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| Alexandria Real Estate Equities, Inc. Reports 4Q25 and 2025 Net Loss per Share - Diluted of $6.35 and $8.44, respectively; and 4Q25 and 2025 FFO per Share - Diluted, as Adjusted, of $2.16 and $9.01, respectively |
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| 4:10p ET January 26 '26 PR Newswire |
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Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the fourth quarter and year ended December 31, 2025.
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Key highlights
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YTD
Operating results
4Q25 4Q24 2025 2024
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Net (loss) income attributable to Alexandria's common stockholders - diluted:
In millions $(1,081.8) $(64.9) $(1,438.0) $309.6
Per share $(6.35) $(0.38) $(8.44) $1.80
Funds from operations attributable to Alexandria's common stockholders - diluted, as adjusted:
In millions $368.5 $411.8 $1,534.7 $1,629.1
Per share $2.16 $2.39 $9.01 $9.47
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A best-in-class REIT with a high-quality, diverse tenant base, strong margins, and long lease terms
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(As of December 31, 2025, unless stated otherwise)
Occupancy of operating properties in North America 90.9 %
Percentage of annual rental revenue in effect from Megacampus(TM) platform 78 %
Percentage of annual rental revenue in effect from investment-grade or publicly 53 %
traded large cap tenants
Operating margin 69 %
Adjusted EBITDA margin 70 %
Percentage of leases containing annual rent escalations 97 %
Weighted-average remaining lease term:
Top 20 tenants 9.7 years
All tenants 7.5 years
Strong 4Q25 tenant collections:
4Q25 tenant rents and receivables collected as of January 26, 2026 99.9 %
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Strong and flexible balance sheet with significant liquidity; top 15% credit rating ranking among all publicly traded U.S. REITs
-- $20.75 billion in total market capitalization.
-- $8.35 billion in total equity capitalization.
-- Net debt and preferred stock to Adjusted EBITDA of 5.7x and fixed-charge coverage ratio of 3.7x for 4Q25 annualized.
-- As of December 31, 2025
-- Significant liquidity of $5.30 billion, or 3.7x of our debt maturities through 2028.
-- Only 11% of our total debt matures through 2028.
-- 12.1 years weighted-average remaining term of debt, longest among S&P 500 REITs.
-- Our fixed-rate debt represents 97.2% of our total debt, which provides predictability in debt servicing costs. Since 2021, our quarter-end fixed-rate debt has averaged 96.7%.
-- Total debt and preferred stock to gross assets of 31%.
Solid leasing volume
-- Leasing volume of 1.2 million RSF during 4Q25.
-- Leasing of previously vacant space aggregating 393,376 RSF, up 98%, over the quarterly average over the last five quarters.
-- Rental rates on renewals and re-leasing of space decreased by 9.9% and 5.2% (cash basis) for 4Q25 and increased by 7.0% and 3.5% (cash basis) for 2025.
-- 82% of our leasing activity during the last twelve months was generated from our existing tenant base.
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4Q25 2025
Lease renewals and re-leasing of space:
Rental rate changes (9.9) % 7.0 %
Rental rate changes (cash basis) (5.2) % 3.5 %
RSF 821,289 2,543,473
Leasing of previously vacant space - RSF 393,376 944,362
Leasing of development and redevelopment space
- RSF 6,279 704,821
Total leasing activity - RSF 1,220,944 4,192,656
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Dividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment
-- Common stock dividend declared of $0.72 per share for 4Q25, representing a 45% reduction from the quarterly dividend declared of $1.32 for 3Q25.
-- The decision to reduce the declared dividend per common share reflects our commitment to maintaining the strength of our balance sheet, enhancing financial flexibility, and preserving liquidity of approximately $410 million on an annual basis, which will be used to support our 2026 capital plan.
-- Significant net cash flows provided by operating activities after dividends retained for reinvestment aggregating $2.36 billion for the years ended December 31, 2021 through 2025.
-- Dividend yield of 5.9% as of December 31, 2025 and dividend payout ratio of 33% for the three months ended December 31, 2025.
Successful execution of Alexandria's capital recycling strategy
We exceeded the midpoint of our 2025 guidance for dispositions and sales of partial interests by completing $1.81 billion of funding, primarily from sales of non-core assets and land, as well as sales to owner/users. During 4Q25, we completed $1.47 billion of dispositions.
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(dollars in millions) Sales Price
YTD 3Q25 $341
4Q25 1,471
Total 2025 dispositions and sales of partial interests(1) $1,812
Types of dispositions in 2025(1) % of Sales Price
Land 21 %
Non-stabilized properties 59
Stabilized properties 20
Total 2025 dispositions 100 %
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(1) Excludes the exchange of partial interests in two consolidated real estate joint ventures, Pacific Technology Park
and 199 East Blaine Street, during the three months ended September 30, 2025. Refer to "2025 dispositions
and sales of partial interests" in this Earnings Press Release for additional details.
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-- As of December 31, 2025, the book value of our real estate assets designated as held for sale aggregated $581.7 million. We expect to sell these assets in 2026.
Increased occupancy and leasing progress on temporary vacancy
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Operating occupancy as of September 30, 2025 90.6 %
Assets with vacancy designated as held for sale or sold during 4Q25 0.5
Early termination of one lease aggregating 170,618 RSF at 259 East Grand
Avenue in South San Francisco, originally set to expire in early 2027, which is already
fully re-leased to a new tenant with occupancy expected to commence in 2H26
(0.5) (1)
Reclassification of 401 Park Avenue from redevelopment to operating upon our (0.3)
decision to pursue leasing as office space rather than convert to laboratory space
Other changes in occupancy, primarily due to the commencement of leases during 4Q25 0.6
Operating occupancy as of December 31, 2025 90.9
Key vacant space leased with future delivery 2.5 (2)
Operating occupancy as of December 31, 2025, including leased but not yet 93.4 %
delivered space
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(1)
Refer to "Guidance" in the Earnings Press Release for key considerations on 1Q26 guidance.
(2) Represents temporary vacancies as of December 31, 2025 aggregating 899,259 RSF, primarily in the Greater Boston, San Francisco Bay Area, and Seattle markets, that are leased and expected to be occupied upon completion of building and/or tenant
improvements. The weighted-average expected delivery date is approximately August 2026 and the expected annual rental revenue is approximately $52 million.
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Key operating metrics
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Operating metrics 4Q25 2025
(dollars in millions)
Net operating income (cash basis) $1,985 (1) $1,978
(Decrease) Increase compared to 4Q24 and 2024 (3.4) % (2) 0.1 % (2)
Same property performance:
Net operating income changes (6.0) % (3.5) %
Net operating income changes (cash basis) (1.7) % 0.9 %
Occupancy - current-period average 91.0 % 92.5 %
Occupancy - same-period prior-year average 95.5 % 95.2 %
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(1)
Quarter annualized.
(2) Change in net operating income (cash basis) includes the impact of operating properties disposed of after January 1, 2024. Excluding these dispositions, net operating income (cash basis) annualized for the three months ended December 31, 2025
and for the year ended December 31, 2025 would have increased by 1.4% and 6.2%, respectively, compared to the corresponding periods in 2024.
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Continued successful management and reduction of general and administrative expenses
-- General and administrative expenses as a percentage of net operating income for the year ended December 31, 2025 were 5.6% -- the lowest level in the past ten years for the Company and approximately half the average of other S&P 500 REITs. In 2025, we realized cost reductions of $51.3 million, or 30%, compared to 2024, primarily from cost-control and efficiency initiatives. Some of these cost savings are temporary in nature, and we anticipate that approximately half of the cost reduction achieved in 2025 will continue in 2026.
-- Compared to the general and administrative expenses for the year ended December 31, 2024, we expect to achieve a savings of $76 million of cumulative general and administrative expense in 2025 and 2026 based upon the midpoint of our guidance range for 2026 general and administrative expenses.
Reduction of capital spend and funding needs
-- During 4Q25, we reduced future construction funding requirements across our active pipeline by: i) selling or designating as held for sale three projects and ii) pivoting one project to a lower investment strategy; enabling us to redeploy future construction savings and sale proceeds into opportunities aligned with our long?term Megacampus(TM) strategy.
-- We reduced the overall size of our future construction funding needs on current development and redevelopment projects by more than $300 million over the next few years.
-- 3% reduction in non-income-producing assets to 17% as a percentage of gross assets.
-- We are evaluating business strategy for four additional projects.
Alexandria's development and redevelopment pipeline delivered incremental annual net operating income of $10 million commencing during 4Q25, with an additional $97 million of incremental annual net operating income anticipated to deliver by 4Q26 primarily from projects that are 86% leased/negotiating
-- During 4Q25, we placed into service one development project aggregating 139,979 RSF that is 100% occupied at 10075 Barnes Canyon Road in our Sorrento Mesa submarket and delivered incremental annual net operating income of $10 million.
-- Annual net operating income (cash basis) from recently delivered projects is expected to increase by $26 million upon the burn-off of initial free rent, which has a weighted-average remaining period of approximately six months.
-- 77% of the RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.
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Development and Redevelopment Incremental RSF Leased/
Projects Annual Net Negotiating
Operating Income Percentage
(dollars in millions)
Expected to be placed into service:
2026 $97 (1) 699,933 (2) 86 % (3)
2027- 2028 123 1,614,994 51 %
$220
Projects under business strategy evaluation:
2026-2028 $113 1,248,227 8 %
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(1) Includes expected partial deliveries through 2026 from projects expected to stabilize in 2027-2028, including speculative future leasing that is not yet fully committed. Refer to the initial and stabilized occupancy years under "New Class A/A+
development and redevelopment properties: current projects" in the Supplemental Information for additional details.
(2)
Represents the RSF of projects expected to stabilize in 2026. Does not include RSF for partial deliveries through 2026 from projects expected to stabilize in 2027-2028.
(3)
Represents the current leased/negotiating percentage of development and redevelopment projects that are expected to stabilize through 2026.
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Key capital events
-- On December 8, 2025, we announced that our board of directors authorized a common stock repurchase program under which we may repurchase up to $500.0 million of our common stock through December 31, 2026. The new program replaces the prior repurchase authorization for up to $500.0 million that was set to expire on December 31, 2025. During 4Q25, no shares were repurchased.
-- In January 2026, we repaid $300.0 million of 4.30% unsecured senior notes payable upon maturity. No gain or loss was incurred in connection with this repayment.
Investments
-- As of December 31, 2025:
-- Our non-real estate investments aggregated $1.50 billion.
-- Unrealized gains presented in our consolidated balance sheet were $133.4 million, comprising gross unrealized gains and losses aggregating $184.4 million and $51.1 million, respectively.
-- Investment loss of $3.9 million for 4Q25 presented in our consolidated statement of operations consisted of $21.1 million of realized gains, $103.3 million from a significant realized loss on one transaction, $98.5 million of unrealized gains, and $20.2 million of impairment charges.
Guidance
December 31, 2025(Dollars in millions, except per share amounts)
Based on our current view of existing market conditions and assumptions for the year ending December 31, 2026, our guidance for 2026 that was initially provided on December 3, 2025 has been reiterated as of January 26, 2026. Actual results may be materially higher or lower than these expectations. Our guidance for 2026 is subject to a number of variables and uncertainties, including, but not limited to, leasing velocity and overall tenant demand, actions and changes in policy by the current U.S. administration related to the regulatory environment, life science funding, the U.S. Food and Drug Administration and National Institutes of Health, trade, and other areas. For additional discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated, refer to our discussion of "forward-looking statements" on page 7 of the Earnings Press Release as well as our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.
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Projected 2026 Funds From Operations per Share Attributable to Alexandria's Common
Stockholders - Diluted
Funds from operations per share, as adjusted(1)
$6.25 to $6.55
Midpoint $6.40
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Key Credit Metric Targets
Net debt and preferred stock to Adjusted EBITDA - 4Q26 annualized 5.6x to
6.2x
Fixed-charge coverage ratio - 4Q26 annualized 3.6x to
4.1x
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Key Assumptions Low High
Occupancy percentage in North America as of December 31, 2026(2) 87.7 % 89.3 %
Lease renewals and re-leasing of space:
Rental rate changes (2.0) % 6.0 %
Rental rate changes (cash basis) (12.0) % (4.0) %
Same property performance:
Net operating income (9.5) % (7.5) %
Net operating income (cash basis) (9.5) % (7.5) %
Straight-line rent revenue $65 $95
General and administrative expenses $134 $154
Capitalization of interest(3) $225 $275
Interest expense $230 $280
Realized gains on non-real estate investments(4) $60 $90
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Key Sources and Uses of Capital Range Midpoint
Sources of capital:
Reduction in debt(5) $(1,075) $(2,275) $(1,675)
Net cash provided by operating activities after dividends 475 575 525
Dispositions and sales of partial interests(6) 2,100 3,700 2,900
Total sources of capital $1,500 $2,000 $1,750
Uses of capital:
Construction $1,500 $2,000 $1,750
Total uses of capital $1,500 $2,000 $1,750
Reduction in debt (included above):
Repayment of unsecured notes payable with 2026 maturities(7) $(650) $(650) $(650)
Unsecured senior line of credit, commercial paper, and other (425) (1,625) (1,025)
Reduction in debt $(1,075) $(2,275) $(1,675)
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Refer to "Definitions and reconciliations" in the Supplemental Information for additional details on key credit metrics.
(1)
Refer to "Funds from operations and funds from operations, as adjusted, attributable to Alexandria's common stockholders" under "Definitions and reconciliations" in the Supplemental Information for additional details.
(2) Our guidance for operating occupancy percentage in North America as of December 31, 2026 assumes an approximate 2% benefit related to a range of assets with vacancy that could potentially be sold during 2026 and/or qualify for designation as
held for sale by December 31, 2026 but that have not yet qualified for such designation as of December 31, 2025.
(3)
Refer to "Capitalization of interest" in the Supplemental Informational for additional details.
(4) Represents realized gains and losses included in funds from operations per share - diluted, as adjusted. Excludes unrealized gains and losses and significant impairments realized on non-real estate investments, if any. Refer to "Investments" in
the Supplemental Information for additional details.
(5) Our debt repayment goals include repaying existing short-term borrowings, including amounts outstanding on our commercial paper program, repaying our 2026 unsecured senior note payable maturities aggregating $650 million, and potentially
repaying other unsecured senior notes payable, including our 2027 maturity.
(6) We expect to achieve a weighted-average capitalization rate on our projected 2026 non-core operating dispositions (includes stabilized and non-stabilized properties and excludes land) in the 8.5%-9.5% range. We expect dispositions of land to
represent 25%-35% of our total dispositions and sales of partial interests for the year ending December 31, 2026. We expect the remaining balance to comprise of approximately 25%-35% in core assets and 35%-45% in non-core assets. As of January
26, 2026, our share of pending transactions subject to non-refundable deposits, signed letters of intent, or purchase and sale agreement negotiations aggregated $180.7 million.
(7) In January 2026, we repaid $300.0 million of 4.30% unsecured senior notes payable upon maturity, funded temporarily with borrowings under our commercial paper program. We expect to repay these temporary borrowings with proceeds from future
dispositions and sales of partial interests. No gain or loss was incurred in connection with this repayment.
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Key considerations for funds from operations and adjusted EBITDA for 1Q26
The following key considerations are expected to impact our quarterly funds from operations per share results in 1Q26. These items will also affect our Adjusted EBITDA beginning in 1Q26. As a result, we expect our net debt and preferred stock to Adjusted EBITDA ratio to temporarily increase in 1Q26 (on a quarter annualized basis) by approximately 1.0x to 1.5x higher than our 4Q25 annualized ratio of 5.7x. We expect this ratio to trend downward through the remainder of 2026 as we make progress on our disposition and sales of partial interests program, with a target net debt and preferred stock to Adjusted EBITDA ratio of 5.6x to 6.2x for 4Q26 annualized, which is unchanged from our initial 2026 guidance provided on December 3, 2025.
4Q25 Dispositions
-- We completed $1.47 billion of dispositions during 4Q25. These dispositions had annual net operating income of $118 million (based on consolidated 3Q25 annualized results) with a weighted-average disposition date of December 9, 2025. Refer to "2025 Dispositions and sales of partial interests" in the Earnings Press Release for additional details.
2026 key lease expirations with expected downtime
-- There are key lease expirations primarily in our Greater Boston, San Francisco Bay Area, and San Diego markets, aggregating 1.2 million RSF, with a weighted?average lease expiration date in April 2026 and annual rental revenue of $71 million. These leases are expected to become vacant upon expiration, and we anticipate downtime on these spaces to range from 6 to 24 months on a weighted?average basis. 150,822 RSF has been leased or is under negotiations and we have identified prospective tenants or have early negotiations for another 468,470 RSF. We expect a decline in net operating income of approximately $14 million for the three months ending March 31, 2026, compared to the three months ended December 31, 2025, related to the portion of these leases that are scheduled to expire in 1Q26, which includes operating expenses that will not be recoverable once the spaces become vacant. Refer to "Contractual lease expirations" in the Supplemental Information for additional details.
Certain items included in 4Q25 results not expected to reoccur in 1Q26
-- During 4Q25, we terminated a lease at one property in our South San Francisco submarket aggregating 170,618 RSF , which had generated annual rental revenue of $11.4 million, ahead of its contractual lease expiration in early 2027. The termination allowed us to re-lease 100% of the space to a new tenant, with occupancy expected to commence in 2H26 following the completion of tenant improvements. As a result of the termination, we recognized incremental rental revenue of $8.4 million during 4Q25, primarily from a termination fee, net of the deferred rent balances written off.
-- We recognized an asset management fee paid by our joint venture partner aggregating $7.0 million in connection with the disposition of 409 and 499 Illinois Street in 4Q25, which is included in other income. Other income in 4Q25 was $25.5 million, or 3.4% of total revenues, compared to an average of $19.5 million, or 2.5% of total revenues, for the preceding five quarters.
Potential tenant wind-downs
-- Our 2026 guidance assumes reduction of rent in 2026 aggregating $20-$25 million (or approximately $6 million per quarter at the midpoint of the range) related to potential tenant wind-downs and downtime without immediate backfill.
General and administrative expenses
-- General and administrative expenses for the year ended December 31, 2025 was $117.0 million and $28.0 million for the fourth quarter of 2025. Our guidance range for 2026 general and administrative expenses is $134 million to $154 million, with a midpoint of $144 million, or a quarterly average of approximately $36 million. Despite the anticipated increase in general and administrative expenses in 2026 compared to 2025, the midpoint of our guidance range for 2026 of $144 million, represents a 14% reduction compared to 2024, and cumulative anticipated savings aggregating $76 million for 2025 and 2026.
Realized gains on non-real estate investments
-- Realized gains included in funds from operations per share - diluted, as adjusted, for the year ended December 31, 2025 were $115.7 million and $21.1 million for the fourth quarter of 2025. Our guidance range for 2026 realized gains on non-real estate investments is $60 million to $90 million, with a midpoint of $75 million (or a quarterly average of approximately $18.8 million). Refer to "Investments" in the Supplemental Information for additional details.
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2025 Dispositions and Sales of Partial Interests Interest Square Footage Capitalization Capitalization Price Gain on
Rate Rate
December 31, 2025 Sold (Our Share) Sales of
(Cash Basis) Real Estate
(Dollars in thousands)
Property Submarket/Market Date of Operating Future
Transaction Development
Completed in YTD 3Q25, excluding exchange of partial interests (see below) $340,871 $13,241 (1)
Completed in 4Q25:
Stabilized properties:
550 Arsenal Street(2) Cambridge/Inner Suburbs/Greater
Boston 10/15/25 100 % 249,275 281,592 6.1 % 5.4 % 99,250
6260 Sequence Drive
Sorrento Mesa/San Diego 12/16/25 100 % 130,536 7.2 % 7.1 % 70,000
5600 Avenida Encinas
Other/San Diego 12/17/25 100 % 182,276 5.5 % 5.3 % 64,100
601 Keystone Park Drive Research Triangle/Research
Triangle 10/3/25 100 % 77,595 9.7 % 8.7 % 24,879 4,362
Other stabilized properties
Various 307,142 103,079
361,308
Properties with vacancy or significant near-term capital requirements:
601, 611, 651, 681, 685, 701, and 751 South San Francisco/San Francisco
Bay 12/30/25 (3) 1,104,826 528,684 N/A 283,173 (3) (3)
Gateway Boulevard
Area
ARE Nautilus
Torrey Pines/San Diego 12/10/25 100 % 218,640 192,000 (4) 86,260
409 and 499 Illinois Street Mission Bay/San Francisco Bay
Area 12/17/25 25 % 466,297 180,273 (5) 416,749 (5)
14 TW Alexander Drive Research Triangle/Research
Triangle 11/20/25 100 % 173,820 155,000 (6) 78,489
4767 Nexus Center Drive University Town Center/San Diego 12/31/25 100 % 65,280 50,000 (7) 15,330
Alexandria Center for Life Science - Long New York City/New York City 12/19/25 100 % 179,100 34,500
Island City
Other non-stabilized properties
Various 469,992 117,227 97,183 746
992,129
Land:
9363, 9373, and 9393 Towne Centre Drive University Town Center/San Diego 12/18/25 100 % 230,000 N/A 40,000 17,978
285, 299, 307, and 345 Dorchester Avenue Seaport Innovation District/
Greater Boston 12/30/25 60 % 1,040,000 33,500
3029 East Cornwallis Road Research Triangle/Research
Triangle 12/31/25 100 % 600,000 29,500
Other land parcels
Various 211,232 14,900
117,900
Total dispositions completed in 4Q25 1,471,337 (8) 619,914
Total completed 2025 dispositions and sales of partial interests, excluding exchange of partial interests (see below) $1,812,208 $633,155
Exchange of partial interests
Disposition of Pacific Technology Park
Sorrento Mesa/San Diego 9/9/25 50 % 544,352 N/A $96,000 $9,290
Acquisition of 199 East Blaine Street
Lake Union/Seattle 9/9/25 70 % 115,084 (94,430)
Difference in sales price received in cash $1,570
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(1) Excludes a gain on sale of interest related to an unconsolidated real estate joint venture of $458 thousand, which is classified as equity in earnings of unconsolidated real estate joint ventures in our consolidated statement of operations.
(2) Represents a retail shopping center with future development opportunity. We originally acquired the property in 2021 with the intent to demolish the retail center and develop it into laboratory space. However, due to the project's financial
outlook and the substantial capital that development would have required, we decided to recycle the capital generated by the disposition into our development and redevelopment pipeline.
(3) We held a 50% ownership interest at 601, 611, 651, 681, 685, and 701 Gateway Boulevard and a 51% interest at 751 Gateway Boulevard. At the time of sale, these properties had operating and redevelopment properties occupancy of 62%, with a
weighted-average lease term of 5.1 years. Due to macroeconomic conditions in South San Francisco, including significant new supply, lower life science tenant demand, and ongoing challenges leasing both laboratory and office space, we
reassessed the project's financial outlook and the substantial capital required to lease vacant space and to complete the redevelopment of 651 Gateway Boulevard and future development opportunities. As a result, we sold the consolidated joint
ventures for a gross price of $600.0 million ($560.4 million net of seller credits and sales costs), of which our share of the price (after seller credits) was $283.2 million.
(4) Represents the sale of a non-stabilized campus located outside of a Megacampus ecosystem. At the time of sale, the campus was 76% occupied, with a weighted-average remaining lease term of less than four years. Given our strategy to invest into
our Megacampus and the significant near?term capital required to re?stabilize the asset, we decided to reinvest the disposition proceeds into other projects with greater value-creation opportunities.
(5) Represents two life science buildings in which we held a 25% ownership interest. At the time of sale, the properties were 40% occupied, with a weighted-average remaining lease term of 8.3 years. These properties were sold by the joint venture
to an existing tenant following its exercise of a purchase right included in its lease agreement. The gross sales price was $767.1 million ($721.1 million net of seller credits and sales costs), of which our share of the price (after seller
credits) was $180.3 million. Our share of gain on sales of real estate was $103.9 million.
(6)
Represents a non-stabilized property that was sold to a user.
(7)
We provided seller financing of $33.0 million.
(8) Our share of dispositions completed during the three months ended December 31, 2025 had annual net operating income of $93 million (based on 3Q25 annualized results) with a weighted-average disposition date of December 9, 2025. Total
consolidated annual net operating income related to these dispositions, including our partners' share, is $118 million (based on 3Q25 annualized results).
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Earnings Call Information and About the Company
December 31, 2025
We will host a conference call on Tuesday, January 27, 2026, at 2:00 p.m. Eastern Time ("ET")/11:00 a.m. Pacific Time ("PT"), which is open to the general public, to discuss our financial and operating results for the fourth quarter and year ended December 31, 2025. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 2:00 p.m. ET/11:00 a.m. PT and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the "For Investors" section. A replay of the call will be available for a limited time from 4:00 p.m. ET/1:00 p.m. PT on Tuesday, January 27, 2026. The replay number is (855) 669-9658 or (412) 317-0088, and the access code is 4730896.
Additionally, a copy of this Earnings Press Release and Supplemental Information for the fourth quarter and year ended December 31, 2025 is available in the "For Investors" section of our website at www.are.com or by following this link: https://www.are.com/fs/2025q4.pdf.
For any questions, please contact corporateinformation@are.com; Joel S. Marcus, executive chairman and founder; Peter M. Moglia, chief executive officer and chief investment officer; Marc E. Binda, chief financial officer and treasurer; or Paula Schwartz, managing director of Rx Communications Group, at (917) 633-7790.
About the Company
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500(R) company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus(TM) ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. As of December 31, 2025, Alexandria has a total market capitalization of $20.75 billion and an asset base in North America that includes 35.9 million RSF of operating properties and 3.5 million RSF of Class A/A+ properties undergoing construction. Alexandria has a long-standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants' ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For more information on Alexandria, please visit www.are.com.
Forward-Looking Statements
This document includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding our projected 2026 earnings per share, projected 2026 funds from operations per share, projected 2026 funds from operations per share, as adjusted, projected net operating income, and our projected sources and uses of capital. You can identify the forward-looking statements by their use of forward-looking words, such as "forecast," "guidance," "goals," "projects," "estimates," "anticipates," "believes," "expects," "intends," "may," "plans," "seeks," "should," "targets," or "will," or the negative of those words or similar words. These forward-looking statements are based on our current expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, as well as a number of assumptions concerning future events. There can be no assurance that actual results will not be materially higher or lower than these expectations. These statements are subject to risks, uncertainties, assumptions, and other important factors that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, without limitation, our failure to obtain capital (debt, construction financing, and/or equity) or refinance debt maturities, lower than expected yields, increased interest rates and operating costs, adverse economic or real estate developments in our markets, our failure to successfully place into service and lease any properties undergoing development or redevelopment and our existing space held for future development or redevelopment (including new properties acquired for that purpose), our failure to successfully operate or lease acquired properties, decreased rental rates, increased vacancy rates or failure to renew or replace expiring leases, defaults on or non-renewal of leases by tenants, adverse general and local economic conditions, an unfavorable capital market environment, decreased leasing activity or lease renewals, failure to obtain LEED and other healthy building certifications and efficiencies, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission ("SEC"). Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are made as of the date of this Earnings Press Release and Supplemental Information, and unless otherwise stated, we assume no obligation to update this information and expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.
This document is not an offer to sell or a solicitation to buy securities of Alexandria Real Estate Equities, Inc. Any offers to sell or solicitations to buy our securities shall be made only by means of a prospectus approved for that purpose. Unless otherwise indicated, the "Company," "Alexandria," "ARE," "we," "us," and "our" refer to Alexandria Real Estate Equities, Inc. and our consolidated subsidiaries. Alexandria(R), Lighthouse Design(R) logo, Building the Future of Life-Changing Innovation(R), That's What's in Our DNA(R), Megacampus(TM), At the Vanguard and Heart of the Life Science Ecosystem(TM), Alexandria Center(R), Alexandria Technology Square(R), Alexandria Technology Center(R), and Alexandria Innovation Center(R) are copyrights and trademarks of Alexandria Real Estate Equities, Inc. All other company names, trademarks, and logos referenced herein are the property of their respective owners.
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Consolidated Statements of Operations
December 31, 2025
(Dollars in thousands, except per share amounts)
Three Months Ended Year Ended
12/31/25 9/30/25 6/30/25 3/31/25 12/31/24 12/31/25 12/31/24
Revenues:
Income from rentals $728,872 $735,849 $737,279 $743,175 $763,249 $2,945,175 $3,049,706
Other income 25,542 (1) 16,095 24,761 14,983 25,696 81,381 66,688
Total revenues 754,414 751,944 762,040 758,158 788,945 3,026,556 3,116,394
Expenses:
Rental operations 232,543 239,234 224,433 226,395 240,432 922,605 909,265
General and administrative 28,020 29,224 29,128 30,675 32,730 117,047 168,359
Interest 65,674 54,852 55,296 50,876 55,659 226,698 185,838
Depreciation and amortization 322,063 340,230 346,123 342,062 330,108 1,350,478 1,202,380
Impairment of real estate 1,717,188 (2) 323,870 129,606 32,154 186,564 2,202,818 223,068
Loss on early extinguishment of debt 107 107
Total expenses 2,365,488 987,517 784,586 682,162 845,493 4,819,753 2,688,910
Equity in (losses) earnings of unconsolidated real estate joint ventures (304) 201 (9,021) (507) 6,635 (9,631) 7,059
Investment (loss) income (3,890) 28,161 (30,622) (49,992) (67,988) (56,343) (53,122)
Gain on sales of real estate 619,914 (2) 9,366 13,165 101,806 642,445 129,312
Net (loss) income (995,354) (197,845) (62,189) 38,662 (16,095) (1,216,726) 510,733
Net income attributable to noncontrolling interests (85,521) (2) (34,909) (44,813) (47,601) (46,150) (212,844) (187,784)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s (1,080,875) (232,754) (107,002) (8,939) (62,245) (1,429,570) 322,949
stockholders
Net income attributable to unvested restricted stock awards (965) (2,183) (2,609) (2,660) (2,677) (8,417) (13,394)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s $(1,081,840) $(234,937) $(109,611) $(11,599) $(64,922) $(1,437,987) $309,555
common stockholders
Net (loss) income per share attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders:
Basic $(6.35) $(1.38) $(0.64) $(0.07) $(0.38) $(8.44) $1.80
Diluted $(6.35) $(1.38) $(0.64) $(0.07) $(0.38) $(8.44) $1.80
Weighted-average shares of common stock outstanding:
Basic 170,394 170,181 170,135 170,522 172,262 170,307 172,071
Diluted 170,394 170,181 170,135 170,522 172,262 170,307 172,071
Dividends declared per share of common stock $0.72 $1.32 $1.32 $1.32 $1.32 $4.68 $5.19
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(1) Includes an asset management fee paid by our joint venture partner of $7.0 million, which was recognized in connection with the disposition of 409 and 499 Illinois Street. Refer to "2025 dispositions and sales of partial
interests" in the Earnings Press Release for additional details.
(2)
Refer to footnote 1 and 2 in "Funds from operations and funds from operations per share" in the Earnings Press Release for additional details.
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Consolidated Balance Sheets
December 31, 2025
(In thousands)
12/31/25 9/30/25 6/30/25 3/31/25 12/31/24
Assets
Investments in real estate $28,689,996 $31,743,917 $32,160,600 $32,121,712 $32,110,039
Investments in unconsolidated real estate joint ventures 30,677 39,601 40,234 50,086 39,873
Cash and cash equivalents 549,062 579,474 520,545 476,430 552,146
Restricted cash 4,693 4,705 7,403 7,324 7,701
Tenant receivables 6,672 6,409 6,267 6,875 6,409
Deferred rent 1,179,403 1,257,378 1,232,719 1,210,584 1,187,031
Deferred leasing costs 458,311 505,241 491,074 489,287 485,959
Investments 1,501,249 1,537,638 1,476,696 1,479,688 1,476,985
Other assets 1,661,772 1,700,785 1,688,091 1,758,442 1,661,306
Total assets $34,081,835 $37,375,148 $37,623,629 $37,600,428 $37,527,449
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable
$ -
$ - $153,500 $150,807 $149,909
Unsecured senior notes payable 12,047,394 12,044,999 12,042,607 12,640,144 12,094,465
Unsecured senior line of credit and commercial paper 353,161 1,548,542 1,097,993 299,883
Accounts payable, accrued expenses, and other liabilities 2,397,073 2,432,726 2,360,840 2,281,414 2,654,351
Dividends payable 127,771 230,603 229,686 228,622 230,263
Total liabilities 14,925,399 16,256,870 15,884,626 15,600,870 15,128,988
Commitments and contingencies
Redeemable noncontrolling interests 58,788 58,662 9,612 9,612 19,972
Alexandria Real Estate Equities, Inc.'s stockholders' equity:
Common stock 1,705 1,703 1,701 1,701 1,722
Additional paid-in capital 15,497,760 16,669,802 17,200,949 17,509,148 17,933,572
Accumulated other comprehensive loss (29,395) (32,203) (27,415) (46,202) (46,252)
Alexandria Real Estate Equities, Inc.'s stockholders' equity 15,470,070 16,639,302 17,175,235 17,464,647 17,889,042
Noncontrolling interests 3,627,578 4,420,314 4,554,156 4,525,299 4,489,447
Total equity 19,097,648 21,059,616 21,729,391 21,989,946 22,378,489
Total liabilities, noncontrolling interests, and equity $34,081,835 $37,375,148 $37,623,629 $37,600,428 $37,527,449
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Funds From Operations and Funds From Operations per Share
December 31, 2025
(In thousands)
The following table presents a reconciliation of net income (loss) attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with U.S. generally accepted accounting principles ("GAAP"), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria's common stockholders - diluted, and funds from operations attributable to Alexandria's common stockholders - diluted, as adjusted, for the periods below:
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Three Months Ended Year Ended
12/31/25 9/30/25 6/30/25 3/31/25 12/31/24 12/31/25 12/31/24
Net (loss) income attributable to Alexandria's common stockholders - basic and diluted $(1,081,840) $(234,937) $(109,611) $(11,599) $(64,922) $(1,437,987) $309,555
Depreciation and amortization of real estate assets 319,865 338,182 343,729 339,381 327,198 1,341,157 1,191,524
Noncontrolling share of depreciation and amortization from consolidated real estate JVs (39,942) (45,327) (36,047) (33,411) (34,986) (154,727) (129,711)
Our share of depreciation and amortization from unconsolidated real estate JVs 855 852 942 1,054 1,061 3,703 4,238
Gain on sales of real estate (307,132) (1) (9,824) (13,165) (100,109) (330,121) (127,615)
Impairment of real estate - rental properties and land 1,439,303 (2) 323,870 131,090 184,532 1,894,263 192,455
Allocation to unvested restricted stock awards (1,903) (1,648) (1,222) (686) (1,182) (5,681) (8,696)
Funds from operations attributable to Alexandria's common stockholders - diluted(3) 329,206 371,168 328,881 281,574 311,592 1,310,607 1,431,750
Unrealized (gains) losses on non-real estate investments (98,548) (18,515) 21,938 68,145 79,776 (26,980) 112,246
Significant realized losses on non-real estate investments 103,329 (4) 103,329
Impairment of non-real estate investments 20,181 (5) 25,139 39,216 11,180 20,266 95,716 58,090
Impairment of real estate 12,619 (2) 7,189 32,154 2,032 51,962 30,613
Loss on early extinguishment of debt 107 107
Acceleration of stock compensation expense due to executive officer resignation 2,455 (6) 2,455
(Decrease) increase in provision for expected credit losses on financial instruments (341) 285 (434) (56) (434)
Allocation to unvested restricted stock awards (363) (74) (794) (1,329) (1,407) (2,476) (3,188)
Funds from operations attributable to Alexandria's common stockholders - diluted, as $368,538 $377,825 $396,430 $392,009 $411,825 $1,534,664 $1,629,077
adjusted
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Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.
(1)
Excludes our partner's share of gain on sale of real estate aggregating $312.8 million at our consolidated real estate joint venture at 409 and 499 Illinois Street.
(2) During 4Q25, we finalized the Company's 2025 capital plan and established an initial 2026 capital plan to fund 2026 construction primarily through the sale of land and non-core real estate assets. As a result, we recognized the following
impairment charges to reduce the carrying amounts of certain assets to their estimated fair values less cost to sell:
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Property
Submarket Impairment Asset Type
(ARE Share)
Assets designated as held for sale and sold in 4Q25:
601, 611, 651, 681, 685, 701, and 751 Gateway Boulevard (50% and 51% South San Francisco $205,957 Non-
consolidated JVs) stabilized
285, 299, 307, and 345 Dorchester Avenue (60% consolidated JV) Seaport Innovation
District 149,720 Land
3029 East Cornwallis Road Research Triangle 82,540 Land
1290 and 1300 Rancho Conejo Boulevard and 2101 Corporate Center Drive
Non-cluster 68,566 Non-
stabilized
Assets designated as held for sale in 4Q25 and expected to be sold in 2026:
88 Bluxome Street
SoMa 333,446 Land
100 Edwin H. Land Boulevard
Cambridge 156,370 Land
3825 and 3875 Fabian Way Greater Stanford 144,682 Stabilized/
land
Montreal
Canada 107,056 Non-
stabilized
One Hampshire Street
Cambridge 105,694 Non-
stabilized
Other non-core assets designated as held for sale in 4Q25 97,891
1,451,922
Noncontrolling interest's share of impairment in real estate from
consolidated real estate JVs 265,266
Consolidated impairment of real estate $1,717,188
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(3)
Calculated in accordance with standards established by the Nareit Board of Governors.
(4) In November 2025, we contributed certain publicly traded securities to an unconsolidated joint venture, which resulted in a realized loss of $103.3 million on one transaction that was previously reflected as unrealized losses within investment
income in our consolidated statement of operations. The unconsolidated joint venture sold these securities and distributed $39.9 million to us in December 2025.
(5)
Primarily related to two non-real estate investments in privately held entities that do not report NAV.
(6)
Relates to the resignation of an executive officer, Daniel J. Ryan, from his position as Co-President & Regional Marketing Director - San Diego.
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The following table presents a reconciliation of net income (loss) per share attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations per share attributable to Alexandria's common stockholders - diluted, and funds from operations per share attributable to Alexandria's common stockholders - diluted, as adjusted, for the periods below. Per share amounts may not add due to rounding.
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Three Months Ended Year Ended
12/31/25 9/30/25 6/30/25 3/31/25 12/31/24 12/31/25 12/31/24
Net (loss) income per share attributable to Alexandria's common stockholders - diluted $(6.35) $(1.38) $(0.64) $(0.07) $(0.38) $(8.44) $1.80
Depreciation and amortization of real estate assets 1.65 1.73 1.81 1.80 1.70 6.99 6.20
Gain on sales of real estate (1.80) (0.06) (0.08) (0.58) (1.94) (0.74)
Impairment of real estate - rental properties and land 8.45 1.90 0.77 1.07 11.12 1.12
Allocation to unvested restricted stock awards (0.02) (0.01) (0.01) (0.04) (0.06)
Funds from operations per share attributable to Alexandria's common stockholders - 1.93 2.18 1.93 1.65 1.81 7.69 8.32
diluted
Unrealized (gains) losses on non-real estate investments (0.58) (0.11) 0.13 0.40 0.46 (0.16) 0.65
Significant realized losses on non-real estate investments 0.61 0.62
Impairment of non-real estate investments 0.12 0.15 0.23 0.07 0.12 0.56 0.34
Impairment of real estate 0.07 0.04 0.19 0.01 0.30 0.18
Acceleration of stock compensation expense due to executive officer resignation 0.01 0.01
Allocation to unvested restricted stock awards (0.01) (0.01) (0.01) (0.02)
Funds from operations per share attributable to Alexandria's common stockholders - $2.16 $2.22 $2.33 $2.30 $2.39 $9.01 $9.47
diluted, as adjusted
Weighted-average shares of common stock outstanding - diluted
Earnings per share - diluted 170,394 170,181 170,135 170,522 172,262 170,307 172,071
Funds from operations - diluted, per share 170,504 170,305 170,192 170,599 172,262 170,390 172,071
Funds from operations - diluted, as adjusted, per share 170,504 170,305 170,192 170,599 172,262 170,390 172,071
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Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.
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SOURCE Alexandria Real Estate Equities, Inc.
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1.08% $0.62
