Alexandria Real Estate profit falls on weak leasing demand

Alexandria Real Estate Equities

27/04/2026 21:44

April 27 (Reuters) - Alexandria Real Estate Equities ARE.N reported a fall in first-quarter profit compared with a year earlier, hurt by weak leasing demand as macroeconomic uncertainty weighed on tenants.

The Pasadena, California-based real estate investment trust owns, operates and develops life science laboratories, offices and technology campuses across North America.

Its tenants include pharmaceutical, biotech and life science companies, as well as research institutions and U.S. government agencies, among others.

The company said it expects annual construction spending beyond 2026 to decline by about $500 million, depending on market conditions.

Shares of the company fell 2% in aftermarket trading.

Alexandria's adjusted funds from operations, a key performance measure for REITs, fell to $1.73 per share in the quarter ended March 31, from $2.30 per share a year earlier.

Analysts, on average, expected adjusted FFO of $1.74 per share, according to data compiled by LSEG.

The company narrowed its 2026 adjusted FFO forecast to between $6.30 and $6.50 per share, keeping the midpoint unchanged from its prior outlook of $6.25 to $6.55 per share.

Alexandria's first-quarter revenue fell to $671 million, compared with $758.1 million a year earlier.

Analysts expected quarterly revenue of $683.8 million.

 (Reporting by Parth Chandna; Editing by Tasim Zahid)

 ((Parth.Chandna@thomsonreuters.com;))