Alexandria Real Estate shares fall 4.7% after hours, Q3 loss deepens

Alexandria Real Estate Equities, Inc. (NYSE: ARE) said in a regulatory filing on Oct. 26 that its net loss attributable to common stockholders was $638.5 million, or $3.74 per share, for the third quarter ended Sept. 30, 2026.

Shares fell 4.7% in after-hours trading as of 5:24 p.m. ET on Oct. 27, from a regular-session close of $43.36.

The loss included $637.9 million of real estate impairment charges related to assets held for sale. A year earlier, the net loss attributable to common stockholders was $234.9 million, or $1.38 per share.

The company said adjusted funds from operations, or FFO, attributable to common stockholders was $264.4 million, or $1.54 per share, on a diluted basis. That compares with $377.8 million, or $2.22 per share, a year earlier.

Here's how the company did:

• Net loss attributable to common stockholders: $638.5 million, or $3.74 per share, vs. $234.9 million, or $1.38 per share, a year earlier
• Adjusted FFO attributable to common stockholders: $264.4 million, or $1.54 per share, vs. $377.8 million, or $2.22 per share, a year earlier
• Occupancy of operating properties: 87.1%, or 90.8% including executed leases with future occupancy

Year to date, the net loss was $351.4 million, or $2.06 per share, against $356.1 million, or $2.09 per share, in the first nine months of 2025. Adjusted FFO was $856.5 million, or $5.00 per share, compared with $1,166.3 million, or $6.85 per share.

According to its SEC filings, net income swung from a profit of $361.7 million in the first quarter of 2026 to a loss of $72.8 million in the second quarter.

2026 guidance

The company kept its 2026 adjusted FFO per share midpoint at $6.40 and narrowed the range to $6.38 to $6.42, from $6.35 to $6.45 given on Aug. 3.

Its fixed-charge coverage ratio guidance for the fourth quarter, annualized, was lowered to 3.4x to 3.9x from 3.6x to 4.1x. The net debt and preferred stock to adjusted EBITDA target of 5.6x to 6.2x was unchanged.

Same property net operating income is now expected to fall 10.5% in 2026, against an 8.5% decline in the August outlook.

Impairments and development spending

The company said it signed a purchase and sale agreement with an institutional user for 421 Park Drive, a 339,668 RSF development project at the Alexandria Center for Life Science, Fenway Megacampus. Closing is anticipated in the fourth quarter of 2026. It expects the sale to reduce future construction spend by about $136 million.

The company also said it has executed leases for 66,859 RSF and is negotiating 100,684 RSF for advanced technology use at 311 Arsenal Street. That pivot is expected to reduce future construction spend by about $220 million. The 339,020 RSF project was reclassified from redevelopment to operating in the third quarter.

It is still evaluating three remaining projects aggregating 667,002 RSF.

Capital and leasing

In October the company completed the sale of an approximately 29% noncontrolling interest in Campus Point by Alexandria Megacampus for $475.0 million to a new joint venture partner. Completed dispositions and sales of partial interests reached $716.8 million as of Oct. 26, against a 2026 guidance midpoint of $1.9 billion.

Total leasing volume was 1,236,030 RSF in the third quarter, the highest quarterly volume since the fourth quarter of 2024, the company said. Previously vacant space accounted for 450,961 RSF.

The company's $500.0 million share repurchase program, authorized in December 2025, had no shares repurchased as of Sept. 30. The company declared a dividend of $0.72 per share for the quarter, consistent with the preceding quarter.

The company said it will introduce 2027 guidance at its Investor Day on Dec. 2, 2026.