Alexandria Real Estate Equities reported fourth-quarter adjusted funds from operations of $1.80 per share, outpacing the consensus estimate of $1.75. Total revenue for the period reached $450 million, a 4.8% increase over the prior year and above the Wall Street forecast of $440 million. The company attributed the outperformance to rent escalations in its life science portfolio and new lease commencements in Boston and San Francisco Bay Area markets.

Occupancy declined to 94.2% at year-end 2025, down from 95.6% a year ago, reflecting lease expirations in mature markets and tenant consolidations. Leasing volume remained robust, with 1.5 million square feet signed during the quarter, including a 200,000-square-foot renewal by a major biotech tenant in the Kendall Square submarket. Management emphasized that elevated move-outs in older assets are being offset by pre-leasing in newly delivered developments.

The company reported a net loss of $6.35 per share for Q4, driven by a $1.2 billion non-cash impairment charge on select assets, compared with funds from operations (FFO) of $2.39 per share in the year-ago quarter. Excluding impairments and other one-time items, core FFO was $2.05 per share, narrowly missing the consensus of $2.15. Alexandria noted that valuation adjustments were concentrated in secondary markets and represent writing non-strategic properties to market.

Alexandria closed the year with total assets of $20.1 billion and net debt of $12.4 billion, resulting in a net debt to EBITDA ratio of 6.5x. The company ended December with $750 million of liquidity, including undrawn revolver capacity and cash on hand. During the quarter, Alexandria issued $500 million of 10-year notes at a 4.25% coupon, refinancing higher-cost debt and extending its average debt maturity to 7.8 years.