Alexandria Real Estate Set to Announce Q1 Results Amidst Stock Challenges

Valued at $13.3 billion by market cap, Alexandria Real Estate Equities, Inc. (ARE) is an urban office Real Estate Investment Trust (REIT) based in Pasadena, California. The company focuses on owning, operating, and developing office properties, particularly for the life science and technology sectors.

Upcoming Earnings and Expectations

The real estate firm plans to release its first-quarter results after the market closes on April 28. Analysts are predicting that Alexandria will report funds from operations (FFO) of $2.28 per share, which represents a drop of nearly 3% from the $2.35 per share reported in the same quarter last year. Despite missing FFO estimates once in the past four quarters, Alexandria has met or exceeded expectations three times.

Long-Term Financial Outlook

For the full fiscal year 2025, analysts forecast an FFO of $9.30 per share, down 1.8% from the $9.47 recorded in fiscal 2024. However, a rebound is expected in fiscal 2026, with projections estimating a 2.9% increase to an FFO of $9.57 per share.

Stock Performance and Market Comparison

Over the past year, ARE’s stock has decreased by approximately 34.6%, significantly underperforming the S&P 500 Index, which has risen 5.5%, and the Real Estate Select Sector SPDR Fund (XLRE), showing 6.8% gains during the same period.

Recent Quarterly Results and Analyst Ratings

Following a disappointing Q4 results announcement on January 27, Alexandria Real Estate’s stock dropped 4.8%. The company reported a 10 basis point decline in occupancy of its operating properties in North America, falling to 94.6% compared to Q3. Its rental income rose modestly by 2.8% year-over-year to $763.3 million, yet it fell short of analysts’ expectations by 1.5%. Meanwhile, total revenues reached $788.9 million, also missing projections slightly. Despite these setbacks, Alexandria reported a 4.8% year-over-year increase in FFO per share, meeting analysts’ consensus at $2.39.

Analyst sentiment on ARE’s stock remains cautiously optimistic, with a “Moderate Buy” rating overall. Among the 13 analysts covering the stock, four recommend a “Strong Buy” while nine suggest a “Hold” rating. The average price target stands at $115.15, indicating a potential upside of 44.5% from current levels.

On the date of publication, Aditya Sarawgi did not hold any positions, directly or indirectly, in any of the securities mentioned in this article. All information and data are for informational purposes only. For more details, please review the Barchart Disclosure Policy here.

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