Alexandria Real Estate Equities (ARE) investor relations material

Executive summary

• Q3 net loss attributable to common stockholders was $638.5M, or $3.74 per diluted share, including $637.9M of real estate impairments; adjusted diluted FFO was $1.54 per share.

• Leasing reached 1.236M RSF, the highest quarterly volume since 4Q24; 450,961 RSF was previously vacant space.

• Full-year 2026 adjusted diluted FFO guidance midpoint remained $6.40 per share; dispositions and partial-interest sales support capital needs and deleveraging.

Financial highlights

• Q3 revenue was $671.2M, down 10.7% year over year; rental revenue was $653.6M, down 11.2%.

• Adjusted diluted FFO was $264.4M, or $1.54 per share, versus $377.8M, or $2.22, in Q3 2025; YTD adjusted FFO was $5.00 per share versus $6.85.

• Same-property NOI declined 6.7% in Q3 and 9.2% YTD; cash-basis NOI declined 9.2% and 8.4%, respectively.

• Adjusted EBITDA was $433.0M with a 65% margin; Q3 declared dividend was $0.72 per share, with a 47% payout ratio and 6.1% annualized yield.

Outlook and guidance

• FY26 adjusted diluted FFO guidance remained $6.38–$6.42 per share, midpoint $6.40; the range narrowed by $0.06.

• Year-end 2026 operating occupancy guidance was 86.2%–87.8%; same-property and cash-basis NOI guidance were each down 10.5%–8.5%.

• FY26 annualized Q4 leverage target remained 5.6x–6.2x; fixed-charge coverage guidance was reduced to 3.4x–3.9x from 3.6x–4.1x.

• 2027 occupancy is expected to decline temporarily and same-property NOI to remain negative; both are expected to improve in 2028, subject to leasing and market conditions.

• 2027 construction spending is expected to focus on leased or negotiating space and projects targeted to stabilize through 2028; 2028 spending is expected to decline further.