Alexandria Real Estate Equities, Inc. Reports 1Q26 Net Income per Share - Diluted of $2.10; and 1Q26 FFO per Share - Diluted, as Adjusted, of $1.73

PASADENA, Calif., April 27, 2026 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the first quarter ended March 31, 2026.

A best-in-class REIT with a high-quality, diverse tenant base, strong margins, and long lease terms

Strong and flexible balance sheet with significant liquidity; top 15% credit rating ranking among all publicly traded U.S. REITs

• $20.44 billion in total market capitalization.
• $7.92 billion in total equity capitalization.
• Net debt and preferred stock to Adjusted EBITDA of 6.8x and fixed-charge coverage ratio of 3.4x for 1Q26 annualized, with 4Q26 annualized targets of 5.6x to 6.2x and 3.6x to 4.1x, respectively.
  • We expect improvement in our quarter annualized net debt and preferred stock to Adjusted EBITDA ratio in 2H26 as we complete dispositions and sales of partial interests.
• As of March 31, 2026:
  • Significant liquidity of $4.17 billion, or 3.7x of our debt maturities through 2028.
  • Only 9% of our total debt matures through 2028.
  • 10.0-year weighted-average remaining debt term, the longest among S&P 500 REITs.
  • Total debt and preferred stock to gross assets of 31%.

Solid leasing of development and redevelopment space

• Leasing volume of 647,356 RSF during 1Q26.
  • 1Q26 leasing of development and redevelopment space aggregating 117,935 RSF, up 135%, from the prior five-quarter average, excluding a build-to-suit lease executed in July 2025 with a long-standing multinational pharmaceutical tenant.
    • From April 1, 2026 through April 27, 2026, we have executed leases and/or letters of intent aggregating 276,188 RSF related to our development and redevelopment pipeline.
  • 72% of our leasing activity during 1Q26 was generated from our existing tenant base.

• Excluding the impact of one lease aggregating 47,719 RSF at 480 Arsenal Street in our Cambridge/Inner Suburbs submarket, rental rates for renewed and re-leased space for 1Q26 would have decreased by 10.1% and 9.1% (cash basis). The space at 480 Arsenal Street was re-leased to an entertainment studio user to accommodate their expansion needs and secure a long-term extension. In addition, the reorientation of this building layout provides flexibility to market the remaining available space to a broader range of user demand.

Ongoing execution of Alexandria's capital recycling strategy

We plan to continue funding a significant portion of our capital requirements for the year ending December 31, 2026 through dispositions of land, non-core assets, and core assets (primarily sales of partial interests).

Occupancy and leasing progress on temporary vacancy

Key operating metrics

Continued successful reduction and management of general and administrative expenses

• General and administrative expenses for 1Q26 aggregated $34.7 million, which represents a decrease of $7.4 million, or 18%, compared to the quarterly average for 2024. For the trailing twelve months ended March 31, 2026, our general and administrative expenses as a percentage of net operating income were 6.0%, approximately half the average of other S&P 500 REITs for 2023-2025.
• In 2025, we achieved general and administrative expense reduction of $51.3 million, or 30%, compared to 2024, primarily as a result of cost-control and efficiency initiatives. Some of these cost savings were temporary, and we anticipate that approximately half of the cost reduction achieved in 2025 will continue in 2026.

Reduction of capital spend and funding needs

• We are evaluating the business and financial strategy for certain projects aggregating 1.6 million RSF to reduce future construction funding requirements within our active pipeline. 
  • Driven by demand for our Megacampuses and access to amenities at our 311 Arsenal Street and 3000 Minuteman Road redevelopment projects, we executed letters of intent aggregating 242,408 RSF in April 2026. These letters of intent are for lower-cost alternative uses for all or a portion of these projects, including advanced technology. If we are successful in executing these potential leases, we expect to evaluate whether all or a portion of these projects will be placed back into operation without the need to further redevelop.
• Non-income-producing assets are 17% as a percentage of gross assets, a reduction of 3% since 4Q24; targeting a further reduction to 11% to 16% by 4Q26.

Alexandria's development and redevelopment pipeline is anticipated to deliver $92 million of incremental annual net operating income by 4Q26 primarily from projects that are 93% leased/negotiating

• Annual net operating income (cash basis) from recently delivered projects is expected to increase by $25 million upon the burn-off of initial free rent, which has a weighted-average remaining period of approximately four months.
• 77% of the RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.

Key capital events

• In February 2026, we completed tender offers to repurchase an aggregate debt principal amount of $1.33 billion across a portion of our outstanding 4.00% Senior Notes due 2050, 3.00% Senior Notes due 2051, and 3.55% Senior Notes due 2052. Cash consideration paid was $952.2 million. In connection with the debt repurchase, we recognized a gain on early extinguishment of debt of $366.4 million, including the write-off of unamortized debt issuance costs and other transaction-related costs.
  • We funded the repurchase as follows:
    • $750.0 million through the issuance of 5.25% unsecured senior notes due 2036; and
    • Approximately $200 million through short-term borrowings under our commercial paper program, which will be repaid through planned dispositions and sales of partial interests included in our 2026 guidance.
  • The repurchase reduced debt and improved leverage by approximately 0.2x.
  • This transaction did not have a significant impact to our funds from operations per share diluted, as adjusted, interest expense, or fixed-charge coverage ratio.
  • Following this transaction, our weighted-average remaining term of debt as of 1Q26 is 10.0 years, which continues to be the longest among S&P 500 REITs.
• In January 2026 and April 2026, we repaid, upon maturity, $300.0 million of 4.30% unsecured senior notes payable and $350.0 million of 3.80% unsecured senior notes payable, respectively. These repayments were funded temporarily with borrowings under our commercial paper program, which will be repaid through planned dispositions and sales of partial interests included in our 2026 guidance. No gain or loss was incurred in connection with these repayments.
• Under our common stock repurchase program authorized in December 2025, we may repurchase up to $500.0 million of our common stock through December 31, 2026. As of March 31, 2026, no shares have been repurchased.

Dividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment

• Common stock dividend declared of $0.72 per share for 1Q26, consistent with the preceding quarter. The declared dividend per common share reflects our commitment to maintaining the strength of our balance sheet, enhancing financial flexibility, preserving liquidity, and sharing cash flows with our stockholders.
• Significant net cash provided by operating activities, as adjusted, retained for reinvestment aggregating $2.60 billion for the years ended December 31, 2022 through 2025 and the midpoint of our 2026 guidance range.
• Dividend yield of 6.2% as of March 31, 2026 and dividend payout ratio of 42% for the three months ended March 31, 2026.

Investments

• As of March 31, 2026:
  • Our non-real estate investments aggregated $1.54 billion.
  • Unrealized gains presented in our consolidated balance sheet were $125.9 million, comprising gross unrealized gains and losses aggregating $191.5 million and $65.6 million, respectively.
• Investment loss of $4.6 million for 1Q26 presented in our consolidated statement of operations consisted of $18.2 million of realized gains, $10.3 million of unrealized losses, and $12.4 million of impairment charges.

2026 Guidance

March 31, 2026

(Dollars in millions, except per share amounts)

Guidance for 2026 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2026. There can be no assurance that actual results will not be materially higher or lower than these expectations. Our guidance for 2026 is subject to a number of variables and uncertainties. Refer to our discussion of "forward-looking statements" as well as our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.