Anticipated Results of Upcoming Alexandria Real Estate Equities' Quarterly Financial Report
Alexandria Real Estate Equities, Inc. (ARE), a leading life science REIT based in Pasadena, California, is gearing up to announce its fiscal Q2 2025 earnings after the market closes on Monday, Jul. 21. As of publication, the company's stock has a moderately optimistic view from Wall Street analysts, with a "Moderate Buy" rating overall.
According to recent analyst forecasts, Alexandria is expected to report an FFO of around $2.30 per share for Q2 2025, which represents a slight decline of approximately 2.5% from the previous quarter's figure. For the full year, analysts expect ARE to report FFO of $9.21 per share, down 2.8% from $9.47 per share in fiscal 2024.
The Q1 2025 results, announced on Apr. 28, outpaced the consensus estimates, but the shares declined 5.7% in the following trading session. Despite this, the top-line figure for Q1 2025 outpaced the consensus estimates by 4.8%. The revenue for Q1 2025 was $758.2 million, a 1.4% decrease year-over-year due to lower income from rentals.
Analyst ratings for ARE are mixed but cautiously optimistic. Citi has lowered the stock price target from higher levels down to about $74, citing a reduction in 2025 and 2026 FFO estimates and ongoing challenges including slower leasing activity and higher interest expenses. JMP analysts, on the other hand, maintain a "Market Outperform" rating with a price target of $130, emphasizing better-than-expected core FFO results and the company’s strategic focus on mega campuses. JPMorgan has downgraded to a "Neutral" rating with a price target lowered to $95, citing concerns regarding life science real estate fundamentals and venture capital gains.
The dividend remains attractive at $1.32 per share for Q2 2025, offering about a 7.5% yield on the current stock price. However, the company has paused dividend growth, which could indicate a conservative outlook on earnings.
It is important to note that all information and data in this article are for informational purposes only, and readers should view the website Disclosure Policy for more information. The mean price target for ARE is $97.31, indicating a potential upside of 34% from current levels.
ARE owns, operates, and develops collaborative megacampus ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City.
The projected FFO for Alexandria Real Estate Equities in 2025 have been revised downward slightly but remain near $9.2–9.3 per share for the year, with Q2 expected around $2.30 per share. Analyst ratings range from Neutral to Market Outperform, with price targets between $74 and $130, reflecting mixed sentiment amid a challenging leasing environment and strategic shifts.
Investors may want to closely watch Alexandria's Q2 2025 earnings, given the anticipated FFO of around $2.30 per share and the mixed analyst ratings. For those interested in real-estate investing, the company's strategic focus on developing collaborative megacampus ecosystems in key life science innovation locations presents a potential opportunity.
