Alexandria Real Estate Equities, Inc. (NYSE:ARE) released its third-quarter 2026 financial and operating results on October 26, 2026, reporting a net loss attributable to common stockholders of $638.5 million for the three months ended September 30, 2026, driven primarily by real estate impairment charges.

Key Highlights

  • Net loss of $638.5 million ($3.74 per share, diluted) for Q3 2026, compared to a net loss of $234.9 million ($1.38 per share, diluted) in Q3 2025, according to the filing.
  • $637.9 million in real estate impairment charges related to assets held for sale were included in the Q3 2026 net loss figure, the company disclosed.
  • Funds from operations (FFO), as adjusted, of $264.4 million ($1.54 per share, diluted) for Q3 2026, down from $377.8 million ($2.22 per share, diluted) in Q3 2025.
  • Total leasing volume exceeded 1.2 million RSF in Q3 2026, described as the highest quarterly volume since Q4 2024, including 450,961 RSF of previously vacant space leased.
  • Occupancy of operating properties stood at 87.1% as of September 30, 2026, rising to 90.8% when including executed leases with future occupancy.
  • $475.0 million sale of an approximately 29% noncontrolling interest in Campus Point by Alexandria Megacampus to a new joint venture partner was completed in October 2026.
  • Liquidity of $4.56 billion reported as of the filing date, with the company's $5.0 billion unsecured senior line of credit extended to 2032.

Alexandria's Q3 2026 Results: Impairment Charges, Leasing Activity, and Capital Recycling

According to the filing, Alexandria Real Estate Equities reported a Q3 2026 net loss attributable to common stockholders of $638.5 million, or $3.74 per diluted share. The company disclosed that $637.9 million of this loss consists of "real estate impairment charges related to assets held for sale for 3Q26." On an FFO basis, as adjusted, the company reported $264.4 million, or $1.54 per diluted share, for the quarter, compared to $377.8 million, or $2.22 per diluted share, in the same period of the prior year. Year-to-date through Q3 2026, FFO as adjusted totaled $856.5 million ($5.00 per share), versus $1,166.3 million ($6.85 per share) in the same period of 2025.

The filing reported that same property net operating income declined 6.7% in Q3 2026 and 9.2% year-to-date, with the company attributing the decline to "a decrease in same property occupancy, primarily driven by previously disclosed key lease expirations." Occupancy in the same property pool averaged 88.1% in Q3 2026, compared to 91.7% in Q3 2025. The company also noted that lease renewals and re-leasing of space reflected a rental rate change of negative 2.4% on a GAAP basis and negative 3.3% on a cash basis for Q3 2026.

On capital recycling, the filing stated that completed dispositions and partial interest sales totaled $717 million as of October 26, 2026, against a 2026 guidance midpoint of $1.9 billion. The company disclosed that it entered into a purchase and sale agreement for the sale of 421 Park Drive, aggregating 339,668 RSF, expected to close in Q4 2026 and to reduce future potential construction spend by approximately $136 million. At 311 Arsenal Street, the filing reported that executed and under-negotiation leases enabled a pivot to advanced technology use, reducing future potential construction spend by approximately $220 million. The filing also noted that net debt and preferred stock to Adjusted EBITDA stood at 6.9x on an annualized Q3 2026 basis, with a 4Q26 annualized target of 5.6x-6.2x.

What Was Disclosed

Alexandria Real Estate Equities disclosed Q3 2026 operating results including a net loss of $638.5 million driven by $637.9 million in impairment charges, FFO as adjusted of $264.4 million, occupancy of 87.1%, leasing volume surpassing 1.2 million RSF, and ongoing capital recycling activity totaling $717 million completed as of October 26, 2026.