Alexandria Real Estate Equities Sells $475M Stake in Campus Point Megacampus as 3Q26 Net Loss Reaches $638.5M

Alexandria Real Estate Equities, Inc. (NYSE: ARE) completed the sale of an approximately 29% noncontrolling interest in the Campus Point by Alexandria Megacampus for $475.0 million to a new joint venture partner in October 2026, the company announced Oct. 26 alongside its third-quarter results. The Pasadena, Calif.-based real estate investment trust said the transaction is part of a capital recycling strategy that funds a significant portion of its 2026 capital requirements through land and non-core dispositions and sales of partial interests.

Campus Point Megacampus Interest Sale Details

Alexandria Real Estate Equities retained control of the joint venture in the transaction. Its ownership in the Campus Point by Alexandria Megacampus declined from 59% at Sept. 30 to approximately 30% after the sale closed. The new partner's initial share of annual distributions is expected to equal approximately 5.5% of its $475 million contribution, implying initial annual distributions of roughly $26 million.

The sale lowered the company's pro forma leverage. Net debt and preferred stock to annualized adjusted EBITDA stood at 6.9x for 3Q26 and 6.6x on a pro forma basis reflecting the Campus Point closing. Alexandria's intermediate-term leverage goal is in the mid-5x range, and its 4Q26 annualized target is 5.6x to 6.2x.

Capital Recycling and Disposition Pipeline

As of Oct. 26, Alexandria had completed $717 million of dispositions and partial-interest sales, comprising $242 million of non-core and land dispositions and the $475 million Campus Point transaction. Pending transactions subject to non-refundable deposits total $355 million, while transactions subject to signed letters of intent or purchase and sale agreements in late-stage negotiations total $1.548 billion. Together, completed and pending transactions total $2.62 billion.

The company's 2026 guidance midpoint for dispositions and sales of partial interests is $1.9 billion. Alexandria said $720 million of proceeds in excess of that midpoint may be deferred into 2027.

Alexandria also entered into a purchase and sale agreement with an institutional user for 421 Park Drive on the Alexandria Center for Life Science – Fenway Megacampus, aggregating 339,668 rentable square feet (RSF). The company said the sale is expected to reduce future potential construction spend by approximately $136 million, with closing anticipated in 4Q26. At 311 Arsenal Street on The Arsenal on the Charles Megacampus, the company has executed leases of 66,859 RSF and has additional leases under negotiation of 100,684 RSF for advanced technology use, a pivot it said reduces future potential construction spend by approximately $220 million. The 339,020 RSF project was reclassified from redevelopment to operating in 3Q26. Alexandria continues to evaluate strategy for three remaining projects totaling 667,002 RSF.

Third-Quarter Financial Results

Alexandria reported a 3Q26 net loss attributable to common stockholders of $638.5 million, or $3.74 per diluted share, compared with a loss of $234.9 million, or $1.38 per share, in 3Q25. The loss includes $637.9 million of real estate impairment charges related to assets held for sale. For the first nine months of 2026, the net loss was $351.4 million, or $2.06 per share, versus $356.1 million, or $2.09 per share, a year earlier.

Funds from operations attributable to common stockholders, as adjusted, were $264.4 million, or $1.54 per diluted share, compared with $377.8 million, or $2.22 per share, in 3Q25. Year-to-date adjusted FFO was $856.5 million, or $5.00 per share, versus $1.166 billion, or $6.85 per share. Revenue was approximately $671.2 million, down 10.7% year over year, with rental income declining 11.2% to approximately $653.6 million.

Same-property net operating income fell 6.7% in the quarter and 9.2% year to date; on a cash basis the declines were 2.8% and 8.4%. The company attributed the decline to lower same-property occupancy driven by previously disclosed key lease expirations. Common stock dividends were declared at $0.72 per share for 3Q26, consistent with the prior quarter.

Occupancy and Leasing Activity

Occupancy of operating properties was 87.1% at Sept. 30, up from 86.9% at June 30. Including executed leases with future occupancy, occupancy was 90.8%. The Megacampus platform accounts for 80% of annual rental revenue in effect, and 57% comes from investment-grade or publicly traded large-cap tenants. The company reported 99.9% collection of 3Q26 rents and receivables as of Oct. 26.

Total leasing volume in 3Q26 exceeded 1.2 million RSF, at 1,236,030 RSF, the highest quarterly total since 4Q24 and above the 979,822 RSF quarterly average for 1Q25 through 2Q26. The volume included 450,961 RSF of previously vacant space, the second-highest quarterly amount in company history, and 785,069 RSF of renewals and re-leasing. Rental rates on renewals and re-leasing declined 2.4% (3.3% on a cash basis) in the quarter and 5.1% (6.9% on a cash basis) year to date. Existing tenants generated 74% of leasing over the last twelve months.

Executed leases in the operating portfolio aggregating 1.3 million RSF are expected to add approximately $52 million of annual rental revenue, with a weighted-average expected occupancy date of approximately June 2027. The company expects 32% of that space to be occupied by Dec. 31, 2026.

Development Deliveries, Balance Sheet and Capital Markets Activity

During 3Q26, Alexandria placed into service 529,061 RSF of development and redevelopment projects that were 84% occupied at delivery and generated incremental annual net operating income of $40 million. Deliveries included 198,992 RSF to Novo Nordisk at 60 Sylvan Road on the Alexandria Center for Life Science – Waltham Megacampus and 174,662 RSF at 99 Coolidge Avenue on a Megacampus in Watertown. An additional $85 million of incremental annual net operating income is expected from projects to be delivered by 4Q28.

In August 2026, the company completed a public offering of $1.00 billion of 7.250% Series A fixed-to-fixed reset rate junior subordinated notes due 2057, which receive 50% equity treatment from key rating agencies. In September, it closed an amended and restated $5.0 billion unsecured senior line of credit, extending maturity from January 2030 to January 2032 and reducing the borrowing rate to SOFR plus 0.725% from SOFR plus 0.835%.

Alexandria reported liquidity of $4.56 billion, total market capitalization of $21.01 billion, and an 11.6-year weighted-average remaining debt term. Only 6% of total debt matures through 2028, and total debt and preferred stock to gross assets was 30%. No shares have been repurchased under the $500.0 million common stock repurchase program authorized in December 2025.

Market Context

The results reflect a life-science real estate market in which leasing volume is recovering faster than occupancy and cash flow. Signed leases require building or tenant improvements before tenants take occupancy, and renewal rents remain below prior levels. Partial-interest sales such as the Campus Point transaction allow Alexandria to raise capital while keeping control of and exposure to the Megacampus, as the company works toward its leverage targets.

Sources

Alexandria Real Estate Equities, Inc., "Alexandria Reports 3Q26 Results And $475 Million Campus Point Interest Sale" (Oct. 26, 2026): https://s2.q4cdn.com/884574073/files/doc_downloads/2026/3Q26-EX-99-1-SUPP-Press-Release.pdf