Earnings per share (Notes)

12 Months Ended

Dec. 31, 2025

We grant two types of restricted stock awards: (i) restricted stock awards with nonforfeitable dividends and (ii) restricted stock

awards with forfeitable dividends.

Unvested restricted stock awards (“RSAs”) with nonforfeitable dividends are considered participating securities and included in

the computation of EPS using the two-class method. Under this method, we allocate net income (after amounts attributable to

noncontrolling interests) to common stockholders and these RSAs by using the weighted-average shares of each class outstanding for

quarter-to-date and year-to-date periods independently, based on their respective participation rights to dividends declared (or

accumulated) and undistributed earnings.

Unvested RSAs with forfeitable dividends do not qualify as participating securities under the two-class method because the

dividends are forfeited if the awards do not vest. As a result, undistributed earnings are not allocated to these awards prior to vesting,

and these awards have no effect on the computation of basic EPS while unvested. Once these awards vest, they are included in the

denominator of basic EPS, weighted for the portion of the reporting period they were vested. Prior to vesting, these awards are included

in the denominator of diluted EPS if they are dilutive, which is determined using the treasury stock method. Under this method,

incremental shares are calculated as the difference between the total unvested shares and the number of shares that could

hypothetically be repurchased using the assumed proceeds (including unrecognized compensation cost related to these awards).

These incremental shares are weighted for the portion of the reporting period they were unvested and are included in the diluted EPS

denominator only if their inclusion reduces EPS (i.e., if they are not antidilutive).

In addition, from time to time, we enter into forward equity sales agreements. We consider the potential dilution resulting from

the forward equity sales agreements on the EPS calculations. At inception, the agreements do not have an effect on the computation of

basic EPS as no shares are delivered until settlement. The common shares issued upon the settlement of the forward equity sales

agreements, weighted for the period these common shares were outstanding, are included in the denominator of basic EPS. To

determine the dilution resulting from the forward equity sales agreements during the period of time prior to settlement, we calculate the

number of weighted-average shares outstanding – diluted using the treasury stock method. As of and during the year ended

December 31, 2025, no forward equity sales agreements were outstanding.

The table below reconciles the numerators and denominators of the basic and diluted EPS computations for the years ended

December 31, 2025, 2024, and 2023 (in thousands, except per share amounts):


	Year Ended December 31,
	2025	2024	2023
Net (loss) income	$(1,216,726)	$510,733	$280,994
Net income attributable to noncontrolling interests	(212,844)	(187,784)	(177,355)
Net income attributable to unvested RSAs with nonforfeitable dividends	(8,417)	(13,394)	(11,195)
Numerator for basic and diluted EPS – net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$(1,437,987)	$309,555	$92,444

Denominator for basic EPS – weighted-average shares of common stock outstanding	170,307	172,071	170,909
Dilutive effect of unvested RSAs with forfeitable dividends	—	—	—
Denominator for diluted EPS – weighted-average shares of common stock outstanding	170,307	172,071	170,909
Net (loss) income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders:
Basic	$(8.44)	$1.80	$0.54
Diluted	$(8.44)	$1.80	$0.54