Alexandria Real Estate forecasts 2026 adjusted funds from operations below estimates

Reuters01-27
Alexandria Real Estate forecasts 2026 adjusted funds from operations below estimates

Jan 26 (Reuters) - Alexandria Real Estate Equities ARE.N on Monday forecast annual adjusted funds from operations below Wall Street expectations, hurt by weak leasing demand and macroeconomic uncertainty.

The real estate investment trust expects its adjusted FFO to be between $6.25 and $6.55 per share, where the midpoint is below analysts' average estimate of $6.44 per share, according to data compiled by LSEG.

However, Alexandria's fourth-quarter adjusted FFO, a key performance measure for REITs, was $2.16 per share, slightly above estimates of $2.14 per share.

Its occupancy stood at 90.9% as of December 31, compared with 90.6% in the previous quarter.

Fourth-quarter revenue fell 4.4% to $754.41 million from a year ago, but surpassed estimates of $742.7 million.

The Pasadena, California-based company's shares rose nearly 1% in aftermarket trading following the results.

The company owns, operates and develops life science laboratories, offices and technology campuses across North America.

Its tenants include pharmaceutical, biotech and life science companies, as well as research institutions and U.S. government agencies, among others.

(Reporting by Parth Chandna and Apratim Sarkar; Editing by Shreya Biswas)

((Parth.Chandna@thomsonreuters.com;))

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