Alexandria Real Estate Equities' 7.3% dividend yield appears well-covered, but is threatened by declining occupancy and political uncertainties impacting biotech funding and drug approvals. Despite beating Q1 2025 earnings expectations, ARE lowered its FY 2025 AFFO guidance, with falling occupancy and rising expenses posing significant risks to dividend safety. The biopharma sector's bear market and high layoffs are reducing lease opportunities for ARE, though long-term leases and investment-grade tenants offer some stability.
Alexandria Real Estate Equities faces macroeconomic headwinds, funding cuts, and oversupply, but long-term prospects remain strong due to critical assets and future supply-demand balance. Despite a 35% share price drop, ARE's fundamentals are solid with well-covered dividends, prudent capital allocation, and significant future NOI growth from new projects. The market's overreaction presents a buying opportunity; dollar-cost-averaging into ARE can yield long-term benefits, supported by a 7.5% dividend yield.
Alexandria Real Estate Equities, Inc. (NYSE:ARE ) Q1 2025 Earnings Conference Call April 29, 2025 3:00 PM ET Company Participants Paula Schwartz - Investor Relations Joel Marcus - Executive Chairman and Founder Hallie Kuhn - Senior Vice President, Science and Technology and Capital Markets Peter Moglia - Chief Executive Officer & Co-Chief Investment Officer Marc Binda - Chief Financial Officer and Treasurer Conference Call Participants Farrell Granath - BofA Securities Nick Joseph - Citigroup Inc. Anthony Paolone - JPMorgan Chase & Co Richard Anderson - Wedbush Securities Inc. Omotayo Okusanya - Deutsche Bank AG Vikram Malhotra - Mizuho Securities USA Michael Carroll - RBC Capital Markets Dylan Burzinski - Green Street Advisors Peter Abramowitz - Jefferies James Kammert - Evercore ISI Institutional Equities Operator Good day and welcome to the Alexandria Real Estate Equities First Quarter 2025 Conference Call. All participants will be in the listen-only mode.
![]() ARE In 1 month Estimated | Quarterly | $1.32 Per Share |
![]() ARE 1 month ago Paid | Quarterly | $1.32 Per Share |
![]() ARE 4 months ago Paid | Quarterly | $1.32 Per Share |
![]() ARE 7 months ago Paid | Quarterly | $1.3 Per Share |
![]() ARE 10 months ago Paid | Quarterly | $1.3 Per Share |
![]() ARE 27 Mar 2024 Paid | Quarterly | $1.27 Per Share |
21 Apr 2025 Date | | - Cons. EPS | - EPS |
27 Jan 2025 Date | | 0.9 Cons. EPS | 0.69 EPS |
21 Oct 2024 Date | | 0.9 Cons. EPS | 0.96 EPS |
22 Jul 2024 Date | | 0.8 Cons. EPS | 0.25 EPS |
23 Apr 2024 Date | | 0.8 Cons. EPS | 0.97 EPS |
![]() ARE In 1 month Estimated | Quarterly | $1.32 Per Share |
![]() ARE 1 month ago Paid | Quarterly | $1.32 Per Share |
![]() ARE 4 months ago Paid | Quarterly | $1.32 Per Share |
![]() ARE 7 months ago Paid | Quarterly | $1.3 Per Share |
![]() ARE 10 months ago Paid | Quarterly | $1.3 Per Share |
![]() ARE 27 Mar 2024 Paid | Quarterly | $1.27 Per Share |
21 Apr 2025 Date | | - Cons. EPS | - EPS |
27 Jan 2025 Date | | 0.9 Cons. EPS | 0.69 EPS |
21 Oct 2024 Date | | 0.9 Cons. EPS | 0.96 EPS |
22 Jul 2024 Date | | 0.8 Cons. EPS | 0.25 EPS |
23 Apr 2024 Date | | 0.8 Cons. EPS | 0.97 EPS |
REIT - Office Industry | Real Estate Sector | Mr. Peter M. Moglia CEO | NYSE Exchange | US0152711091 ISIN |
United States Country | 568 Employees | 31 Mar 2025 Last Dividend | 24 Apr 2006 Last Split | 27 May 1997 IPO Date |
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an esteemed member of the S&P 500, stands as a leader in the mission-driven life science Real Estate Investment Trust (REIT) sector, committed to making a profound and enduring impact on the world. Founded in 1994, Alexandria established the life science real estate niche and has since maintained its position as the foremost and most experienced owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses. These campuses are strategically located in AAA innovation cluster locations across the United States, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. With a substantial market capitalization totaling $33.1 billion and an extensive asset base spanning 73.5 million square feet in North America as of December 31, 2023, Alexandria exemplifies a remarkable track record. This track record includes creating Class A/A+ properties that foster highly dynamic and collaborative environments crucial for attracting and retaining top-tier talent and supporting the success of its innovative tenants. Additionally, through its venture capital platform, Alexandria actively provides strategic capital to groundbreaking companies in life science, agrifoodtech, climate innovation, and technology sectors, further demonstrating its comprehensive commitment to fostering growth and excellence within these critical areas of innovation.
Alexandria excels in developing, owning, and operating collaborative mega campuses in AAA innovation cluster locations. These campuses are tailored for companies in the life sciences, agtech, and advanced technology sectors, offering state-of-the-art facilities that promote productivity, efficiency, creativity, and success.
The company has a proven expertise in creating Class A/A+ properties, which are central to its strategy of clustering such properties within mega campuses. These developments not only meet the highest standards of quality and environmental sustainability but also provide tenants with the necessary infrastructure to thrive and innovate.
Alexandria extends its impact beyond real estate through strategic venture capital investments in transformative companies within the life science, agrifoodtech, climate innovation, and technology sectors. This venture capital platform enables Alexandria to support the growth and development of these sectors by providing critical capital and resources.