Share count
170Mpeak FY2024
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ARE, Alexandria Real Estate Equities Inc.
Alexandria has a total market capitalization of $20.75 billion and an asset base in North America that includes 35.9 million RSF of operating properties and 3.5 million RSF of Class A/A+ properties undergoing construction .
We develop dynamic Megacampus ecosystems that enable and inspire the world's most brilliant minds and innovative companies to create life-changing scientific and technological innovations.
Alexandria also provides strategic capital to transformative life science companies through our venture capital platform.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$3.0B
−2.9% YoY · 10% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $671M −11.5% vs yr-ago qtr
Net income $398M yr-ago $39M
Net margin 59.4% yr-ago 5.1%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Occupancy, rents, and the cost of debt. Read on funds from operations and net asset value, because GAAP depreciation distorts the earnings, and a property downturn meets a balance sheet built on leverage. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Funds from operations per share do not form a clean trend in the record. Debt is 37% of assets, conservative for a REIT. The quality and location of the properties, the lease terms and occupancy, and the cost of the debt are what the 10-K settles, and no single ratio captures them.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $922M | $1.1B | $1.3B | $1.5B | $1.9B | $2.1B | $2.6B | $2.9B | $3.1B | $3.0B | $2.9B | RevenueRevenue |
| ($66M) | $169M | $379M | $363M | $771M | $571M | $522M | $104M | $323M | ($1.4B) | ($1.1B) | Net incomeNet inc. |
| Cash flow & returns | |||||||||||
| $247M | $586M | $857M | $908M | $1.3B | $1.3B | $986M | $920M | $1.4B | ($722M) | ($374M) | Funds from operationsFFO |
| Balance sheet | |||||||||||
| 97% | 53% | 44% | 49% | 41% | 52% | 77% | 92% | 64% | — | — | Dividend payout (FFO)Payout |
| $10.6B | $12.2B | $14.2B | $17.6B | $21.3B | $28.8B | $34.3B | $36.6B | $37.7B | $34.8B | $34.8B | Real estate (gross)RE gross |
| $10.4B | $12.1B | $14.5B | $18.4B | $22.8B | $30.2B | $35.5B | $36.8B | $37.5B | $34.1B | $34.2B | Total assetsAssets |
| 40% | 39% | 38% | 37% | 33% | 29% | 29% | 31% | 33% | 36% | 37% | Debt / assetsDebt/assets |
| $4.2B | $4.8B | $5.5B | $6.8B | $7.6B | $8.8B | $10.2B | $11.3B | $12.2B | $12.4B | $12.5B | Total debtDebt |
| $4.0B | $4.5B | $5.2B | $6.6B | $7.0B | $8.4B | $9.3B | $10.7B | $11.7B | $11.9B | $12.1B | Net debt / (cash)Net debt |
| -0.5× | 1.4× | 1.4× | 1.1× | 1.4× | 1.8× | 4.9× | 2.7× | 2.3× | -7.9× | -7.6× | Interest coverageInt. cov. |
| $4.9B | $5.9B | $7.3B | $8.9B | $11.7B | $16.2B | $19.0B | $18.5B | $17.9B | $15.5B | $15.7B | Shareholders’ equityEquity |
| Per share | |||||||||||
| 76.1M | 92.1M | 103M | 113M | 126M | 147M | 162M | 171M | 172M | 170M | 171M | Shares out (diluted)Shares |
| $3.25 | $6.36 | $8.29 | $8.07 | $10.40 | $8.58 | $6.10 | $5.38 | $8.11 | $-4.24 | $-2.19 | FFO / shareFFO/sh |
| $3.16 | $3.39 | $3.68 | $3.97 | $4.21 | $4.45 | $4.69 | $4.96 | $5.22 | $5.35 | $4.71 | Dividends / shareDiv/sh |
| $64.33 | $64.63 | $71.06 | $78.79 | $92.70 | $109.79 | $117.36 | $108.08 | $103.96 | $90.84 | $92.08 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +4.4%/yr | +3.6%/yr |
| Dividends / share | +6.0%/yr | +4.9%/yr |
| Book value / share | +3.9%/yr | −0.4%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked.
Revenue
$3.0Blow FY2016
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Is it a good business?
- Funds from operations (FFO) ($722M)about $-4.24 per shareNet income ($1.4B) + depreciation $1.4B − gains on sale $642M
What this means
GAAP net income with property depreciation added back, because the buildings a REIT charges against earnings usually hold or grow their value. This, not net income, is what a REIT is actually priced on. It is an approximation here: where a filing reports gains on property sales, we remove them, the way the NAREIT definition does.
- Not enough data
What this means
FFO or dividends missing.
Is it sound?
- Debt / assets 36%ConservativeTotal debt $12.4B ÷ assets $34.1BIndustry peers: median 39%
What this means
Every REIT runs on leverage; how much is the question. Heavy debt is what turns a property downturn into a wipeout, as 2008 showed, so a conservative balance sheet is part of the moat here, not a drag on it.
- Thin(operating income + depreciation) ÷ interest $227MIndustry peers: median 4.5×
What this means
How many times the property cash earnings cover the interest bill. Comfortable coverage is what lets a REIT refinance through a tight credit market instead of being forced to sell into one.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing A competitive risk, new this year
Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.
“If we are unable to use AI and/or automated decision-making technologies, it could make our business less efficient and result in competitive disadvantages.”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid.
- Insider ownership1.4%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$41M
The slice of the business handed to employees in shares this year, 1% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Credit & receivables, Acquisitions as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Office REITs
The same industry, side by side on the REIT lens. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | FFO margin | FFO / assets | Payout (FFO) | Debt / assets |
|---|---|---|---|---|---|
| BXPBXP Inc. | $3.5B | 42% | 5.6% | 55% | 40% |
| AREAlexandria Real Estate Equities Inc. | $3.0B | 48% | 4.0% | 53% | 35% |
| VNOVornado Realty Trust | $1.8B | 37% | 3.9% | 51% | — |
| KRCKilroy Realty | $1.1B | 56% | 5.6% | 42% | 39% |
| DEIDouglas Emmett | $1.0B | 47% | 4.6% | 40% | 53% |
| SLGSL Green Realty | $1.0B | 37% | 3.4% | 69% | 27% |
| CUZCousins Properties | $994M | 52% | 5.7% | 45% | 31% |
| HIWHighwoods Properties | $806M | 55% | 8.1% | 47% | — |
| Group median | — | 47% | 5.1% | 49% | 37% |
The price
What a price has to assume.
What the price implies
reverse-DCFA reit / real estate isn't read on an owner-earnings DCF; its economics live on the balance sheet (book value, the return earned on it, and the cash the assets throw off).
Cite: Owner Scorecard, "Alexandria Real Estate Equities Inc. (ARE), the owner's record," https://ownerscorecard.com/c/ARE, data as of 2026-07-09.
Manual order: ← ARDX its page in the Manual ARES →
Industry order: ← APLE the REITs — Specialty & Diversified chapter ARI →