- Alexandria Real Estate Equities, Inc. (ARE, Financial) reported a mixed Q2 2025 financial performance with a net loss of $(0.64) per share but an FFO of $2.33 per share.
- The company secured its largest-ever life science lease for 466,598 RSF with a multinational pharmaceutical tenant.
- ARE maintained a strong balance sheet with $4.6 billion in liquidity and declared a $1.32 quarterly dividend, yielding 7.3%.
Alexandria Real Estate Equities, Inc. (ARE) posted its Q2 2025 financial outcomes, highlighting a net loss of $(0.64) per share. Despite this, ARE reported robust funds from operations (FFO) at $2.33 per share. The quarter's total revenues stood at $762.0 million, a slight decline from the previous year.
In leasing activity, ARE achieved 769,815 RSF in total and secured its largest life science lease to date, totaling 466,598 RSF with a multinational pharmaceutical entity. The company's occupancy rate was 90.8%, which rises to 92.5% when accounting for leased but not yet delivered space.
ARE's development initiatives delivered $15 million in incremental annual net operating income (NOI) during Q2, with projections of an additional $139 million by Q4 2026. The pipeline is 84% leased or under negotiation.
The firm's capital recycling strategy is ongoing, with $786 million in completed and pending dispositions, representing 40% of its $1.95 billion target for 2025. This strategy is part of ARE’s efforts to enhance its financial flexibility and operational resilience.
Maintaining a quarterly dividend of $1.32 per share, ARE's dividend yield was 7.3% as of June 30, 2025, with a payout ratio of 57%. The company holds $4.6 billion in liquidity, with only 9% of total debt maturing through 2027, highlighting a strong and flexible financial position.
