On our previous coverage, we highlighted the big problems that Alexandria REIT faced. The miss this morning validates the thesis. There is a secular trend in place now and we are still not interested in buying.
ARE's Q3 miss, lower occupancy and rising interest costs drag results, prompting a 2025 FFO guidance cut.
While the top- and bottom-line numbers for Alexandria Real Estate Equities (ARE) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Alexandria Real Estate Equities (ARE) came out with quarterly funds from operations (FFO) of $2.22 per share, missing the Zacks Consensus Estimate of $2.31 per share. This compares to FFO of $2.37 per share a year ago.
Investors love dividend stocks, especially those with high yields, because they provide a substantial income stream and offer significant total return potential.
ARE's Q3 results may show lower revenues and FFO as occupancy pressures weigh on performance.
Alexandria Real Estate Equities remains a "Strong Buy" due to its attractive valuation and strategic position in the life sciences REIT sector. ARE is actively recycling its portfolio, selling non-revenue assets and reinvesting proceeds to reduce debt and fund new developments, despite recent revenue and profit declines. The company's megacampus strategy and focus on life sciences position it for long-term growth, even as sector vacancy rates and industry headwinds persist.
Alexandria Real Estate generated an 11% return in Q3. It may be starting to turn around its performance. With a 6.3% yield, a 57% payout ratio, and solid AFFO, ARE's dividend security stands out among healthcare REITs despite sector headwinds. I analyzed a catalyst that investors sometimes forget about in ARE: the potential of Big Pharma and Big Biotech.
As retirement nears, portfolio focus should shift from growth to downside protection and stable income. For most of us it is crucial to limit drawdown risk, maintain income streams, and preserve inflation-adjusted value. Here ultra-conservative assets may not suit well.
ARE stock's 19.3% rise in three months is fueled by demand for its Class A/A+ properties, strong occupancy and solid financial footing.
I have made many mistakes in my REIT investing career. Some of which have cost me dearly. Learn from me to improve your future investment results.
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