Alexandria Real Estate Equities Reports Losses and Strong FFO in Q3 2025

Alexandria Real Estate Equities, Inc. has reported significant financial results for the third quarter ending September 30, 2025, revealing a net loss per share of $(1.38) and year-to-date losses amounting to $(2.09). Despite the losses, the company reported adjusted funds from operations (FFO) per share of $2.22 for the third quarter and $6.85 year-to-date.

In its earnings release on October 27, 2025, the Pasadena, California-based real estate investment trust (REIT) detailed its operational performance, indicating a net operating income (NOI) on a cash basis of $1.928 billion annualized for Q3 2025. This reflected a decline of 5.8% compared to the same quarter in the previous year.

Occupancy and Leasing Highlights

As of September 30, 2025, Alexandria reported an occupancy rate of 90.6% for its operating properties in North America, with 97% of leases containing annual rent escalations. The REIT’s tenant base is notable for its strength, as 53% of annual rental revenue comes from investment-grade tenants.

In Q3 2025, Alexandria achieved leasing volume of 1.2 million square feet, including a landmark lease with a multinational pharmaceutical company for a 16-year build-to-suit expansion of 466,598 square feet. The company also experienced a significant increase in rental rates, with a rise of 15.2% on lease renewals and 6.1% on a cash basis.

Financial Position and Future Outlook

Alexandria maintains a strong financial position with a total market capitalization of $27.8 billion and a robust liquidity of $4.2 billion. The company reported a net debt and preferred stock to adjusted EBITDA ratio of 6.1x for Q3 2025. With only 7% of total debt maturing through 2027, Alexandria holds the longest weighted-average remaining term of debt among S&P 500 REITs at 11.6 years.

The company’s capital recycling strategy aims to fund a significant portion of its capital requirements for 2025 through the disposition of non-core assets, with expected sales of $1.5 billion in total dispositions. Alexandria has successfully completed $508 million in dispositions as of October 27, 2025.

The forthcoming quarterly earnings call is scheduled for October 28, 2025, at 2:00 p.m. ET, where executives will discuss these results in further detail and provide insights into the company’s strategic initiatives moving forward.

Overall, while Alexandria faced a challenging quarter with losses, its solid FFO and strategic leasing activities position it favorably within the life sciences real estate sector.