ALEXANDRIA REAL ESTATE EQUITIES, INC.
For the period ended Jun 30, 2025. Filed Jul 21, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 21, 2025
ARE$44.80-0.8%Stored close · as of Nov 6, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-28.
0001035443-25-000136
Item 1A. RISK FACTORSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-21.
0001035443-25-000179
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 103 previous paragraphs and 158 current paragraphs.
61 unchanged; 29 reworded; 68 added; 13 removed; 0 previous and 0 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.
The current filing states there were no material changes to risk factors.
This is the filer’s own statement, not a conclusion from the comparison. Read its qualifications and the report it references.
Current filing’s statement
There have been no material changes in our risk factors from those disclosed under the caption “Item 1A. Risk factors” in our
Added paragraphs (68)
Current report
In 2025, the FDA laid off approximately 3,500 employees, representing approximately 19% of its workforce at the
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eventually blocked and reversed, during the first half of 2025 the NIH laid off approximately 5,000 employees and
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In May 2025, the White House introduced a budget proposal for fiscal year 2026 that would reduce the NIH budget by
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40%, from $48 billion to $27.5 billion. The proposal has been met with push back from Congress, and, until a new
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budget is approved by the legislature, the NIH budget will remain at 2024 levels through a continuing resolution.
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Should the NIH budget be significantly reduced, it may affect funding of early research that drives the formation of new
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life companies, potentially impacting the U.S.'s global life science leadership and long-term demand for life science
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Termination of federal research funding that affected prominent academic institutions has already led to reductions in
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postdoctoral hiring and the closure of critical programs. Moreover, recent changes to visa rules have introduced new uncertainty
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around the ability of international graduate students and postdoctoral researchers to remain in the U.S. following graduation.
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Many of these individuals represent years of training investment and historically have formed a key segment of the U.S. biotech
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workforce. As limitations on their residency and employment take effect, a growing share of talent is migrating to foreign
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markets. The U.S. life sciences real estate market has historically benefited from robust domestic R&D activity and venture
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capital investment. However, other countries are increasingly positioned to attract top-tier biomedical talent, venture capital, and
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clinical trials. The global leadership in biotechnology currently held by the U.S. may begin to shift abroad. The reduced
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attractiveness of the U.S. as a destination for research and commercialization could lead to a substantial long-term decline in
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the size of our life science tenant base and of life science real estate.
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Drug Pricing Regulation— Most Favored Nation Executive Order
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On May 12, 2025, President Trump issued an executive order titled “Delivering Most-Favored-Nation Prescription Drug
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Pricing to American Patients,” directing the U.S. Department of Health and Human Services to establish pricing benchmarks for
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prescription drugs based on the lowest prices paid in other developed countries. While the President announced that the
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“prescription drug and pharmaceutical prices will be reduced, almost immediately, by 30% to 80%,”many of the proposed
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changes would require formal rulemaking and are expected to face legal challenges. Although the implementation timeline and
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extent of any actual price reductions remain uncertain. If enacted, these changes could materially affect our life science tenants
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by potentially diminishing their profitability and constraining future growth, which in turn can reduce their future demand for life
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Dismissal of the Entire Independent Vaccine Advisory Panel at the U.S. Centers for Disease Control and Prevention (CDC)
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In June 2025, the U.S. Health Secretary unilaterally dismissed all 17 members of the Advisory Committee on
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Immunization Practices (ACIP) at the CDC, and withdrew a recommendation for administering COVID shots to children and
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pregnant women. Shortly thereafter, the Health Secretary named eight new members to serve on the panel, including several
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Reductions in Medicaid Funding under the One Big Beautiful Bill Act
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On July 4, 2025, the One Big Beautiful Bill Act was signed into law. Included in the bill is an estimated $1 trillion in cuts
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to Medicaid spending, implemented through Medicaid work requirements, patient cost-sharing, and a phasedown of Medicaid
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provider taxes and state-directed payments. Such reductions in Medicaid spending could result in lower revenue for some life
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science tenants, adversely impacting financial performance and potentially resulting in reduced life science real estate
Showing the first 40 of 68 passages. Open the source sections for the rest.
Removed paragraphs (13)
Previous report
On April 1, 2025, the FDA underwent layoffs of approximately 3,400 employees, representing greater than 15% of its
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blocked and reversed, the NIH subsequently laid off nearly 1,200 employees, with potential plans to eliminate up to
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reassessing ongoing trade tensions and their potential impact.
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We cannot provide assurance that our tenants or venture investment portfolio companies will be able to raise capital,
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secure approvals, or sustain operations in this environment. Tenants that are unable to sufficiently mitigate the regulatory,
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financial, or geopolitical risks described above may not be able to meet their lease obligations, which may force them to reduce
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leased space, not renew, or terminate their leases with us. Such developments may reduce the performance of our real estate
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and non-real estate portfolios and negatively affect our financial condition, results of operations, or cash flows, our ability to
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make distributions to our stockholders, and our stock price. Any negative news relating to the life science industry, our tenants,
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and our venture investment portfolio companies may also adversely impact our stock price.
Reworded paragraphs (29)
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Changes to regulatory, funding, staffing, trade, and other policies and actions by the current U.S. government
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Changes to regulatory, funding, staffing, trade, and other policies and actions by the U.S. government could
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could adversely affect our business operations or those of our tenants and our venture investment portfolio
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adversely affect our business operations or those of our tenants and our venture investment portfolio companies.
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industries, academic institutions, government institutions, and private foundations that determine their research and
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industries, academic and private institutions, government institutions that determine their research and development budgets
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development budgets based on several factors, including the availability of government and other funding, and the operational
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based on several factors, including the availability of government and other funding, and the operational efficiency and reliability
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workforce. Such workforce reductions at the FDA have raised concerns regarding the agency’s capacity to perform timely
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beginning of the year. Such workforce reductions at the FDA have raised some concerns regarding the agency’s capacity to
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regulatory reviews and approvals of drugs and other medical products. Recent and/or potential further reductions in workforce
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perform timely regulatory reviews and approvals of drugs and other medical products. Recent and/or potential further reductions
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or other personnel changes at the FDA, including terminations, may disrupt the agency’s review and approval processes for our
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in workforce or other personnel changes at the FDA, including terminations, may disrupt the agency’s review and approval
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tenants’ and our venture investment portfolio companies’ products. Such disruptions could lead to setbacks in research and
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processes for our tenants’ and our venture investment portfolio companies’ products. Such disruptions could lead to setbacks in
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development timelines, negatively impacting life science companies’ ability to advance their pipelines, secure investor funding,
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research and development timelines, negatively impacting life science companies’ ability to advance their pipelines, secure
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or achieve commercial viability, which could severely affect their operations and financial performance and, as a result,
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investor funding, or achieve commercial viability, which could severely affect their operations and financial performance and, as
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adversely impact our operating and financial results.
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a result adversely impact our operating and financial results.
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The current U.S. administration has implemented significant policy changes affecting the NIH and leading to
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The current U.S. administration has implemented significant policy changes affecting the NIH, leading to substantial
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substantial disruptions in biomedical research across the U.S. These actions included staff layoffs and funding cuts, as
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disruptions in biomedical research across the U.S. These actions included staff layoffs and funding cuts, as described below,
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described below, and resulted in the suspension of numerous research projects, posing risks to scientific advancement and
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and resulted in the suspension of numerous research projects, posing risks to scientific advancement and introducing
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introducing significant uncertainty for some of our tenants and venture investment portfolio companies.
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uncertainty for some of our tenants and venture investment portfolio companies.
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•NIH budget freeze. On January 27, 2025, the U.S. administration issued an executive order to suspend NIH grant
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•NIH budget freeze and workforce cuts. On January 27, 2025, the U.S. administration issued an executive order to
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funding, freezing much of NIH’s approximately$47 billion budget for 2025. Though the suspension was eventually
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suspend NIH grant funding, freezing much of NIH’s nearly$48 billion budget for 2025. Though the suspension was
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5,000 positions across its approximately 20,000-person workforce.
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contractors across its approximately 20,000-person workforce.
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•Termination of NIH’s grants and funding commitments to major research institutions. On January 20, 2025, President
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•Termination of NIH grants and funding commitments to major research institutions. On January 20, 2025, President
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issued a permanent injunction blocking the enforcement of this cap. However, the current U.S. administration has signaled its
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issued a permanent injunction blocking the enforcement of this cap. However, the U.S. administration has signaled its intent to
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intent to appeal and/or pursue similar funding restrictions through future legislative or administrative actions. If implemented,
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appeal and/or pursue similar funding restrictions through future legislative or administrative actions. If implemented, any such
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any such funding cap could negatively impact our tenants that depend on grant funding for its operations. It could also reduce
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funding cap could negatively impact our tenants that depend on grant funding for its operations. It could also reduce the
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the financial resources available to such tenants, forcing them to scale back operations, reduce leased space, or delay their
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financial resources available to such tenants, forcing them to scale back operations, reduce leased space, or delay their plans
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9.5%. However, on April 10, 2025, U.S. stocks fell as the initial euphoria over the pause on tariffs faded, with investors
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9.5%. However, on April 10, 2025, U.S. stocks fell as the initial euphoria over the pause on tariffs faded. Subsequently,
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The cost increases that may result from tariffs, trade conflicts, and financial market volatility may significantly impact
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The cost increases that may result from tariffs, trade conflicts, and financial market volatility may significantly impact our
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our development and redevelopment projects. Elevated material costs may lead to higher overall project budgets and extended
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development and redevelopment projects. Elevated material costs may lead to higher overall project budgets and extended
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construction timelines or require modifications to project scope to preserve economic feasibility. Any such adjustments may
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construction timelines or require modifications to project scope to preserve economic feasibility. Any such adjustments may adversely
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adversely affect our ability to deliver space on time and within budget, delay occupancy and commencement of rental income,
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affect our ability to deliver space on time and within budget, delay occupancy and commencement of rental income, and impact
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and impact projected net operating income and yields.