Alexandria Real Estate Equities Reports Q4 2025 Financial Results Amidst Significant Losses

Alexandria Real Estate Equities, Inc. Reports Q4 2025 Financial Results

On January 26, 2026, Alexandria Real Estate Equities, Inc. (NYSE: ARE) shared its financial performance for the fourth quarter and the complete year ending on December 31, 2025. As a leading company in life science real estate, Alexandria faced substantial challenges during this reporting period, notably in terms of net income and market dynamics.

Highlights of Q4 2025 Performance

During the fourth quarter, Alexandria reported a significant net loss attributable to common stockholders of $(1,081.8 million), equating to a diluted loss per share of $(6.35). Comparatively, the prior-year quarter showcased a far healthier position, with a net income loss of only $(64.9 million) and a diluted loss per share of $(0.38).

For the entire year ended 2025, Alexandria's net income fell to $(1,438 million), translating into a diluted loss of $(8.44) per share, in stark contrast to a net income of $309.6 million and diluted earnings of $1.80 per share in the previous year, 2024.

Funds From Operations (FFO)

Turning to Funds from Operations (FFO), Alexandria reported an FFO of $368.5 million, or $2.16 per share, during Q4 2025, which was a slight decline from $411.8 million, or $2.39 per share, in Q4 2024. For the entire year 2025, the FFO decreased to $1,534.7 million, standing at $9.01 per share, compared to the previous year's FFO of $1,629.1 million, or $9.47 per share.

Operational Metrics

Despite the financial losses, Alexandria exhibited considerable operational performance. The occupancy rate of its operating properties in North America reached 90.9%, with an impressive 99.9% of tenant rents and receivables collected by January 26, 2026. Furthermore, a significant 78% of annual rental revenue stems from the company's Megacampus™ platform, with a considerable share coming from investment-grade or publicly traded large-cap tenants.

Lease Activity

During Q4 2025, Alexandria demonstrated robust operational metrics with leasing volume hitting 1.2 million RSF (rentable square feet). Notably, leasing activity of previously vacant spaces soared by 98% compared to the average of the last five quarters, reflecting a strong recovery in leasing demand.

However, rental rates on renewal and re-leasing fell by 9.9% and 5.2% on a cash basis for Q4 2025, although there was a noted increase of 7.0% and 3.5% increase respectively, for 2025 as a complete year.

Dividend Announcements

Alexandria also recalibrated its dividend approach. The common stock dividend for Q4 2025 was declared at $0.72 per share, a reduction of 45% from the previous quarter's $1.32. This cut aligns with the company's strategic aim to fortify its balance sheet and maintain financial flexibility.

In terms of liquidity, Alexandria secured total liquidity of $5.30 billion, with just 11% of its total debt maturing until 2028. The company's fixed-rate debt comprises 97.2% of its total debt, mitigating risks related to changes in interest costs.

Future Guidance

Looking ahead into 2026, Alexandria aims to refine its operational strategies while focusing on tenant demand and market conditions. The company anticipated significant cash flows provided by operating activities, aiming for continued improvements in liquidity and balance sheet strength, even amidst challenges in net operating income projected for the upcoming quarters.

As Alexandria Real Estate Equities, Inc. continues to navigate these financial hurdles, its commitment to the life science sector remains strong, underpinned by its innovative approach to enhance collaborative environments within highly sought-after Megacampus locations.