Pasadena, California, April 28, 2026, 12:01 PDT
- Alexandria Real Estate Equities, Inc. slid roughly 9% Tuesday, hitting a new low after BNP Paribas Exane lowered its target price to $44 and stuck with an underperform rating.
- Adjusted FFO dropped to $1.73 per share in the first quarter, down from $2.30 last year, despite a turnaround to net profit driven by a gain on debt repurchase.
- The company is sticking with its $6.40 midpoint for 2026 adjusted FFO. However, it’s now projecting weaker year-end occupancy and rental rates.
Alexandria Real Estate Equities, Inc. tumbled roughly 9% to $41.40 on Tuesday, hitting a session low of $39.52, as investors reacted to the company’s first-quarter results. Though the life-science landlord reported a sizable accounting profit, underlying operating trends proved softer than expected, according to market data.
That decision turns up the heat on one of the most recognizable names in lab and life-science real estate, as investors keep feeling out the appetite for niche office properties. Alexandria’s operating occupancy slipped to 87.7% as of March 31, down from 90.9% at December’s close. The company, however, pointed out that already-leased but undelivered space would bring that rate back to 90.9%.
Asset sales are also central to the company’s “path forward.” Alexandria expects to cover a big chunk of its 2026 capital requirements by selling land, non-core holdings, and stakes in core properties, aiming for a midpoint of $2.9 billion. PR Newswire
Net income attributable to common stockholders came in at $358.9 million, or $2.10 per diluted share. That’s a sharp reversal from last year’s $11.6 million loss, or 7 cents per share. Adjusted funds from operations dropped to $295.9 million, or $1.73 a share, versus $392.0 million, or $2.30 per share, a year ago. FFO, a metric used by REITs, adjusts net income for real estate depreciation and for certain property-related gains or losses.
Revenue slipped, too. Alexandria brought in $671.0 million in total revenue, a drop from $758.2 million a year ago. Rental income came in at $653.0 million, off from $743.2 million the prior year.
The company stuck with its 2026 adjusted FFO forecast of $6.30 to $6.50 per share, keeping the midpoint steady at $6.40. Still, assumptions have shifted: year-end occupancy is now pegged at 86.2% to 87.8%, trimming down from the previous 87.7% to 89.3% range. Expectations for rental-rate changes on renewals and re-leasing have also been cut, now seen falling 9% to up 1%.
Leasing didn’t grind to a halt. Alexandria reported 647,356 rentable square feet signed for the quarter, with 72% of that demand coming from companies already in its buildings. But rental rates slipped: renewals and re-leasing were down 15.0%, or 15.8% on a cash basis—a clear signal of pricing pressure that won’t be lost on investors.
The big swing in profit came from a debt move. Alexandria bought back $1.33 billion in long-term debt for $952.2 million, booking a $366.4 million gain from the early payoff. The company said leverage improved by roughly 0.2 times thanks to the deal.
Nearby real-estate names saw a milder reaction. Healthpeak Properties slipped around 1.7% during the same stretch. BXP posted a gain of about 1.4%, and Ventas picked up roughly 2.7%, according to the most recent quoted prices.
Analysts can’t seem to agree. According to MarketBeat, BNP Paribas Exane lowered Alexandria’s price target to $44 from $50 while sticking with its underperform call. The same source showed three buy ratings, a dozen holds, and two sells. Consensus target still stands at $63.27.
Alexandria, headquartered in Pasadena, runs life-science real estate across markets such as Greater Boston, the Bay Area, San Diego, Seattle, Maryland, the Research Triangle, and New York City. As of March 31, the company reported 35.8 million rentable square feet in operating properties, with another 3.4 million rentable square feet of Class A/A+ space under construction.
Still, the plan isn’t locked in. The company’s 2026 outlook bakes in a $25 million to $30 million hit to FFO from expected tenant wind-downs — essentially tenants cutting back or vacating space — and the company flagged that losses of at least that size could continue into 2026 and after. In its SEC filing, management also cautioned that these forward-looking statements carry risks, and actual results might end up looking quite different.
