Alexandria Real Estate Q2 FFO falls on lower occupancy

Alexandria Real Estate Equities

03/08/2026 21:22

Overview
U.S. life sciences REIT's Q2 FFO per share, as adjusted, fell year-over-year
Net loss per share narrowed from prior year, driven by lower same property occupancy
Company reaffirmed 2026 FFO guidance midpoint, narrowing the range

Outlook
Alexandria narrows 2026 FFO per share guidance to $6.35-$6.45, maintaining midpoint at $6.40
Company expects year-end 2026 occupancy of operating properties between 86.2% and 87.8%
Alexandria targets $2.1 bln-$3.7 bln in 2026 dispositions, sales of partial interests, and other capital sources

Result Drivers
OCCUPANCY DECLINE - Co said lower same property occupancy, mainly from key lease expirations, drove declines in net operating income
LEASING ACTIVITY - Q2 leasing volume exceeded 1.0 mln RSF, up 60% from Q1, with 75% of activity from existing tenants
CAPITAL RECYCLING - Co continued to fund construction and reduce leverage through dispositions and sales of partial interests

Company press release: ID:nPn2JVqMFa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Dividend
 
$0.72
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the commercial reits peer group is "buy."
Wall Street's median 12-month price target for Alexandria Real Estate Equities, Inc is $53.00, about 3% above its July 31 closing price of $51.45
The stock recently traded at 69 times the next 12-month earnings vs. a P/E of 63 three months ago

Reuters Recommended Reads
Aug 3 - Easterly Government Properties Q2 Core FFO beats estimates; raises 2026 outlook
Aug 3 - Alexander's Q2 net income surges on property sale gain
Aug 3 - Singapore's Lendlease Global Commercial REIT FY gross revenue rises

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)