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Investing.com - Citizens downgraded Alexandria Real Estate (NYSE:ARE) from Market Outperform to Market Perform following the company’s third-quarter 2025 results. The stock has fallen over 47% in the past year and is currently trading near its 52-week low of $52.94, according to InvestingPro data.
The downgrade comes after ARE missed expectations on multiple fronts, including lower third-quarter earnings, reduced guidance for fiscal year 2025, and an initial FY2026 Core FFO per share range that fell significantly below consensus estimates. The company reported a diluted EPS of -$2.47 for the last twelve months, confirming its recent profitability challenges.
Citizens cited supply issues in key markets as a persistent headwind during a period of sustained slowdown in capital flows into the Life Science industry, trends the firm believes have been worsened by ARE’s development platform.
The research firm expressed particular concern about future leasing activity, noting the company turns over approximately 10% of leases annually, with guidance indicating 35% of leases will not be renewed in 2026.
Despite acknowledging that Alexandria has "the best Life Science Portfolio in the industry," Citizens considers the shares fairly valued at their current 60% NAV discount, predicting that ongoing headwinds will keep the stock range-bound for an extended period. However, InvestingPro analysis suggests the stock may be undervalued based on its Fair Value assessment, with RSI indicators showing the stock is in oversold territory. For deeper insights and more ProTips on ARE, check out the comprehensive Pro Research Report available for this prominent Health Care REIT.
In other recent news, Alexandria Real Estate Equities has faced a series of developments that may interest investors. The company released its initial outlook for 2026, projecting adjusted funds from operations per share to range between $6.25 and $6.85, though it cautioned that actual results could vary due to several factors. Following the company’s third-quarter earnings report, which fell short of expectations, BTIG downgraded Alexandria Real Estate’s stock from Buy to Neutral, noting a significant earnings miss and a downward revision of the full-year guidance by $0.25. Additionally, RBC Capital and Jefferies both lowered their price targets for Alexandria Real Estate to $65 and $62, respectively, citing near-term challenges, uncertainty, and various headwinds such as weak demand and elevated vacancies.
In other company news, Aecon Group Inc. announced plans to acquire Ontario-based utility contractors K.P.C. Power Electrical Ltd. and K.P.C. Energy Metering Solutions Ltd. This acquisition will be financed through Aecon Utilities’ revolving credit facility and is expected to close in the fourth quarter of 2025, pending customary conditions. KPC’s existing management and operational teams are set to remain with the company post-acquisition. These recent developments provide a snapshot of the current landscape for Alexandria Real Estate Equities and Aecon Group Inc .
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