Cash conversion remains erratic, evidenced by an FFO/NI ratio that swung from -23.26 in 2025Q1 to 8.82 in 2024Q2, while liquidity is constrained by a cash balance that dropped to $418.7 million in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.4B | 1.41B | 1.5B | 1.63B | 1.29B | 1.01B | 882.51M | 683.86M | 570.34M | 450.32M | 392.5M | 342.61M | 334.32M | 312.73M | 305.53M | 246.96M | 219.35M | 205.95M | 232.71M | 185.38M | 128.39M | 120.68M | 67.75M | 74.85M | 67.05M | 60.34M | 32.93M | 42.3M | 26.1M | 3.9M | -1.6M |
| Operating CF Growth % | 11.05% | -6.01% | -7.73% | 25.98% | 28.13% | 14.47% | 29.05% | 19.9% | 26.65% | 14.73% | 14.56% | 2.48% | 6.91% | 2.35% | 23.72% | 12.59% | 6.5% | -11.5% | 25.53% | 44.39% | 6.39% | 78.12% | -9.48% | 11.63% | 11.12% | 83.23% | -22.15% | 62.07% | 569.23% | 343.75% | - |
| Operating CF / Revenue % | 48.39% | 47.6% | 49.33% | 57.36% | 50.24% | 47.92% | 46.6% | 45.08% | 42.96% | 40.05% | 43.71% | 41.8% | 45.99% | 49.55% | 52.13% | 48.42% | 45.01% | 41.91% | -295.35% | 58.49% | 52.31% | 61.9% | 43.82% | 55.8% | 56.02% | 61.16% | 40.6% | 63.61% | 55.53% | 14.03% | -14.04% |
| Net Income | -1.02B | -1.44B | 510.73M | 280.99M | 670.7M | 654.28M | 827.17M | 404.05M | 402.79M | 194.2M | -49.8M | 146.11M | 106.78M | 140.25M | 105.53M | 135.39M | 139.02M | 141.65M | 122.87M | 93.72M | 73.42M | 63.43M | 60.2M | 59.64M | 40.03M | 30.28M | 26.01M | 22.1M | 19.4M | -2.8M | 2.2M |
| Depreciation & Amortization | 1.3B | 1.35B | 1.12B | 1B | 927.8M | 766.28M | 640.86M | 544.61M | 477.66M | 416.78M | 313.39M | 261.29M | 224.1M | 190.78M | 192M | 158.03M | 126.64M | 118.51M | 108.74M | 95.27M | 77.68M | 60.99M | 44.74M | 40.74M | 36.09M | 31.51M | 24.94M | 18.9M | 10.3M | 4.9M | 2.4M |
| Stock-Based Compensation | 42.09M | 41.12M | 59.63M | 82.86M | 57.74M | 48.67M | 43.5M | 43.64M | 35.02M | 25.61M | 25.43M | 17.51M | 14M | 15.55M | 14.16M | 11.76M | 10.82M | 14.05M | 13.68M | 11.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.08B | 1.76B | 17.91M | 264.53M | -239.22M | -363.77M | -558.64M | -128.72M | -107.96M | -118.06M | -46.02M | -42.97M | -36.55M | -20.79M | -21.31M | -25.8M | -22.83M | -14.38M | -8.47M | 15.18M | 3M | 3.44M | 843K | -5.55M | 8.35M | 2.84M | 1.83M | 1.6M | 0 | 4.2M | 0 |
| Working Capital Changes | -77.55M | -297.85M | -200.46M | 2.03M | -122.7M | -95.27M | -70.38M | -37.16M | -55.59M | -56.35M | -42.64M | -30.63M | -15.63M | -4.79M | 15.29M | -39.59M | -28.4M | -47.16M | 9.35M | 1.22M | -25.7M | -7.19M | -38.02M | -19.99M | -17.42M | -4.29M | -19.85M | -300K | -3.6M | -2.4M | -6.2M |
| Cash from Investing | 465.39M | 527.59M | -1.51B | -2.5B | -5.08B | -7.11B | -3.28B | -3.64B | -2.16B | -1.74B | -1.5B | -722.39M | -634.83M | -591.38M | -558.1M | -733.58M | -436.65M | -409.92M | -467.55M | -946.99M | -970.59M | -432.9M | -450.69M | -139.81M | -227.84M | -192.18M | -132.48M | -109.8M | -246.8M | -87.6M | -94.9M |
| Acquisitions (Net) | 33.54M | 165.49M | -1.01M | -658K | -971K | 372.24M | 16.78M | -102.07M | -83.34M | -39.59M | -11.53M | -9.03M | -70.76M | -17.99M | -6.7M | 20.08M | 0 | 18.02M | 0 | 934.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -501.82M | -2.13B | -236.36M | -189.47M | -242.93M | -408.56M | -174.66M | -190.78M | -235.94M | -171.88M | -102.28M | -95.94M | -60.23M | -36.08M | -36.29M | -28M | -18.4M | -12.89M | -13.01M | -16.62M | -12.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 2.29B | 2.49B | 173.93M | 183.4M | 198.32M | 424.62M | 141.15M | 129.22M | 103.68M | 30.48M | 38.95M | 67.14M | 18.97M | 16.52M | 27.04M | 16.85M | 4.71M | 5.63M | 13.31M | 19.65M | 20.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -1.35B | 0 | -1.45B | -2.49B | -5.03B | -7.5B | -3.26B | -3.48B | -2M | -3.3M | 14.75M | -1.22M | 21.27M | 7.66M | 12.87M | -7.44M | 294.13M | 25.45M | 80.91M | -934.96M | 0 | 1.32M | 271K | 35.51M | -14.37M | -134.79M | -13.54M | 0 | -6M | 0 | 0 |
| Cash from Financing | -2.19B | -1.95B | -93.31M | 674.16M | 4.23B | 5.92B | 2.75B | 2.93B | 1.59B | 1.42B | 1.11B | 419.13M | 331.31M | 197.57M | 314.86M | 479.16M | 237.91M | 203.44M | 297.97M | 766.68M | 841.24M | 312.98M | 381.11M | 66.16M | 162.2M | 131.44M | 98.88M | 69.4M | 220.1M | 84.1M | 97.3M |
| Dividends Paid | -681.46M | -911.45M | -898.56M | -847.48M | -757.74M | -655.97M | -532.98M | -451.17M | -385.84M | -321.75M | -262.76M | -243.09M | -228.27M | -194.96M | -154.32M | -136.51M | -100.46M | -118.85M | -126.08M | -102.63M | -87.58M | -73.07M | -58.43M | -49.33M | -41.4M | -32.76M | -28.39M | -23.6M | -19.2M | -9.9M | -1.6M |
| Common Dividends | -681.46M | -911.45M | -898.56M | -847.48M | -757.74M | -655.97M | -532.98M | -447.03M | -380.63M | -312.13M | -240.35M | -218.1M | -202.39M | -169.08M | -126.5M | -106.89M | -67.87M | -90.5M | -105.5M | -93.68M | -87.58M | -73.07M | -58.43M | -49.33M | -41.4M | -32.76M | -28.39M | -23.6M | -19.2M | -9.9M | -1.6M |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K |
| Share Repurchases | 0 | -208.19M | -50.11M | 0 | 0 | 0 | 0 | 0 | -13.98M | -148.28M | -206.83M | 0 | -14.41M | 0 | 0 | 0 | 0 | 0 | 1.1B | 0 | 0 | 0 | -38.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -808.93M | -976.19M | -100.45M | 261.66M | 1.27B | 1.79B | 170.79M | 880.48M | -23.27M | 12.55M | 125.08M | 382.94M | -9.49M | 514.08M | -21.23M | -244.41M | -4.15M | 455K | -176K | 19.8M | -1.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.6M | 2.4M |
| Net Change in Cash | 70M | -6.09M | -100.92M | -197.2M | 442.75M | -182.48M | 355.02M | -29.44M | -5.06M | 129.35M | -66K | 39.09M | 28.32M | -83.28M | 62.43M | -12.69M | 20.6M | -533K | 63.13M | 5.08M | -963K | 753K | -1.83M | 1.2M | 1.41M | -400K | -670K | 1.8M | -500K | 400K | 800K |
| Exchange Rate Effect | 1.6M | 1.56M | -1.44M | -1.29M | -887K | -1.71M | 311K | 540K | -2.07M | 1.72M | -1.46M | -255K | -2.49M | -2.2M | 139K | -5.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 100K | 0 | 0 |
| Cash at Beginning | 0 | 559.85M | 660.77M | 857.98M | 415.23M | 597.71M | 242.69M | 272.13M | 277.19M | 125.03M | 125.1M | 86.01M | 57.7M | 140.97M | 78.54M | 91.23M | 70.63M | 71.16M | 8.03M | 2.95M | 3.91M | 3.16M | 4.99M | 3.79M | 2.38M | 2.78M | 3.45M | 1.6M | 2.1M | 1.7M | 900K |
| Cash at End | 0 | 553.75M | 559.85M | 660.77M | 857.98M | 415.23M | 597.71M | 242.69M | 272.13M | 254.38M | 125.03M | 125.1M | 86.01M | 57.7M | 140.97M | 78.54M | 91.23M | 70.63M | 71.16M | 8.03M | 2.95M | 3.91M | 3.16M | 4.99M | 3.79M | 2.38M | 2.78M | 3.4M | 1.6M | 2.1M | 1.7M |
| Free Cash Flow | 1.4B | 1.41B | 1.5B | 1.63B | 1.29B | -6.32B | 882.51M | 683.86M | -1.37B | -1.1B | -1.04B | -340.73M | -209.75M | -248.76M | -249.49M | -488.11M | -497.76M | -240.18M | -316.05M | -764.64M | -849.89M | -313.55M | -383.21M | -100.47M | -146.42M | 2.95M | -86M | -67.5M | -214.7M | -83.7M | -96.5M |
| FCF Growth % | 2.29% | -6.01% | -7.73% | 25.98% | 120.47% | -816.56% | 29.05% | 149.78% | -24.5% | -5.7% | -206.4% | -62.44% | 15.68% | 0.29% | 48.89% | 1.94% | -107.25% | 24.01% | 58.67% | 10.03% | -171.06% | 18.18% | -281.4% | 31.38% | -5063.36% | 103.43% | -27.41% | 68.56% | -156.51% | 13.26% | - |
| FCF / Revenue % | 48.39% | 47.6% | 49.33% | 57.36% | 50.24% | -299.95% | 46.6% | 45.08% | -103.49% | -98.13% | -116.27% | -41.57% | -28.86% | -39.41% | -42.57% | -95.7% | -102.15% | -48.88% | 401.13% | -241.23% | -346.26% | -160.82% | -247.85% | -74.9% | -122.33% | 2.99% | -106.02% | -101.5% | -456.81% | -301.08% | -846.49% |
Biotech funding cycle sensitivity
As reported in financial statements, the significant divergence between GAAP net income and FFO, highlighted by the extreme -23.26 FFO/NI ratio in 2025Q1, suggests that non-cash depreciation and impairment charges are currently distorting the firm's reported profitability, making traditional earnings metrics unreliable for assessing operational health.
The persistent gap between net income and FFO indicates that ARE's bottom line is heavily impacted by accounting adjustments rather than cash-based operational performance. Investors should monitor whether these non-cash charges represent a permanent revaluation of older lab assets or temporary volatility in the venture investment portfolio.
Based on the company's reported figures, the dividend payout ratio relative to AFFO reached 1.24 in 2023Q4, indicating that the firm's recurring cash flow was insufficient to cover distributions during that period, which warrants further investigation into the sustainability of the current payout policy in a high-rate environment.
The inability to consistently cover dividends with AFFO suggests that the REIT may be relying on external financing or asset recycling to maintain its distribution. This reliance on non-operating cash sources to fund dividends may indicate a strained liquidity position that could limit future capital allocation flexibility.
According to recent SEC filings, the relationship between FFO and GAAP operating cash flow has become increasingly erratic, with FFO/NI ratios swinging from -23.26 to 8.82 over the last two years, suggesting that the firm's cash conversion quality is currently compromised by significant non-operating accounting noise.
The lack of alignment between FFO and operating cash flow suggests that the REIT's core rental operations are being masked by the volatility of its venture capital arm and development-related accounting. This disconnect makes it difficult to ascertain the true cash-generating capacity of the stabilized portfolio without adjusting for these non-recurring items.
As evidenced by the 2023Q4 data, the company incurred $391.3M in capital expenditures, which significantly impacted free cash flow and highlights the substantial cash obligations required to maintain the firm's specialized lab infrastructure, a factor often overlooked when focusing solely on headline FFO metrics.
The high level of capital intensity required for lab-ready infrastructure suggests that ARE's maintenance and tenant improvement costs may be higher than those of traditional office REITs. Investors should monitor whether these expenditures are being adequately captured in AFFO calculations or if they represent a recurring drain on cash that limits dividend growth.
Quick answers to the most common questions about buying ARE stock.
Alexandria Real Estate Equities, Inc. (ARE) generated $1.41B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alexandria Real Estate Equities, Inc. (ARE) generated $1.41B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Alexandria Real Estate Equities, Inc. (ARE) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Alexandria Real Estate Equities, Inc. (ARE) returned $911.5M to shareholders via cash dividends and spent $208.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.