Key Highlights

  • Alexandria Real Estate Equities (NYSE:ARE) reported a third quarter 2026 net loss of USD 3.74 per share on October 26, 2026, including USD 637.9 million of real estate impairments tied to assets held for sale.
  • FFO per share as adjusted was USD 1.54 against USD 2.22 a year earlier, while same property NOI fell 6.7% and occupancy was 87.1%, according to the company release.
  • Dispositions reached USD 234.4 million in the quarter, and an October sale of a partial interest in Campus Point brought USD 475.0 million, lifting completed 2026 sales to USD 716.75 million.
  • Alexandria Real Estate Equities (NYSE:ARE) kept the midpoint of 2026 FFO guidance at USD 6.40 but cut its disposition range to USD 1.10 billion to USD 2.70 billion.

The Impairment Charge

The impairment arises because assets that management plans to sell are written down to the expected sale price less costs when that price is below book value. The charge, USD 637.9 million in the quarter and USD 865.9 million year to date, is non-cash but reflects lower value in the laboratory and office portfolio. A further USD 13.6 million was recorded on non-real-estate investments. Net loss per share of USD 3.74 compares with USD 1.38 a year earlier. Published market data listed a reported EPS of a loss of USD 0.03 without an estimate, a basis the release does not match, so the company figure is used.

Operations Under Pressure

Occupancy was 87.1% of operating properties, or 90.8% including executed leases with future occupancy. Same property NOI fell 6.7% in the quarter and 9.2% year to date, though cash same property NOI fell a smaller 2.8%. Leasing volume was 1,236,030 rentable square feet, with 450,961 of previously vacant space and 785,069 of renewals, and renewal rental rate changes were negative 2.4%. FFO per share dropped to USD 1.54 from USD 2.22, a fall of about 31%, simple arithmetic. The cash measure of same property NOI is less negative because straight-line rent adjustments, which spread future rent bumps over lease terms, are non-cash and are being reduced in the guidance, with the straight-line rent revenue range cut by USD 5 million at the midpoint.

Guidance, Sales and Risks

FFO guidance of USD 6.38 to 6.42 has an unchanged USD 6.40 midpoint, while the fixed-charge coverage range was lowered to 3.4 times to 3.9 times. Dispositions and partial interest sales, including the USD 475.0 million Campus Point deal in October, reached USD 716.75 million, but the full-year target was reduced to USD 1.10 billion to USD 2.70 billion. Net debt and preferred stock to adjusted EBITDA is guided at 5.6 to 6.2 times. Risks include weak life science demand, higher leverage and asset sale pricing. The company also reduced its midpoint for realized gains on non-real-estate investments by USD 10 million, which lowers a source of cash that has supported earnings.

Where Things Stand

Alexandria took the hit because it is writing down assets it plans to sell, and operations weakened, with same property NOI down 6.7% and occupancy at 87.1%. That answers the headline, and unchanged guidance of USD 6.40 gives some stability. Alexandria Real Estate Equities (NYSE:ARE) still has leverage of 5.6 to 6.2 times and has lowered its disposition target, so asset sale pricing and life science leasing are the main risks to watch.