Alexandria Real Estate Equities, Inc. Reports: 2Q25 and 1H25 Net Loss per Share - Diluted of $(0.64) and $(0.71), respectively; and 2Q25 and 1H25 FFO per Share - Diluted, as Adjusted, of $2.33 and $4.63, respectively

Rhea-AI Summary

Alexandria Real Estate Equities (NYSE:ARE) reported mixed Q2 2025 results with a net loss of $(0.64) per share but maintained strong FFO of $2.33 per share. The company achieved significant leasing activity, including its largest-ever life science lease for 466,598 RSF with a multinational pharmaceutical tenant.

Key operational metrics include 90.8% occupancy (reaching 92.5% including leased but not delivered space), $762.0 million in quarterly revenues, and strong tenant collections at 99.9%. The company maintains a robust balance sheet with $4.6 billion in liquidity and a dividend yield of 7.3%.

ARE's 2025 capital recycling strategy progresses with $786 million in completed and pending dispositions, targeting $1.95 billion total for the year. Development projects delivered $15 million in incremental annual NOI during Q2, with an additional $139 million expected by Q4 2026.

Positive

• Largest life science lease in company history secured (466,598 RSF, 16-year term)
• Strong tenant collections at 99.9% for Q2 2025
• Significant liquidity of $4.6 billion with only 9% of total debt maturing through 2027
• Development pipeline to deliver $139 million incremental annual NOI by Q4 2026
• General and administrative expenses reduced by 35% year-over-year
• 97% of leases contain annual rent escalations

Negative

• Net loss of $(0.64) per share in Q2 2025 compared to $0.25 profit in Q2 2024
• Total revenues declined to $762.0 million from $766.7 million year-over-year
• Same property NOI decreased 5.4% in Q2 2025 over Q2 2024
• Occupancy declined to 90.8% with temporary vacancies
• Investment loss of $30.6 million for Q2 2025
• Real estate impairment charges of $129.6 million in Q2 2025

Insights

Real Estate Investment Analyst

ARE reports net loss but stable FFO; strong leasing activity and development pipeline offset by investment impairments and temporary vacancies.

Alexandria Real Estate Equities (ARE) reported mixed financial results for Q2 2025, with a net loss of $0.64 per share contrasting with funds from operations (FFO) of $2.33 per share. The dramatic difference between net income and FFO is primarily due to significant non-cash charges, including $129.6 million in real estate impairments and $39.2 million in non-real estate investment impairments.

The company's core operating metrics show both strengths and challenges. Occupancy stands at 90.8%, below optimal levels, but the company has secured leases for an additional 1.7% of space that will be occupied by January 2026. Same property net operating income declined by 5.4% on a GAAP basis but increased by 2.0% on a cash basis. This divergence indicates that while contractual rent increases are occurring, the company is experiencing temporary vacancy issues affecting immediate results.

On the positive side, ARE secured impressive leasing volume of 769,815 RSF during Q2, and notably, in July executed its largest life science lease ever - a 16-year build-to-suit lease for 466,598 RSF with a multinational pharmaceutical tenant. Rental rate increases on renewals and re-leasing were modest at 5.5% (6.1% cash basis) for Q2.

The company's development pipeline shows strong momentum, with projects placed into service during Q2 adding $15 million in incremental annual NOI. An additional $139 million in NOI is expected from projects delivering by Q4 2026, with 84% of this space already leased or in negotiations.

ARE's balance sheet metrics show some leverage pressure, with net debt and preferred stock to Adjusted EBITDA at 5.9x, above their Q4 target of ≤5.2x. The company is actively addressing this through a $1.95 billion capital recycling program, having completed $261 million in dispositions with another $525 million pending.

The company maintained its quarterly dividend at $1.32 per share, representing a yield of 7.3%. Management highlighted that maintaining rather than increasing the dividend provides an additional $40 million annually for reinvestment, indicating a strategic shift toward balance sheet strengthening.

ARE's cost control efforts are showing significant results, with G&A expenses down 35% compared to 1H 2024, representing the lowest level as a percentage of NOI in ten years. This operational efficiency is helping to offset some of the revenue challenges from temporary vacancies.

PASADENA, Calif., July 21, 2025 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the second quarter ended June 30, 2025.

 

Key highlights
Operating results	2Q25		2Q24		1H25		1H24
Total revenues:
In millions	$        762.0		$        766.7		$      1,520.2		$      1,535.8
Net (loss) income attributable to Alexandria's common stockholders – diluted:
In millions	$       (109.6)		$          42.9		$       (121.2)		$         209.8
Per share	$        (0.64)		$          0.25		$         (0.71)		$           1.22
Funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted:
In millions	$        396.4		$        405.5		$         788.4		$         809.4
Per share	$          2.33		$          2.36		$           4.63		$           4.71

A sector-leading REIT with a high-quality, diverse tenant base and strong margins

(As of June 30, 2025, unless stated otherwise)
Occupancy of operating properties in North America		90.8 %	(1)
Percentage of annual rental revenue in effect from Megacampus™ platform		75 %
Percentage of annual rental revenue in effect from investment-grade or publicly      traded large cap tenants		53 %
Operating margin		71 %
Adjusted EBITDA margin		71 %
Percentage of leases containing annual rent escalations		97 %
Weighted-average remaining lease term:
Top 20 tenants		9.4	years
All tenants		7.4	years
Sustained strength in tenant collections:
July 2025 tenant rents and receivables collected as of July 21, 2025		99.4 %
2Q25 tenant rents and receivables collected as of July 21, 2025		99.9 %

(1)	Reflects temporary vacancies aggregating 668,795 RSF, or 1.7%, which are now leased and expected to be occupied upon completion of building and/or tenant improvements. The weighted-average expected delivery date is January 2, 2026.

Strong and flexible balance sheet with significant liquidity; top 10% credit rating ranking among all publicly traded U.S. REITs

• Net debt and preferred stock to Adjusted EBITDA of 5.9x and fixed-charge coverage ratio of 4.1x for 2Q25 annualized, with 4Q25 annualized targets of ≤5.2x and 4.0x to 4.5x, respectively.
• Significant liquidity of $4.6 billion.
• Only 9% of our total debt matures through 2027.
• 12.0 years weighted-average remaining term of debt, longest among S&P 500 REITs.
• Since 2021, our quarter-end fixed-rate debt averaged 97.2%.
• Total debt and preferred stock to gross assets of 30%.
• $297.3 million of capital contribution commitments from existing real estate joint venture partners to fund construction from 3Q25 through 2027 and beyond, including $116.7 million from 3Q25 to 4Q25.

Leasing volume and rental rate increases

• Leasing volume of 769,815 RSF during 2Q25.
• In July 2025, we executed the largest life science lease in company history with a long-standing multinational pharmaceutical tenant for a 16-year expansion build-to-suit lease, aggregating 466,598 RSF, located on the Campus Point by Alexandria Megacampus in our University Town Center submarket. If this were included in the leasing volume for 2Q25, the total leased RSF would have increased to 1.2 million RSF for 2Q25 from 769,815 RSF. Refer to "Subsequent events" in the Earnings Press Release for additional details.
• Rental rate increases on lease renewals and re-leasing of space of 5.5% and 6.1% (cash basis) for 2Q25 and 13.2% and 6.9% (cash basis) for 1H25.
• 84% of our leasing activity during the last twelve months was generated from our existing tenant base.

					2Q25			1H25
			Total leasing activity – RSF		769,815			1,800,368
			Lease renewals and re-leasing of space:
			RSF (included in total leasing activity above)		483,409			1,367,817
			Rental rate increase		5.5 %			13.2 %
			Rental rate increase (cash basis)		6.1 %			6.9 %
			Leasing of development and redevelopment space – RSF		131,768			138,198

Dividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment

• Common stock dividend declared for 2Q25 of $1.32 per share aggregating $5.26 per common share for the twelve months ended June 30, 2025, up 18 cents, or 3.5%, over the twelve months ended June 30, 2024.
• By maintaining our recent dividend at $1.32 per share, over $40 million of additional liquidity and equity capital can be reinvested annually.
• Dividend yield of 7.3% as of June 30, 2025.
• Dividend payout ratio of 57% for the three months ended June 30, 2025.
• Significant net cash flows provided by operating activities after dividends retained for reinvestment aggregating $2.3 billion for the years ended December 31, 2021 through 2024 and the midpoint of our 2025 guidance range.

Ongoing execution of Alexandria's 2025 capital recycling strategy

We expect to fund a significant portion of our capital requirements for the year ending December 31, 2025 through dispositions of non-core assets, land, partial interest sales, and sales to owner/users. We expect dispositions of land to represent 20%–30% of our total dispositions and sales of partial interests for 2025.

(in millions)
Completed dispositions		$          261
Our share of pending transactions subject to non-refundable deposits,      signed letters of intent, and/or purchase and sale agreement      negotiations		525
Our share of completed and pending 2025 dispositions		786		40 %
Additional targeted dispositions		1,164		60
2025 guidance midpoint for dispositions and sales of partial interests		$       1,950		100 %

Alexandria's development and redevelopment pipeline delivered incremental annual net operating income of $15 million commencing during 2Q25, with an additional $139 million of incremental annual net operating income anticipated to deliver by 4Q26 primarily from projects 84% leased/negotiating

• During 2Q25, we placed into service development and redevelopment projects aggregating 217,774 RSF that are 90% occupied across three submarkets and delivered incremental annual net operating income of $15 million.
  • A significant 2Q25 delivery was 119,202 RSF at 10935, 10945, and 10955 Alexandria Way located in this asset at the One Alexandria Square Megacampus in our Torrey Pines submarket.
    • Improvements of 100 bps and 110 bps in initial stabilized yield and initial stabilized yield (cash basis), respectively, were primarily driven by leasing space at higher rental rates than previously underwritten and a $23 million reduction in total investment due to construction cost savings from overall project efficiencies.
• Annual net operating income (cash basis) from recently delivered projects is expected to increase by $57 million upon the burn-off of initial free rent, which has a weighted-average burn-off period of approximately three months.
• During 1Q25-4Q26, we expect to deliver annual net operating income representing nearly 9% of the total net operating income for 2024.
• 74% of the RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.

			Development and Redevelopment Projects		Incremental Annual Net Operating Income		RSF		Occupied/ Leased/ Negotiating Percentage
			(dollars in millions)
			Placed into service:
			1Q25		$                       37		309,494			100 %
			2Q25		15	(1)	217,774			90
			Placed into service in 1H25		$                       52	(1)	527,268			96 %
			Expected to be placed into service:
			3Q25 through 4Q26		$                     139	(2)	1,155,041	(3)		84 %	(4)
			2027 through 2028(5)		261		3,270,238			28 %
					$                     400

					(1)	Excludes incremental annual net operating income from recently delivered spaces aggregating 22,005 RSF that are vacant and/or unleased as of June 30, 2025.
					(2)	Includes expected partial deliveries through 4Q26 from projects expected to stabilize in 2027 and beyond, including speculative future leasing that is not yet fully committed. Refer to the initial and stabilized occupancy years under "New Class A/A+ development and redevelopment properties: current projects" in the Supplemental Information for additional details.
					(3)	Represents the RSF related to projects expected to stabilize by 4Q26. Does not include RSF for partial deliveries through 4Q26 from projects expected to stabilize in 2027 and beyond.
					(4)	Represents the leased/negotiating percentage of development and redevelopment projects that are expected to stabilize during 2H25 and 2026.
					(5)	Includes one 100% pre-leased committed near-term project expected to commence construction in the next year.

Significant leasing progress on temporary vacancy

			Occupancy as of June 30, 2025		90.8 %	(1)
			Temporary vacancies now leased with future delivery		1.7	(2)
			Occupancy as of June 30, 2025, including leased, but not yet delivered space		92.5 %

					(1)	Refer to "Summary of properties and occupancy" in the Supplemental Information for additional details.
					(2)	Represents temporary vacancy as of June 30, 2025 aggregating 668,795 RSF, primarily in the Greater Boston, San Francisco Bay Area, and San Diego markets, which is leased and expected to be occupied upon completion of building and/or tenant improvements. The weighted-average expected delivery date is January 2, 2026.

Key operating metrics

• Net operating income (cash basis) of $2.0 billion for 2Q25 annualized, up $111.4 million, or 5.8%, compared to 2Q24 annualized.
• Same property net operating income changes of (5.4)% and 2.0% (cash basis) for 2Q25 over 2Q24 and (4.3)% and 3.4% (cash basis) for 1H25 over 1H24, which include lease expirations that became vacant during 1Q25 aggregating 768,080 RSF across six properties and four submarkets with a weighted-average lease expiration date of January 21, 2025. Excluding the impact of these lease expirations, same property net operating income changes for 2Q25 would have been (2.1)% and 6.5% (cash basis). As of June 30, 2025, 153,658 RSF was leased with a weighted-average lease commencement date of April 30, 2026, and we expect to favorably resolve the remaining 614,422 RSF over the next several quarters.
• General and administrative expenses of $59.8 million for 1H25, representing cost savings of $31.9 million or 35%, compared to 1H24, primarily the result of cost-control and efficiency initiatives on reducing personnel-related costs and streamlining business processes.
  • As a percentage of net operating income, our general and administrative expenses for the trailing twelve months ended June 30, 2025 were 6.3%, representing the lowest level in the past ten years, compared to 9.2% for the trailing twelve months ended June 30, 2024.

Strong and flexible balance sheet

Key metrics as of or for the three months ended June 30, 2025

• $25.7 billion in total market capitalization.
• $12.4 billion in total equity capitalization.

					2Q25				Target
					Quarter Annualized		Trailing 12 Months		4Q25 Annualized
			Net debt and preferred stock to      Adjusted EBITDA		5.9x		5.8x		Less than or equal to 5.2x
			Fixed-charge coverage ratio		4.1x		4.3x		4.0x to 4.5x

Key capital events

• Upon maturity on April 30, 2025, we repaid $600.0 million of our 3.45% unsecured senior notes payable with proceeds from our February 2025 unsecured senior notes payable offering.
• Under our common stock repurchase program authorized in December 2024, we may repurchase up to $500.0 million of our common stock through December 31, 2025. During 2Q25, we did not repurchase any shares. As of July 21, 2025, the approximate value of shares authorized and remaining under this program was $241.8 million.
• In August 2025, we expect to repay a secured construction loan held by our consolidated real estate joint venture for 99 Coolidge Avenue, a development project where we have a 76.9% interest. The project is currently 76% leased/negotiating and is expected to deliver in 2026. We expect to repay the loan aggregating $153.5 million which matures in 2026 and bears an interest rate of 7.16% as of June 30, 2025. As a result, we expect to recognize a loss on early extinguishment of debt of $99 thousand for the write-off of unamortized deferred financing costs in 3Q25.

Investments

• As of June 30, 2025:
  • Our non-real estate investments aggregated $1.5 billion.
  • Unrealized gains presented in our consolidated balance sheet were $7.7 million, comprising gross unrealized gains and losses aggregating $180.2 million and $172.5 million, respectively.
• Investment loss of $30.6 million for 2Q25 presented in our consolidated statement of operations consisted of $30.5 million of realized gains, $21.9 million of unrealized losses, and $39.2 million of impairment charges.

Other key highlights

Key items included in net income attributable to Alexandria's common stockholders:
	2Q25		2Q24		2Q25		2Q24		1H25		1H24		1H25		1H24
(in millions, except per share      amounts)	Amount				Per Share – Diluted				Amount				Per Share – Diluted
Unrealized losses on non-   real estate investments	$ (21.9)		$ (64.2)		$ (0.13)		$ (0.37)		$ (90.1)		$ (35.1)		$ (0.53)		$ (0.20)
Gain on sales of real estate	—		—		—		—		13.2		0.4		0.08		—
Impairment of non-real   estate investments	(39.2)		(12.8)		(0.23)		(0.08)		(50.4)		(27.5)		(0.30)		(0.16)
Impairment of real estate(1)	(129.6)		(30.8)		(0.76)		(0.18)		(161.8)		(30.8)		(0.95)		(0.18)
Increase in provision for   expected credit losses on   financial instruments	—		—		—		—		(0.3)		—		—		—
Total	$  (190.7)		$  (107.8)		$ (1.12)		$ (0.63)		$  (289.4)		$ (93.0)		$ (1.70)		$ (0.54)

(1)	Refer to "Funds from operations and funds from operations per share" in the Earnings Press Release for additional details.

Subsequent event

• In July 2025, we executed the largest life science lease in company history with a long-standing multinational pharmaceutical tenant for a 16-year expansion build-to-suit lease, aggregating 466,598 RSF, located on the Campus Point by Alexandria Megacampus in our University Town Center submarket.
  • The tenant currently occupies two buildings within the Megacampus, one building aggregating 52,620 RSF and another building aggregating 52,853 RSF. At the end of 2025, the tenant will vacate the 52,620 RSF building to allow for the demolition and development of the new purpose-built life science building at this site. Upon delivery of the new build-to-suit property anticipated to occur in 2028, the tenant will vacate the 52,853 RSF building to allow for the construction of an amenity which will service the entire Megacampus.

Industry and corporate responsibility leadership: catalyzing and leading the way for positive change to benefit human health and society

• 8 Davis Drive on the Alexandria Center^® for Advanced Technologies – Research Triangle Megacampus won the prestigious 2025 BOMA (Building Owners and Managers Association) International TOBY (The Outstanding Building of the Year) Award in the Life Science category. The TOBY Awards are the commercial real estate industry's highest recognition honoring excellence in building management and operations. The award represents the company's first win in the International TOBY Awards. Of the four regional winners in the Life Science category that progressed as international TOBY nominees, three were Alexandria-owned, -operated, and -developed facilities. The two additional Alexandria facilities were:
  • 201 Haskins Way on the Alexandria Center^® for Life Science – South San Francisco campus in the San Francisco Bay Area and
  • 188 East Blaine Street on the Alexandria Center^® for Life Science – Eastlake Megacampus in Seattle.
• We released our 2024 Corporate Responsibility Report, which underscores our groundbreaking sustainability approach and the continued execution of our impactful corporate responsibility platform. Notable highlights in the report include:
  • The continued advancement of our innovative strategy to reduce operational greenhouse gas (GHG) emissions in our asset base through energy efficiency, electrification and alternative energy, and renewable electricity. We reduced operational GHG emissions intensity by 18% from 2022 to 2024, representing ongoing progress toward our 30% reduction target by 2030 relative to a 2022 baseline.
  • Our steadfast work to catalyze the health and vitality of our local communities and make a tangible positive impact through action-oriented solutions addressing some of the nation's most pressing issues, including mental health and education.
• 15 Necco Street, a state-of-the-art R&D facility totaling 345,996 RSF in our Seaport Innovation District submarket in Greater Boston, earned LEED Platinum certification, the highest certification level under the U.S. Green Building Council's Core and Shell rating system. Home to the Lilly Seaport Innovation Center, the facility serves as the central hub for Lilly's genetic medicines efforts.
• We deepened our commitment to driving educational opportunities for students and supporting STEM education with the opening of the Alexandria Real Estate Equities, Inc. Learning Lab at the Fred Hutch Cancer Center in Seattle. Designed and built by Alexandria in close collaboration with Fred Hutch's Science Education and Facilities teams, the innovative laboratory environment is dedicated to inspiring and training future scientists.
• Alexandria was named a recipient of the 2025 Charles A. Sanders, MD, Partnership Award by the Foundation for the National Institutes of Health (FNIH) in recognition of our key role in catalyzing a public-private partnership focused on the development of biomarkers for major depressive disorder to address the urgent need for new medicines for neuropsychology.
• Lawrence J. Diamond, co-chief operating officer and regional market director of Maryland, was honored with the Beacon of Service Award at the Maryland Tech Council's 2025 ICON Awards. The award recognizes Mr. Diamond's leadership, service, and profound impact on Maryland's innovation ecosystem and broader community.

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. As of June 30, 2025, Alexandria has a total market capitalization of $25.7 billion and an asset base in North America that includes 39.7 million RSF of operating properties and 4.4 million RSF of Class A/A+ properties undergoing construction and one 100% pre-leased committed near-term project expected to commence construction in the next year. Alexandria has a long-standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants' ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For more information on Alexandria, please visit www.are.com.

Guidance

June 30, 2025

(Dollars in millions, except per share amounts)

Guidance for 2025 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2025. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. Our guidance for 2025 is subject to a number of variables and uncertainties, including actions and changes in policy by the current U.S. administration related to the regulatory environment, life science funding, the U.S. Food and Drug Administration and National Institutes of Health, trade, and other areas. For additional discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated, refer to our discussion of "forward-looking statements" of the Earnings Press Release as well as our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

		2025 Guidance Midpoint						2025 Guidance Midpoint
Summary of Key Changes in Guidance		As of 7/21/25		As of 4/28/25		Summary of Key Changes in Sources and Uses of Capital		As of 7/21/25		As of 4/28/25
EPS, FFO per share, and FFO per share, as adjusted		See updates below				Repayment of secured note payable(5)		$               154		$                 —

Key Credit Metric Targets(3)
Net debt and preferred stock to Adjusted EBITDA – 4Q25 annualized		Less than or equal to 5.2x
Fixed-charge coverage ratio – 4Q25 annualized		4.0x to 4.5x

Projected 2025 Earnings per Share and Funds From Operations per Share Attributable to      Alexandria's Common Stockholders – Diluted
		As of 7/21/25				As of 4/28/25
Earnings per share(1)		$0.40 to $0.60				$1.36 to $1.56
Depreciation and amortization of real estate assets			7.05				7.05
Gain on sales of real estate			(0.08)				(0.08)
Impairment of real estate – rental properties and land(2)			0.77				0.21
Allocation to unvested restricted stock awards			(0.03)				(0.03)
Funds from operations per share and funds from operations    per share, as adjusted(3)		$8.11 to $8.31				$8.51 to $8.71
Unrealized losses on non-real estate investments			0.53				0.40
Impairment of non-real estate investments(2)			0.30				0.07
Impairment of real estate			0.23				0.19
Allocation to unvested restricted stock awards			(0.01)				(0.01)
Funds from operations per share, as adjusted(3)		$9.16 to $9.36				$9.16 to $9.36
Midpoint		$9.26				$9.26

Key Sources and Uses of Capital		Range				Midpoint		Certain Completed Items
Sources of capital:
Reduction in debt		$     (290)		$     (290)		$     (290)		See below
Net cash provided by operating activities after      dividends		425		525		475
Dispositions and sales of partial interests		1,450		2,450		1,950		(6)
Total sources of capital		$   1,585		$   2,685		$    2,135
Uses of capital:
Construction		$   1,450		$   2,050		$    1,750
Acquisitions and other opportunistic uses of      capital(7)		—		500		250		$      208	(7)
Ground lease prepayment		135		135		135		$      135
Total uses of capital		$   1,585		$   2,685		$    2,135
Reduction in debt (included above):
Issuance of unsecured senior notes payable		$      550		$      550		$       550		$      550
Repayment of unsecured notes payable		(600)		(600)		(600)		$    (600)
Repayment of secured note payable(5)		(154)		(154)		(154)
Unsecured senior line of credit, commercial paper, and other		(86)		(86)		(86)
Net reduction in debt		$     (290)		$     (290)		$     (290)

Key Assumptions		Low		High
Occupancy percentage in North America as of December 31, 2025		90.9 %		92.5 %
Lease renewals and re-leasing of space:
Rental rate changes		9.0 %		17.0 %
Rental rate changes (cash basis)		0.5 %		8.5 %
Same property performance:
Net operating income		(3.7) %		(1.7) %
Net operating income (cash basis)		(1.2) %		0.8 %
Straight-line rent revenue		$         96		$       116
General and administrative expenses		$       112		$       127
Capitalization of interest		$       320		$       350
Interest expense		$       185		$       215
Realized gains on non-real estate investments(4)		$       100		$       130

(1)	Excludes unrealized gains or losses on non-real estate investments after June 30, 2025 that are required to be recognized in earnings and are excluded from funds from operations per share, as adjusted.
(2)	Refer to "Funds from operations and funds from operations per share" in the Earnings Press Release for additional details.
(3)	Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.
(4)	Represents realized gains and losses included in funds from operations per share – diluted, as adjusted, and excludes significant impairments realized on non-real estate investments, if any. Refer to "Investments" in the Supplemental Information for additional details.
(5)	In August 2025, we expect to repay a secured construction loan held by our consolidated real estate joint venture for 99 Coolidge Avenue, a development project where we have a 76.9% interest. Refer to "Key capital events" in the Earnings Press release for additional details.
(6)	As of July 21, 2025, completed dispositions aggregated $260.6 million and our share of pending transactions subject to non-refundable deposits, signed letters of intent, or purchase and sale agreement negotiations aggregated $524.7 million. We expect to achieve a weighted-average capitalization rate on our projected 2025 dispositions and partial interest sales (excluding land and including stabilized and non-stabilized operating properties) in the 7.5% – 8.5% range. We expect dispositions of land to represent 20%–30% of our total dispositions and sales of partial interest sales for the year ending December 31, 2025. Refer to "Dispositions and sales of partial interests" in the Earnings Press Release for additional details.
(7)	Under our common stock repurchase program authorized in December 2024, we may repurchase up to $500.0 million of our common stock through December 31, 2025. During 2Q25, we did not repurchase any shares of common stock.  As of July 21, 2025, the approximate value of shares authorized and remaining under this program was $241.8 million. Subject to market conditions, we may consider repurchasing additional shares of our common stock.

 

Dispositions and Sales of Partial Interests June 30, 2025 (Dollars in thousands)
									Square Footage						Gain on Sales of Real Estate
Property		Submarket/Market		Date of Sale		Interest Sold			Operating		Future Development		Sales Price
Completed in 1Q25													$       176,352		$        13,165
Completed in 2Q25:
Properties with vacancies
2425 Garcia Avenue and 2400/2450 Bayshore Parkway		Greater Stanford/San Francisco Bay Area		6/30/25		100 %			95,901		—		11,000		—
Land
Land parcel		Texas		5/7/25		100 %			—		1,350,000		73,287		—
													84,287		—
Dispositions completed in 1H25													260,639		$        13,165
Our share of pending dispositions and sales of partial interests subject to      non-refundable deposits, signed letters of intent, and/or purchase and      sale agreement negotiations													524,745
Our share of completed and pending 2025 dispositions and sales of      partial interests													$       785,384
2025 guidance range for dispositions and sales of partial interests											$1,450,000 – $2,450,000
2025 guidance midpoint for dispositions and sales of partial interests													$    1,950,000

 

Earnings Call Information and About the Company
June 30, 2025

We will host a conference call on Tuesday, July 22, 2025, at 2:00 p.m. Eastern Time ("ET")/11:00 a.m. Pacific Time ("PT"), which is open to the general public, to discuss our financial and operating results for the second quarter ended June 30, 2025. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 2:00 p.m. ET/11:00 a.m. PT and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the "For Investors" section. A replay of the call will be available for a limited time from 4:00 p.m. ET/1:00 p.m. PT on Tuesday, July 22, 2025. The replay number is (877) 344-7529 or (412) 317-0088, and the access code is 1006663.

Additionally, a copy of this Earnings Press Release and Supplemental Information for the second quarter ended June 30, 2025 is available in the "For Investors" section of our website at www.are.com or by following this link: https://www.are.com/fs/2025q2.pdf. 

For any questions, please contact corporateinformation@are.com; Joel S. Marcus, executive chairman and founder; Peter M. Moglia, chief executive officer and chief investment officer; Marc E. Binda, chief financial officer and treasurer; or Paula Schwartz, managing director of Rx Communications Group, at (917) 633-7790.

About the Company

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.  As of June 30, 2025, Alexandria has a total market capitalization of $25.7 billion and an asset base in North America that includes 39.7 million RSF of operating properties and 4.4 million RSF of Class A/A+ properties undergoing construction and one 100% pre-leased committed near-term project expected to commence construction in the next year. Alexandria has a long-standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants' ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For more information on Alexandria, please visit www.are.com. 

Forward-Looking Statements

This document 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 our projected 2025 earnings per share, projected 2025 funds from operations per share, projected 2025 funds from operations per share, as adjusted, projected net operating income, and our projected sources and uses of capital. You can identify the forward-looking statements by their use of forward-looking words, such as "forecast," "guidance," "goals," "projects," "estimates," "anticipates," "believes," "expects," "intends," "may," "plans," "seeks," "should," "targets," or "will," or the negative of those words or similar words. These forward-looking statements are based on our current expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, as well as a number of assumptions concerning future events. There can be no assurance that actual results will not be materially higher or lower than these expectations. These statements are subject to risks, uncertainties, assumptions, and other important factors that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, without limitation, our failure to obtain capital (debt, construction financing, and/or equity) or refinance debt maturities, lower than expected yields, increased interest rates and operating costs, adverse economic or real estate developments in our markets, our failure to successfully place into service and lease any properties undergoing development or redevelopment and our existing space held for future development or redevelopment (including new properties acquired for that purpose), our failure to successfully operate or lease acquired properties, decreased rental rates, increased vacancy rates or failure to renew or replace expiring leases, defaults on or non-renewal of leases by tenants, adverse general and local economic conditions, an unfavorable capital market environment, decreased leasing activity or lease renewals, failure to obtain LEED and other healthy building certifications and efficiencies, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission ("SEC"). Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are made as of the date of this Earnings Press Release and Supplemental Information, and unless otherwise stated, we assume no obligation to update this information and expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

This document is not an offer to sell or a solicitation to buy securities of Alexandria Real Estate Equities, Inc. Any offers to sell or solicitations to buy our securities shall be made only by means of a prospectus approved for that purpose. Unless otherwise indicated, the "Company," "Alexandria," "ARE," "we," "us," and "our" refer to Alexandria Real Estate Equities, Inc. and our consolidated subsidiaries. Alexandria^®, Lighthouse Design^® logo, Building the Future of Life-Changing Innovation^®, That's What's in Our DNA^®, Megacampus™, At the Vanguard and Heart of the Life Science Ecosystem™, Alexandria Center^®, Alexandria Technology Square^®, Alexandria Technology Center^®, and Alexandria Innovation Center^® are copyrights and trademarks of Alexandria Real Estate Equities, Inc. All other company names, trademarks, and logos referenced herein are the property of their respective owners.

Consolidated Statements of Operations June 30, 2025 (Dollars in thousands, except per share amounts)
		Three Months Ended										Six Months Ended
		6/30/25		3/31/25		12/31/24		9/30/24		6/30/24		6/30/25		6/30/24
Revenues:
Income from rentals		$       737,279		$       743,175		$       763,249		$       775,744		$       755,162		$    1,480,454		$    1,510,713
Other income		24,761		14,983		25,696		15,863		11,572		39,744		25,129
Total revenues		762,040		758,158		788,945		791,607		766,734		1,520,198		1,535,842
Expenses:
Rental operations		224,433		226,395		240,432		233,265		217,254		450,828		435,568
General and administrative		29,128		30,675		32,730		43,945		44,629		59,803		91,684
Interest		55,296		50,876		55,659		43,550		45,789		106,172		86,629
Depreciation and amortization		346,123		342,062		330,108		293,998		290,720		688,185		578,274
Impairment of real estate		129,606		32,154		186,564		5,741		30,763		161,760		30,763
Total expenses		784,586		682,162		845,493		620,499		629,155		1,466,748		1,222,918
Equity in (losses) earnings of unconsolidated real estate joint ventures		(9,021)	(1)	(507)		6,635		139		130		(9,528)		285
Investment (loss) income		(30,622)		(49,992)		(67,988)		15,242		(43,660)		(80,614)		(376)
Gain on sales of real estate		—		13,165		101,806		27,114		—		13,165		392
Net (loss) income		(62,189)		38,662		(16,095)		213,603		94,049		(23,527)		313,225
Net income attributable to noncontrolling interests		(44,813)		(47,601)		(46,150)		(45,656)		(47,347)		(92,414)		(95,978)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s      stockholders		(107,002)		(8,939)		(62,245)		167,947		46,702		(115,941)		217,247
Net income attributable to unvested restricted stock awards		(2,609)		(2,660)		(2,677)		(3,273)		(3,785)		(5,269)		(7,444)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s      common stockholders		$      (109,611)		$       (11,599)		$       (64,922)		$       164,674		$         42,917		$     (121,210)		$       209,803
Net (loss) income per share attributable to Alexandria Real Estate Equities,      Inc.'s common stockholders:
Basic		$            (0.64)		$           (0.07)		$            (0.38)		$             0.96		$             0.25		$            (0.71)		$             1.22
Diluted		$            (0.64)		$           (0.07)		$            (0.38)		$             0.96		$             0.25		$            (0.71)		$             1.22
Weighted-average shares of common stock outstanding:
Basic		170,135		170,522		172,262		172,058		172,013		170,328		171,981
Diluted		170,135		170,522		172,262		172,058		172,013		170,328		171,981
Dividends declared per share of common stock		$             1.32		$             1.32		$             1.32		$             1.30		$             1.30		$             2.64		$             2.57

(1)	Refer to footnote 1 in "Funds from operations and funds from operations per share" in the Earnings Press Release for additional details.

 

Consolidated Balance Sheets June 30, 2025 (In thousands)
		6/30/25		3/31/25		12/31/24		9/30/24		6/30/24
Assets
Investments in real estate		$  32,160,600		$  32,121,712		$  32,110,039		$  32,951,777		$ 32,673,839
Investments in unconsolidated real estate joint ventures		40,234		50,086		39,873		40,170		40,535
Cash and cash equivalents		520,545		476,430		552,146		562,606		561,021
Restricted cash		7,403		7,324		7,701		17,031		4,832
Tenant receivables		6,267		6,875		6,409		6,980		6,822
Deferred rent		1,232,719		1,210,584		1,187,031		1,216,176		1,190,336
Deferred leasing costs		491,074		489,287		485,959		516,872		519,629
Investments		1,476,696		1,479,688		1,476,985		1,519,327		1,494,348
Other assets		1,688,091		1,758,442		1,661,306		1,657,189		1,356,503
Total assets		$  37,623,629		$  37,600,428		$  37,527,449		$  38,488,128		$ 37,847,865
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable		$       153,500		$       150,807		$       149,909		$       145,000		$       134,942
Unsecured senior notes payable		12,042,607		12,640,144		12,094,465		12,092,012		12,089,561
Unsecured senior line of credit and commercial paper		1,097,993		299,883		—		454,589		199,552
Accounts payable, accrued expenses, and other liabilities		2,360,840		2,281,414		2,654,351		2,865,886		2,529,535
Dividends payable		229,686		228,622		230,263		227,191		227,408
Total liabilities		15,884,626		15,600,870		15,128,988		15,784,678		15,180,998
Commitments and contingencies
Redeemable noncontrolling interests		9,612		9,612		19,972		16,510		16,440
Alexandria Real Estate Equities, Inc.'s stockholders' equity:
Common stock		1,701		1,701		1,722		1,722		1,720
Additional paid-in capital		17,200,949		17,509,148		17,933,572		18,238,438		18,284,611
Accumulated other comprehensive loss		(27,415)		(46,202)		(46,252)		(22,529)		(27,710)
Alexandria Real Estate Equities, Inc.'s stockholders' equity		17,175,235		17,464,647		17,889,042		18,217,631		18,258,621
Noncontrolling interests		4,554,156		4,525,299		4,489,447		4,469,309		4,391,806
Total equity		21,729,391		21,989,946		22,378,489		22,686,940		22,650,427
Total liabilities, noncontrolling interests, and equity		$  37,623,629		$  37,600,428		$  37,527,449		$  38,488,128		$ 37,847,865

 

Funds From Operations and Funds From Operations per Share June 30, 2025 (In thousands)

The following table presents a reconciliation of net income (loss) attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with U.S. generally accepted accounting principles ("GAAP"), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria's common stockholders – diluted, and funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below:

		Three Months Ended										Six Months Ended
		6/30/25		3/31/25		12/31/24		9/30/24		6/30/24		6/30/25		6/30/24
Net (loss) income attributable to Alexandria's common stockholders – basic      and diluted		$ (109,611)		$   (11,599)		$   (64,922)		$   164,674		$     42,917		$ (121,210)		$   209,803
Depreciation and amortization of real estate assets		343,729		339,381		327,198		291,258		288,118		683,110		573,068
Noncontrolling share of depreciation and amortization from consolidated real estate      JVs		(36,047)		(33,411)		(34,986)		(32,457)		(31,364)		(69,458)		(62,268)
Our share of depreciation and amortization from unconsolidated real estate JVs		942		1,054		1,061		1,075		1,068		1,996		2,102
Gain on sales of real estate		—		(13,165)		(100,109)		(27,114)		—		(13,165)		(392)
Impairment of real estate – rental properties and land		131,090	(1)	—		184,532		5,741		2,182		131,090		2,182
Allocation to unvested restricted stock awards		(1,222)		(686)		(1,182)		(2,908)		(1,305)		(1,916)		(4,736)
Funds from operations attributable to Alexandria's common stockholders –      diluted(2)		328,881		281,574		311,592		400,269		301,616		610,447		719,759
Unrealized losses (gains) on non-real estate investments		21,938		68,145		79,776		(2,610)		64,238		90,083		35,080
Impairment of non-real estate investments		39,216	(3)	11,180		20,266		10,338		12,788		50,396		27,486
Impairment of real estate		7,189		32,154		2,032		—		28,581		39,343		28,581
Increase (decrease) in provision for expected credit losses on financial instruments		—		285		(434)		—		—		285		—
Allocation to unvested restricted stock awards		(794)		(1,329)		(1,407)		(125)		(1,738)		(2,116)		(1,528)
Funds from operations attributable to Alexandria's common stockholders –      diluted, as adjusted		$   396,430		$   392,009		$   411,825		$   407,872		$   405,485		$   788,438		$   809,378

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.
(1)	Primarily represents impairment charges to reduce the carrying amount of our investments in real estate assets to their respective estimated fair values less costs to sell upon their classification as held for sale in 2Q25, including (i) $47.5 million related to land parcels in our non-cluster market, (ii) $35.4 million related to an office property located in Carlsbad, San Diego, and (iii) $8.7 million related to an unconsolidated real estate joint venture, which is classified in equity in earnings of unconsolidated real estate joint ventures in our consolidated statement of operations.
(2)	Calculated in accordance with standards established by the Nareit Board of Governors.
(3)	Primarily related to one non-real estate investment in a privately held entity that does not report NAV.

 

Funds From Operations and Funds From Operations per Share (continued) June 30, 2025 (In thousands, except per share amounts)

The following table presents a reconciliation of net income (loss) per share attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations per share attributable to Alexandria's common stockholders – diluted, and funds from operations per share attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below. Per share amounts may not add due to rounding.

		Three Months Ended										Six Months Ended
		6/30/25		3/31/25		12/31/24		9/30/24		6/30/24		6/30/25		6/30/24
Net (loss) income per share attributable to Alexandria's common stockholders –      diluted		$        (0.64)		$        (0.07)		$        (0.38)		$         0.96		$         0.25		$        (0.71)		$         1.22
Depreciation and amortization of real estate assets		1.81		1.80		1.70		1.51		1.50		3.61		2.98
Gain on sales of real estate		—		(0.08)		(0.58)		(0.16)		—		(0.08)		—
Impairment of real estate – rental properties and land		0.77		—		1.07		0.03		0.01		0.77		0.01
Allocation to unvested restricted stock awards		(0.01)		—		—		(0.01)		(0.01)		(0.01)		(0.02)
Funds from operations per share attributable to Alexandria's common      stockholders – diluted		1.93		1.65		1.81		2.33		1.75		3.58		4.19
Unrealized losses (gains) on non-real estate investments		0.13		0.40		0.46		(0.02)		0.37		0.53		0.20
Impairment of non-real estate investments		0.23		0.07		0.12		0.06		0.08		0.30		0.16
Impairment of real estate		0.04		0.19		0.01		—		0.17		0.23		0.17
Allocation to unvested restricted stock awards		—		(0.01)		(0.01)		—		(0.01)		(0.01)		(0.01)
Funds from operations per share attributable to Alexandria's common      stockholders – diluted, as adjusted		$         2.33		$         2.30		$         2.39		$         2.37		$         2.36		$         4.63		$         4.71
Weighted-average shares of common stock outstanding – diluted
Earnings per share – diluted		170,135		170,522		172,262		172,058		172,013		170,328		171,981
Funds from operations – diluted, per share		170,192		170,599		172,262		172,058		172,013		170,390		171,981
Funds from operations – diluted, as adjusted, per share		170,192		170,599		172,262		172,058		172,013		170,390		171,981

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.

 

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FAQ

What were Alexandria Real Estate's (ARE) key financial results for Q2 2025?

ARE reported a net loss of $(0.64) per share, FFO of $2.33 per share, and total revenues of $762.0 million. The company maintained a strong balance sheet with $4.6 billion in liquidity.

What is ARE's occupancy rate and leasing activity in Q2 2025?

ARE reported 90.8% occupancy (92.5% including leased but not delivered space), with 769,815 RSF of leasing volume in Q2. The company also secured its largest-ever life science lease for 466,598 RSF.

What is Alexandria Real Estate's dividend yield and payout for Q2 2025?

ARE declared a $1.32 quarterly dividend with a 7.3% dividend yield as of June 30, 2025. The dividend payout ratio was 57% for Q2 2025.

How much NOI growth is ARE expecting from its development pipeline?

ARE delivered $15 million in incremental annual NOI in Q2 2025, with an additional $139 million expected by Q4 2026 from projects that are 84% leased/negotiating.

What is ARE's progress on its 2025 capital recycling strategy?

ARE has completed or has pending $786 million in dispositions, representing 40% of its $1.95 billion target for 2025.

How has ARE's same property net operating income changed year-over-year?

ARE's same property NOI decreased 5.4% in Q2 2025 compared to Q2 2024, primarily due to lease expirations. Excluding these impacts, the decrease would have been 2.1%.