Valued at $13.3 billion by market cap, Pasadena California-based Alexandria Real Estate Equities, Inc. (ARE) operates as an urban office REIT firm. It owns, operates and develops office properties with a primary focus on serving the life science and technology industry.
The real estate major is set to announce its first-quarter results after the markets close on Monday, Apr. 28. Ahead of the event, analysts expect Alexandria to report funds from operations (FFO) of $2.28 per share, down nearly 3% from $2.35 per share reported in the year-ago quarter. While the company has missed Street’s FFO estimates once over the past four quarters, it has met or surpassed the projections on three other occasions.
For the full fiscal 2025, analysts expect Alexandria to report an FFO of $9.30 per share, down 1.8% from $9.47 per share reported in fiscal 2024. Meanwhile, its FFO is expected to rebound 2.9% year-over-year to $9.57 per share in fiscal 2026.
ARE stock has tanked nearly 34.6% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 5.5% gains and the Real Estate Select Sector SPDR Fund’s (XLRE) 6.8% returns during the same time frame.
Alexandria Real Estate’s stock prices plunged 4.8% in the trading session after the release of its disappointing Q4 results on Jan. 27. The company observed a 10 bps drop in the occupancy of operating properties in North America compared to Q3 to 94.6%. Meanwhile, its rental income inched up by a modest 2.8% year-over-year to $763.3 million, missing the Street’s expectations by 1.5%. Furthermore, its total revenues came in at $788.9 million which also fell short of analysts’ projections by a thin margin. However, the company managed to produce 4.8% year-over-year growth in FFO per share to $2.39, matching analysts’ consensus estimates.
The consensus view on ARE stock is cautiously optimistic, with a “Moderate Buy” rating overall. Of the 13 analysts covering the stock, four recommend “Strong Buy” and nine suggest a “Hold” rating. Its mean price target of $115.15 represents a 44.5% premium to current price levels.
