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# 'There Is No Guarantee': Alexandria Executive Corrects Analyst On $475 Million Campus Point Venture
- URL: https://www.bullished.co/there-is-no-guarantee-alexandria-executive-corrects-analyst-on-475-million-campus-point-38ab5937/
- Published: 2026-10-27T19:35:58.000Z
- Updated: 2026-10-27T19:35:57.000Z
- Description: A Morgan Stanley analyst called the partner's 5.5% return guaranteed, and Alexandria's investment chief cut in to say it is not.
- Author: Matteo Parrino
- Tags: Earnings, ARE, Industry: Real Estate

[Alexandria Real Estate](https://www.bullished.co/tag/are/)'s chief investment officer interrupted its third-quarter earnings call on Tuesday to knock down an analyst's claim that returns on the company's new [$475 million Campus Point joint venture](https://www.benzinga.com/news/26/10/62633793/alexandria-real-estate-q3-2026-earnings-call-transcript?ref=bullished.co) are guaranteed. "There is no guarantee," Peter Moglia said.

## A correction mid-question

A Morgan Stanley analyst, asking how the venture is accounted for, framed the question by saying the returns are guaranteed. Moglia, a little under the weather by his own account, cut in:

## The 5.5% floor and the put

Earlier, CFO Marc Binda said Alexandria expects the venture to pay its new partner distributions of [at least 5.5%](https://www.benzinga.com/news/26/10/62633793/alexandria-real-estate-q3-2026-earnings-call-transcript?ref=bullished.co) of the partner's initial $475 million contribution in year one and beyond. A waterfall distribution model shifts payouts over time, he said.

The partner also holds a put right, exercisable after seven years, that Alexandria can settle in cash or common stock at its election. Alexandria holds a call option, which Binda said lets it control its destiny on a campus it likes.

Asked about accounting, Binda said the venture is treated as permanent equity. Alexandria will control and consolidate it, so the venture's EBITDA stays in the leverage calculation. Alexandria targets leverage of [5.6 to 6.2 times](https://markets.ft.com/data/announce/detail?dockey=600-202610261610PR%5FNEWS%5FUSPRX%5F%5F%5F%5FNY80454-1&ref=bullished.co) for the fourth quarter.

## Another joint venture is coming

Alexandria, a real estate investment trust that owns laboratory and office campuses for the life science industry, is working on a second joint venture for 2026\. Binda said it will differ from Campus Point, likely covering multiple core and non-core assets, though the put and minimum-return features may be replicated. On economics, he asked listeners to stay tuned while talks continue.

The venture is part of a funding push. Binda said $1.7 billion of capital has been completed since June 30, including the $475 million venture and $1 billion of 7.25% junior subordinated notes sold in August, which rating agencies credit 50% as equity. Completed and pending dispositions and partial-interest sales total $2.6 billion, about $720 million above the midpoint of the $1.9 billion target.

Alexandria holds its Investor Day on December 2, where Binda said the company will refine its 2027 development spending estimate of $1.15 billion to $1.65 billion.

### 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/)