JMP reiterates Market Outperform rating on Alexandria Real Estate stock

Investing.com - JMP Securities has reiterated its Market Outperform rating and $130.00 price target on Alexandria Real Estate (NYSE:ARE), currently trading at $78.03, following the company’s second-quarter 2025 results. According to InvestingPro analysis, ARE appears undervalued based on its Fair Value calculations.

Alexandria reported Core Funds From Operations (FFO) of $2.33 per share for the second quarter, exceeding JMP’s expectation of $2.21 and the consensus estimate of $2.28 per share. The outperformance was attributed to higher net operating income (NOI), partially offset by interest expense. The company maintains a strong 6.77% dividend yield and has raised its dividend for 14 consecutive years, as highlighted by InvestingPro data.

The real estate investment trust maintained its full-year 2025 Core FFO guidance range of $9.16-$9.36 per share, which JMP viewed as a positive sign considering significant leasing activity is expected to close late in the year.

JMP noted several unexpected negative updates for 2026, including known vacates, interest capitalization, and G&A reacceleration, suggesting negative growth next year. The firm acknowledged that Life Science real estate continues to face headwinds and uncertainty on both supply and regulatory fronts.

Despite these challenges, JMP recommended investors focus on longer-term positives, including Alexandria’s "irreplaceable real estate holdings," "best in class" management team, valuable brand, and "phenomenal long-term industry fundamentals."

In other recent news, Alexandria Real Estate Equities reported a second-quarter loss for 2025, with earnings per share (EPS) at -$0.64, falling short of analyst forecasts of $0.59. However, the company’s revenue reached $762 million, surpassing expectations. Despite the earnings miss, the revenue results contributed to a positive market reaction. Additionally, Evercore ISI raised its price target for Alexandria Real Estate to $91 from $89, while maintaining an "In Line" rating. This adjustment was made following the company’s financial results, which showed funds from operations (FFO) of $2.33 per share. The FFO slightly exceeded both Evercore’s estimate of $2.32 and the consensus estimate of $2.29. These developments highlight recent financial activities and analyst perspectives surrounding Alexandria Real Estate.

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