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
PASADENA, Calif., Jan. 26, 2026 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the fourth quarter and year ended December 31, 2025.
Key highlights
YTD
Operating results
4Q25
4Q24
2025
2024
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
A best-in-class REIT with a high-quality, diverse tenant base, strong margins, and long lease terms
(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™ platform
78 %
Percentage of annual rental revenue in effect from investment-grade or publicly
traded large cap tenants
53 %
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 %
Strong and flexible balance sheet with significant liquidity; top 15% credit rating ranking among all publicly traded U.S. REITs
Solid leasing volume
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
Dividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment
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.
(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 %
(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.
Increased occupancy and leasing progress on temporary vacancy
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
decision to pursue leasing as office space rather than convert to laboratory space
(0.3)
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
delivered space
93.4 %
(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.
Key operating metrics
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 %
(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.
Continued successful management and reduction of general and administrative expenses
Reduction of capital spend and funding needs
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
Development and Redevelopment
Projects
Incremental
Annual Net
Operating Income
RSF
Leased/
Negotiating
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 %
(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.
Key capital events
Investments
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.
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
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
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
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)
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.
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
2026 key lease expirations with expected downtime
Certain items included in 4Q25 results not expected to reoccur in 1Q26
Potential tenant wind-downs
General and administrative expenses
Realized gains on non-real estate investments
2025 Dispositions and Sales of Partial Interests
December 31, 2025
(Dollars in thousands)
Interest
Sold
Square Footage
Capitalization
Rate
Capitalization
Rate
(Cash Basis)
Price
(Our Share)
Gain on
Sales of
Real Estate
Property
Submarket/Market
Date of
Transaction
Operating
Future
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
Gateway Boulevard
South San Francisco/San Francisco Bay
Area
12/30/25
(3)
1,104,826
528,684
N/A
283,173
(3)
—
(3)
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
Island City
New York City/New York City
12/19/25
100 %
179,100
—
34,500
—
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
(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).
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 [email protected]; 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 ® 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™ 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 ®, Lighthouse Design ® logo, Building the Future of Life-Changing Innovation ®, That's What's in Our DNA ®, Megacampus™, At the Vanguard and Heart of the Life Science Ecosystem™, Alexandria Center ®, Alexandria Technology Square ®, Alexandria Technology Center ®, and Alexandria Innovation Center ® 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.
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
stockholders
(1,080,875)
(232,754)
(107,002)
(8,939)
(62,245)
(1,429,570)
322,949
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
common stockholders
$ (1,081,840)
$ (234,937)
$ (109,611)
$ (11,599)
$ (64,922)
$ (1,437,987)
$ 309,555
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
(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.
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
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:
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
adjusted
$ 368,538
$ 377,825
$ 396,430
$ 392,009
$ 411,825
$ 1,534,664
$ 1,629,077
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:
Property
Submarket
Impairment
(ARE Share)
Asset Type
Assets designated as held for sale and sold in 4Q25:
601, 611, 651, 681, 685, 701, and 751 Gateway Boulevard (50% and 51% consolidated JVs)
South San Francisco
$ 205,957
Non-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
(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.
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.
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 –
diluted
1.93
2.18
1.93
1.65
1.81
7.69
8.32
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 –
diluted, as adjusted
$ 2.16
$ 2.22
$ 2.33
$ 2.30
$ 2.39
$ 9.01
$ 9.47
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
Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.
SOURCE Alexandria Real Estate Equities, Inc.