Alexandria Real Estate Equities reported its third‑quarter 2025 results, posting a net loss of $1.38 per share diluted and funds from operations of $2.22 per share, adjusted. Revenue for the quarter was $751.9 million, a 5% decline from the same period in 2024. Year‑to‑date, the company recorded a net loss per share diluted of $2.09 and an adjusted FFO per share of $6.85.
Operating metrics showed a 6.0% decrease in same‑property net operating income on a reported basis and a 3.1% decline in cash‑basis NOI. Occupancy of operating properties stood at 90.6%, and 77% of annual rental revenue came from the company’s Mega Campus platform. Leasing activity totaled 1.2 million rentable square feet, and the weighted‑average remaining lease term for the top 20 tenants was 9.4 years, while the overall weighted‑average remaining lease term for all tenants was 7.5 years.
Capital recycling continued with $167.4 million in dispositions completed during the quarter and an additional $1.032 billion in pending transactions, bringing total dispositions for 2025 to $1.54 billion. Net debt to adjusted EBITDA was 6.1× on an annualized basis for Q3 2025, and the company’s fixed‑charge coverage ratio was 3.9×. The guidance for 2025 now projects net debt to adjusted EBITDA of 5.5×–6.0× and a fixed‑charge coverage ratio of 3.6×–4.1×.
The company updated its 2025 guidance, reducing the midpoint of the net loss per share range to $(2.94) from $(0.50) and lowering the midpoint of funds from operations per share to $9.01 from $9.26. The revision reflects a 1% reduction in projected same‑property NOI and a 0.9% reduction in projected operating occupancy, driven by slower‑than‑anticipated re‑leasing and lease‑up activity in its operating portfolio.
Additional details include a $323.9 million impairment charge on real estate, a declared common dividend of $1.32 per share for Q3 2025, tenant collections at 99.9%, and liquidity of $4.2 billion at quarter‑end. The company’s revenue estimate for the quarter was $756.2 million and its FFO per share estimate was $2.31, both of which were slightly missed by the reported figures.
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