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, 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 - 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]

Core Viewpoint - Alexandria Real Estate Equities, Inc. announced a quarterly cash dividend of $0.72 per common share for Q4 2025, marking a 45% reduction from the previous quarter's dividend [1] Financial Summary - The dividend is payable on January 15, 2026, to stockholders of record on December 31, 2025 [1] - The decision to reduce the dividend reflects the company's commitment to strengthen its balance sheet, enhancing financial flexibility and preserving approximately $410 million in liquidity annually [1] - The new dividend provides an attractive yield of 5.4% based on the closing stock price on December 1, 2025 [1] Company Overview - Alexandria Real Estate Equities, Inc. is a leading life science REIT, founded in 1994, and is recognized for pioneering the life science real estate niche [1] - The company operates in key life science innovation clusters, including Greater Boston, San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City [1]

Financial Data and Key Metrics Changes - FFO per share diluted as adjusted was $2.22 for Q3 2025, reflecting a decline in occupancy and rental income [16][18][20] - Same Property NOI decreased by 6% and 3.1% on a cash basis for the quarter, primarily driven by lower occupancy [21][23] - Occupancy at the end of the quarter was 90.6%, down 20 basis points from the prior quarter, with an apples-to-apples decline of 110 basis points [18][20] Business Line Data and Key Metrics Changes - Leasing volume for the quarter was solid at 1.2 million square feet, consistent with the five-quarter average [17] - Rental rate growth for lease renewals was 15.2% and 6.1% on a cash basis, at the high end of the guidance range [18] - 53% of leases are to investment-grade or large-cap tenants, with an average lease term of 9.5 years for the top 20 tenants [14][23] Market Data and Key Metrics Changes - The company noted a challenging life science supply and demand dynamic, impacting occupancy and rental income [16][20] - The mega campus platform, representing 77% of annual rental revenue, outperformed overall market occupancy by 18% in the three largest markets [20] - Institutional demand remains muted due to NIH issues and reimbursement challenges [15][39] Company Strategy and Development Direction - The company plans to reduce non-income-producing assets from 20% to 10-15% of gross assets [13] - Transitioning from substantial development to a build-to-suit model on mega campuses, with a focus on preserving capital [13][30] - The company aims to significantly reduce its land bank and is evaluating land dispositions to meet capital needs [25][29] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for the FDA to resume operations and for earlier-stage venture-backed companies to commit to space [38][39] - The company is navigating a difficult environment with high costs of capital and a government shutdown impacting the industry [9][11] - Despite challenges, management sees early signs of recovery in the biotech sector and remains optimistic about future demand [11][12] Other Important Information - The company recognized impairments of $323.9 million during the quarter, primarily from a Long Island City redevelopment property [28] - The guidance for FFO per share diluted as adjusted for 2025 was reduced by $0.25 to a midpoint of $9.01 per share [31] - The company has the longest average remaining debt maturity among S&P 500 REITs at 11.6 years, with $4.2 billion in liquidity [27] Q&A Session Summary Question: Update on occupancy expectations - Management indicated that 617,000 square feet of potential occupancy improvements are expected to deliver around May 1, 2026 [37] Question: Factors that could improve demand - Key factors include the reopening of the FDA, commitments from venture-backed companies, and a revitalization of the public biotech sector [38][39] Question: Development focus going forward - The company will focus more on build-to-suit leases and reducing the development pipeline, aiming for a land bank reduction from 20% to 10-15% [44][50] Question: Dividend policy and comfort level - The board will evaluate the dividend in the fourth quarter, considering retained cash flows and capital needs for the upcoming year [51][53] Question: Tenant activity and leasing dynamics - Demand varies by submarket, with some sectors showing strong interest while others remain muted due to high costs of capital and government shutdowns [78][79]

分组1 - Alexandria Real Estate Equities (ARE) reported quarterly funds from operations (FFO) of $2.22 per share, missing the Zacks Consensus Estimate of $2.31 per share, and down from $2.37 per share a year ago, representing an FFO surprise of -3.90% [1] - The company posted revenues of $751.94 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.56%, and down from $791.61 million year-over-year [2] - Alexandria Real Estate Equities shares have lost about 20.7% since the beginning of the year, contrasting with the S&P 500's gain of 15.5% [3] 分组2 - The current consensus FFO estimate for the coming quarter is $2.28 on revenues of $741.87 million, and for the current fiscal year, it is $9.21 on revenues of $3.02 billion [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]