Alexandria Real Estate(US:ARE)2025-10-27 20:07Financial Performance - Total revenues for the three months ended September 30, 2025, were $751,944,000, a decrease of 5% from $791,607,000 in the same period of 2024[13] - Net loss attributable to Alexandria Real Estate Equities, Inc.'s common stockholders for the three months ended September 30, 2025, was $(234,937,000), compared to net income of $164,674,000 for the same period in 2024[15] - The company reported a comprehensive loss income of $(202,633,000) for the three months ended September 30, 2025, compared to comprehensive income of $218,784,000 for the same period in 2024[17] - The net loss for the nine months ended September 30, 2025, was $221.372 million, compared to a net income of $526.828 million for the same period in 2024[30] - Total cash provided by operating activities for the nine months ended September 30, 2025, was $1.101 billion, a decrease from $1.230 billion in 2024[30] Assets and Liabilities - Total assets as of September 30, 2025, were $37,375,148,000, a slight decrease from $37,527,449,000 as of December 31, 2024[11] - Total liabilities increased to $16,256,870,000 as of September 30, 2025, from $15,128,988,000 as of December 31, 2024[11] - The total equity attributable to Alexandria Real Estate Equities, Inc.'s stockholders decreased to $16,639,302,000 as of September 30, 2025, from $17,889,042,000 as of December 31, 2024[11] - The balance of stockholders' equity as of September 30, 2025, was $21.060 billion[24] Cash and Investments - Cash and cash equivalents rose to $579,474,000 as of September 30, 2025, compared to $552,146,000 as of December 31, 2024, reflecting a 5% increase[11] - Total investments as of September 30, 2025, amounted to $1.54 billion, with unrealized gains of $180.4 million and losses of $152.1 million[189] - The company has committed to funding approximately $347.2 million for investments in privately held entities that report NAV, with a weighted-average expiration of 7.9 years[188] - Investment income for the three months ended September 30, 2025, was $28.2 million, compared to $15.2 million in 2024, while the nine-month investment loss was $52.5 million[191] Real Estate and Impairments - The company reported an impairment of real estate of $323,870,000 for the three months ended September 30, 2025, compared to $5,741,000 in the same period of 2024[15] - The company recognized impairment charges totaling $485.6 million during the nine months ended September 30, 2025, primarily related to non-core properties[130] - The company recognized an impairment charge of $31.8 million for a vacant property in the Research Triangle, reducing its carrying amount to an estimated fair value of $1.2 million[137] - An additional impairment charge of $27.8 million was recorded for land parcels in Sorrento Mesa, with an estimated fair value of $13.9 million[137] Dividends and Stock Repurchases - The company declared dividends of $1.32 per share for the common stock during the period[19] - The company declared dividends on common stock amounting to $684.772 million, with a dividend rate of $3.96 per share[26] - The company repurchased common stock worth $208.187 million during the nine months ended September 30, 2025[30] Lease and Rental Income - Income from rentals for the three months ended September 30, 2025, was $735.8 million, compared to $775.7 million for the same period in 2024[165] - Income from rentals for the nine months ended September 30, 2025, was $2.2 billion, down from $2.3 billion in the same period of 2024, reflecting a decrease of 3.4%[76] - The lease liability is measured based on the present value of future lease payments, including payments during the term under extension options that are reasonably certain to be exercised[97] - The right-of-use asset is amortized on a straight-line basis during the lease term[98] Joint Ventures and Noncontrolling Interests - Noncontrolling interests in consolidated real estate joint ventures amounted to $4,420.3 million as of September 30, 2025, compared to $4,489.4 million at the end of 2024[145] - The company has a controlling interest in joint ventures where voting interest exceeds 50%, consolidating them in financial statements[139] - The company redeemed its partner's entire noncontrolling interests in three real estate joint ventures for a book value of $10.4 million, recognizing $7.0 million in excess consideration[147] Future Projects and Developments - The company has one 100% pre-leased committed near-term project expected to commence construction in the next year[32] - The company expects to complete the sale of a non-core property in Long Island City within the next 12 months, which is currently 52% occupied[130] - The company expects to complete the sale of certain assets within the next 12 months, reallocating capital towards projects with greater value-creation opportunities[137] Other Financial Metrics - The company recognizes lifetime expected losses for most financial assets measured at amortized cost, resulting in earlier recognition of credit losses[106] - The company utilizes derivative instruments to manage exposure to foreign currency exchange rate risk related to operations in Canada[114] - The company accounts for forward equity sales agreements as equity contracts, not liabilities, based on specific assessments[113]