Alexandria Real Estate Equities (ARE) Q3 2025 earnings summary

Executive summary

• Reported a Q3 2025 net loss attributable to common stockholders of $234.9 million ($1.38 per share) and YTD net loss of $356.1 million ($2.09 per share), compared to net income in 2024.

• FFO per share (diluted, as adjusted) was $2.22 for Q3 2025 and $6.85 YTD, down from $2.37 and $7.08 in the prior year.

• Operating occupancy declined to 90.6% as of September 30, 2025, with further declines expected due to known move-outs and supply/demand imbalances.

• Leasing activity was solid at 1.2 million sq ft in Q3, including the largest lease in company history, with 77% of annual rental revenue from the Megacampus platform.

• Board is evaluating future dividend levels in light of lower earnings and cash flow outlook for 2026.

Financial highlights

• Total revenues for Q3 2025 were $751.9 million, down 5% year-over-year; YTD revenues were $2.27 billion.

• FFO (as adjusted) was $377.8 million for Q3 2025 and $1.17 billion YTD.

• Same property NOI declined 6% (3.1% cash basis) year-over-year, primarily due to lower occupancy.

• Adjusted EBITDA margin remained strong at 71%, consistent with the five-year average.

• Dividend declared of $1.32 per share for Q3 2025; dividend yield was 6.3% as of September 30, 2025.

Outlook and guidance

• 2025 net loss per share guidance midpoint reduced to $(2.94), reflecting potential additional impairments and lower realized gains.

• 2025 FFO per share (as adjusted) guidance midpoint reduced by $0.25 to $9.01.

• Year-end occupancy guidance reduced to a midpoint of 90.9%, with further declines expected.

• 2025 construction spending guidance midpoint is $1.75 billion; 2026 spending expected to be similar or slightly higher.

• Guidance for realized investment gains revised down to $100-$120 million for 2025, with only $15 million expected in Q4.