Alexandria Real Estate Equities (ARE) Q1 2025 earnings summary

Executive summary

• 1Q25 net loss attributable to common stockholders was $11.6 million, or $(0.07) per share, compared to net income of $166.9 million, or $0.97 per share, for Q1 2024.

• FFO per share (diluted, as adjusted) was $2.30 for 1Q25, with total revenues of $758.2 million, down from $769.1 million in 1Q24.

• Leasing activity remained strong with over 1 million RSF leased in 1Q25, 89% from existing tenants, and rental rate increases of 18.5% (7.5% cash basis).

• Occupancy of operating properties in North America was 91.7% as of March 31, 2025, with 99.9% tenant collections.

• Focused on mega campus strategy, asset recycling, and maintaining a high-quality, diversified tenant base with 750+ tenants.

Financial highlights

• Total revenues were $758.2 million, down 1.4% from $769.1 million in Q1 2024; excluding dispositions, revenues would have increased 3.9%.

• Adjusted EBITDA margin was 71%, the third highest since 2019.

• Same property NOI down 3.1% and up 5.1% on a cash basis; excluding large expirations, results would have been flat and up 9% on a cash basis.

• General and administrative expenses for 1Q25 were $30.7 million, down 35% from 1Q24.

• Dividend declared for 1Q25 was $1.32/share, annualized to $5.28/share, with a 5.7% yield and 57% payout ratio.

Outlook and guidance

• 2025 FFO per share (diluted, as adjusted) guidance midpoint reduced by $0.07 to $9.26, now at the low end of the initial range.

• Year-end 2025 occupancy guidance midpoint reduced by 70 bps to 91.7%, expected range 90.9%–92.5%.

• Full-year 2025 same property growth guidance reduced by 70 bps (GAAP) and 20 bps (cash basis).

• G&A cost savings guidance increased to $49 million for 2025, with run rate expected to remain steady.

• 2025 guidance for dispositions and sales of partial interests increased by $250 million to $2.45 billion at midpoint.