Alexandria Real Estate Equities, Inc. (NYSE: ARE) reported a net loss of $1.08 billion for the fourth quarter ended December 31, 2025. The fourth quarter loss included $1.44 billion in real estate impairment charges. For the full year 2025, the company reported a net loss of $1.44 billion. Funds from operations per share, as adjusted, were $2.16 in Q4 2025 and $9.01 for full year 2025, compared to $2.39 and $9.47 in Q4 2024 and full year 2024, respectively. Total market capitalization as of December 31, 2025 was $20.75 billion.
Market Capitalization
Alexandria Real Estate Equities had total market capitalization of $20.75 billion as of December 31, 2025. Total equity capitalization was $8.35 billion. Stockholders’ equity declined to $15.47 billion from $17.89 billion at year-end 2024. The company operates 35.9 million rentable square feet of operating properties across North America with 3.5 million square feet under construction. Common shares outstanding totaled approximately 170.4 million shares as of December 31, 2025.
Latest Quarterly Results
Rental income in Q4 2025 was $728.9 million, declining 4.5 percent from $763.2 million in Q4 2024. Net operating income on a cash basis was $1.99 billion, decreasing 3.4 percent from Q4 2024. Operating occupancy was 90.9 percent as of December 31, 2025, compared to 95.0 percent as of December 31, 2024. Leasing volume during Q4 2025 was 1.2 million rentable square feet, with rental rate changes of minus 9.9 percent on renewals and re-leasing. The company completed $1.47 billion of dispositions in Q4 2025.
Full-Year Results Context
Rental income for full year 2025 totaled $2.95 billion, declining from $3.05 billion in 2024. Net operating income on a cash basis was $1.98 billion, increasing 0.1 percent from 2024. Total revenues were $3.03 billion in 2025, compared to $3.12 billion in 2024. The company recognized $2.20 billion in real estate impairment charges during 2025 related to capital plan adjustments and asset designation decisions. General and administrative expenses declined to $117.0 million in 2025 from $168.4 million in 2024, a reduction of 30 percent.
Chart 1: Operating Performance – Quarterly Net Operating Income
Chart 2: Market Performance – 3-Month Stock Price Trend
Business and Operations Update
Occupancy in the North America operating portfolio increased to 93.4 percent when including leased but not yet delivered space. The Megacampus platform represented 78 percent of annual rental revenue in effect as of December 31, 2025. Percentage of annual rental revenue from investment-grade or publicly traded large-cap tenants was 53 percent. Weighted-average remaining lease term for all tenants was 7.5 years. Leasing of previously vacant space was 393,376 rentable square feet during Q4 2025, up 98 percent from the quarterly average of the prior five quarters. Tenant collections in Q4 2025 were 99.9 percent as of January 26, 2026.
M&A and Strategic Moves
Alexandria executed a lease through 2041 with AstraZeneca for 171,239 rentable square feet at a mission-critical manufacturing facility in Maryland. The company reduced future construction funding requirements by more than $300 million through designation of non-core assets as held for sale and strategic pivots. Non-real estate investments aggregated $1.50 billion as of December 31, 2025, with unrealized gains of $133.4 million. The board authorized a common stock repurchase program of $500.0 million through December 31, 2026. In January 2026, the company repaid $300.0 million of 4.30 percent unsecured senior notes at maturity.
Equity Analyst Commentary
Management stated the company is pursuing a path forward focused on maintaining a flexible balance sheet, reducing capital spend, and completing the disposition plan. Management indicated objectives to steadily improve occupancy and increase net operating income through leasing across all tenant sectors. Total debt and preferred stock to Adjusted EBITDA was 5.7x as of December 31, 2025.
Guidance and Outlook
The company provided 2026 guidance for funds from operations per share as adjusted of $6.25 to $6.55, with a midpoint of $6.40. Operating occupancy is projected to be 87.7 percent to 89.3 percent as of December 31, 2026. Net operating income on a same-property basis is expected to decline 9.5 percent due to key lease expirations in Boston, San Francisco Bay Area, and San Diego markets. General and administrative expenses are guided at $134 million to $154 million for 2026.
Asset Quality
The company designated $581.7 million of real estate assets as held for sale as of December 31, 2025, expected to be sold in 2026. Net debt and preferred stock to Adjusted EBITDA was 5.7x with a fixed-charge coverage ratio of 3.7x for Q4 2025 annualized. Liquidity was $5.30 billion as of December 31, 2025, representing 3.7x of debt maturities through 2028. Fixed-rate debt represented 97.2 percent of total debt. Total debt and preferred stock to gross assets was 31 percent.
Performance Summary
Alexandria reported Q4 2025 net loss and full year 2025 net loss, with losses including significant real estate impairment charges. Funds from operations per share as adjusted declined in Q4 2025. Operating occupancy declined from prior year. The company completed significant dispositions and reduced general and administrative expenses. 2026 guidance reflects expected occupancy headwinds from key lease expirations.