COMMITMENTS AND CONTINGENCIESEmployee retirement savings planWe have a retirement savings plan pursuant to Section 401(k) of the Code whereby our employees may contribute a portion of
their compensation to their respective retirement accounts in an amount not to exceed the maximum allowed under the Code. In
addition to employee contributions, we have elected to provide company discretionary profit-sharing contributions (subject to statutory
limitations), which amounted to approximately $3.5 million, $7.8 million, and $8.6 million for the years ended December 31, 2025, 2024,
and 2023, respectively. Employees who participate in the plan are immediately vested in their contributions and in the contributions
made on their behalf by the Company.
Concentration of credit riskWe maintain our cash and cash equivalents at insured financial institutions. The combined account balances at each institution
periodically exceed the FDIC insurance coverage of $250,000, and, as a result, there is a concentration of credit risk related to amounts
in excess of FDIC insurance coverage. We have not experienced any losses to date on our invested cash.
Our rental revenue is generated by a diverse array of many tenants. As of December 31, 2025, we had approximately 850
leases. The inability of any single tenant to make its lease payments is unlikely to have a severe or financially disruptive effect on our
operations.
CommitmentsAs of December 31, 2025, remaining aggregate costs under contract for the construction of properties undergoing
development, redevelopment, and improvements under the terms of leases approximated $1.03 billion. We expect payments for these
obligations to occur over one to three years, subject to capital planning adjustments from time to time. We may have the ability to cease
the construction of certain projects, which would result in the reduction of our commitments. In addition, we have letters of credit and
performance obligations aggregating $5.3 million.
We are committed to funding approximately $370.3 million related to our non-real estate investments. These funding
commitments are primarily associated with our investments in privately held entities that report NAV and expire at various dates over
the next 12 years, with a weighted-average expiration of 8.1 years as of December 31, 2025.
Our former joint venture partner in the Greater Boston market has an option, subject to certain conditions, to obtain a
$50.0 million secured loan from us, which, if the option is exercised, will bear interest at SOFR plus 6.5%, with a floor of 9.0% and a
term not to exceed five years. As of December 31, 2025, the option has not been exercised and is set to expire in July 2027.
In January 2026, our partner in our consolidated joint venture at 99 Coolidge Avenue in our Cambridge/Inner Suburbs
submarket exercised its option to require us to purchase its redeemable noncontrolling interest aggregating $48.7 million plus unpaid
distributions approximating $844 thousand as of December 31, 2025. We expect to complete the redemption in the first quarter of 2026.
In connection with the sale of a property in our San Diego market, we entered into a loan agreement with the buyer under
which we committed to provide up to $165.7 million of financing through December 30, 2029. As of December 31, 2025, $49.2 million of
the commitment remained available to be drawn by the borrower.
