Key Highlights

  • Net loss per diluted share was $3.74 for 3Q26, including $637.9 million of impairment charges.
  • FFO per diluted share, as adjusted, was $1.54, against $2.22 a year earlier.
  • Occupancy of operating properties was 87.1%, or 90.8% including future occupancy.
  • Total leasing volume exceeded 1.2 million RSF, the highest since 4Q24.

Alexandria Real Estate Equities, Inc. (NYSE:ARE) announced results for the third quarter ended September 30, 2026, on October 26, 2026. The Pasadena, California-based life science REIT reported a net loss that included real estate impairment charges, along with leasing, disposition and financing updates. A conference call was set for October 27, 2026, at 2:00 p.m. ET.

Earnings, FFO and Operating Metrics

The net loss attributable to common stockholders was $638.5 million, or $3.74 per diluted share, compared with a loss of $234.9 million, or $1.38, a year earlier. The 3Q26 figure included $637.9 million of real estate impairment charges related to assets held for sale. Funds from operations per diluted share, as adjusted, were $1.54, against $2.22, and $5.00 year to date versus $6.85. Same property net operating income changed by negative 6.7%. Occupancy of operating properties was 87.1%, and the company reported weighted-average remaining lease term of 7.7 years across all tenants. Total leasing volume of 1,236,030 RSF included 450,961 RSF of previously vacant space, with rental rate changes on renewals of negative 2.4%. The company reported that 80% of annual rental revenue came from its Megacampus platform and 57% from investment-grade or publicly traded large cap tenants. Operating margin was 66%, 97% of leases contained annual rent escalations, and 99.9% of 3Q26 rents and receivables had been collected as of October 26, 2026.

Capital Recycling and Balance Sheet

In October 2026, Alexandria sold an approximately 29% noncontrolling interest in Campus Point by Alexandria Megacampus for $475.0 million. Completed dispositions and partial-interest sales totaled $717 million as of October 26, 2026, against a 2026 guidance midpoint of $1,900 million. In August 2026 the company completed a $1.00 billion offering of 7.250% junior subordinated notes due 2057. Liquidity was $4.56 billion, only 6% of total debt matures through 2028, and net debt and preferred stock to Adjusted EBITDA was 6.9x on an annualized basis. A common stock repurchase program authorized in December 2025 permits up to $500.0 million through December 31, 2026, and no shares had been repurchased as of September 30, 2026. Non-income-producing assets were 12% of gross assets, and the weighted-average remaining debt term was 11.6 years.

Why This Could Matter

The company said it plans to fund a significant portion of its 2026 capital requirements through dispositions of land, non-core assets and partial interests. It also entered a purchase and sale agreement for 421 Park Drive, expected to reduce future construction spend by about $136 million, and said leasing at 311 Arsenal Street reduces potential spend by about $220 million. Alexandria declared a common dividend of $0.72 per share for 3Q26. During 3Q26 the company placed 529,061 RSF of development and redevelopment projects into service.

Closing Summary

Alexandria reported an impairment-driven net loss of $3.74 per diluted share, adjusted FFO of $1.54 per share, and its highest quarterly leasing volume since 4Q24.