Alexandria Real Estate Equities (ARE) Q2 2025 earnings summary

Executive summary

• Achieved the largest lease in company history with a 466,598 sq ft, 16-year build-to-suit for a top 20 pharma at Campus Point, San Diego, reflecting strong brand trust and sector resilience.

• Reported Q2 2025 net loss attributable to common stockholders of $109.6M ($0.64/share), compared to net income of $42.9M in Q2 2024; FFO per share, as adjusted, was $2.33 for Q2 2025.

• Delivered 218,000 sq ft of 90% leased Class A-plus lab space in high-barrier submarkets, contributing $15M in annual incremental NOI.

• Maintained disciplined focus on mega campus strategy, asset recycling, and operational excellence amid macroeconomic and industry headwinds.

• 84% of leasing activity in the last 12 months came from existing tenants.

Financial highlights

• FFO per share diluted as adjusted was $2.33 for Q2 2025, up 1.3% sequentially; total revenues were $762.0M for Q2 2025, down 0.6% year-over-year.

• Occupancy at quarter-end was 90.8%, with 1.7% temporary vacancies now leased and expected to be occupied by early 2026.

• Same property NOI was down 5.4% (GAAP) and up 2% (cash basis) for the quarter.

• Adjusted EBITDA margin remained strong at 71% for Q2 2025.

• General and administrative expenses fell 34.7% to $29.1M for Q2 2025, reflecting cost-control initiatives.

Outlook and guidance

• 2025 FFO per share, as adjusted, is guided at $9.16–$9.36; year-end occupancy expected between 90.9% and 92.5%.

• 669,000 sq ft of leased but not yet delivered space to benefit 2026 occupancy.

• Rental rate increases on lease renewals and re-leasing expected at 9.0%–17.0% (straight-line) and 0.5%–8.5% (cash basis).

• Capitalized interest expected to remain steady or slightly higher in H2 2025 due to active pipeline and high rates.

• Dispositions and partial interest sales for 2025 are expected to total $1.45–$2.45B, with a midpoint of $1.95B.