Alexandria's $638.5M net loss widens as lab leasing picks up

Alexandria Real Estate Equities reported a $638.5 million net loss for the third quarter of 2026, wider than the $234.9 million loss it recorded a year earlier.

Funds from operations fell to $264.4 million from $296 million in the second quarter and $377.8 million a year earlier, executives said on Tuesday's earnings call. Revenue was $671 million, up from $662.7 million in the second quarter but down from $751.9 million a year earlier.

Alexandria expects a 2027 expiration wave of up to 1.4 million square feet, about $100.5 million in annual rental revenue, to take nine to 24 months to re-lease. The operating portfolio is 87.1% occupied.

Alexandria signed 1.2 million square feet in the third quarter, above the 979,822 square feet it signed on average across the six preceding quarters, executives said on the call.

Joel Marcus, the company's executive chairman and founder, said 57% of annual rental revenue comes from investment-grade or publicly traded large-cap tenants.

Alexandria disposed of $234 million of assets in the third quarter, and 421 Park Drive at the Alexandria Center for Life Science – Fenway Megacampus in Boston is under contract to sell for about $136 million. The buyer was not disclosed.

Alexandria has attributed the earnings pressure to new supply and lower research funding. Marcus has pointed to the wave of lab space built after the pandemic, and the company has tied steep declines in scientific research funding to the second Trump administration, according to Commercial Observer.