Alexandria Real Estate Equities, Inc.

FFO per share diluted as adjusted was $1.73 for 2Q 2026. Same-property NOI declined 10.6% and 8.6% on a cash basis in 2Q 2026, versus declines of 1.3% and 3.1% cash basis in the prior quarter. Occupancy was 86.9% at quarter-end, down 80 basis points sequentially. Leasing volume totaled 1,039,000 square feet, and management said 1.4 million square feet of leased space is expected to commence in November 2026 on average with expected annual rental revenue of $69 million. Adjusted EBITDA margin was 67% for 2Q 2026, and trailing 12-month G&A as a percentage of NOI was 6.6%. The company recorded $222.5 million of real estate impairments in the quarter, and realized gains from venture investments were $10.3 million. Management reaffirmed 2026 FFO per share diluted as adjusted at a midpoint of $6.40, narrowed the range to plus or minus $0.05, reiterated realized investment gains guidance of $60 million to $90 million, and said it expects 4Q 2026 FFO per share diluted as adjusted to be at the lower end of $1.40 to $1.50. The company also reiterated its $2.9 billion capital recycling target and said no common equity issuance is assumed in 2026.

Joel Marcus framed the quarter around disciplined leasing, strong tenant relationships, and flexibility in a difficult life-science market. He emphasized that 75% of leasing came from existing tenants, highlighted outsized share gains in transactions, and said the company is focused on meeting the market while managing CapEx and capital sources. His tone was cautiously optimistic but guarded, especially on public biotech, regulatory uncertainty, and the need for stronger leadership at HHS, FDA and NIH.

Marc Binda said the quarter featured solid execution on leasing, occupancy support from 1.4 million square feet of leased space not yet in occupancy, and continued outperformance in the company’s largest markets. He cited 2Q adjusted EBITDA margins of 67%, 2026 G&A guidance of $134 million to $154 million, and trailing 12-month G&A at 6.6% of NOI, while also noting $73.7 million of capitalized interest in 2Q and a $5 million midpoint reduction to capitalized interest guidance. He walked through the balance sheet, including $3.6 billion of liquidity, the extension of the $5 billion credit facility to 2032, and leverage of 7x on a quarterly annualized basis in 2Q, with a goal of 5.6x to 6.2x by 4Q 2026 and mid-5x over the medium term.

Analysts focused on three issues: the growing role of advanced technology tenants, the timing and confidence around the $2.9 billion disposition plan, and the path for occupancy and 2027 lease expirations. Management said advanced tech deals generally have lower upfront CapEx and can produce similar incremental yields, though all-in returns may be lower; they view that trade-off as attractive because it creates cash flow with less capital outlay. On dispositions, management said timing slipped mainly because some JV transactions are more complex and buyer financing is taking longer, but they remained confident the $2.9 billion midpoint will be achieved this year. On occupancy, management said the key 2027 expirations have 85% of the space as active prospects and that mid-sized public biotech tenants are beginning to reappear as funding conditions improve.