Alexandria Real Estate Reports Q3 2026 Net Loss Amid Asset Impairments and Lower Occupancy
Alexandria Real Estate (ARE) reported a net loss of $3.74 per share for the third quarter of 2026, largely due to $637.9 million in real estate impairment charges related to assets held for sale. Adjusted Funds From Operations (FFO) per share fell to $1.54, down from $2.22 in the prior year, reflecting lower occupancy levels and recent asset dispositions. Despite these headwinds, the company saw its highest quarterly leasing volume since late 2024, totaling 1.2 million rentable square feet (RSF). Management highlighted a strong weighted-average lease term of 11 years for new leases and an increase in operating property occupancy to 87.1%. The company is also aggressively managing its balance sheet through significant asset dispositions, with $2.6 billion in pending or completed transactions exceeding previous guidance. Looking ahead, the company maintains its full-year 2026 FFO guidance of $6.38 to $6.42 per share. However, management warned of potential temporary occupancy pressure in the first half of 2027 due to upcoming major lease expirations.
Tickers: $ARE
Topics: Asset Dispositions FFO per Share Leasing Volume Net Loss Occupancy Rates Real Estate Impairment
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