The Pasadena-based firm reported a net loss attributable to common stockholders of $73.7 million for the quarter ended June 30, 2026, an improvement over the $109.6 million loss recorded in the same period last year. Despite the headline loss, the company generated $296.1 million in adjusted funds from operations (FFO). Leasing activity showed signs of momentum, with volume exceeding 1.0 million square feet, a 60% increase from the first quarter of 2026.

Management is leaning heavily into a capital recycling strategy to fund construction and reduce leverage. As of early August, the company had completed $170 million in dispositions, with an additional $1.16 billion in pending transactions. This capital is earmarked for high-demand projects and debt reduction, aiming for a net debt to EBITDA ratio in the mid-5x range by the end of the year. The company also extended its $5.0 billion unsecured credit line to 2032, providing a liquidity buffer of $3.6 billion as it navigates a challenging environment for laboratory space conversions.