greeksoup/ stock research
Stock research / United States / ARE / FY2025

Alexandria Real Estate Equities (ARE) FY2025 results: revenue $3.0 billion, down 2.9% on the year

Alexandria Real Estate Equities, Inc. (ARE) reported revenue of $3.0 billion for fiscal 2025, the year ended 31 December 2025, down 2.9% on the year before. Net income was -$1.4 billion, and diluted earnings per share $-8.44. The figures are the company's own, from the 10-K it filed with the SEC on 26 January 2026.

Revenue
$3.0 billion
-2.9% on the year
FY2018FY2025
Operating margin
-59.2%
13.7% a year earlier
FY2018FY2025
Net income
-$1.4 billion
FY2018FY2025
Diluted EPS
-$8.44
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 1 new, 16 kept.

  • Net loss widened on real estate impairments: Net loss attributable to common stockholders was $6.35 per diluted share for 4Q25 and $8.44 for 2025, compared with $0.38 and net income of $1.80 per share a year earlier. Impairments of real estate were $1,717.2 million in 4Q25.
  • FFO per share, as adjusted, declined year on year: FFO per share, as adjusted, was $2.16 for 4Q25 and $9.01 for 2025, against $2.39 and $9.47 in the prior-year periods.
  • Renewal rents fell in the quarter: Rental rates on renewals and re-leasing fell 9.9% in 4Q25 and 5.2% on a cash basis, after rising 7.0% and 3.5% for 2025.
  • Leasing of vacant space rose: Total 4Q25 leasing was 1.2 million RSF, including 393,376 RSF of previously vacant space, about 98% above the five-quarter average.
  • Dividend cut 45% to $0.72: Common dividend declared was $0.72 for 4Q25, down from $1.32 in 3Q25; 2025 dividends declared totaled $4.68 per share.
Read the Q4 FY2025 earnings call summary

From this 10-K

Alexandria Real Estate Equities owns, operates and develops laboratory and office property for the life science industry. It is a Maryland corporation formed in October 1994 and taxed as a REIT, and the filing says it pioneered the life science real estate niche at its founding. Its buildings are clustered into what it calls Megacampus ecosystems, in Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle and New York City.

Alexandria Real Estate Equities, Inc., the 10-K for 2025

Alexandria Real Estate Equities owns, operates and develops laboratory and office property for the life science industry. It is a Maryland corporation formed in October 1994 and taxed as a REIT, and the filing says it pioneered the life science real estate niche at its founding. Its buildings are clustered into what it calls Megacampus ecosystems, in Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle and New York City.

The portfolio

At the end of 2025 Alexandria had 340 properties in North America, comprising approximately 39.4 million rentable square feet of operating properties and new development and redevelopment properties under construction. Of that, 35.9 million rentable square feet were operating properties and 3.5 million were under construction. Within the 340, 47 operating properties and development projects were held by consolidated real estate joint ventures and three by unconsolidated ones.

Occupancy of the North American operating portfolio was 90.9 percent at the end of 2025. The ten-year average occupancy as of the same date was 95 percent.

Who rents the space

Multinational pharmaceutical companies, public and private biotechnology companies, life science product, service and medical device companies, digital health, advanced technology and agtech companies, academic and medical research institutions, US government research agencies, non-profit organisations, and venture capital firms. Investment-grade or publicly traded large cap tenants accounted for 53 percent of total annual rental revenue in effect at the end of 2025.

The lease structure

At the end of 2025 approximately 92 percent of leases, measured on annual rental revenue, were triple net leases, which require tenants to pay substantially all real estate taxes, insurance, and the other operating costs of the building.

What the clustering is for

The company's stated strategy centres on Class A and A+ properties in collaborative Megacampus ecosystems. Those campuses are described as designed for optionality and scalability, giving a tenant a path to grow within them, including through the company's own future development and redevelopment. They are placed near top academic and medical research institutions, with curated amenities and services and convenient access to transit, which the company says supports its tenants in attracting and retaining talent and which it believes is a key driver of demand for its properties. The strategy also relies on long-standing real estate and life science industry relationships to retain tenants, attract new ones and source further real estate.

A second activity

Alexandria also provides strategic capital to life science companies through a venture capital platform of its own. That means some of its exposure is to the companies in the sector rather than only to the buildings they occupy.

What the company flags about its market

The filing names, among the market trends and uncertainties that had or may have a negative effect on the business, a surge in supply and a decrease in demand that have led to industry-wide elevated vacancy rates.

From Alexandria Real Estate Equities' annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 26 January 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue3,0273,1162,886-2.9%
Operating income-1,793427198
Operating margin-59.2%13.7%6.9%
Interest expense22718674.2+22.0%
Net income-1,430323104
Net margin-47.2%10.4%3.6%
Diluted EPS-$8.44$1.80$0.54
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow1,4141,5051,631-6.0%
Capital expenditure1,8712,4233,418-22.8%
Free cash flow-457-918-1,788
Free cash flow margin-15.1%-29.5%-62.0%
Cash from investing362-1,511-2,501
Cash from financing-1,784-93.3674
Depreciation and amortisation1,3501,2021,093+12.3%
Share-based compensation41.159.682.9-31.0%
Buybacks20850.10.0+315.5%
Dividends paid911899847+1.4%
Dividend per share$4.68$5.19$4.96-9.8%
Diluted shares, weighted170m172m171m-1.0%
Shares outstanding at period end171m172m172m-1.0%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity15,47017,88918,471-13.5%
Non-controlling interest3,6284,4894,135-19.2%
Redeemable equity58.820.016.5+194.4%
Debt12,40112,24411,316+1.3%
Other liabilities2,5252,8852,833-12.5%
Total liabilities and equity34,08237,52736,771-9.2%
Fixed assets70.339.626.6+77.7%
Cash and equivalents549552618-0.6%
Other assets33,46236,93636,127-9.4%
Total assets34,08237,52736,771-9.2%

10-K for the year ended 31 December 2025, filed 26 January 2026: the filing.