Headline Summary: Shares of Alexandria Real Estate Equities fell 9.9% after Q1, as investors reacted to a soft leasing quarter and signs of continued leasing headwinds, notably the absence of any public biotech leases—the first time in company history. Management struck a cautious tone on the near-term operating environment and reiterated a focus on balance sheet strength and dispositions. Key Takeaways:

• Leasing activity was notably weak, with management disclosing this was "one of our lower quarters" and, unprecedentedly, that no public biotech leases were signed in Q1.
• The company remains on track with its core/non-core asset disposition plan, highlighting a high-watermark sale in San Francisco at $1,645 per sq. ft., albeit on an only 40% occupied asset.
• Management emphasized progress on reducing capital expenditure and continued efforts to maintain a strong, flexible balance sheet.
• The transaction market for life science assets is described as improving, but realization of targeted dispositions remains key for the 2026 reset.
• 78% of ARR is derived from mega campuses and 80% of the top 20 tenants are investment grade or large-cap, supporting balance sheet resilience in a challenging operating backdrop.