Debt ManagementThe reduction helps ARE conserve $410M in 2026, which will be used to pay down debt, fund development, and help ARE achieve its leverage target of 5.6x – 6.2x Net Debt/EBITDA.
Occupancy RatesDespite market challenges, ARE has maintained high occupancy rates at 90.8% in its operating portfolio, as tenants prefer its high-quality and well-located assets.
ValuationThe discounted valuation of ARE presents an opportunity, as it trades at a historically-wide discount compared to the REIT industry, suggesting potential for capital appreciation.