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what it is
Alexandria builds and rents lab-heavy office space for biotech and drug companies in the biggest U.S. science hubs.
how it gets paid
Last year Alexandria R.E made $3.0B in revenue. rental revenue was the main engine at $2.28B, or 76% of sales.
why growth slowed
Revenue fell 2.9% last year. Occupancy for operating properties declined 1.1% from the june quarter to 90.6%.
what just happened
Last earnings came in at $2.16 versus a -$0.91 estimate, while Revenue was $2.3B.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
35/100 earnings predictability — expect surprises
26.3x trailing p/e — priced about right
6.1% dividend yield — cash in your pocket every quarter
0.9% return on capital — nothing to write home about
xvary composite: 43/100 — below average
What they do
Alexandria builds and rents lab-heavy office space for biotech and drug companies in the biggest U.S. science hubs.
If your tenant needs wet labs, approvals, and a serious science cluster, your generic office tower is useless. Alexandria owns 39.8 million rentable square feet, plus 4.4 million more in development, in Boston, San Francisco, San Diego, and Maryland. Real estate investment trust → a company built to own property and pay out cash → so what: you are buying scarce lab space where moving is expensive and downtime hurts.
How they make money
$3.0B
annual revenue · their business grew -2.9% last year
rental revenue
$2.28B
2.0%
tenant recoveries
$0.36B
1.0%
development and redevelopment
$0.18B
+5.0%
venture investments and royalties
$0.09B
10.0%
other property income
$0.09B
0.0%
The products that matter
core operating portfolio
operating properties
90.6% occupancy · same-property NOI -6%
This is the business you are buying today. The latest occupancy drop did not stay theoretical. It pushed income from existing properties down 6%.
core driver
future delivery and lease-up
development pipeline
15% of revenue
This part of the story already represents 15% of revenue. That makes timing, pre-leasing, and execution matter more when the existing portfolio is under pressure.
execution watch
reit's cash earnings lens
adjusted FFO
$8.98–$9.04 guide
FFO is funds from operations — the REIT version of recurring operating earnings. Management just cut the full-year range from $9.16–$9.36, so the direction matters more than the acronym.
guidance cut
Key numbers
64.5%
operating margin
Operating margin → profit left after running the business → so what: these buildings are still highly profitable before financing and market swings.
0.9%
return on capital
Return on capital → profit earned on all the money tied up in the business → so what: great properties are not producing great overall returns.
6.1%
dividend yield
Dividend yield → cash payout versus share price → so what: you are getting paid to wait, because the market does not trust the growth story.
$75
18-month target
The main target is $75 versus a $47.41 stock price, which is about 58% upside. The catch is occupancy and earnings have to stop sliding first.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- net profit margin 14.6% — keeps 15 cents of every dollar in revenue
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ARE 3 years ago → it's now worth $3,640.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Last earnings came in at $2.16 versus a -$0.91 estimate, while Revenue was $2.3B.
Here is the quiet part out loud. The headline beat and the underlying business told different stories. Adjusted FFO was $2.22 per share, but occupancy fell to 90.6% and management cut year-end occupancy guidance by 90 basis points.
$2.3B
revenue
$2.22
adj. ffo
90.6%
occupancy
the number that mattered
Occupancy at 90.6% mattered most. Labs sitting empty do not care about earnings adjustments.
-
alexandria real estate equities reported disappointing third-quarter results.
-
adjusted ffo of $2.22 per share fell a dime short of our forecast while dipping sequentially from the second-quarter tally of $2.33.
-
occupancy for operating properties declined 1.1% from the june quarter to 90.6%, owing to challenging life science supply and demand dynamics, with the lower occupancy rate resulting in a 6% reduction in same-property net operating income.
-
compounding matters further, leadership lowered its outlook for year-end occupancy by 90 basis points to a range of between 90% and 91.6%.
-
this was accompanied by a lowered projected range for full-year 2025 adjusted ffo of between $8.98 and $9.04 (previously $9.16-$9.36), a $0.25 reduction to a midpoint of $9.01 that also represents a 5% vs. prior year decline.
source: company earnings report, 2026
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What could go wrong
ARE's risk picture is not abstract. The core issue is life science leasing weakness, and the current quarter already shows it in occupancy, NOI, and guidance.
med
life science leasing stays soft
Occupancy is 90.6%, down 1.1 points from the June quarter. Premium lab landlords do not get paid for being almost full.
If occupancy keeps sliding inside the 90.0%–91.6% year-end guide, the pressure on NOI and FFO keeps showing up in reported numbers.
med
development lease-up takes longer
Development projects represent 15% of revenue. That is too large to wave away while the operating portfolio is already soft.
If lease-up timing slips, the recovery gets pushed out and the existing portfolio has to carry more of the earnings load than it is carrying now.
med
the target-price gap stays a mirage
The 18-month target midpoint is $75, but the actual range runs from $42 to $108. That is not consensus. That is uncertainty wearing a spreadsheet.
If guidance keeps moving down from the new $8.98–$9.04 range, the market keeps trusting the low end of that target range more than the midpoint.
If occupancy stabilizes above 91% and EPS recovers toward the $3.00 forward estimate, the risk case weakens fast. If not, your 6.1% yield is doing all the work.
source: institutional data · regulatory filings · risk analysis
Pay attention to
occupancy
90.6% needs to stop going down
This is the first line in the repair story. If you do not see stabilization here, the rest of the turnaround pitch is early.
property economics
same-property NOI cannot stay at -6%
NOI is the cash generated by existing buildings. You want this line to flatten before betting on a clean multiple recovery.
guidance
the new $8.98–$9.04 FFO range has to hold
Another cut would tell you the occupancy pressure is still walking through the income statement.
pipeline
development projects need cleaner execution
At 15% of revenue, the pipeline is not a side story. Lease-up speed and delivery discipline matter more when the core portfolio is wobbling.
Analyst rankings
short-term outlook
bottom 5%
Momentum score 5 is the lowest rating. In human-speak, the model expects significant underperformance from here unless the operating data changes first.
safety
average
Stability score 3 means roughly middle-of-the-pack risk. Not a bunker stock, but not a balance-sheet emergency either.
technicals
average
Technical score 3 means the price action is not giving you a clean reversal signal yet. The chart is waiting for the fundamentals.
earnings predictability
35 / 100
Results are harder to forecast than most income investors prefer. Expect more noise than the average REIT holder usually signs up for.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 411 buyers vs. 263 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$42
$108
$47
current price
$75
target midpoint · +58% from current · 3-5yr high: $95 (+100% · 24% ann'l return)
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