Property-level NOI margins have compressed from a 71.2% peak in 2024Q2 to 66.6% in 2026Q1, signaling weakening pricing power in the lab-ready infrastructure market.
| 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 |
|---|
| Revenue | 2.9B | 2.97B | 3.05B | 2.84B | 2.58B | 2.11B | 1.89B | 1.52B | 1.33B | 1.12B | 897.89M | 819.55M | 726.88M | 631.15M | 586.07M | 510.04M | 487.3M | 491.39M | -78.79M | 316.97M | 245.45M | 194.97M | 154.61M | 134.14M | 119.69M | 98.66M | 81.12M | 66.5M | 47M | 27.8M | 11.4M |
| Revenue Growth % | -4.57% | -2.59% | 7.29% | 10.34% | 22.19% | 11.32% | 24.85% | 14.27% | 18.05% | 25.24% | 9.56% | 12.75% | 15.17% | 7.69% | 14.91% | 4.67% | -0.83% | 723.67% | -124.86% | 29.14% | 25.89% | 26.1% | 15.26% | 12.08% | 21.31% | 21.63% | 21.98% | 41.49% | 69.06% | 143.86% | - |
| Property Operating Expenses | 920.35M | 922.61M | 909.26M | 859.18M | 783.15M | 623.55M | 530.22M | 445.49M | 381.12M | 325.61M | 278.41M | 261.23M | 219.16M | 189.04M | 174.52M | 168.63M | 132.28M | 120.49M | 114.54M | 99.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 1.98B | 2.05B | 2.14B | 1.98B | 1.79B | 1.48B | 1.36B | 1.07B | 946.34M | 798.9M | 619.49M | 558.32M | 507.71M | 442.11M | 411.55M | 341.41M | 355.02M | 370.9M | -193.33M | 217.76M | 245.45M | 194.97M | 154.61M | 134.14M | 119.69M | 98.66M | 81.12M | 66.5M | 47M | 27.8M | 11.4M |
| NOI Margin % | 68.25% | 68.94% | 70.19% | 69.77% | 69.6% | 70.42% | 72% | 70.63% | 71.29% | 71.04% | 68.99% | 68.13% | 69.85% | 70.05% | 70.22% | 66.94% | 72.86% | 75.48% | 245.38% | 68.7% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Operating Expenses | 3.22B | 3.25B | 1.37B | 1.29B | 1.18B | 972.52M | 133.34M | 653.43M | 568.07M | 491.79M | 377.27M | 320.91M | 277.63M | 237.64M | 236.65M | 216.28M | 166.67M | 156.78M | 149.34M | 32.46M | 26.07M | 21.09M | 15.11M | 14.21M | 13.44M | 11.69M | 8.99M | 7M | 3.9M | 2.5M | 2M |
| G&A Expenses | 121.06M | 117.05M | 168.36M | 199.35M | 177.28M | 151.46M | 133.34M | 108.82M | 90.41M | 75.01M | 63.88M | 59.62M | 53.53M | 48.52M | 47.8M | 209.79M | 166.67M | 156.78M | 34.8M | 32.46M | 26.07M | 21.09M | 15.11M | 14.21M | 13.44M | 11.69M | 8.99M | 7M | 3.9M | 2.5M | 2M |
| EBITDA | 74.29M | 148.2M | 1.97B | 1.78B | 1.62B | 1.33B | 1.87B | 962.55M | 1.36B | 1.07B | 696.73M | 397.87M | 404.97M | 320.07M | 292.27M | 352.35M | 331.47M | 332.78M | 309.89M | 277.38M | 222.47M | 173.54M | 133.6M | 126.8M | 101.11M | 90.91M | 76.74M | 60.7M | 43.73M | 9.1M | 10.9M |
| EBITDA Margin % | 2.56% | 4.99% | 64.66% | 62.76% | 62.72% | 63.24% | 98.8% | 63.46% | 102.68% | 95.02% | 77.6% | 48.55% | 55.71% | 50.71% | 49.87% | 69.08% | 68.02% | 67.72% | -393.31% | 87.51% | 90.64% | 89.01% | 86.41% | 94.53% | 84.47% | 92.14% | 94.6% | 91.28% | 93.05% | 32.73% | 95.61% |
| Depreciation & Amortization | 1.31B | 1.35B | 1.2B | 1.09B | 1B | 821.06M | 640.86M | 544.61M | 940.83M | 887.82M | 655.68M | 261.29M | 224.1M | 189.12M | 188.85M | 157.53M | 126.54M | 116.91M | 108.23M | 95.27M | 77.68M | 60.99M | 44.74M | 40.74M | 36.09M | 31.51M | 24.94M | 18.9M | 10.3M | 4.9M | 2.4M |
| D&A / Revenue % | 45.33% | 45.46% | 39.43% | 38.47% | 38.9% | 38.95% | 33.84% | 35.9% | 70.87% | 78.95% | 73.02% | 31.88% | 30.83% | 29.96% | 32.22% | 30.89% | 25.97% | 23.79% | -137.37% | 30.06% | 31.65% | 31.28% | 28.93% | 30.37% | 30.15% | 31.94% | 30.75% | 28.42% | 21.91% | 17.63% | 21.05% |
| Operating Income | -1.24B | -1.2B | 769.7M | 690.45M | 613.46M | 512.17M | 1.23B | 417.94M | 422.25M | 180.72M | 41.05M | 136.58M | 180.87M | 130.95M | 103.42M | 194.82M | 204.94M | 215.87M | 201.66M | 182.11M | 144.79M | 112.55M | 88.86M | 86.06M | 65.02M | 59.4M | 51.8M | 41.8M | 33.43M | 4.2M | 8.5M |
| Operating Margin % | -42.76% | -40.47% | 25.24% | 24.29% | 23.81% | 24.29% | 64.96% | 27.55% | 31.81% | 16.07% | 4.57% | 16.66% | 24.88% | 20.75% | 17.65% | 38.2% | 42.05% | 43.93% | -255.94% | 57.45% | 58.99% | 57.73% | 57.48% | 64.16% | 54.32% | 60.21% | 63.86% | 62.86% | 71.14% | 15.11% | 74.56% |
| Interest Expense | 4M | 226.7M | 185.84M | 74.2M | 94.2M | 142.16M | 171.61M | 173.68M | 157.5M | 128.65M | 106.95M | 105.81M | 79.3M | 67.95M | 69.18M | 63.41M | 69.64M | 81.27M | 78.79M | 88.39M | 71.37M | 49.12M | 28.67M | 26.42M | 24.98M | 29.13M | 25.79M | 19.7M | 14.03M | 7M | 6.3M |
| Interest Coverage | - | -4.37x | 3.75x | 4.79x | 8.12x | 5.60x | 3.10x | 3.33x | 3.56x | 2.51x | 0.53x | 2.38x | 2.91x | 3.01x | 2.40x | 2.83x | 2.70x | 2.54x | 2.58x | 2.01x | 2.04x | 2.24x | 3.04x | -1.54x | -1.44x | -1.08x | -0.97x | -0.96x | -0.73x | -0.70x | -0.38x |
| Non-Operating Income | -331.35M | -212.25M | 73.13M | 335.25M | -151.44M | -284.27M | 698.1M | -159.78M | 303.19M | 405.95M | 208.87M | 9.36M | -79.85M | -69.94M | -64.45M | 3.53M | -9.02M | -70.02M | -95.84M | -92.06M | 77.68M | 60.99M | 44.74M | 126.8M | 36.09M | 31.51M | 76.74M | 60.7M | 10.3M | 4.9M | 10.9M |
| Pretax Income | -1.08B | -1.22B | 510.73M | 280.99M | 670.7M | 654.28M | 827.17M | 404.05M | 402.79M | 194.2M | -49.8M | 146.16M | 105.55M | 139.35M | 91.91M | 131.42M | 135.29M | 134.6M | 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 |
| Pretax Margin % | -37.4% | -40.96% | 16.75% | 9.89% | 26.04% | 31.03% | 43.68% | 26.64% | 30.34% | 17.27% | -5.55% | 17.83% | 14.52% | 22.08% | 15.68% | 25.77% | 27.76% | 27.39% | -155.94% | 29.57% | 29.91% | 32.54% | 38.93% | 44.46% | 33.45% | 30.69% | 32.06% | 33.23% | 41.28% | -10.07% | 19.3% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -114.55M | 25.11M | 16.1M | 1.94M | 3.97M | 3.13M | -10.22M | -131.42M | -135.29M | -134.6M | -122.87M | -93.72M | -73.42M | -63.43M | -60.2M | -59.64M | -40.03M | -30.28M | -26.01M | -22.1M | -19.4M | 0 | -2.2M |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -28.44% | 12.93% | -32.33% | 1.33% | 3.76% | 2.25% | -11.12% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | 0% | -100% |
| Net Income | -1.02B | -1.43B | 322.95M | 103.64M | 521.66M | 571.25M | 770.96M | 363.17M | 517.35M | 169.09M | -65.9M | 144.22M | 101.57M | 136.22M | 102.13M | 131.42M | 135.29M | 134.6M | 116.3M | 93.72M | 73.42M | 63.43M | 60.2M | 59.64M | 40.03M | 30.28M | 26.01M | 22.1M | 19.4M | -2.8M | 2.2M |
| Net Margin % | -35.3% | -48.15% | 10.59% | 3.65% | 20.25% | 27.1% | 40.71% | 23.94% | 38.97% | 15.04% | -7.34% | 17.6% | 13.97% | 21.58% | 17.43% | 25.77% | 27.76% | 27.39% | -147.6% | 29.57% | 29.91% | 32.54% | 38.93% | 44.46% | 33.45% | 30.69% | 32.06% | 33.23% | 41.28% | -10.07% | 19.3% |
| Net Income Growth % | -813.22% | -542.96% | 211.61% | -80.13% | -8.68% | -25.9% | 112.29% | -29.8% | 205.95% | 356.59% | -145.7% | 41.98% | -25.43% | 33.38% | -22.29% | -2.86% | 0.51% | 15.74% | 24.09% | 27.66% | 15.74% | 5.38% | 0.93% | 48.99% | 32.22% | 16.41% | 17.69% | 13.92% | 792.86% | -227.27% | - |
| Funds From Operations (FFO) | 290.64M | -80.06M | 1.53B | 1.2B | 1.52B | 1.39B | 1.41B | 907.78M | 1.46B | 1.06B | 589.78M | 405.51M | 325.67M | 325.34M | 290.98M | 288.94M | 261.83M | 251.51M | 224.53M | 189M | 151.1M | 124.43M | 104.93M | 100.39M | 76.12M | 61.79M | 50.95M | 41M | 29.7M | 2.1M | 4.6M |
| FFO Margin % | 10.03% | -2.69% | 50.02% | 42.12% | 59.15% | 66.04% | 74.55% | 59.85% | 109.85% | 93.99% | 65.69% | 49.48% | 44.8% | 51.55% | 49.65% | 56.65% | 53.73% | 51.18% | -284.97% | 59.63% | 61.56% | 63.82% | 67.87% | 74.84% | 63.6% | 62.62% | 62.81% | 61.65% | 63.19% | 7.55% | 40.35% |
| FFO Growth % | -378.23% | -105.25% | 27.42% | -21.44% | 9.44% | -1.38% | 55.52% | -37.75% | 37.96% | 79.2% | 45.44% | 24.51% | 0.1% | 11.81% | 0.7% | 10.35% | 4.1% | 12.02% | 18.8% | 25.08% | 21.43% | 18.58% | 4.53% | 31.88% | 23.2% | 21.27% | 24.27% | 38.05% | 1314.29% | -54.35% | - |
| FFO per Share | 1.54 | -0.47 | 8.86 | 7.00 | 9.43 | 9.44 | 11.16 | 8.07 | 14.11 | 11.48 | 7.75 | 5.67 | 4.58 | 4.78 | 4.68 | 4.89 | 5.41 | 6.52 | 7.04 | 6.30 | 5.93 | 5.84 | 5.14 | 5.22 | 4.26 | 3.81 | 3.47 | 3.00 | 2.41 | 0.26 | 1.26 |
| FFO Payout Ratio % | 234.47% | -1138.5% | 58.91% | 70.79% | 49.73% | 47.11% | 37.75% | 49.24% | 26.1% | 29.53% | 40.75% | 53.79% | 62.14% | 51.97% | 43.47% | 36.99% | 25.92% | 35.98% | 46.99% | 49.57% | 57.96% | 58.73% | 55.68% | 49.13% | 54.39% | 53.03% | 55.72% | 57.56% | 64.65% | 471.43% | 34.78% |
| EPS (Diluted) | -5.43 | -8.44 | 1.80 | 0.54 | 3.18 | 3.82 | 4.67 | 1.59 | 5.01 | 1.58 | -0.87 | 1.63 | 1.01 | 1.60 | 1.09 | 1.73 | 2.19 | 2.72 | 3.09 | 2.63 | 2.25 | 2.22 | 2.33 | 3.10 | 1.76 | 1.64 | 1.77 | 1.46 | 1.58 | -0.35 | 0.60 |
| EPS Growth % | -922.83% | -568.89% | 233.33% | -83.02% | -16.75% | -18.2% | 193.71% | -68.26% | 217.09% | 281.61% | -153.37% | 61.39% | -36.88% | 46.79% | -36.99% | -21% | -19.49% | -11.97% | 17.49% | 16.89% | 1.35% | -4.72% | -24.84% | 76.14% | 7.32% | -7.34% | 21.23% | -7.59% | 551.43% | -158.33% | - |
| EPS (Basic) | - | -8.44 | 1.80 | 0.54 | 3.18 | 3.83 | 4.69 | 1.60 | 5.02 | 1.59 | -0.87 | 1.63 | 1.01 | 1.60 | 1.09 | 1.73 | 2.19 | 2.72 | 3.12 | 2.66 | 2.28 | 2.26 | 2.37 | 3.14 | 1.79 | 1.67 | 1.80 | 1.48 | 1.60 | -0.35 | 0.60 |
| Diluted Shares Outstanding | 188.38M | 170.39M | 172.07M | 170.91M | 161.66M | 147.46M | 126.49M | 112.52M | 103.32M | 92.06M | 76.1M | 71.53M | 71.17M | 68.04M | 62.16M | 59.08M | 48.41M | 38.59M | 31.91M | 30M | 25.48M | 21.31M | 20.42M | 19.25M | 17.86M | 16.21M | 14.7M | 13.67M | 12.31M | 8.08M | 3.64M |
Biotech funding cycle sensitivity
As reported in the company's quarterly financial filings, revenue growth has trended downward to -9.7% in 2026Q1, signaling a departure from the historical expansion phase and suggesting that the firm's core innovation clusters may be facing significant headwinds in maintaining previous top-line momentum.
The shift from positive year-over-year growth in 2024 to consistent contraction throughout 2025 and early 2026 suggests that the firm's reliance on high-intensity lab space is encountering a more restrictive demand environment. Investors should monitor whether this revenue decline reflects a strategic disposal of non-core assets or a fundamental softening in tenant demand within key life science hubs.
Based on the provided income statement data, FFO per share has exhibited extreme volatility, swinging from a negative $4.46 in 2025Q4 to a positive $3.74 in 2026Q1, which complicates the assessment of dividend safety and the underlying earnings power of the REIT's specialized portfolio.
This erratic FFO trajectory appears heavily influenced by non-recurring items or valuation adjustments within the Alexandria Venture Investments platform rather than core rental operations. Analysts should exercise caution when relying on these headline FFO figures, as the underlying cash-generating capacity of the stabilized portfolio may be obscured by these significant quarterly fluctuations.
According to recent SEC filings, NOI margins have compressed from a peak of 71.2% in 2024Q2 to 66.6% in 2026Q1, indicating that the firm's ability to pass through operating expenses to tenants may be weakening as the competitive landscape for lab-ready infrastructure evolves.
The erosion of NOI margins suggests that the company may be absorbing higher property-level costs or increasing tenant improvement allowances to retain occupancy in a more challenging biotech funding environment. This trend warrants further investigation into whether the triple-net lease structure is providing the expected protection against rising operating expenses.
As evidenced by the persistent negative net income reported across multiple quarters in 2025, the company's bottom line is currently burdened by significant non-cash charges, which may indicate that the carrying value of older lab assets is no longer supported by current market capitalization rates.
The recurring net losses suggest that the firm is likely taking substantial impairment charges, which raises questions about the long-term economic depreciation of its specialized infrastructure. Investors should consider whether these write-downs are a precursor to further capital expenditure requirements needed to modernize older properties to meet current biosafety standards.
Quick answers to the most common questions about buying ARE stock.
For fiscal year 2025, Alexandria Real Estate Equities, Inc. (ARE) reported total revenue of $2.97B. This represents a 25958.9% increase compared to $11.4M in 1996.
Alexandria Real Estate Equities, Inc. (ARE) reported a net loss of $1.43B for the fiscal year ending 2025.
Alexandria Real Estate Equities, Inc. (ARE) reported an operating income of $-1202.3M, resulting in an operating profit margin of -40.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Alexandria Real Estate Equities, Inc. (ARE) generated $2.05B in gross profit for the year, representing a gross profit margin of 68.9%. This demonstrates the company's core pricing power and production efficiency.