Alexandria Real Estate Equities, Inc. Refreshes and Extends Its $500 Million Common Stock Repurchase Program

Rhea-AI Summary

Alexandria Real Estate Equities (NYSE: ARE) announced that its Board authorized a refreshed common stock repurchase program of up to $500 million, replacing the prior authorization that was set to expire December 31, 2025.

Under the prior program the company repurchased $258.2 million of common stock, primarily in January 2025. The new authorization permits purchases in the open market or by negotiated transactions, accelerated share repurchases, indirect purchases including derivatives, or other transactions through December 31, 2026. Repurchases are discretionary, may be suspended, and will depend on price, available capital, market and economic conditions. The company said its preference is to fund repurchases on a leverage-neutral basis using operating cash after dividends and proceeds from property dispositions or joint ventures.

Positive

• Board authorized up to $500M repurchase through Dec 31, 2026
• Prior program repurchases totalled $258.2M (primarily Jan 2025)
• Company preference to fund repurchases on a leverage-neutral basis

Negative

• Repurchases are discretionary and not guaranteed; program may be suspended
• Program allows derivatives and negotiated transactions, adding execution complexity

Key Figures

New buyback authorization $500 million Maximum common stock repurchases under program through Dec 31, 2026

Prior authorization size $500 million Replaced program that was set to expire Dec 31, 2025

Repurchased to date $258.2 million Common stock repurchases under current program, primarily in Jan 2025

Par value per share $0.01 Par value of Alexandria common stock referenced in program

Program end date December 31, 2026 Expiration of new common stock repurchase authorization

Market Reality Check

$45.48 Last Close

Volume Volume 5,007,780 is 1.71x the 20-day average of 2,931,373. high

Technical Price 45.48 is trading below the 200-day MA of 76.76 and near the 52-week low.

Peers on Argus

ARE fell 2.38% with elevated volume, while key office REIT peers like BXP, VNO, CUZ, and SLG were also down between about 1.8% and 2.78%, suggesting pressure across office REITs even as ARE announced a refreshed buyback.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	Dividend change	Negative	-10.1%	Q4 2025 dividend cut by 45% to preserve about $410M liquidity.
Oct 27	Earnings update	Neutral	+0.6%	Reported Q3 2025 net loss but solid adjusted FFO and occupancy metrics.
Oct 22	Award & partnership	Positive	+1.3%	Recognition for MAP-D precision medicine partnership targeting Phase 1 launch.
Sep 26	Strategic partnership	Positive	-0.4%	Opened Lilly Gateway Labs San Diego at Torrey Pines megacampus.
Sep 04	Reputation & leasing	Positive	+1.6%	Named among most trustworthy firms and secured largest life science lease.

Pattern Detected

Recent news has often led to aligned price moves, with negative balance-sheet actions (like dividend cuts) drawing sharper selloffs than strategic or reputational positives.

Recent Company History

Over the last few months, Alexandria has reported sizeable non-cash-driven net losses, maintained strong liquidity, and announced substantial leasing and partnership activity. A sharp 45% dividend cut in early Dec 2025 prompted a -10.05% reaction, underscoring investor sensitivity to capital allocation. Earlier, a $500 million repurchase authorization in Dec 2024 coincided with a positive move. Today’s refreshed $500 million buyback extends that capital-return framework into Dec 31, 2026 against a weaker share price backdrop.

Market Pulse Summary

This announcement refreshes Alexandria’s capital return framework, replacing the prior $500 million authorization with a new $500 million repurchase program running through December 31, 2026. It follows a recent 45% dividend reduction intended to preserve about $410 million of annual liquidity and earlier common stock buybacks of $258.2 million. Investors may focus on execution of repurchases, funding via operations and asset sales, and how these choices interact with recent earnings headwinds.

Key Terms

accelerated share repurchases financial

"including in negotiated transactions, through accelerated share repurchases, through indirect"

An accelerated share repurchase is a program where a company hires an investment bank to buy back a large block of its own shares immediately, with the bank later settling the exact number of shares over a short period. Investors care because it quickly reduces the number of shares outstanding, which can raise earnings per share and signal management’s confidence, while also using company cash and potentially affecting future liquidity and valuation.

derivatives financial

"through indirect purchases of Common Stock such as by using derivatives, or in other"

Derivatives are financial contracts whose value depends on the price or performance of another asset, such as a stock, bond, commodity, currency or interest rate. Investors use them to hedge against risk, to speculate on future price moves, or to gain exposure without owning the asset — like buying insurance or placing a leveraged bet — so they can both protect portfolios and magnify gains or losses, affecting risk and market liquidity.

joint ventures financial

"from real estate dispositions and/or joint ventures."

A joint venture is a business arrangement where two or more companies come together to work on a specific project or goal, sharing both the risks and the rewards. It’s like partners teaming up for a common goal, which can help them access new markets, share expertise, or reduce costs. For investors, joint ventures can create new opportunities but also involve shared responsibilities and potential risks.

leverage-neutral financial

"fund stock repurchases, if any, through December 31, 2026 on a leverage-neutral basis"

A leverage-neutral measure or action is one whose value and interpretation do not change when a company or investment uses more debt or equity; it isolates the underlying business performance from financing choices. For investors this matters because it lets you compare firms or strategies on a like-for-like basis—like judging a car’s fuel efficiency separate from whether it was bought cash or on loan—so decisions focus on operations rather than capital structure.

AI-generated analysis. Not financial advice.

PASADENA, Calif., Dec. 8, 2025 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. ("Alexandria" or the "Company") (NYSE: ARE) today announced that the Company's Board of Directors authorized a new common stock repurchase program. The new program replaces the current repurchase authorization for up to $500 million that was set to expire on December 31, 2025. Under the current program, Alexandria repurchased $258.2 million of its shares of common stock, par value $0.01 per share ("Common Stock"), primarily in January 2025. Under the new program, the Company may, from time to time, purchase up to $500 million of its outstanding shares of Common Stock until December 31, 2026 in the open market or otherwise (including in negotiated transactions, through accelerated share repurchases, through indirect purchases of Common Stock such as by using derivatives, or in other transactions).

The specific timing, price, and amount of any repurchases will be determined by the Company in its discretion and will depend on a variety of factors, including prevailing stock prices, available capital, general economic and market conditions, and other considerations. The stock repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of Common Stock and may be suspended or discontinued at any time. The Company's preference is to fund stock repurchases, if any, through December 31, 2026 on a leverage-neutral basis with net cash provided by operating activities after dividends and proceeds from real estate dispositions and/or joint ventures.

About Alexandria Real Estate Equities, Inc.
Alexandria, 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^TM 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 on Alexandria, please visit www.are.com.

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding the Company's stock repurchase program. These forward-looking statements are based on the Company's present intent, beliefs, or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by the Company's forward-looking statements as a result of a variety of factors, including, without limitation, the risks and uncertainties detailed in its filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in the Company's forward-looking statements, and risks and uncertainties to the Company's business in general, please refer to the Company's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q.

CONTACT: Joel S. Marcus, Executive Chairman & Founder, (626) 578-9693, jmarcus@are.com

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SOURCE Alexandria Real Estate Equities, Inc.

FAQ

What did Alexandria (ARE) authorize in the December 8, 2025 repurchase announcement?

The Board authorized a refreshed common stock repurchase program of up to $500 million through Dec 31, 2026.

How much stock had Alexandria repurchased under the prior program before Dec 8, 2025?

Alexandria repurchased $258.2 million of common stock under the prior authorization, primarily in January 2025.

How will Alexandria (ARE) fund share repurchases under the new $500M program?

The company prefers to fund repurchases on a leverage-neutral basis using net operating cash after dividends and proceeds from dispositions or joint ventures.

When does the new Alexandria (ARE) repurchase program expire and is repurchase required?

The authorization runs until Dec 31, 2026; repurchases are discretionary and the company is not obligated to buy any shares.

What purchase methods does Alexandria (ARE) permit under the new repurchase program?

Authorized methods include open market, negotiated transactions, accelerated share repurchases, indirect purchases such as derivatives, or other transactions.