Alexandria Real Estate Equities (ARE) investor relations material

Executive summary

• Reported Q2 2026 net loss per share of $(0.43) and 1H26 net income per share of $1.68; Q2 2026 FFO per share (as adjusted) was $1.73 and 1H26 was $3.46, reflecting strong operational performance despite non-recurring items.

• Q2 2026 leasing volume exceeded 1 million sq ft, up 60% sequentially, with robust activity from advanced technology and life science sectors and 75% from existing tenants.

• Operating occupancy was 86.9% at quarter-end, rising to 90.9% including executed leases with future occupancy.

• 80% of annual rental revenue is from the Megacampus platform; 57% from investment-grade or large cap tenants.

• Strong balance sheet with $3.6B liquidity, top 20% REIT credit rating, and 9.7-year weighted-average debt term.

Financial highlights

• Q2 2026 FFO (as adjusted) was $296.1M ($1.73/share); 1H26 FFO (as adjusted) was $592.0M ($3.46/share).

• Same property net operating income declined 10.6% year-over-year in Q2 2026, primarily due to lower occupancy from key lease expirations.

• Adjusted EBITDA margin was 67% for Q2 2026.

• Impairment charges on real estate were $222.5 million in Q2, mainly related to assets held for sale, land, and lab conversion properties.

• Investment income for Q2 was $133.2 million, including $10.3 million realized gains, $131.9 million unrealized gains, and $9.0 million impairment charges.

Outlook and guidance

• 2026 FFO per share (as adjusted) guidance narrowed to $6.35–$6.45, midpoint unchanged at $6.40.

• Projected Q3 2026 leasing volume of 950,000 sq ft; modest lease expirations expected in the next two quarters.

• 2026 construction spending guidance midpoint: $1.75B, with 2027 expected to decline to $1.15B–$1.65B.

• No common equity issuance anticipated in 2026; capital needs to be met via $2.9B in asset sales and other sources.

• Occupancy guidance for year-end 2026: 86.2%–87.8%.