Alexandria Equities (ARE) Q3 2026 Earnings Report
MX:ARE Q3 2026 EPS Results
- Actual EPS
- -MXN 69.80
- Consensus EPS
- -MXN 0.52
- Beat/Miss
- Missed by -MXN 69.28
- One Year Ago EPS
- -MXN 25.75
MX:ARE Q3 2026 Revenue Results
- Actual Revenue
- MXN 12.53B
- Expected Revenue
- MXN 12.06B
- Beat/Miss
- Beat by +MXN 465.07M
- YoY Revenue Growth
- -10.74%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/26/2026
- Time
- After Close
- Conference Call
- Monday, October 26, 2026
Alexandria Equities's next earnings date is estimated for February 1, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was predominantly positive, with strong leasing volume, significant leasing of previously vacant space, progress on dispositions and capital formation, improved occupancy, disciplined expense management, reaffirmed FFO guidance, and a strong liquidity and debt-maturity profile. These positives were tempered by a 6.7% decline in same-property NOI, muted public biotech demand, elevated free rent concessions, expected 2027 occupancy pressure, reduced realized investment gain guidance, and $638 million of real estate impairments.
Management expects fourth-quarter leasing of about 1.25 million square feet, year-end 2026 leverage of 5.6x to 6.2x, 2026 FFO per share diluted as adjusted of $6.40 plus or minus $0.02, G&A expenses of $134 million to $154 million, realized investment gains of $65 million at the midpoint, and average real estate basis capitalized in the fourth quarter ranging from $3.4 billion to $4.9 billion, a 40% to 60% decline from 2025. The $1.9 billion midpoint for dispositions and sales of partial interest remains in place, with $2.6 billion of completed and pending transactions potentially allowing proceeds to be deferred into 2027. For 2027, 1.4 million square feet of key lease expirations are expected to have downtime ranging from 9 to 24 months on average, with expiring rent of $101 million and tenant wind-downs estimated at $30 million to $35 million; management expects temporary pressure on occupancy in the first half of 2027, same-property performance to improve from both 2026 to 2027 and from 2027 to 2028, although '27 is still expected to be negative driven by occupancy, and average occupancy growth in 2028.
- Strong Quarterly Leasing VolumeThird-quarter leasing totaled 1,236,000 square feet, the highest quarterly volume in the last 7 quarters. Leasing of previously vacant space reached 451,000 square feet, the second-largest quarterly amount in company history. The quarter also included a weighted average lease term of about 11 years, with 74% of leasing from existing tenants.
- Positive Near-Term Leasing PipelineThe company expects continued positive leasing momentum into the fourth quarter, with an early estimate of 1.25 million square feet. Of the 1.37 million square feet of 2027 lease rolls expected to have downtime, over 60% is already associated with specific tenants in active discussions or negotiations.
- Institutional and Advanced Technology DemandThe defeat of the cap on indirect costs helped drive institutional demand and leasing during the quarter. Advanced technology companies continued to show strong interest in Alexandria's Megacampuses because of their infrastructure and recruitment and retention benefits.
- Improved Leasing of Vacant SpaceLeasing of previously vacant space increased significantly over the last several quarters and reached 451,000 square feet in the third quarter. The company stated that approximately 800,000 square feet of this type of leasing was completed over the last two quarters.
- Occupancy Improvement and Embedded Lease GrowthThird-quarter occupancy was 87.1%, up 20 basis points from the prior quarter and in line with year-end 2026 guidance. Alexandria's occupancy in its three largest markets was 6% to 12% higher than the broader markets. Leases totaling 1.3 million square feet are expected to add 3.7% to occupancy over time, with expected annual rental revenue of $52 million and average commencement in June 2027.
- Robust Tenant and Operating ProfileInvestment-grade or publicly traded large-cap tenants represented 57% of annual rental revenue. Remaining lease terms averaged 7.7 years, average rent steps approached 3% on 97% of leases, and adjusted EBITDA margins were 65% for the quarter.
- Progress on Capital FormationAlexandria completed $1.7 billion of capital activity since June 30, including $1 billion of 7.25% junior subordinated notes and a $475 million Campus Point joint venture. The junior subordinated notes received 50% equity credit from key rating agencies, provide a fixed cost of capital for at least 5 years, and reduced the company's 2026 target for asset sales and near-term reliance on joint ventures.
- Disposition Program Ahead of TargetCompleted and pending dispositions and partial-interest sales totaled $2.6 billion, exceeding the midpoint of the $1.9 billion target by approximately $720 million. The company reported $717 million completed, including $242 million of noncore and land dispositions and the $475 million Campus Point partial-interest sale, plus $355 million under contract and an additional $1.5 billion with signed letters of intent or in late-stage negotiations.
- Development and Redevelopment DeliveriesThe company delivered 529,000 square feet of development and redevelopment space during the quarter. The delivered space was 84% occupied and is expected to generate $40 million of incremental annual net operating income.
- Pipeline Rationalization and Construction ProgressThe development and redevelopment pipeline declined by more than 50%, from 3.6 million square feet in the fourth quarter of 2025 to 1.6 million square feet in the third quarter of 2026. As of quarter-end, 906,000 square feet of projects under construction were 77% leased or under negotiation and expected to stabilize through 2028.
- 311 Arsenal Cost Reduction and Leasing ProgressAt 311 Arsenal Street, Alexandria had executed leases for 67,000 square feet and had another 101,000 square feet under negotiation, primarily with advanced technology tenants. The shift to a lower-cost advanced technology execution is expected to reduce future construction needs by approximately $220 million over the next few years.
- Lower Capitalized Interest and Non-Income-Producing AssetsThird-quarter capitalized interest was $62.9 million, down $11 million from the prior quarter, primarily due to pipeline deliveries and redevelopment projects reaching milestones and being paused. Non-income-producing assets declined from 20% of gross assets at the end of 2024 to 12% as of the third quarter of 2026, representing a 40% reduction.
- Expense ManagementGeneral and administrative expenses remained on track with 2026 guidance of $134 million to $154 million. Trailing 12-month G&A as a percentage of net operating income was 7.5%, compared with 14.3% for the average of S&P 500 REITs over the last few years.
- FFO Guidance ReaffirmedAdjusted diluted FFO per share was $1.54 for the third quarter. The company reaffirmed its 2026 adjusted diluted FFO per share midpoint of $6.40 while tightening the guidance range to plus or minus $0.02.
- Strong Balance Sheet and LiquidityAlexandria reported $4.6 billion of liquidity, extended its $5 billion unsecured senior credit line to 2032, and maintained the longest average remaining debt maturity among S&P 500 REITs at 11.6 years. The company has $350 million of debt maturities next year and expects to meet its year-end net debt to annualized adjusted EBITDA guidance of 5.6x to 6.2x.
- Positive Venture Investment GainsRealized gains included in adjusted diluted FFO were $16 million in the third quarter and $44.5 million for the first three quarters of 2026.
- Sector Demand DiversificationManagement said private biotech has remained historically stable, institutional demand has returned in an important way, life science product and service companies have remained continually strong, and pharma has been steady. Management also expects an upswing in public biotech activity in the fourth quarter.
- Ongoing Focus on High-Return Capital SpendingThe company is prioritizing capital spending with high incremental returns, including costs to meet the market and lease up vacant space. Construction spending related to operating assets is expected to comprise a significant component of the 2027 construction forecast.
MX:ARE Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 01, 2027 | 2026 (Q4) | -2.11- | -118.51 | ― | ― |
| Oct 26, 2026 | 2026 (Q3) | -0.52-69.80 | -25.75 | -171.01% (-44.04) | |
| Aug 03, 2026 | 2026 (Q2) | 1.75-8.02 | -11.94 | 32.81% (+3.92) | |
| Apr 27, 2026 | 2026 (Q1) | 2.7139.19 | -1.31 | 3100.00% (+40.50) | |
| Jan 26, 2026 | 2025 (Q4) | 5.24-118.51 | -7.09 | -1571.05% (-111.42) | |
| Oct 27, 2025 | 2025 (Q3) | 9.26-25.75 | 17.92 | -243.75% (-43.67) | |
| Jul 21, 2025 | 2025 (Q2) | 11.01-11.94 | 4.67 | -356.00% (-16.61) | |
| Apr 28, 2025 | 2025 (Q1) | 13.01-1.31 | 16.61 | -107.87% (-17.92) | |
| Jan 27, 2025 | 2024 (Q4) | 17.21-7.09 | -10.08 | 29.63% (+2.99) | |
| Oct 21, 2024 | 2024 (Q3) | 16.5017.92 | 2.43 | 638.46% (+15.49) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.