Alexandria Real Estate Equities, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net loss attributable to common stockholders of $638.5 million ($3.74 per share) for the quarter ended September 30, 2026, compared to a net loss of $234.9 million ($1.38 per share) in the prior year period; the 3Q26 loss included $637.9 million in real estate impairment charges related to assets held for sale.
• Funds from operations (FFO) attributable to common stockholders, as adjusted, were $264.4 million ($1.54 per share) for the quarter, down from $377.8 million ($2.22 per share) in the prior year period.
• Year-to-date 3Q26 net loss was $351.4 million ($2.06 per share), compared to $356.1 million ($2.09 per share) in the prior year period.
• Year-to-date 3Q26 FFO, as adjusted, was $856.5 million ($5.00 per share), down from $1.166 billion ($6.85 per share) in the prior year period.
• Operating margin was 66% for the quarter, and Adjusted EBITDA margin was 65%.
• Net debt and preferred stock to Adjusted EBITDA was 6.9x annualized for 3Q26 (6.6x pro forma reflecting the sale of a partial interest in Campus Point), compared to 6.1x in the prior year period.
• Total debt and preferred stock, as adjusted, to gross assets was 30% as of September 30, 2026.
• General and administrative expenses represented 7.5% of net operating income on a trailing twelve-month basis, compared to an S&P 500 REIT average of 14.3% for 2023–2025.

Guidance and Future Outlook:

• Updated 2026 FFO per share, as adjusted, guidance to a range of $6.38 to $6.42 (midpoint $6.40), narrowing the range by 6 cents from the previous guidance of $6.35 to $6.45.
• Maintained 4Q26 annualized net debt and preferred stock to Adjusted EBITDA guidance of 5.6x to 6.2x.
• Reduced 4Q26 annualized fixed-charge coverage ratio guidance to 3.4x to 3.9x from 3.6x to 4.1x.
• 2026 guidance for dispositions and sales of partial interests remains $1.1 billion to $2.7 billion (midpoint $1.9 billion).
• 2026 guidance for construction spending remains $1.5 billion to $2.0 billion (midpoint $1.75 billion).
• 2026 guidance for straight-line rent revenue reduced to $40 million to $70 million (midpoint $55 million) from $45 million to $75 million.
• 2026 guidance for realized gains on non-real estate investments reduced to $50 million to $80 million (midpoint $65 million) from $60 million to $90 million.
• Projected 2026 occupancy of operating properties as of December 31, 2026, remains 86.2% to 87.8%.
• Projected 2026 same property NOI changes remain -10.5% to -8.5%.
• Projected 2026 rental rate changes for renewals and re-leasing remain -9.0% to -1.0%.
• Anticipates 2027 occupancy to temporarily decline relative to 2026 projections due to downtime associated with 1.4 million RSF of lease expirations and potential tenant wind-downs.
• Expects 2027 same property NOI performance to improve compared to 2026 guidance but remain negative.
• Expects 2028 same property NOI performance to improve relative to 2027 driven by occupancy growth and lease-up of vacant space.
• Projects 2027 construction spending to focus on revenue- and non-revenue-enhancing capital expenditures and completing projects stabilizing through 2028.
• Expects 2028 construction spending to decline further relative to 2027.
• Plans to introduce 2027 guidance and key assumptions at the Investor Day on December 2, 2026.

Business Segments and Product Lines:

• The Megacampus platform represents 80% of annual rental revenue.
• 57% of annual rental revenue is generated from investment-grade or publicly traded large cap tenants.
• 74% of leasing activity over the last twelve months was generated from the existing tenant base.
• 97% of leases contain annual rent escalations.
• Weighted-average remaining lease term for all tenants is 7.7 years; for the top 20 tenants, it is 10.0 years.
• YTD 3Q26 leases executed at a weighted-average term of 10.9 years, 21% above the 2017–2025 average of 9.0 years.
• 3Q26 total leasing volume exceeded 1.2 million RSF, the highest quarterly volume since 4Q24.
• 3Q26 leasing of previously vacant space was 450,961 RSF, the second-highest quarterly amount in company history.
• 1.3 million RSF of leases executed but not yet occupied as of 3Q26, expected to generate approximately $52 million in annual rental revenue, with a weighted-average occupancy date of June 2027.
• 3Q26 deliveries included 529,061 RSF of development and redevelopment projects, generating $40 million in incremental annual NOI; 80% of the total development and redevelopment pipeline is within Megacampus ecosystems.
• 3Q26 deliveries included 198,992 RSF to Novo Nordisk at the Alexandria Center® for Life Science – Waltham Megacampus and 174,662 RSF at 99 Coolidge Avenue in Watertown.
• 339,020 RSF at 311 Arsenal Street (The Arsenal on the Charles Megacampus) was reclassified from redevelopment to operating, pivoting to lower-cost advanced technology use.
• 339,668 RSF at 421 Park Drive (Alexandria Center® for Life Science – Fenway Megacampus) is under a purchase and sale agreement for sale to an institutional user, expected to close in 4Q26.

Market and Competitive Landscape:

• Occupancy in top 3 markets (Greater Boston, San Diego, San Francisco Bay Area) significantly exceeded overall market occupancy as of 3Q26: Greater Boston (89.7% vs. 77.6% market), San Diego (87.1% vs. 74.7% market), and San Francisco Bay Area (81.0% vs. 75.3% market).
• Alexandria holds a BBB+ credit rating (Negative outlook) from S&P and a Baa2 rating (Stable outlook) from Moody's, ranking in the top 20% of credit ratings among all publicly traded U.S. REITs.
• Weighted-average remaining debt term is 11.6 years, the longest among S&P 500 REITs (average for peers is 5.4 years).
• 95.5% of debt has been fixed-rate since 2022.
• Only 6% of total debt matures through 2028.
• 1.4 million RSF of leases are expiring in 2027 with approximately $100.5 million of annual rental revenue, carrying a weighted-average downtime of 9 to 24 months.

Risks and Challenges:

• Potential tenant wind-downs are estimated to reduce 2026 FFO by $30 million to $35 million, with a similar level of reduction expected in 2027.
• 2027 occupancy is expected to be negatively impacted by the downtime associated with 1.4 million RSF of lease expirations and potential tenant wind-downs.
• Three redevelopment projects (aggregating 667,002 RSF) are under business and financial strategy evaluation, with potential outcomes including pausing construction, pivoting to lower-investment alternatives, or disposition.
• Development-related other income of approximately $8.0 million recognized YTD 3Q26 is expected to cease by the end of 2026.
• Real estate impairment charges of $637.9 million were recognized in 3Q26 related to assets held for sale.
• Interest expense for 2026 is expected to be near the high-end of the guidance range due to the $1.0 billion issuance of junior subordinated notes.
• 2027 guidance assumes a reduction in straight-line rent revenue and realized gains on non-real estate investments compared to previous estimates.

Management Commentary and Tone:

• Management emphasized maintaining a strong and flexible balance sheet with significant liquidity ($4.56 billion) and targeting a leverage ratio in the mid-5x range.
• Focus is on steadily improving occupancy and increasing NOI by leasing to all sectors of the tenant base.
• Strategy includes reducing capital spend and funding needs while prioritizing capital necessary to lease space.
• Management is executing on cost-efficient sources of capital, including land and non-core dispositions, sales of partial interests, and other capital to support leverage ratio targets.
• Management continues to successfully manage G&A expenses, expecting approximately $76 million of cumulative G&A savings for the two-year period 2025 and 2026.
• Management is considering a flexible and opportunistic share buyback plan.
• The company maintains a dividend of $0.72 per share for 3Q26, consistent with the preceding quarter, reflecting a commitment to maintaining balance sheet strength while sharing cash flows.
• Management highlighted the "Megacampus" platform as a key competitive advantage, representing 80% of annual rental revenue.

Other Key Points:

• Completed the sale of an approximately 29% noncontrolling interest in Campus Point by Alexandria Megacampus for $475.0 million in October 2026.
• Completed a public offering of $1.00 billion aggregate principal amount of 7.250% Series A fixed-to-fixed reset rate junior subordinated notes due 2057 in August 2026.
• Closed an amended and restated $5.0 billion unsecured senior line of credit in September 2026, extending maturity to January 22, 2032, and reducing the borrowing rate to SOFR plus 0.725%.
• Recognized a loss on early extinguishment of debt of approximately $3.3 million related to the line of credit amendment.
• Authorized common stock repurchase program allows for up to $500.0 million of repurchases through December 31, 2026; no shares have been repurchased as of September 30, 2026.
• Non-real estate investments aggregated $1.74 billion as of September 30, 2026, with unrealized gains of $243.9 million.
• 3Q26 investment income was $24.0 million, consisting of $16.0 million realized gains, $21.6 million unrealized gains, and $13.6 million impairment charges.
• Total market capitalization was $21.01 billion as of September 30, 2026.
• Total equity capitalization was $8.11 billion as of September 30, 2026.
• 3Q26 rents and receivables collected as of October 26, 2026, were 99.9%.
• 3Q26 same property NOI changes were -6.7% (cash basis -2.8%), driven by lease expirations with expected downtime.
• 3Q26 rental rate changes for renewals and re-leasing were -2.4% (cash basis -3.3%).
• 3Q26 occupancy of operating properties was 87.1%, including executed leases with future occupancy at 90.8%.
• Non-income-producing assets represented 12% of gross assets as of 3Q26, a reduction of 800 bps since 4Q24.
• 2026 guidance for capitalization of interest remains $220 million to $260 million.
• 2026 guidance for interest expense remains $260 million to $300 million.
• 2026 guidance for G&A expenses remains $134 million to $154 million.