Alexandria Real Estate Equities (ARE) Q4 2025 earnings summary

Executive summary

• Reported a net loss per share of $6.35 for Q4 2025 and $8.44 for 2025; FFO per share as adjusted was $2.16 for Q4 2025 and $9.01 for the year.

• Achieved $1.5–$1.81 billion in dispositions across 26 transactions and 1.2 million sq ft of leasing in Q4 2025, the highest quarterly leasing volume in the past year.

• Occupancy of operating properties in North America was 90.9% at year-end 2025, with 93.4% including leased but not yet delivered space.

• Dividend per share was reduced to $0.72 in Q4 2025, a 45% decrease from the prior quarter, to preserve liquidity and support the 2026 capital plan.

• Maintained a high-quality tenant base, with 53% of annual rental revenue from investment-grade or large-cap tenants.

Financial highlights

• FFO per share diluted as adjusted was $2.16 for Q4 2025 and $9.01 for the year, at the midpoint of prior guidance.

• Total revenues for 2025 were $2.95–$3.03 billion, down from 2024.

• Same property NOI (cash basis) was down 3.5% for 2025; excluding dispositions, it would have increased 6.2%.

• Achieved $51.3 million in G&A cost savings, with G&A at 5.6% of NOI, about half the S&P 500 REIT average.

• Net loss attributable to common stockholders was $1.44 billion for 2025, compared to net income of $310 million in 2024.

Outlook and guidance

• 2026 FFO per share (as adjusted) guidance is $6.25–$6.55, midpoint $6.40.

• Projected occupancy in North America by end of 2026 is 87.7%–89.3%.

• Same property NOI for 2026 expected to be down 8.5% at the midpoint, driven by lower occupancy.

• General and administrative expenses for 2026 are expected to be $134–$154 million, midpoint $144 million.

• Guidance assumes $1.5–$2.1 billion in dispositions and sales of partial interests in 2026.