A month has gone by since the last earnings report for Alexandria Real Estate Equities (ARE) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Alexandria Real Estate Equities due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Alexandria Real Estate Equities, In ...

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]

Core Insights - Alexandria Real Estate Equities, Inc. (ARE) reported third-quarter 2025 adjusted funds from operations (AFFO) per share of $2.22, missing the Zacks Consensus Estimate of $2.31 and down from $2.37 in the prior year [1][10] Financial Performance - Total revenues for the quarter were $751.9 million, below the consensus estimate of $756.2 million, and decreased by 5% year over year [2] - The company has lowered its 2025 FFO guidance range to between $8.98 and $9.04, down from the previous range of $9.16-$9.36, with a midpoint reduction of 25 cents to $9.01 [9][10] Leasing Activity - Alexandria's total leasing activity reached 1.2 million rentable square feet (RSF) in the third quarter, indicating healthy demand for its office/laboratory space [3] - Rental rates grew by 15.2% during the quarter, with a cash basis increase of 6.1% [4] Occupancy and NOI - As of September 30, 2025, occupancy of operating properties in North America was 90.6%, a decline of 0.2% from the prior quarter and 4.1% from the year-ago quarter [4] - Same-property net operating income (NOI) decreased by 6% year over year, with a 3.1% decline on a cash basis [5] Tenant and Lease Information - Investment-grade or publicly traded large-cap tenants accounted for 53% of annual rental revenues, with a weighted average remaining lease term of 7.5 years [6] - The tenant receivable balance was $6.4 million as of September 30, 2025 [6] Development and Dispositions - Alexandria's share of completed and pending dispositions and sales of partial interests totaled $1.54 billion [7] - The company placed into service development projects totaling 185,517 RSF, which are 89% occupied, contributing $16 million of incremental annual NOI [7] Liquidity Position - As of September 30, 2025, the company had cash and cash equivalents of $579.5 million, an increase from $520.5 million as of June 30, 2025, and total liquidity of $4.2 billion [8] - The net debt and preferred stock to adjusted EBITDA ratio was 6.1X, with a fixed-charge coverage of 3.9X on an annualized basis [8] Market Outlook - The company cited a 1% reduction in projected 2025 same-property NOI and a 0.9% reduction in projected operating occupancy due to slower-than-anticipated re-leasing and lower demand in the life science industry [11]

Core Insights - Alexandria Real Estate Equities, Inc. (ARE) reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $2.33, exceeding the Zacks Consensus Estimate of $2.29 but down from $2.36 in the prior year [1][11] - Total revenues reached $762 million, surpassing the consensus estimate of $750.7 million, although this figure showed a slight year-over-year decline [2] - The company experienced healthy leasing activity with a total of 769,815 rentable square feet (RSF) leased during the quarter, indicating strong demand for its office/laboratory space [3] Financial Performance - The rental rate growth was recorded at 5.5% for the quarter, with a cash basis increase of 6.1% [4] - Occupancy rates for operating properties in North America stood at 90.8% as of June 30, 2025, reflecting a decrease of 0.9% from the previous quarter and 3.8% from the same quarter last year [4] - Same-property net operating income (NOI) decreased by 5.4% year-over-year, although it improved by 2% on a cash basis [5][11] Leasing and Tenant Information - Lease renewals and re-leasing accounted for 483,409 RSF, while development and redevelopment leasing totaled 131,768 RSF [3] - Investment-grade or publicly traded large-cap tenants represented 53% of annual rental revenues, with a weighted average remaining lease term of 7.4 years [6] Development and Dispositions - As of June 30, 2025, the company had $785.4 million in completed and pending dispositions and sales of partial interests [7] - During the second quarter, ARE initiated development and redevelopment projects totaling 217,774 RSF, achieving 90% occupancy and generating an incremental annual NOI of $15 million [7] Interest Expenses and Liquidity - Interest expenses increased by 20.8% year-over-year to $55.3 million [7][11] - The company ended the second quarter with cash and cash equivalents of $520.5 million, up from $476.4 million at the end of the first quarter, and had a total liquidity of $4.6 billion [9] Notable Events - In July, ARE secured its largest life science lease in history, a 16-year expansion lease for over 466,598 RSF with a multinational pharmaceutical tenant [8]