Financial Data and Key Metrics Changes - For Q4 2025, the diluted FFO per share was $2.16, and for the full year, it was $9.01, aligning with the midpoint of prior guidance [7] - Same property net operating income (NOI) decreased by 6% for Q4 and 3.5% for the full year, with a cash basis decline of 1.7% for Q4 and an increase of 0.9% for the full year [10][11] - Occupancy at the end of 2025 was 90.9%, up 30 basis points from the previous quarter and 10 basis points above prior guidance [9] Business Line Data and Key Metrics Changes - The company completed $1.5 billion in dispositions across 26 transactions and achieved a total leasing volume of 1.2 million sq ft in Q4, the highest in the last year [7] - Leasing of vacant space in Q4 reached 393,000 rentable sq ft, nearly double the average over the last five quarters [8] - The average lease term for the quarter was just over 7.5 years, consistent with the prior three-year average [8] Market Data and Key Metrics Changes - The company noted that its mega campuses, which account for about 78% of annual rental revenue, outperformed total market occupancy in the largest three markets by 19% [9] - The leasing volume for private biotechnology made up about a fifth of all leasing volume in Q4, indicating sustained demand from this segment [66] Company Strategy and Development Direction - The company plans to focus on timely execution of its strategic plan for 2026, emphasizing dispositions, maintaining a strong balance sheet, and reducing capital expenditures [5] - The strategic path forward includes reducing the size of the pipeline and construction spending needs, with a goal to complete a large-scale non-core disposition plan in 2026 [16][20] - The company aims to recycle capital from dispositions and partial interest sales to support funding needs, particularly focusing on non-core assets and land [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the leasing environment, noting that while there are positive signs in venture capital funding, decision-making remains conservative among companies [31][32] - The company anticipates a dip in occupancy in Q1 2026 due to key lease expirations but expects growth in the second half of 2026 [10] - Management reiterated that the public biotech sector's recovery is critical for future leasing demand, as many companies currently have sufficient space [76][78] Other Important Information - The company achieved significant general and administrative cost savings of $51.3 million, or 30% compared to the prior year, with G&A costs as a percentage of NOI at 5.6% for 2025 [15] - The company has a strong balance sheet with liquidity of $5.3 billion and a net debt to adjusted EBITDA ratio of 5.7x for Q4 [18] Q&A Session Summary Question: Impact of VC funding on leasing outlook - Management noted that while there is sustained funding in private biotechnology, the overall environment remains cautious, and decision-making is taking longer [30][32] Question: Strategy regarding The Fenway office property - Management confirmed that retaining The Fenway office property for leasing as office space is a strategic decision based on demand [34][35] Question: Cap rate trends for dispositions - Management indicated that cap rates for non-core assets are in the mid-sixes to mid-nines, depending on market conditions and asset specifics [40] Question: Guidance for FFO in Q4 2026 - Management confirmed that the guidance for Q4 2026 FFO remains at $1.40-$1.60, representing a trough for the year [48][49] Question: Buyer types for dispositions - Management highlighted that the buyer pool includes investment funds and residential developers, with a significant portion of land expected to be sold for residential use [56][57] Question: Capital allocation priorities - Management stated that the priority is on debt reduction through the disposition program before considering stock buybacks [85]

Alexandria Real Estate Equities (NYSE:ARE) Q4 2025 Earnings call January 27, 2026 02:00 PM ET Company ParticipantsFarrell Granath - Equity Research AssociateHallie Kuhn - SVP of Life Science and Capital MarketsJim Kammert - Managing DirectorJoel Marcus - Executive Chairman and FounderJohn Kim - Managing DirectorMarc Binda - CFOMason Guell - Equity Research AssociateMichael Carroll - Managing DirectorPaula Schwartz - Managing DirectorPeter Moglia - CEO and CIORay Zhong - VP of REIT Equity ResearchRich Anders ...

Financial Data and Key Metrics Changes - FFO per share diluted as adjusted was $2.16 for Q4 2025 and $9.01 for the year, aligning with prior guidance [5] - Same property net operating income (NOI) decreased by 6% for Q4 and 3.5% for the full year 2025 [8][10] - Occupancy at the end of 2025 was 90.9%, up 30 basis points from the prior quarter [7] Business Line Data and Key Metrics Changes - Leasing volume for Q4 was 1.2 million sq ft, up 14% over the prior four-quarter average [6] - The leasing of vacant space completed during Q4 was 393,000 rentable sq ft, nearly double the average over the last five quarters [6] - Free rent and rental rate changes on renewed and released space were under pressure, reflecting market realities [6] Market Data and Key Metrics Changes - The company expects occupancy to dip in Q1 2026 due to 1.2 million sq ft of key lease expirations [8] - The company reiterated its year-end 2026 occupancy range of 87.7%-89.3% [7] - The Greater Boston region saw an 11% increase in tenants, marking the first increase in several quarters [33] Company Strategy and Development Direction - The strategic focus for 2026 includes timely execution of plans, maintaining a strong balance sheet, and reducing capital expenditures [4] - The company aims to significantly reduce the size of its pipeline and construction spending needs [13] - The disposition program for 2026 is expected to include a significant component of land, targeting non-core assets [21] Management's Comments on Operating Environment and Future Outlook - Management noted the life science bear market and the challenges posed by regulatory changes and market dynamics [3] - There is cautious optimism regarding venture capital funding, but decision-making remains slow among companies [26] - The company anticipates a recovery in leasing demand but acknowledges the need for more robust public biotech activity [50] Other Important Information - The company achieved general and administrative cost savings of $51.3 million, or 30% compared to the prior year [12] - Realized gains from venture investments were $21 million, down from the previous quarterly average [15] - The company has a strong balance sheet with liquidity of $5.3 billion and a net debt to adjusted EBITDA ratio of 5.7x [16] Q&A Session Summary Question: Impact of VC funding on leasing outlook - Management noted that while there is sustained funding in private biotechnology, the overall environment remains cautious, and decision-making is slower [25][26] Question: Strategy regarding The Fenway office property - Management indicated that retaining The Fenway office property for leasing is specific to that location and not a broader strategy [28] Question: Cap rate trends for dispositions - Management mentioned that cap rates for non-core assets range from mid-sixes to mid-nines, depending on market conditions [31] Question: Leasing pipeline and notable groups - Management highlighted that smaller spaces under 50,000 sq ft are in demand, but there is a lack of activity from public biotech companies [32][33] Question: Guidance for Q4 2026 FFO - Management confirmed that the guidance for Q4 2026 FFO remains at $1.40-$1.60, representing a trough for the year [34][41] Question: Capital allocation priorities - Management stated that the priority is on debt reduction before considering stock buybacks [52]

Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2026 Table of Contents December 31, 2025 | COMPANY HIGHLIGHTS | Page | | Page | | | --- | --- | --- | --- | --- | | Alexandria's Mission and Cluster Model | iii | | | CONFERENCE CALL | | | | | | INFORMATION: | | EARNINGS PRESS RELEASE | | | | Tuesday, January 27, 2026 | | Fourth Quarter and Year Ended December 31, 2025 Financial and | | | | 2:00 p.m. Eastern Time | | Operating Results | 1 | Consolidated Statements of Operations | 8 | 11:00 a.m. Pa ...

Core Insights - Alexandria Real Estate Equities, Inc. (ARE) reported fourth-quarter 2025 adjusted funds from operations (AFFO) per share of $2.16, slightly above the Zacks Consensus Estimate of $2.15, but down from $2.39 in the prior year [1][2] - Total revenues for the quarter were $754.4 million, exceeding the consensus estimate of $738.3 million, but reflecting a 4.4% decline year over year [2] - The company’s total leasing activity reached 1.2 million rentable square feet (RSF) in the fourth quarter, indicating strong demand for its office/laboratory space [3] Financial Performance - For the full year 2025, AFFO per share was reported at $9.01, a decrease of 4.9% from the previous year, and slightly missing the Zacks Consensus Estimate of $9.00 [2] - Total revenues for 2025 were $3.03 billion, down 2.9% from the previous year [2] - The company experienced a negative rental rate of 9.9% during the quarter, with a cash basis rental rate decrease of 5.2% [4] Occupancy and Leasing - As of December 31, 2025, occupancy of operating properties in North America was 90.9%, a 0.3% increase from the prior quarter but a 3.7% decrease from the year-ago quarter [4] - The weighted average remaining lease term for all tenants was 7.5 years, with the top 20 tenants having a longer term of 9.7 years [5] Interest Expenses and Dispositions - Interest expenses rose 18% year over year to $65.7 million [6] - The company completed dispositions and sales of partial interests worth $1.47 billion in the fourth quarter [6][9] Liquidity Position - Alexandria ended the fourth quarter with cash and cash equivalents of $549.1 million, down from $579.5 million at the end of the previous quarter [7] - The company had $5.3 billion of liquidity at the end of the reported quarter, with a net debt and preferred stock to adjusted EBITDA ratio of 5.7X [7] 2026 Outlook - For 2026, the company provided AFFO per share guidance in the range of $6.25 to $6.55, with the Zacks Consensus Estimate at $6.42 [10] - Expected occupancy for operating properties in North America is projected to be between 87.7% and 89.3% [10] - Rental rate changes for lease renewals and re-leasing are anticipated to range from a negative 2% to a growth of 6% [10]

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the ClearBridge Mid Cap Strategy reported underperformance versus the Russell Midcap Index, which returned 0.16% during the period, as narrow market leadership and sentiment-driven trading weighed on results. Weakness in information technology and real estate holdings pressured returns, while gains in select consumer ...

Group 1 - The REIT market tends to overreact, both positively and negatively, depending on market conditions [1] - High Yield Landlord is offering new members a $100 discount and a 30-day money-back guarantee to attract new investors [1] - The investment group provides features such as three portfolios (core, retirement, international), buy/sell alerts, and direct access to analysts [2] Group 2 - Jussi Askola, the President of Leonberg Capital, has extensive experience in REIT investing and has built relationships with top REIT executives [2] - The group shares real-time transactions and maintains a focus on value-oriented investment strategies [2]

Alexandria Real Estate Equities (ARE) came out with a quarterly loss of $6.35 per share versus the Zacks Consensus Estimate of $2.15. This compares to FFO of $2.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -395.56%. A quarter ago, it was expected that this life science real estate company would post FFO of $2.31 per share when it actually produced FFO of $2.22, delivering a surprise of -3.9%.Over the last four quarters, the c ...

Core Insights - The company reported a significant net loss attributable to common stockholders of $1,081.8 million for 4Q25, compared to a loss of $64.9 million in 4Q24, and a total loss of $1,438.0 million for the year 2025, contrasting with a profit of $309.6 million in 2024 [1] - Funds from operations (FFO) attributable to common stockholders were $368.5 million for 4Q25, down from $411.8 million in 4Q24, with a total of $1,534.7 million for 2025, compared to $1,629.1 million in 2024 [1] Operating Results - Occupancy rate of operating properties in North America stood at 90.9% as of December 31, 2025 [2] - The operating margin was reported at 69%, with an adjusted EBITDA margin of 70% [2] - Tenant collections for 4Q25 were strong, with 99.9% of tenant rents and receivables collected as of January 26, 2026 [2] Leasing Activity - The company experienced a solid leasing volume with 1.2 million RSF leased during 4Q25, including 393,376 RSF of previously vacant space, marking a 98% increase over the quarterly average of the last five quarters [4] - Rental rates on renewals and re-leasing of space decreased by 9.9% for 4Q25 but increased by 7.0% for the full year 2025 [4][5] Financial Position - The total market capitalization was reported at $20.75 billion, with total equity capitalization at $8.35 billion [4] - The company maintained significant liquidity of $5.30 billion, representing 3.7 times its debt maturities through 2028 [4] - The weighted-average remaining term of debt was 12.1 years, the longest among S&P 500 REITs, with 97.2% of total debt being fixed-rate [4] Dividend Strategy - A common stock dividend of $0.72 per share was declared for 4Q25, reflecting a 45% reduction from the previous quarter's dividend of $1.32 [7] - The dividend payout ratio for the three months ended December 31, 2025, was 33%, with a dividend yield of 5.9% [7] Cost Management - General and administrative expenses for the year ended December 31, 2025, were $117.0 million, with a guidance range for 2026 set between $134 million and $154 million [23] - The company achieved a 30% reduction in general and administrative expenses compared to 2024, realizing savings of $51.3 million [12] Development Pipeline - The development and redevelopment pipeline is expected to deliver an incremental annual net operating income of $97 million by 4Q26, with 86% of projects currently leased or negotiating [11] - The company reduced future construction funding needs by over $300 million through strategic project sales and adjustments [12] Guidance and Projections - The company reiterated its guidance for 2026, projecting FFO per share to be between $6.25 and $6.55, with a midpoint of $6.40 [15] - Key credit metrics target a net debt and preferred stock to adjusted EBITDA ratio of 5.6x to 6.2x for 4Q26 [15]

Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2026 Table of Contents December 31, 2025 | COMPANY HIGHLIGHTS | Page | | Page | | --- | --- | --- | --- | | Alexandria's Mission and Cluster Model | iii | | CONFERENCE CALL | | | | | INFORMATION: | | EARNINGS PRESS RELEASE | | | Tuesday, January 27, 2026 | | Fourth Quarter and Year Ended December 31, 2025 Financial and | | | 2:00 p.m. Eastern Time | | Operating Results | 1 | Consolidated Statements of Operations | 8 11:00 a.m. Pacific Time | | Gui ...