ARE: Heavy impairments drove a Q3 loss, while leasing topped 1.2 million RSF

What happened

The company reported a third-quarter net loss of $638.5 million, largely due to $637.9 million in real estate impairments, while adjusted FFO was $1.54 per diluted share and leasing topped 1.2 million RSF.

Confirmed

Global impact / market context

Impairments cut reported profit by writing down property values, but adjusted FFO, a cash-based earnings measure, stayed positive at $1.54 per share. This gap means reported losses may overstate cash damage, while leasing volume signals demand for space.

Analyst inference

Real estate impairments reflect weaker expected property values, which can pressure asset sales and borrowing capacity. The unchanged 2026 adjusted FFO midpoint of $6.40 per share suggests management expects stable cash earnings despite the large accounting loss.

Analyst inference

What to watch

1. The 2026 adjusted FFO midpoint stayed at $6.40 per share, so future updates to this figure will show whether cash earnings expectations hold. Confirmed
2. Watch whether impairments continue in coming quarters, since repeated write-downs would suggest property values keep falling and could affect borrowing capacity. Proposed
3. Leasing above 1.2 million RSF supports future revenue if tenants pay rent, so track renewal and occupancy trends for signs of demand durability. Analyst inference

Evidence

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