ARE.PRD Filings — Alexandria Real Estate Equities, Inc. - FilingSpy
ARE.PRD
Alexandria Real Estate Equities, Inc.
A real estate investment trust that owns, operates, and develops lab and office spaces for life science companies, built as large "Megacampus" ecosystems across innovation hubs like Greater Boston, San Francisco, San Diego, and New York City. Founded in 1994 by Joel Marcus and Jerry Sudarsky, it was the first REIT focused on life science real estate. Its name honors Alexandria, Egypt, the scientific capital of the ancient world, whose lighthouse the founders saw as a beacon of scientific discovery.
Same-property NOI fell 10.6% as occupancy dropped to 87.1%, and the company narrowed its 2026 FFO guidance to $6.35–$6.45.
fell 10.6% as average occupancy dropped to 87.1%, the lowest in over a decade. declined 13.0% to $629.4 million and a $222.5 million pushed the company to a $72.8 million net loss, while per share fell to $1.73 from $2.33 a year ago. The company now expects year-end occupancy of approximately 87.0% and is relying on $2.9 billion in planned dispositions to fund its capital needs.
Key takeaways
fell 10.6% , driven by a 5.5 percentage-point drop in average occupancy to 87.1% as previously disclosed key lease expirations took effect.
A $222.5 million on properties held for sale was the primary driver of the $72.8 million net loss attributable to common stockholders, compared to a $109.6 million loss in the prior-year quarter.
Total fell 13.0% to $629.4 million, which the company attributed to lower occupancy and the impact of property dispositions.
Section summaries
Management's Discussion and Analysis
Q2 2026 net loss narrowed to $73.7M, but same-property NOI fell 10.6% on lower occupancy; $3.6B liquidity supports capital recycling.
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Total revenues decreased 13.0% to $662.8M, driven by a 12.1% drop in rental revenues due to lower occupancy and property dispositions.
, as adjusted, per share decreased to $1.73 from $2.33 a year ago, reflecting lower and higher .
The company narrowed its full-year 2026 per share to $6.35–$6.45 and now projects year-end operating occupancy of approximately 87.0%, down from the 88.5% forecast at the start of the year.
Liquidity stood at $3.60 billion, and the company is targeting $2.90 billion in dispositions, partial interest sales, and other capital sources in 2026 to fund construction and reduce debt.
What changed
The 1.1 million rentable square feet of leased-but-vacant space flagged in Q1 2026 as the driver of a second-half same-property recovery has not yet begun delivering; the company still expects occupancy to begin around September 2026, but year-end occupancy was lowered to approximately 87.0% from 88.5%.
The $2.9 billion in planned 2026 dispositions flagged in Q1 2026 remains on track, but the $222.5 million charge taken this quarter shows that further write-downs are materializing as sales proceed.
The $178.1 million in pre-construction costs tied to the East River Science Park floodwall dispute was not impaired this quarter, and the lawsuit continues with no resolution.
Occupancy fell to 87.1% from 88.9% in Q1 2026, moving past the prior year-end 2026 of 88.5% and prompting a new year-end forecast of approximately 87.0%.
The securities class action and derivative suits disclosed in prior filings remain active; the motion to dismiss the class action was filed in May 2026, and the derivative actions have been stayed pending its resolution.
What to watch
Whether the 1.1 million rentable square feet of leased-but-vacant space is occupied on schedule starting around September 2026, which the company says will drive the expected second-half improvement in same-property results.
Whether occupancy stabilizes near 87.1% or falls further, given that the company's new year-end 2026 of approximately 87.0% leaves almost no room for additional move-outs.
The pace and pricing of the $2.9 billion in planned 2026 dispositions, and whether further charges beyond the $222.5 million taken this quarter materialize.
Whether the $178.1 million in pre-construction costs tied to the East River Science Park floodwall dispute results in an charge, and how the lawsuit against New York City entities progresses.
declined 10.6% (8.6% cash basis) as average occupancy fell to 87.1% from 92.6%, primarily due to previously disclosed key lease expirations.
Net loss attributable to common stockholders was $73.7M, including $222.5M in real estate charges, compared to a $109.6M loss in the prior-year quarter.
, as adjusted, per share decreased to $1.73 from $2.33, reflecting lower and higher .
Liquidity stood at $3.60B, and the company targets $2.90B in dispositions, sales of partial interests, and other capital sources for 2026 to fund construction and reduce debt.
The company narrowed its 2026 per share to $6.35–$6.45 and expects year-end operating occupancy of approximately 87.0%.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate, equity price, and Canadian-dollar FX risks are quantified with sensitivity tables; no interest-rate hedges were outstanding at quarter-end.
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A 1% rate increase would reduce annualized future earnings from variable-rate debt by $7.5M and lower the fair value of total consolidated debt by $654.9M as of June 30, 2026.
A 10% decline in the value of equity investments (public and private) would reduce earnings by $128.8M as of June 30, 2026.
A 10% weakening of the Canadian dollar versus the USD would decrease the fair value of the net investment in Canadian subsidiaries by $34.8M, partially offset by an $18.8M gain on cross-currency swap hedges.
The company may use interest-rate hedges, caps, and floors but held no outstanding interest-rate hedge agreements as of June 30, 2026.
Foreign-currency translation gains and losses on Canadian subsidiaries are recorded in other comprehensive income until a sale or liquidation of the investment.
Securities class action and derivative suits filed; no accrual recorded as loss cannot be reasonably estimated.
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A securities class action filed Nov 2025 alleges misrepresentations about business performance and real estate charges for investors between Jan 2024 and Dec 2025.
Defendants moved to dismiss the class action on May 20, 2026.
Three stockholder derivative actions filed Feb–Jun 2026 name the Company as a and assert similar allegations under federal and state law.
The first two derivative actions were stayed in Apr and Jun 2026 pending resolution of the motion to dismiss in the class action.
The Company believes the claims lack merit, intends to defend vigorously, and has not recorded an because a possible loss cannot be reasonably estimated.
In addition to the information set forth in this quarterly report on Form 10-Q, one should also carefully review and consider the information contained in the other reports and periodic filings that we make with the SEC, including, without limitation, the information contained u…
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In addition to the information set forth in this quarterly report on Form 10-Q, one should also carefully review and consider the
information contained in the other reports and periodic filings that we make with the SEC, including, without limitation, the information
contained under the caption “Item 1A. Risk factors” in our annual report on Form 10-K for the year ended December 31, 2025. Those
risk factors could materially affect our business, financial condition, and results of operations. The risks that we describe in our public
filings are not the only risks that we face. Additional risks and uncertainties not currently known to us, or that we presently deem to be
immaterial, also may materially adversely affect our business, financial condition, and results of operations.
There have been no material changes in our risk factors from those disclosed under the caption “Item 1A. Risk factors” in our
annual report on Form 10-K for the year ended December 31, 2025.