Monitor 2Q26 occupancy trends and progress on the $2.9B disposition plan to improve leverage; the 1Q26 revenue miss and negative same property performance suggest continued headwinds from key lease expirations and tenant wind-downs. The in-line FFO as adjusted offers limited support; watch for further guidance reductions or dividend cuts.
Price Chart
Executive Summary
Alexandria Real Estate Equities reported 1Q26 revenue of $671.0M, missing the $695.5M consensus by 3.5%, as same property NOI fell 11.9% and operating occupancy dropped to 87.7%. FFO as adjusted of $1.73 was in line with Street estimates, but the underlying operational weakness drove a revenue miss. Guidance for 2026 FFO was maintained at $6.30-$6.50 but with lower occupancy and same property assumptions, adding to bearish sentiment.
Key Financial Metrics
Key Facts
- 1Q26 total revenues $671.0M vs consensus $695.5M (-3.5% miss)
- FFO per share diluted, as adjusted $1.73, in line with Street consensus of $1.73
- Same property NOI declined 11.9% (GAAP) and 11.7% (cash basis) YoY
- Operating occupancy fell to 87.7% from 90.9% in 4Q25
- Rental rate changes on renewals -15.0% GAAP, -15.8% cash basis
- 2026 FFO guidance maintained at $6.30-$6.50, but occupancy and same property assumptions reduced
- Debt extinguishment gain of $366.4M boosted GAAP net income but excluded from FFO
- Dividend maintained at $0.72/share (6.2% yield)
- Net debt to Adjusted EBITDA rose to 6.8x from 5.7x in 4Q25
Financial Impact
Revenue miss of $24.5M vs consensus; same property NOI -11.9%; operating occupancy -3.2pp
Risk Factors
- Further occupancy declines from 1.5M RSF of 2027 lease expirations with expected 6-24 month downtime
- Execution risk on $2.9B disposition program
- Potential tenant wind-downs reducing FFO by $25M-$30M in 2026
- Higher interest expense from rising commercial paper balances
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001035443-26-000045 |
| Document: are-20260427.htm | 0001035443-26-000045 |
| Document: 0001035443-26-000045-index-headers.html | 0001035443-26-000045 |
| Document: 0001035443-26-000045-index.html | 0001035443-26-000045 |
| Document: 0001035443-26-000045.txt | 0001035443-26-000045 |
| 8-K Data (Synthetic) | 0001035443-26-000045 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 17d ago | Insider Cluster | $52.93 $53.85 | ▲ +1.74% | ▼ −0.39% | $47.37 (−10.50%) |
Aug 15, 2026 6w ago | Institutional Cluster | $46.94 $54.04 | ▲ +15.13% | ▲ +16.32% | $47.37 (+0.92%) |
Jul 9, 2026 12w ago | 8-K | $47.88 $50.14 | ▲ +4.72% | ▲ +5.28% | $47.37 (−1.07%) |
Jun 11, 2026 16w ago | Institutional Cluster | $52.77 $49.21 | ▼ −6.75% | ▼ −7.18% | $47.37 (−10.23%) |
Apr 27, 2026 22w ago | 8-K | $40.22 $41.14 | ▼ −2.30% | ▼ −0.61% | $47.37 (−17.79%) |
Apr 1, 2026 26w ago | DEFA14A | $43.15 $42.40 | ▼ −1.74% | ▼ −5.36% | $47.37 (+9.79%) |
Feb 28, 2026 30w ago | Institutional Cluster | $52.58 $51.13 | ▼ −2.76% | ▼ −1.55% | $47.37 (−9.90%) |
Feb 25, 2026 31w ago | 8-K | $53.91 $53.35 | ▼ −1.04% | ▲ +0.06% | $47.37 (−12.12%) |
US Market Status
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