Alexandria Real Estate Faces Class Action for Securities Fraud Allegations
Written by Emily J. Thompson, Senior Investment Analyst
Source: Businesswire
Updated: 3 hour ago0mins
- Lawsuit Background: A class action lawsuit has been filed against Alexandria Real Estate on behalf of investors who purchased securities between January 27, 2025, and October 27, 2025, alleging the company failed to provide reliable information regarding its life-science properties, leading to investor losses.
- Financial Shortfall: The Q3 2025 financial results revealed Alexandria's earnings fell short of analyst expectations, with a revenue decline and a 7% drop in adjusted funds from operations, including a $206 million impairment charge related to its Long Island City property.
- Stock Price Plunge: Following the earnings report, Alexandria's stock price dropped from $77.87 to $62.94, a decline of approximately 19.17%, reflecting market concerns over the company's future growth prospects.
- Investor Action: Investors must apply by January 26, 2026, to be appointed as lead plaintiffs in the securities fraud class action, highlighting serious concerns regarding the company's transparency and management trustworthiness.
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Analyst Views on ARE
Wall Street analysts forecast ARE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARE is 64.78 USD with a low forecast of 30.00 USD and a high forecast of 104.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 48.420
Low
30.00
Averages
64.78
High
104.00
Current: 48.420
Low
30.00
Averages
64.78
High
104.00
Citi
Nick Joseph
Neutral
downgrade
$61 -> $52
2025-12-04
New
Reason
Citi
Nick Joseph
Price Target
$61 -> $52
2025-12-04
New
downgrade
Neutral
Reason
Citi analyst Nick Joseph lowered the firm's price target on Alexandria Real Estate to $52 from $61 and keeps a Neutral rating on the shares.
Evercore ISI
Outperform
to
NULL
downgrade
$74 -> $72
2025-11-28
Reason
Evercore ISI
Price Target
$74 -> $72
2025-11-28
downgrade
Outperform
to
NULL
Reason
Evercore ISI lowered the firm's price target on Alexandria Real Estate to $72 from $74 and keeps an Outperform rating on the shares ahead of the company's investor day meeting on December 3. Shares have been under pressure throughout 2025 due to weak lab market fundamentals and a challenging capital markets environment for life sciences and biotech companies, notes the analyst, who argues that the investor day will be "pivotal" to address these concerns and lay out a path for FFO growth beyond 2026.
Baird
Wesley Golladay
Outperform
downgrade
$100 -> $73
2025-11-26
Reason
Baird
Wesley Golladay
Price Target
$100 -> $73
2025-11-26
downgrade
Outperform
Reason
Baird analyst Wesley Golladay lowered the firm's price target on Alexandria Real Estate to $73 from $100 and keeps an Outperform rating on the shares. The firm updated its estimates following Q3 results which showed move-outs were higher than expected leading to Baird cutting its estimates and target.
Citizens JMP
Outperform -> Market Perform
downgrade
2025-11-13
Reason
Citizens JMP
Price Target
2025-11-13
downgrade
Outperform -> Market Perform
Reason
Citizens JMP downgraded Alexandria Real Estate to Market Perform from Outperform without a price target. The firm cites uncertainties created by the Q3 results for the downgrade. This quarter "missed on multiple fronts," including a lower Q3 earnings and a guide down on fiscal 2025, the analyst tells investors in a research note. Citizens says supply issues in key markets have been a headwind for Alexandria during a period where there has been a sustained slowdown in capital flows into the life science industry.
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About ARE
Alexandria Real Estate Equities, Inc. is a life science real estate investment trust. The Company is an owner, operator and developer of collaborative life science, agricultural technology (agtech), and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. The Company, through its venture capital platform, provides strategic capital to life science, agrifoodtech, climate innovation, and technology companies. Its tenants include multinational pharmaceutical companies; public and private biotechnology companies; life science product, service and medical device companies; digital health, technology, and agtech companies; academic and medical research institutions; United States government research agencies; non-profit organizations, and venture capital firms. It has a Labspace asset base predominantly concentrated in markets with barriers to entry.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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