand Driver
Tenant demand for properties is driven by tenants' ability to attract and retain top talent in Megacampus ecosystems near academic and medical research institutions.
Relevance 80·Dependency 60·Confidence 88
Source evidence
“which we believe is a key driver of tenant demand for our properties”
Tariffs raise construction material costs, impacting development yields and NOI commencement timing
Relevance 80·Dependency 60·Confidence 92
Source evidence
“Our general contractors may face difficulty procuring construction materials at reasonable prices, particularly those subject to tariffs or disrupted supply, which may lead to project delays and/or increased costs.”
Interest rate / variable rate exposure
Currency Exposure
Balance sheet strategy explicitly targets minimizing variable interest rate risk and minimizing debt maturing in a single year amid reliance on debt financing.
Relevance 78·Dependency 55·Confidence 85
Source evidence
“Minimizing the amount of debt maturing in a single year”
Pharmaceutical import tariffs
Legal Exposure
Announced 100% tariff on branded/patented imported drugs and prior pharma tariff investigation could raise tenant operating costs and pharmaceutical pricing pressures
Relevance 75·Dependency 50·Confidence 90
Source evidence
“effective October 1, 2025, pharmaceutical manufacturers would be subject to a 100% tariff on all branded and patented drugs imported into the U.S.”
REIT tax requirements
Tax Exposure
REIT status limits non-real estate investments; venture capital activities must comply with REIT requirements.
Relevance 70·Dependency 75·Confidence 90
Source evidence
“Our status as a REIT limits our ability to make such non-real estate investments. Therefore, we conduct, and will continue to conduct, our non-real estate investment activities in a manner that complies with REIT requirements.”
Environmental/hazardous materials laws
Legal Exposure
Compliance with federal, state, and local hazardous materials laws is required jointly with tenants; failure or contamination creates liability.
Relevance 70·Dependency 60·Confidence 92
Source evidence
“Together with our tenants, we must comply with federal, state, and local laws and regulations governing the use, manufacture, storage, handling, and disposal of hazardous materials and waste products.”
Federal, state, and local environmental laws and regulations
Regulatory Exposure
As owner/operator, the company faces potential substantial investigation and remediation costs (potentially exceeding insurance), strict liability for contamination, fines/penalties for asbestos releases, and requirements covering storage tanks, stormwater, air emissions, hazardous waste, and workplace safety.
Relevance 70·Dependency 55·Confidence 93
Source evidence
“The cost of investigating and remediating contamination could be substantial and could exceed the amount of any insurance coverage available to us.”
Supply chain disruption
Revenue Exposure
Tenant reliance on imported materials, components, and specialized equipment exposes rental revenue to trade disruption
Relevance 65·Dependency 45·Confidence 85
Source evidence
“Many of our tenants rely on the import and export of materials, components, and/or specialized equipment.”
Utility and service vendors
Supplier Dependency
Limited vendor base for utilities and property services; disruption would adversely affect operations and financial condition.
Relevance 60·Dependency 65·Confidence 90
Source evidence
“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”
Labor and construction materials availability
Cost Driver
Unavailability of labor and construction materials can delay or cancel development projects, affecting growth pipeline.
Relevance 60·Dependency 55·Confidence 88
Source evidence
“We may encounter project delays or cancellations due to unavailability of necessary labor and construction materials.”
Tenants routinely handling hazardous substances and wastes
Customer Exposure
Tenant hazardous-substance activities create environmental liability exposure for the company and could impair tenants' ability to make rental payments; tenants are required to comply and indemnify the company.
Relevance 60·Dependency 50·Confidence 90
Source evidence
“Environmental liabilities could also affect a tenant's ability to make rental payments to us.”
Inflation Reduction Act of 2022
Regulatory Exposure
IRA enactment may adversely impact financial condition and results of operations.
Relevance 55·Dependency 50·Confidence 88
Source evidence
“The enactment of legislation, including the Inflation Reduction Act of 2022 (“IRA”), may adversely impact our financial condition and results of operations.”
Agtech industry tenants
Customer Exposure
Agtech tenants face commodity, labor, and technology risks that could impair their lease obligations
Relevance 50·Dependency 35·Confidence 85
Source evidence
“Any agtech industry tenant or venture investment portfolio company that is unable to avoid, or sufficiently mitigate, the risks described above may have difficulty making rental payments or satisfying its other lease obligations to us.”
