Alexandria Real Estate(US:ARE) Prnewswire·2025-10-27 20:10Core Insights - Alexandria Real Estate Equities, Inc. reported financial and operational results for Q3 2025, highlighting a net loss attributable to common stockholders of $356.1 million, compared to a loss of $234.9 million in Q3 2024 [2][19] - The company experienced a decline in net operating income (cash basis) of 5.8% year-over-year for Q3 2025, while year-to-date (YTD) net operating income increased by 1.3% [12][29] - The company maintains a strong balance sheet with significant liquidity of $4.2 billion and a net debt to Adjusted EBITDA ratio of 6.1x for Q3 2025 [4][18] Financial Performance - Net (loss) income attributable to common stockholders for Q3 2025 was $(356.1) million, or $(1.38) per share, compared to $(234.9) million, or $0.96 per share in Q3 2024 [2][19] - Funds from operations (FFO) attributable to common stockholders for Q3 2025 were $377.8 million, or $2.22 per share, down from $407.9 million, or $2.37 per share in Q3 2024 [2][19] - The company declared a common stock dividend of $1.32 per share for Q3 2025, totaling $5.28 per share for the twelve months ended September 30, 2025, reflecting a 2.7% increase from the previous year [13] Operational Metrics - The occupancy rate of operating properties in North America was 90.6% as of September 30, 2025, with a weighted-average remaining lease term of 9.4 years for the top 20 tenants [2][4] - The company achieved a leasing volume of 1.2 million RSF during Q3 2025, with rental rate increases on lease renewals averaging 15.2% [3][5] - Tenant collections remained strong, with 99.9% of tenant rents and receivables collected as of October 27, 2025 [2] Development and Redevelopment - Alexandria's development and redevelopment pipeline is expected to deliver an incremental annual net operating income of $111 million by Q4 2026, primarily from projects that are 80% leased or negotiating [12][15] - The company placed into service development projects aggregating 185,517 RSF in Q3 2025, which are 89% occupied [14][15] - Significant leasing activity included a 16-year build-to-suit lease expansion for 466,598 RSF with a multinational pharmaceutical tenant [4][5] Dispositions and Capital Strategy - Total dispositions completed as of October 27, 2025, amounted to $508 million, with an additional $1.0 billion in pending transactions [6][20] - The company expects to fund a significant portion of its capital requirements for 2025 through the disposition of non-core assets, with land sales projected to represent 20%-30% of total dispositions [5][6] - The midpoint of the guidance range for 2025 net (loss) income per share was reduced from $0.50 to $(2.94) due to various factors including anticipated increases in annual net operating income from recently delivered projects [22][29]