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Alexandria Real Estate reports lower profit as leasing demand slows

#International News#United States of America
Last Updated : 1st May, 2026
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Synopsis

Alexandria Real Estate Equities reported a decline in its first-quarter performance, impacted by weaker leasing demand amid ongoing macroeconomic uncertainty. The company saw a drop in both adjusted funds from operations and revenue compared to the previous year, with figures slightly missing analyst expectations. It also indicated that construction spending beyond 2026 could reduce depending on market conditions. The update reflects continued caution among tenants, particularly in the life sciences sector, while the company maintains a steady outlook for its full-year earnings guidance.

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Alexandria Real Estate Equities reported a year-on-year decline in its first-quarter profit, as leasing demand remained weak due to macroeconomic uncertainty affecting tenant decisions.


The Pasadena, California-based real estate investment trust focuses on owning, operating and developing life science laboratories, office spaces and technology campuses across North America. Its tenant base includes pharmaceutical, biotechnology and life sciences firms, along with research institutions and US government agencies.

During the quarter, the company’s adjusted funds from operations (FFO), a key metric used to assess REIT performance, fell to USD 1.73 per share from USD 2.30 per share in the same period last year. This was slightly below analyst expectations of USD 1.74 per share.

Revenue for the quarter also declined to USD 671 million, compared to USD 758.1 million a year earlier. Market estimates had projected revenue at USD 683.8 million, indicating a shortfall in performance.

The company stated that it expects its annual construction spending beyond 2026 to decrease by around USD 500 million, subject to market conditions. This suggests a more cautious approach to future development activity amid uncertain demand.

At the same time, Alexandria narrowed its adjusted FFO forecast for 2026 to a range of USD 6.30 to USD 6.50 per share. The midpoint of the guidance remains unchanged from its earlier outlook of USD 6.25 to USD 6.55 per share, indicating a stable long-term earnings expectation despite near-term pressures.

Following the announcement, shares of the company declined by around 2% in aftermarket trading.

The company has historically been a key player in the life sciences real estate segment, benefiting from strong demand during periods of high research and development activity. However, the current slowdown reflects a broader trend where tenants are delaying expansion plans and optimising space usage due to economic uncertainty and funding constraints.

Source Reuters
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