Alexandria Real Estate Equities, Inc. (NYSE: ARE) reported a net loss attributable to common stockholders of $234.9 million, or $(1.38) per share, for the three months ended September 30, 2025, compared to a net income of $164.7 million, or $0.96 per share, for the same period in 2024. For the nine months ended September 30, 2025, the company recorded a net loss of $356.1 million, or $(2.09) per share, down from a net income of $374.5 million, or $2.18 per share, in the prior year. Total revenues for the third quarter decreased by 5% to $751.9 million, primarily driven by a decline in rental income and occupancy rates, which fell to 90.6% from 94.8% year-over-year.
The company's financial performance was significantly impacted by impairment charges totaling $323.9 million in the third quarter, primarily related to a non-core property in Long Island City, New York, and a retail shopping center in Greater Boston. These impairments reflect Alexandria's strategic decision to reallocate resources towards higher-value projects within its Megacampus strategy. The company also recognized a gain of $9.4 million from the sale of its interest in Pacific Technology Park, contributing to a total gain of $22.5 million for the nine months ended September 30, 2025.
Operationally, Alexandria reported a decrease in net operating income (NOI) of 8.2% for the third quarter, with Same Properties NOI declining by 6.0%. The company attributed this decline to lower occupancy and rental rates, particularly in its Greater Boston and San Francisco Bay Area markets. Despite these challenges, Alexandria's leasing activity remained strong, with a total of 1.17 million square feet leased during the quarter, including a significant 16-year build-to-suit lease expansion with a multinational pharmaceutical tenant.
Looking ahead, Alexandria anticipates a challenging environment due to increased competition in the life science sector and potential impacts from government policy changes affecting research funding. The company has revised its guidance for 2025, projecting a net loss per share of $(5.68) to $(0.20) and funds from operations per share of $7.89 to $7.95. Alexandria plans to fund a significant portion of its capital requirements through asset dispositions, with a target of $1.5 billion in sales for the year. The company maintains a strong liquidity position of $4.2 billion, which it expects to leverage for ongoing development and operational needs.
About ALEXANDRIA REAL ESTATE EQUITIES, INC.
Alexandria Real Estate Equities, Inc. is a leading life science real estate investment trust (REIT) focused on developing and managing collaborative Megacampus ecosystems in key innovation clusters across North America. With a market capitalization of $29 billion, it targets tenants in biotechnology, pharmaceuticals, and research institutions. The company emphasizes high-quality Class A properties and strategic capital investments, enhancing tenant recruitment and retention while driving long-term asset value.
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