Alexandria earnings exceeded third-quarter expectations on October 26, 2026, but adjusted funds from operations fell from a year earlier as lower same-property occupancy weighed on operating income. The life-science property REIT reported adjusted FFO of $1.54 per diluted share for the quarter ended September 30 and narrowed its full-year guidance without changing the $6.40 midpoint.

Key Takeaways

  • Adjusted FFO exceeded the $1.53 consensus estimate but fell from $2.22 per share a year earlier.
  • Quarter-end operating occupancy improved slightly from June, while average same-property occupancy remained below the prior year.
  • Asset sales remain a key source of funding, with $717 million of transactions completed by October 26.

Alexandria earnings beat masks weaker annual performance

Quarterly revenue reached $671.2 million, above expectations of $658.6 million. The modest adjusted FFO beat did not reverse the year-over-year decline: adjusted FFO attributable to common stockholders totaled $264.4 million, compared with $377.8 million in the third quarter of 2025.

Alexandria’s third-quarter results announcement showed a net loss attributable to common stockholders of $638.5 million, or $3.74 per diluted share, compared with a loss of $234.9 million, or $1.38 per share, a year earlier. The latest quarter included $637.9 million of real estate impairment charges related to assets held for sale.

The net loss and adjusted FFO are separate measures. The positive adjusted FFO result should not be read as a return to accounting profitability.

Occupancy measures show different operating trends

Operating-property occupancy stood at 87.1% on September 30, up from 86.9% on June 30. Including signed leases whose tenants had not yet occupied their space, the September figure was 90.8%; that higher measure does not represent current occupancy.

Separately, average same-property occupancy was 88.1% during the quarter, down from 91.7% in the corresponding 2025 period. Same-property net operating income fell 6.7%, or 2.8% on a cash basis. Alexandria attributed the decline primarily to previously disclosed lease expirations and the resulting downtime.

Leasing provided a counterpoint to those weaker annual comparisons. Total quarterly leasing exceeded 1.2 million rentable square feet, the highest volume since the fourth quarter of 2024, including 450,961 square feet of previously vacant space.

Guidance narrows as property sales support funding

Management narrowed its 2026 adjusted FFO guidance to $6.38–$6.42 per diluted share from $6.35–$6.45. The unchanged $6.40 midpoint means the revision tightened the expected range rather than raising the central forecast.

Alexandria plans to fund a significant portion of its 2026 capital requirements through land and non-core property dispositions and sales of partial interests. Completed transactions totaled $717 million as of October 26, including the October sale of an approximately 29% noncontrolling interest in Campus Point by Alexandria for $475 million.

The company’s 2026 guidance midpoint for dispositions and partial-interest sales is $1.9 billion. Pending transactions remain distinct from completed sales, and Alexandria indicated that some proceeds could be deferred into 2027.

Next milestone

The next scheduled transaction milestone is the anticipated fourth-quarter 2026 closing of the sale of substantially all of Alexandria’s development project at 421 Park Drive. The company expects that sale to reduce future potential construction spending by approximately $136 million.

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