Weekly Real Estate News
PASADENA, Calif. — Alexandria Real Estate Equities reported a $638.5 million third-quarter net loss attributable to common shareholders, as the life-sciences property owner recorded nearly $638 million in real estate impairment charges and continued to reposition its portfolio.
The company disclosed its results October 26, 2026, for the quarter ended September 30. The loss widened from $234.9 million a year earlier, according to Alexandria’s earnings announcement.
Large impairment tied to assets marked for sale
Alexandria recognized $637.9 million in real estate impairment charges in the quarter, largely associated with properties classified as held for sale. Such charges reflect reductions in reported asset values; they are not equivalent to cash paid out during the quarter.
Net loss was $3.74 per diluted share, compared with a $1.38-per-share loss a year earlier. Revenue declined to $671.2 million from $751.9 million. Adjusted funds from operations, a widely followed REIT performance measure that excludes certain accounting items, fell to $1.54 per diluted share from $2.22. Adjusted FFO should not be confused with GAAP net income.
Occupancy and leasing
Occupancy in operating properties was 87.1% at September 30, up from 86.9% at June 30. Alexandria said executed leases covering future occupancy would raise that figure to 90.8% on a pro forma basis. Those future leases are not yet occupied space.
The company leased approximately 1.24 million rentable square feet during the quarter, including nearly 451,000 square feet of previously vacant space. It reported that 99.9% of third-quarter rents and receivables had been collected as of October 26.
Property sales reshape the portfolio
Alexandria completed approximately $716.8 million in dispositions and sales of partial interests through October 26, including a $475 million sale of a partial interest in its Campus Point venture during October. It also described $355.4 million in pending transactions with nonrefundable deposits and approximately $1.55 billion in transactions at earlier negotiation or agreement stages. Those pending amounts are not completed sales.
The company maintained its 2026 adjusted FFO guidance of $6.38 to $6.42 per share and said it intends to reduce construction spending as it prioritizes leased projects.
Alexandria’s results underline pressure on life-sciences real estate valuations even as the landlord reports leasing activity and liquidity. The size of the write-down highlights the difference between the book values previously carried for some assets and current sale expectations.
Source: Alexandria Real Estate Equities’ October 26 third-quarter earnings release and financial tables. Financial figures are company-reported.
