Oct 27, 2026 earnings call — Capital plan and leasing progress
Raised $1.7 billion and leased 1,236,000 square feet this quarter.
Revenue $0.7B (est $0.6B) · EPS $-3.74 (est $-0.03)
Key quotes
"Leasing volume for the quarter was solid at 1,236,000 square feet and represented the largest total volume in the last 7 quarters."
"We continue to make very good progress in raising capital with $1.7 billion completed since June 30, including the $1 billion junior subordinated notes offering completed in August."
"This included 3 major accomplishments during 3Q '26, including the following: first, we delivered 529,000 square feet of development and redevelopment space, it was 84% occupied and will generate $40 million of annual net operating income."
Analyst Q&A 10
JV cash flow timing
Q (James Kammert · Evercore): He asked whether the JV waterfall has a fixed schedule for shifting cash flows and how that affects what ARE holds short term. He also asked if future JVs will use a similar put/minimum structure.
A: Management said there is a 5.5% in place for at least the first several years and there are steps over time plus a put that can let the investor reach their target IRR. They said they are looking to potentially replicate that structure, but the other JV they are working on is different from the Campus Point structure.
"So yes, there's a 5.5% that's in place for at least the first several years." — Marc Binda (CFO)
tenant wind-downs and expirations
Q (Farrell Granath · BofA): He asked if the extra tenant wind-downs in 2026 and the similar expectation for 2027 are known move-outs or a conservative estimate. He also asked about the profile of the 2027 leasing under negotiation: renewals vs new leases and expected downtime.
A: Management said the wind-down number for 2027 is an estimate and these situations are hard to predict; they underwrite each tenant and write off deferred rent when tenants vacate. They also said the 1.37 million square feet rolling are fully move-outs and that over 60% of that is now in active tenant discussions, some late-stage and some early-stage.
"That amount, the 1.37 million is fully move-outs, and we now have over 60% in active tenant, some in late stage and some in early stage, but with specific tenants." — Joel Marcus (FOUNDER)
2027 development spend and JV treatment
Q (Ronald Kamdem · Morgan Stanley): He asked for an update on the 2027 development spending range and its funding and leverage impact. He also asked whether the JV returns are guaranteed and if the JV is treated as equity or debt given the put option.
A: Management said they will refine the $1.15 billion to $1.65 billion estimate over the next 5 weeks and will provide a better number in early December, noting a big chunk is targeted to the operating portfolio. They said the joint venture is treated as permanent equity and that Alexandria holds a call option; another executive clarified there is no guarantee.
"Yes, the joint venture is treated as permanent equity, Ronald." — Marc Binda (CFO)
asset pricing and JV accounting
Q (Seth Bergey · Citi): He asked where core assets price today given uncertainty, and how the Campus Point JV factors into the firm's mid-5 leverage target (consolidation and EBITDA treatment).
A: Management said better assets would trade around a 6-cap, with workhorse assets trading higher, and that pricing varies by market. They confirmed they will continue to consolidate the Campus Point JV and that its EBITDA stays on the balance sheet and is included in the leverage calculation.
"We would continue to consolidate the Campus Point joint venture and the EBITDA would stay on balance sheet or stay on the income statement and included in the leverage computation." — Marc Binda (CFO)
occupancy outlook and tech tenants
Q (John Kim · BMO): He asked whether occupancy is expected to improve by 2028 and how advanced technology tenants fit into future leasing given lower rent but lower CapEx needs.
A: Management said occupancy growth in 2028 requires continued strong leasing, especially leasing of vacant space, and noted this quarter they leased 450,000 square feet that was previously vacant. They also said advanced technology tenants are coming to campuses for infrastructure and that lab buildings that are well located can be repurposed to meet that demand.
"So we're going to need to continue to focus there and we're working hard every day to continue that." — Marc Binda (CFO)
disposition cap rates and CapEx buckets
Q (Anthony Paolone · JPMorgan): He asked what GAAP and cash cap rates to expect on the grouping of pending dispositions and whether spending above $500 million would be CapEx or a different bucket.
A: Management said the $355 million includes a mix of noncore and land and gave 421 Park as an example that will have basically no cap rate; they asked to stay tuned on economics for the larger pending amount because discussions are advanced. They also said there will definitely be capitalized costs for the portfolio, including capped interest and capitalized operating expenses, and that some future land spend is largely capitalization.
"No, there'll definitely be some capitalized costs for the portfolio, right?" — Marc Binda (CFO)
tenant market activity and partial sales
Q (Richard Anderson · Cantor Fitzgerald): He asked whether the large quarter-to-quarter swings in tenant market activity were one-offs and where activity might normalize in 2027. He also asked how much the firm will pursue partial-interest/core-asset JVs versus noncore or land sales.
A: Management said the large jump was an anomaly and that tenant market activity typically ranges from flat to plus or minus about 7%, so a 5% down quarter is normal. They said partial-interest transactions and JVs will be on the menu next year and that upcoming JVs could involve multiple asset types, including core and noncore; they also expect to keep a mix of Megacampus and other core assets over time.
"So likely something having to do with multiple assets -- multiple types of assets, so it could be core and noncore." — Marc Binda (CFO)
leasing trends and 2028 downtime
Q (Michael Carroll · RBC): He asked why management remains cautious on the macro but saw better leasing in 3Q and expected improvement in 4Q. He also asked whether the 718,000 square feet of 2028 downtime reflects above-average move-outs or if more moves are possible.
A: Management explained the life science sector is a set of subsectors with different health and that they expect an upswing in public biotech in the fourth quarter based on discussions and negotiations. Regarding 2028 expirations, they said it's a combination and cited one large move-out in Tech Square as a key known item, but they are seeing more activity now than months ago.
"we are expecting to see, based on the best we can tell from our discussions, negotiations, fourth quarter should see an upswing in public biotech for the first time in quite a number of quarters." — Joel Marcus (FOUNDER)
advanced tech leasing and downtime
Q (Wesley Golladay · Baird): He asked if advanced technology tenants could take the 2027-28 downtime space at all locations or if some space will be held for life science tenants. He also asked whether downtime would be less with advanced tech tenants.
A: Management said space decisions are made case by case because builds and infrastructure differ; some shell or office spaces on campuses can work well for advanced technology tenants. They said generally downtime would be less with advanced tech tenants because many are well-capitalized and willing to fund significant tenant improvements themselves.
"But generally, yes, because oftentimes, these are extremely well-capitalized companies that are prepared to put in significant tenant improvements on their own." — Joel Marcus (FOUNDER)
partial-interest structure and leasing pace
Q (Dylan Burzinski · Green Street): He asked whether capital from partial-interest sales will mainly come from structured JV-like deals or outright partial sales, and whether leasing for 2028 needs to pick up from Q3 or just continue at the same pace.
A: Management said the other JV they are working on for 2026 will likely be a combination of multiple assets, core and noncore, and that they would consider the Campus Point structure again but it's too early to say the mix of partial interest sales. They also said recent leasing has been strong — almost 800,000 square feet over the last two quarters — and that much leased space has not yet hit occupancy rolls, creating a lag into 2028.
"And we've started to accumulate a large amount of space that's been leased that hasn't yet hit the occupancy rolls." — Marc Binda (CFO)