Alexandria Real Estate Equities (ARE) Q2 2026 earnings summary

Executive summary

• Q2 2026 leasing volume exceeded 1 million sq ft, up 60% sequentially, with strong activity from life science tools and advanced technology sectors; 75% of leasing was from existing tenants.

• Net loss attributable to common stockholders was $73.7 million ($0.43 per share) for Q2 2026, while FFO as adjusted was $296.1 million ($1.73 per share); 1H26 net income was $286.7 million ($1.68 per share).

• Operating occupancy was 86.9% at quarter-end, rising to 90.9% including executed leases with future occupancy; occupancy outperformed local markets by 8%-12% in key regions.

• 80% of annual rental revenue is from the Megacampus platform, with 57% from investment-grade or large cap tenants.

• Strong balance sheet with $3.6 billion liquidity, $5 billion credit facility extended to 2032, and a top 20% REIT credit rating.

Financial highlights

• FFO per share (as adjusted) was $1.73 for Q2 2026 and $3.46 for 1H26; full-year 2026 guidance midpoint reaffirmed at $6.40, range narrowed to $6.35–$6.45.

• Same property net operating income declined 10.6% year-over-year in Q2 2026, primarily due to lower occupancy from key lease expirations.

• Adjusted EBITDA margin was 67% and operating margin was 69% for Q2 2026.

• Impairment charges on real estate were $222.5 million in Q2 2026, mainly related to assets held for sale, land, and lab conversion properties.

• Investment income for Q2 2026 was $133.2 million, including $10.3 million realized gains, $131.9 million unrealized gains, and $9.0 million impairment charges.

Outlook and guidance

• 2026 FFO per share (as adjusted) guidance midpoint remains $6.40, range narrowed to $6.35–$6.45; Q4 2026 FFO per share expected at the lower end of $1.40–$1.50.

• Projected Q3 2026 leasing volume is 950,000 sq ft; modest lease expirations expected in the next two quarters.

• Construction spending for 2026 is guided at $1.75 billion, with 2027 expected at $1.15–$1.65 billion, focused on lease-up costs.

• No common equity issuance anticipated in 2026; capital needs to be met via $2.9 billion in dispositions, sales of partial interests, and other sources.

• Year-end 2026 occupancy guidance is 86.2%–87.8%.