Aug. 3 at 9:02 PM
$ARE I think quite good overall with some caveats.
The good/great part is FFO came in higher than expected, and revenue did as well. Also guidance wasn’t cut and occupancy rates seem to be stabilized especially looking forward at the signed but not yet started leases.
All the other good stuff that was expected like the operating margin being high and the high quality existing tenant base driving a high amount of revenue.
The caveats are that FFO is still relatively low compared to previous years but is showing signs of recovery. Also leasing environment is still tough as major macros are shifting but have not fully proven a reversal yet. Finally the biggest negative is the revenue drop which is primarily driven by the impairment it seems. It seems like there was a
$225 million impairment. About
$100 million higher than Q2 2025. But the reason for the impairments seem to be exiting non cluster markets with older facilities that require too much capex to renovate
