ALEXANDRIA REAL ESTATE EQUITIES, INC.ARE

ALEXANDRIA REAL ESTATE EQUITIES, INC. Stock Compensation Disclosure

10-KFiled Jan 26, 20263 min read
Stock award and incentive plan
To attract and retain talent, provide incentives, and promote the long-term success of our Company, we grant share-based
compensation in the form of restricted stock, pursuant to our stock award and incentive plan. Each restricted share issued reduces our
share reserve by one share (1:1 ratio). As of December 31, 2025, 4,894,632 shares remained available for future grants under our stock
award and incentive plan.
In addition, our stock award and incentive plan permits us to issue share awards to our employees, non-employees, and non-
employee directors. A share award is an award of common stock that (i) may be fully vested upon issuance or (ii) may be subject to the
risk of forfeiture under Section 83 of the Code. Shares issued generally vest over a four-year period from the date of issuance, and the
sale of the shares is restricted prior to the date of vesting. Certain restricted share awards are also subject to an additional one-year
holding period after vesting. The unearned portion of time-based share awards is amortized as share-based compensation expense on
a straight-line basis over the vesting period. Certain restricted share awards are subject to vesting based upon the satisfaction of levels
of performance or market conditions. Failure to satisfy the threshold performance conditions will result in the forfeiture of shares and in
a reversal of previously recognized share-based compensation expense. Failure to satisfy the market condition results in the forfeiture
of shares but does not result in a reversal of previously recognized share-based compensation expense, provided that the requisite
service has been rendered. Forfeiture of time-based, performance-based, or market-based awards due to the failure to meet the service
requirement results in the reversal of previously recognized share-based compensation expense.
The following is a summary of the stock awards activity under our equity incentive plan and related information for the years
ended December 31, 2025, 2024, and 2023 (dollars in thousands, except per share information):
Number of Share
Awards
Weighted-Average
Grant Date
Fair Value per Share
Outstanding at December 31, 2022
2,087,521
$
149.96
Granted
1,522,058
$
108.22
Vested
(798,729)
$
149.41
Forfeited
(56,689)
$
104.65
Outstanding at December 31, 2023
2,754,161
$
127.34
Granted
615,192
$
102.96
Vested
(951,195)
$
136.09
Forfeited
(180,253)
$
109.63
Outstanding at December 31, 2024
2,237,905
$
118.34
Granted
1,032,861
$
73.84
Vested
(817,304)
$
131.47
Forfeited
(81,412)
$
109.34
Outstanding at December 31, 2025
2,372,050
$
94.75
Year Ended December 31,
2025
2024
2023
Total grant date fair value of stock awards vested
$107,449
$129,449
$119,335
Total gross share-based compensation recognized
$94,685
$118,439
$139,675
Capitalized share-based compensation
$53,566
$58,805
$56,817
Certain restricted stock awards granted during 2025, 2024, and 2023 are subject to performance and market conditions. The
grant date fair value of these awards is determined using a Monte Carlo simulation pricing model using the following assumptions for
2025, 2024, and 2023, respectively: (i) expected term of 3.0 years, 3.0 years, and 3.0 years (equal to the remaining performance
measurement period at the grant date), (ii) volatility of 30.7%, 28.7%, and 32.0% (approximating a blended average of implied and
historical volatilities), (iii) three-year weighted-average dividend yield of 4.2%, 3.3%, and 2.8%, and (iv) risk-free rate of 4.35%, 4.18%,
and 4.22%.
As of December 31, 2025, there was $130.9 million of unrecognized compensation related to unvested share awards under
the equity incentive plan, which is expected to be recognized over the next four years and has a weighted-average vesting period of
approximately 17 months.

Historical Timeline

Fiscal YearFiled
2025Jan 26, 2026Showing above
2024Jan 27, 2025
2023Jan 29, 2024
2022Jan 30, 2023
2021Jan 31, 2022
2020Feb 1, 2021
2019Feb 4, 2020
2018Feb 5, 2019
2017Jan 30, 2018
2016Jan 31, 2017
2015Feb 3, 2016

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.

Other Available Disclosures

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