Alexandria posts Q3 loss on $638 million of impairments, flags 2027 tenant risk

Alexandria Real Estate Equities reported a third-quarter net loss on Monday after taking $637.9 million in real estate impairment charges on properties it plans to sell. The life science landlord also warned that tenant wind-downs could weigh on results again in 2027.

The net loss attributable to common stockholders was $638.5 million, or $3.74 per diluted share, compared with a loss of $1.38 a share a year earlier, according to the company's earnings release and supplement filed with the SEC.

Funds from operations as adjusted, the REIT's main earnings measure, fell to $1.54 per share from $2.22.

Guidance narrowed

Alexandria narrowed its 2026 FFO-as-adjusted guidance to $6.38 to $6.42 per share, from $6.35 to $6.45. The midpoint stays at $6.40.

It lowered its fourth-quarter annualized fixed-charge coverage target to 3.4x to 3.9x, from 3.6x to 4.1x. Its leverage target of 5.6x to 6.2x net debt and preferred stock to adjusted EBITDA did not change.

Tenant risk carries into 2027

The company's 2026 guidance includes a $30 million to $35 million reduction in FFO for potential tenant wind-downs. About $30 million of that has already been recognized, including about $16 million in the third quarter.

"Based upon current market conditions, we preliminarily estimate at least a similar level of reduction in funds from operations may be necessary in 2027," the company said. It added that occupancy in 2027 may also be hurt.

Leasing improved

Occupancy of operating properties was 87.1%, or 90.8% including signed leases that have not yet started. Leasing volume topped 1.2 million rentable square feet in the quarter, the most in any quarter since late 2024, according to the supplement.

The company declared a dividend of $0.72 per share for the third quarter, unchanged from the prior quarter.

By the numbers

• Q3 net loss per share: $3.74, including $637.9 million of real estate impairments
• Q3 FFO per share, as adjusted: $1.54, versus $2.22
• 2026 FFO guidance: $6.38 to $6.42, midpoint $6.40
• Operating occupancy: 87.1%
• Quarterly dividend: $0.72

Sources

1. Alexandria Real Estate Equities, Inc., Form 8-K with third quarter 2026 earnings release and supplemental information, filed Oct. 26, 2026 (accession 0001035443-26-000077)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.