Alexandria Real Estate(US:ARE)2025-04-28 20:07Financial Performance - Total revenues for Q1 2025 were $758,158, a decrease of 1.2% from $769,108 in Q1 2024[13] - Net income for Q1 2025 was $38,662, down 82.4% from $219,176 in Q1 2024[15] - Net loss attributable to Alexandria Real Estate Equities, Inc.'s common stockholders was $11,599, compared to net income of $166,886 in Q1 2024[15] - The company reported a comprehensive loss attributable to stockholders of $8,889 for Q1 2025, compared to a comprehensive income of $162,626 in Q1 2024[17] - The company provided $207,949 in net cash from operating activities, down from $341,157 in Q1 2024[25] - Income from rentals decreased to $743.2 million in Q1 2025 from $755.6 million in Q1 2024, reflecting a decline of 1.7%[75] - Other income increased to $15.0 million in Q1 2025 from $13.6 million in Q1 2024, marking an increase of 10.5%[75] Assets and Liabilities - Total assets increased to $37,600,428 as of March 31, 2025, from $37,527,449 at the end of 2024[12] - Total liabilities rose to $15,600,870 in Q1 2025, up from $15,128,988 in Q4 2024[12] - Cash and cash equivalents decreased to $476,430 from $552,146 in the previous quarter[12] - Cash, cash equivalents, and restricted cash decreased to $483.754 million as of March 31, 2025, from $731.695 million at the end of the same period in 2024, a decline of approximately 33.9%[28] - The total assets as of March 31, 2025, were reported at $1,758.4 million, an increase from $1,661.3 million as of December 31, 2024[185] Investments - Investments in real estate totaled $32,121,712 as of March 31, 2025, slightly up from $32,110,039 at the end of 2024[12] - The gross investments in real estate were reported at $37,673,575 as of March 31, 2025, compared to $37,214,474 at the end of 2024, reflecting a growth of approximately 1.23%[120] - The company holds investments in limited partnerships totaling $224,600 thousand, accounted for under the equity method[171] - The carrying value of investments in privately held entities that report NAV was $575.0 million as of March 31, 2025, down from $609.9 million as of December 31, 2024[191] - Investments in privately held entities that do not report NAV amounted to $184,126,000 as of March 31, 2025, with a slight decrease from $184,236,000 as of December 31, 2024[194] Debt and Financing - Net cash provided by financing activities for the three months ended March 31, 2025, was $370.775 million, compared to $624.429 million for the same period in 2024, representing a decrease of approximately 40.5%[28] - Proceeds from the issuance of unsecured senior notes payable were $548.532 million for the three months ended March 31, 2025, down from $998.806 million in the same period of 2024, a decrease of approximately 45%[28] - The total outstanding secured and unsecured senior debt amounts to $13,090,834,000, with a weighted-average interest rate of 3.95%[210] - The company has $600,000,000 of unsecured senior notes payable maturing on April 30, 2025, with an interest rate of 3.45%[208] - The unsecured senior line of credit and commercial paper program totals $299,883,000, with a weighted-average interest rate of 4.69% and a remaining term of 4.8 years[210] Real Estate Operations - The company has established itself as a leader in the life science real estate niche since its founding in 1994, focusing on collaborative Megacampus™ ecosystems in key innovation cluster locations[30] - The company operates 11 properties in Canada, with foreign subsidiaries' assets and liabilities translated into U.S. dollars at the financial statement date's exchange rate[58] - The company focuses on developing Class A/A+ properties in key life science innovation cluster locations, with 386 properties aggregating 39.6 million operating RSF as of March 31, 2025[143] - The company incurred an impairment of real estate amounting to $32,154 in Q1 2025[15] - The company recognized a gain on sale of real estate totaling $12,700 thousand during the three months ended March 31, 2025[150] Credit Losses and Impairments - The general allowance balance for expected credit losses was $14.3 million as of March 31, 2025, down from $21.3 million at the end of 2024[89] - The provision for expected credit losses is reassessed at each reporting date, impacting the recognition of credit losses earlier than incurred losses[106] - The company recognized a provision for expected credit losses of $236 thousand related to notes receivable during the three months ended March 31, 2025[186] - An impairment charge of $32,200 thousand was recognized related to a ground lease for a future development site in the San Francisco Bay Area[165] Market and Economic Factors - The effect of foreign exchange rate changes on cash and cash equivalents was a loss of $38 million for the three months ended March 31, 2025[28] - The company monitors tenant credit quality through various methods, including credit ratings and financial statement reviews[103] - The company employs a qualitative assessment for indicators of impairment for investments in privately held entities that do not report NAV[201]