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# Alexandria Books $638 Million Of Impairments, Warns More Write-Downs Could Follow
- URL: https://www.bullished.co/alexandria-books-638-million-of-impairments-warns-more-write-downs-could-follow-0c8c9179/
- Published: 2026-10-27T19:35:57.000Z
- Updated: 2026-10-27T19:35:57.000Z
- Description: The life science landlord's CFO said assets it may sell in 2027 could be worth less than their carrying values.
- Author: Matteo Parrino
- Tags: Earnings, ARE, Industry: Real Estate

[Alexandria Real Estate](https://www.bullished.co/tag/are/), the landlord that owns laboratory and office campuses for life science tenants, recognized [$638 million of real estate impairments](https://www.benzinga.com/news/26/10/62633793/alexandria-real-estate-q3-2026-earnings-call-transcript?ref=bullished.co) in the third quarter and warned of more to come, CFO Marc Binda said on the company's earnings call Tuesday. "We could have impairments over the next couple of quarters," he said.

## Two projects drive the charge

Substantially all of the [$638 million](https://www.benzinga.com/news/26/10/62633793/alexandria-real-estate-q3-2026-earnings-call-transcript?ref=bullished.co) relates to developments in process, land, or properties that were candidates for conversion to lab use, Binda said. The two largest impairments made up 75% of the total.

One is 421 Park Drive in the Fenway, bought in January 2021 and under construction. Alexandria is under contract to sell substantially all its remaining space to an institutional user, and the buyer will take on roughly $136 million of interior lab work. Binda said the sale is expected to close in the fourth quarter.

The other is a four-building Palo Alto office project, bought in January 2022 with a plan to convert it to labs. Binda said the market has had limited demand from life science tenants, so the company now expects to sell rather than redevelop.

## More write-downs possible in 2027 sales

Binda said some assets under consideration for 2027 sale may have estimated market values below their carrying values. They remain classified as held for use and have not been impaired, he said, partly because no final decision to sell has been made and the company thinks completing the sales within 12 months is unlikely.

If those assets later meet the accounting test for held-for-sale status, impairments could follow, he said, as the company refines its approach, makes final decisions and starts marketing them.

## Unwinding the development boom

Executive Chairman and Founder Joel Marcus described the quarter as part of a transition out of a decade-long life science bull run and the pandemic-era period when leasing rose fourfold overnight. Binda said the development pipeline has shrunk by more than 50%, from 3.6 million square feet to 1.6 million. Non-income-producing assets fell from 20% of gross assets at the end of 2024 to 12%.

As of December 31, 2025, the company reported 340 properties and 90.9% occupancy in operating properties. Binda said occupancy was 87.1% at the end of the [third quarter](https://markets.ft.com/data/announce/detail?dockey=600-202610261610PR%5FNEWS%5FUSPRX%5F%5F%5F%5FNY80454-1&ref=bullished.co). Completed and pending dispositions and partial-interest sales total $2.6 billion, about $720 million above the midpoint of the $1.9 billion 2026 target. That may let the company defer some proceeds into 2027, he said.

Alexandria reaffirmed the $6.40 midpoint of 2026 FFO per share guidance, a measure of REIT earnings, and tightened the range to plus or minus two cents.

Management said it will lay out 2027 and beyond, including a refined capital plan and development spending, at its December 2 Investor Day.

### Sources

- [Alexandria's Q3 FFO & Revenues Beat Estimates on Strong Leasing](https://finance.yahoo.com/real-estate/articles/alexandrias-q3-ffo-revenues-beat-165300615.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Alexandria Real Estate Q3 2026 Earnings Call Transcript](https://www.benzinga.com/news/26/10/62633793/alexandria-real-estate-q3-2026-earnings-call-transcript?ref=bullished.co) — benzinga.com
- [Alexandria Real Estate Q3 earnings, revenue beat; narrows guidance range (ARE:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4657495-alexandria-real-estate-q3-earnings-revenue-beat-narrows-guidance-range?ref=bullished.co) — seekingalpha.com
- [Compared to Estimates, Alexandria Real Estate Equities (ARE) Q3 Earnings: A Look at Key Metrics](https://finance.yahoo.com/markets/stocks/articles/compared-estimates-alexandria-real-estate-210001456.html?ref=bullished.co) — Yahoo Finance
- [Alexandria Real Estate Equities, Inc. Reports 3Q26 and YTD 3Q26 Net Loss per Share - Diluted of $3.74 and $2.06, respectively, and 3Q26 and YTD 3Q26 FFO per Share - Diluted, as Adjusted, of $1.54 and $5.00, respectively – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610261610PR%5FNEWS%5FUSPRX%5F%5F%5F%5FNY80454-1&ref=bullished.co) — Financial Times

### More on Alexandria Real Estate

- [Alexandria's $1 Billion Hybrid Notes Pay 7.250% And Let It Cut Property-Sale Target By $1.0 Billion](https://www.bullished.co/alexandrias-1-billion-hybrid-notes-pay-7-250-and-let-it-cut-property-sale-target-by-1-0-92a27393/)
- [Alexandria Real Estate Books $637.9 Million In Impairments, Keeps Its $6.40 Profit Forecast Midpoint](https://www.bullished.co/alexandria-real-estate-books-637-9-million-in-impairments-keeps-its-6-40-profit-forecast-1f9bb835/)

[All Alexandria Real Estate (ARE) coverage →](https://www.bullished.co/tag/are/)