Alexandria Real Estate Equities (ARE) Q4 2024 earnings summary

Executive summary

• Achieved 5.6% FFO per share growth in 2024, with strong leasing and capital recycling despite macroeconomic headwinds.

• Delivered 2.46 million sq ft across 13 projects, with 5.1 million sq ft leased in 2024, up 17% year-over-year.

• Occupancy in North America stood at 94.6% at year-end, with 97% of leases containing annual rent escalations.

• Adjusted FFO per share was $9.47 for 2024, showing year-over-year growth.

• Focused on mega campus strategy, asset recycling, and disciplined capital allocation.

Financial highlights

• Total revenues for 2024 reached $3.12B, up 8% from 2023; adjusted EBITDA margin was 72% for the quarter.

• FFO per share as adjusted was $9.47, up 5.6% year-over-year and 36% over three years.

• Same property NOI growth was 1.2% (4.6% cash basis) for 2024.

• Recognized $186 million in impairments, mainly from asset sales and land parcels.

• Dividend per share for 2024 was $5.19, up 5% from 2023, with a dividend yield of 5.4% at year-end.

Outlook and guidance

• 2025 FFO per share (as adjusted) guidance midpoint is $9.33; EPS guidance midpoint is $2.67.

• 2025 occupancy expected between 91.6% and 93.2%; rental rate changes projected at 9.0% to 17.0%.

• Projected 2025 same property growth: down 2% and flat on a cash basis at the midpoint.

• Guidance for acquisitions and opportunistic capital uses is $0–$200 million.

• $500M share repurchase program authorized through 2025, with $200.1M repurchased by January 2025.