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Alexandria REIT reports lower profits as leasing rises in Q2 2026
The REIT said leasing reached 1.0 million square feet in the quarter, helped by life science products that made up nearly 40% of leasing volume.
Alexandria Real Estate Equities reported earnings Tuesday showing weaker balance sheet results in the second quarter of 2026, even as leasing improved after several depressed quarters, Commercial Observer reported. Net income fell to $73.7 million from $109.6 million a year earlier, and revenue decreased to $662.7 million from $762 million. Funds from operations were $296.1 million, down more than $100 million from the year-ago quarter.
The company attributed the ongoing performance mix to improving conditions in science and life science sectors, while noting the real estate side has not yet fully reflected that progress. Executive chairman and founder Joel Marcus said Alexandria is winning a larger share of transactions and pointed to a well-diversified tenant base, according to the earnings call coverage.
Leasing totaled 1.0 million square feet in Q2 2026, up from about 647,300 square feet in Q1, with about 329,000 square feet tied to backfilling newly vacant space. Marcus said very strong leasing from life science products, services, and devices represented almost 40% of the quarter's leasing volume.
Alexandria previously pursued asset sales to support its finances while the life science market recovers, and has continued redevelopment efforts. The REIT reported it sold $170.3 million in assets, including properties in Palo Alto, for $163 million in mid-July, and said it is developing or redeveloping 1.4 million square feet of life science space. The company also said it had $3.6 billion in liquidity as of the end of Q2 2026, with further stabilization expected by 2028.