Alexandria Real Estate Equities, Inc. Announces Tax Treatment of Year 2025 Distributions

Alexandria Real Estate Equities (NYSE: ARE) reported the tax composition of its 2025 distributions.

Rhea-AI Summary

Alexandria Real Estate Equities (NYSE: ARE) reported the tax composition of its 2025 distributions. Total distributions paid were $5.280000 per share (four quarterly payments of $1.32 each). The taxable ordinary dividend component (Box 1a) totaled $3.517008 per share, representing 66.61% of the total. Qualified dividend amounts totaled $0.762960 per share. Return of capital was $0.033264 per share and Section 199A dividends totaled $0.250008 per share. No Section 897 capital gains were reported. Stockholders are advised to consult their tax advisors for individual treatment.

Argus Jan 23 session

+2.75% close to close Open Argus

Details

News Market Reaction – ARE

On Jan 23, the day this news came out, ARE closed 2.75% above the previous close.

Data tracked by StockTitan Argus for the Jan 23 session.

Key Figures

Total 2025 distributions: $5.280000 per share Taxable ordinary dividends: $3.517008 per share Total capital gains: $0.762960 per share +5 more

Total 2025 distributions

$5.280000 per share

Sum of 2025 common stock distributions

Taxable ordinary dividends

$3.517008 per share

Box 1a total for 2025 distributions

Total capital gains

$0.762960 per share

Box 2a total for 2025 distributions

Unrecaptured Section 1250

$0.033264 per share

Box 2b total for 2025 distributions

Return of capital

$1.000032 per share

Box 3 total for 2025 distributions

Section 199A dividends

$3.517008 per share

Box 5 total for 2025 distributions

One Year Amounts Disclosure

$0.759679 per share

99.57% of Box 2a for Section 1061

Three Year Amounts Disclosure

$0.622041 per share

81.53% of Box 2a for Section 1061

Historical Context

5 past events · Latest: Jan 05

5 events

1. Jan 05

   Anniversary / strategy

   24h Move

   +1.2%

   32-year anniversary highlighting leadership, occupancy and tenant-related health impact.

2. Dec 09

   Earnings call notice

   24h Move

   +0.7%

   Scheduled 4Q25 and FY25 results call and webcast with access details.

3. Dec 08

   Buyback authorization

   24h Move

   -1.1%

   Board refreshed and extended up to $500 million common stock repurchase program.

4. Dec 03

   Dividend reduction

   24h Move

   -10.1%

   Quarterly dividend cut to $0.72, a 45% reduction to preserve liquidity.

5. Oct 27

   Quarterly results

   24h Move

   +0.6%

   3Q25 net loss but solid adjusted FFO, high occupancy, strong collections and liquidity.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

section 897, section 1250, section 199A, section 1061, +3 more

7 terms

section 897 regulatory

"Section 897 (4) Ordinary Dividends (Box 2e) ... Section 897 (4) Capital Gains"

Section 897 is a U.S. tax rule that treats the sale or transfer of U.S. real estate interests by non-U.S. persons as taxable in the United States, so a foreign owner can’t avoid U.S. tax simply by being based abroad. For investors, it matters because it can create a tax bill or withholding requirement when foreign parties buy, sell, or receive certain interests in U.S. property, which can change transaction proceeds and deal structure much like a built-in closing cost.

section 1250 regulatory

"Unrecaptured Section 1250 (3) (Box 2b)"

Section 1250 is a U.S. tax rule that governs how profit from selling depreciable real estate (like buildings) is taxed when prior tax deductions for wear-and-tear have reduced the property’s tax basis. For investors, it matters because part of the sale gain tied to those earlier depreciation deductions can be taxed at higher ordinary-income-related rates (capped at 25%) rather than the lower long-term capital gains rate, increasing the tax bill—think of it as paying back some of the benefit you previously received for “wearing down” the asset.

section 199A regulatory

"Section 199A (1) Dividends (Box 5)"

Section 199A is a U.S. tax-code provision that lets owners of pass-through businesses (where profits are reported on personal tax returns) claim a deduction of up to about 20% of certain business income, subject to limits based on wages paid and company assets. For investors, it matters because it changes the after-tax cash flow and reported income of many privately held and small public firms — think of it as a tax discount that can make a company’s earnings look stronger and alter valuation and dividend expectations.

section 1061 regulatory

"For purposes of Section 1061 and Treasury Regulation §1.1061-6(c)"

Section 1061 is a U.S. tax rule that changes how certain profit shares earned by investment managers—commonly called carried interest—are taxed: if the partnership interest is held less than three years, gains from that interest are treated like ordinary income rather than lower-taxed long-term capital gains. For investors this matters because it can reduce the after-tax returns of funds and influence manager behavior—think of it like a minimum holding period you must meet to qualify for a better tax rate.

united states real property interests regulatory

"composition of gains from the disposition of " United States real property interests""

United States real property interests are ownership rights or claims tied to land and buildings located in the U.S., including direct title to property and certain related rights such as mortgages, long-term leases, purchase options, or ownership stakes in entities that primarily hold U.S. real estate. Investors care because these interests carry specific tax and transfer rules, affect liquidity and risk (think owning a house versus owning a stock), and can change how a sale or income from the asset is reported and taxed.

applicable partnership interests financial

"pertains to shares held through "applicable partnership interests" subject to Section 1061."

Applicable partnership interests are the specific ownership stakes in a partnership that are subject to a particular contract, transaction or regulatory rule; they represent the portions of profit, loss, cash flow and decision rights tied to those shares. Investors care because which interests are labeled “applicable” determines who receives distributions, bears liabilities and votes on key matters—like which slices of a pie are being sold or re‑allocated—so it directly affects value, control and expected returns.

return of capital financial

"Return of capital represents a return of stockholder investment."

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PASADENA, Calif., Jan. 23, 2026 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced the tax treatment of its year 2025 distributions as described in the chart below. Stockholders are encouraged to consult with their own tax advisors as to their specific tax treatment of Alexandria Real Estate Equities, Inc. distributions.

Common Stock
CUSIP # 015271109
Ticker Symbol: ARE

						Dividends				Capital Gains				Section 897(4) Ordinary Dividends (Box 2e)		Section 897(4) Capital Gains on Real Estate (Box 2f)		Return of Capital(5) (Box 3)		Section 199A(1) Dividends (Box 5)
Record Date		Payment Date		Distribution Per Share		Taxable Ordinary (Box 1a)		Qualified(1) (Box 1b)		Total(2) (Box 2a)		Unrecaptured Section 1250(3) (Box 2b)
12/31/24		1/15/25		$  1.320000		$  0.879252		$          —		$  0.190740		$   0.008316		$           —		$  0.014916		$  0.250008		$  0.879252
3/31/25		4/15/25		1.320000		0.879252		—		0.190740		0.008316		—		0.014916		0.250008		0.879252
6/30/25		7/15/25		1.320000		0.879252		—		0.190740		0.008316		—		0.014916		0.250008		0.879252
9/30/25		10/15/25		1.320000		0.879252		—		0.190740		0.008316		—		0.014916		0.250008		0.879252
				$  5.280000		$  3.517008		$          —		$  0.762960		$   0.033264		$           —		$  0.059664		$  1.000032		$  3.517008
				100 %		66.61 %		— %		14.45 %		0.63 %		— %		1.13 %		18.94 %		66.61 %

(1)	Qualified and Section 199A dividends are a subset of, and included in, the taxable ordinary dividends amount.
(2)	For purposes of Section 1061 and Treasury Regulation §1.1061-6(c), the aggregate "One Year Amounts Disclosure" and "Three Year Amounts Disclosure" are $0.759679 (99.57% of Box 2a) per share and $0.622041 (81.53% of Box 2a) per share, respectively. Such additional information generally pertains to shares held through "applicable partnership interests" subject to Section 1061.
(3)	Unrecaptured Section 1250 gains are a subset of, and included in, the total capital gains amount.
(4)	These amounts reflect a distribution's composition of gains from the disposition of "United States real property interests" under Section 897.  Generally, such information is relevant only to non-U.S. stockholders that own more than 10% of the Company's stock, as determined for purposes of Section 897, and certain entities through which non-U.S. stockholders own the Company's stock.
(5)	Return of capital represents a return of stockholder investment.

About Alexandria Real Estate Equities, Inc.

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. For more information, please visit www.are.com.

Contact: Joel Marcus, Executive Chairman & Founder, (626) 578-0777, jmarcus@are.com

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SOURCE Alexandria Real Estate Equities, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was the total distribution per share Alexandria Real Estate Equities (ARE) paid in 2025?

Total distributions for 2025 were $5.280000 per share (four quarterly payments of $1.32 each).

How much of ARE's 2025 distributions were taxable ordinary dividends (Box 1a)?

Taxable ordinary dividends (Box 1a) totaled $3.517008 per share, equal to 66.61% of the total distribution.

What qualified dividend and return of capital amounts did ARE report for 2025 distributions?

Qualified dividends totaled $0.762960 per share and return of capital totaled $0.033264 per share for 2025.

Did Alexandria Real Estate Equities (ARE) report any Section 897 capital gains for 2025 distributions?

No. The 2025 distribution table shows no Section 897 capital gains reported for the year.

Where can ARE stockholders find guidance on tax treatment of the 2025 distributions?

Stockholders are encouraged to consult their own tax advisors for specific tax treatment of Alexandria Real Estate Equities distributions.