Record Leasing Volume
Total leasing volume surpassed 1.0 million RSF in Q2 2026, a 60% increase from Q1 2026, driven by 397,919 RSF of previously vacant and development space leased, the second-highest amount since Q2 2024.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Alexandria Real Estate Equities navigated a challenging Q2 FY2026 marked by persistent oversupply and sluggish demand in life science real estate, resulting in a net loss of $0.43 per share, though this represents a 32.8% improvement from the prior-year period. Management highlighted record leasing volume of over 1.0 million RSF and a disciplined capital recycling strategy targeting $2.9 billion in dispositions to fund development and reduce leverage. Operating occupancy slipped to 86.9% as key lease expirations created temporary vacancy, partially offset by occupancy from executed leases that will add 4.0% to occupancy in coming months. While same-property net operating income declined 10.6%, the company's strong liquidity and long debt maturity profile provide resilience against ongoing macroeconomic and industry-specific headwinds.
EPS (Diluted)
-$0.43
+32.81% YoY
Source: SEC XBRL
ARE's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 2.10 | 0.13 | Beat +1459.0% |
| Dec 2025 | -6.35 | 0.28 | Miss -2332.0% |
| Sep 2025 | -1.38 | 0.50 | Miss -374.4% |
| Jun 2025 | -0.64 | 0.61 | Miss -205.6% |
Compiled by AI from 10-Q Item 2 of this filing
Total leasing volume surpassed 1.0 million RSF in Q2 2026, a 60% increase from Q1 2026, driven by 397,919 RSF of previously vacant and development space leased, the second-highest amount since Q2 2024.
Source: 10-Q Item 2 MD&A
Operating occupancy declined to 86.9%, but including executed leases with future occupancy, pro forma occupancy is 90.9%. Key lease expirations with expected downtime of 12-24 months are expected to impact occupancy in the near term.
Source: 10-Q Item 2 MD&A
The company targets $2.9 billion in dispositions, sales of partial interests, and other capital sources in 2026, with $1.3 billion either completed or in process as of the report date.
Source: 10-Q Item 2 MD&A
Same property net operating income decreased 10.6% (cash basis) for Q2 2026, driven by a drop in same property average occupancy from 92.6% to 87.1% due to key lease expirations.
Source: 10-Q Item 2 MD&A
General and administrative expenses increased 26.5% YoY to $36.9 million, largely due to the return of temporary cost reductions; however, trailing twelve-month G&A as a percentage of NOI is 6.6%, about half the S&P 500 REIT average.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 3 high, 2 medium, 0 low
A surge in speculative laboratory developments since the pandemic has created significant oversupply, with life science real estate availability in top markets reaching 29% in 2025, up from 4% in 2021. This oversupply continues to pressure rental rates, occupancy, and tenant improvement costs.
Source: 10-Q Item 2 MD&A
The life science sector experienced its fifth consecutive year of a broad-based biotech bear market in 2025, with venture capital fundraising declining to its lowest since 2016 and the IPO market largely closed. This restricts tenant funding and reduces demand for laboratory space.
Source: 10-Q Item 2 MD&A
Disruption at the FDA, proposed NIH funding cuts, and heightened scrutiny of pharmaceutical pricing have increased uncertainty and delayed tenant leasing decisions. Although the 15% NIH indirect cost cap was abandoned, regulatory instability persists.
Source: 10-Q Item 2 MD&A
To remain competitive, the company is offering higher tenant improvement allowances and concessions, leading to increasing revenue- and non-revenue-enhancing capital expenditures. Also, real estate impairments are rising, with $227.97 million recognized in the first half of 2026.
Source: 10-Q Item 2 MD&A
The company's capital strategy relies heavily on $2.9 billion in dispositions and joint ventures in 2026, but elevated interest rates and reduced market liquidity may delay or reduce proceeds, potentially affecting leverage and funding plans.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Income $M | -72.78 $M | -107.00 $M | +31.98% |
EPS (Basic) $ | -0.43 $ | -0.64 $ | +32.81% |
EPS (Diluted) $ | -0.43 $ | -0.64 $ | +32.81% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Alexandria Real Estate Equities (ARE) delivered a dramatic Q1 FY2026 turnaround with net income surging to $361.7M from a prior-year loss of $8.9M, driven by asset dispositions and debt reduction, even as total assets contracted 9.1% YoY.
Alexandria Real Estate Equities (ARE) reported a net loss of $1.43B in FY2025, a dramatic swing from $323M profit in FY2024, driven by significant asset impairments and write-downs, while operating cash flow remained positive at $1.41B.
Other companies in Office REITs