Alexandria Real Estate Equities Reports $109.6 Million Net Loss in Q2 2025

Alexandria Real Estate Equities, Inc. (NYSE: ARE) reported its financial results for the second quarter of 2025, revealing a net loss attributable to common stockholders of $109.6 million, or $(0.64) per share, compared to a net income of $42.9 million, or $0.25 per share, for the same period in 2024. For the six months ended June 30, 2025, the company recorded a net loss of $23.5 million, or $(0.71) per share, down from a profit of $313.2 million, or $1.22 per share, in the prior year. Total revenues for the quarter were $762.0 million, a slight decrease of 0.6% from $766.7 million in the previous year, while revenues for the six months totaled $1.52 billion, down 1.0% from $1.54 billion.

The decline in revenue was attributed to a decrease in rental income, primarily from properties that were disposed of after January 1, 2024. Rental revenues for the three months ended June 30, 2025, decreased by $23.5 million, or 4.1%, to $553.4 million, while Same Properties’ rental revenues fell by $17.9 million, or 3.7%. The average occupancy rate for Same Properties dropped to 91.3% from 94.5% year-over-year, influenced by lease expirations that resulted in temporary vacancies. However, tenant recoveries increased by 3.1% to $183.9 million, reflecting the company's strong recovery of operating expenses under its triple net lease agreements.

In terms of operational developments, Alexandria continues to focus on its strategic capital recycling strategy, expecting to fund a significant portion of its capital requirements through the disposition of non-core assets. The company anticipates completing dispositions and sales of partial interests totaling approximately $1.95 billion in 2025. As of June 30, 2025, Alexandria's total market capitalization stood at $25.7 billion, with a total asset base of $37.6 billion, including 39.7 million rentable square feet of operating properties.

Looking ahead, Alexandria has a robust development pipeline, with 4.4 million square feet of Class A/A+ properties under construction and one 100% pre-leased project expected to commence construction in the next year. The company reported that 84% of its leasing activity over the past year was generated from its existing tenant base, indicating strong demand for its properties. Alexandria's management remains optimistic about future growth, projecting an increase in annual net operating income from its development and redevelopment projects, with a focus on maintaining high occupancy rates and rental growth in its core markets.