Alexandria Real Estate Faces Class Action for Securities Fraud, Over $323M Impairment Charge
Written by Emily J. Thompson, Senior Investment Analyst
Source: Globenewswire
Updated: 58 minutes ago0mins
- Lawsuit Initiation: Bleichmar Fonti & Auld LLP has filed a class action lawsuit against Alexandria Real Estate and its executives for securities fraud, with investors encouraged to apply to lead the case by January 26, 2026, indicating significant legal risks that could impact the company's reputation.
- Performance Decline: Alexandria Real Estate reported disappointing Q3 2025 results, causing its stock price to plummet over 19% in a single day, from $77.87 to $62.94, reflecting market concerns about its future growth prospects.
- Impairment Loss: The company announced a substantial real estate impairment charge of $323.9 million due to lower occupancy rates and slower leasing activity, with $206 million attributed to its Long Island City property, which will have profound implications for its financial health.
- Future Risks: Alexandria Real Estate also warned of potential additional impairment charges ranging from $0 to $685 million in Q4 2025, further exacerbating investor concerns regarding its financial stability and likely leading to continued stock price volatility.
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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
Baird
Wesley Golladay
Outperform
to
NULL
downgrade
$73 -> $67
2025-12-04
New
Reason
Baird
Wesley Golladay
Price Target
$73 -> $67
2025-12-04
New
downgrade
Outperform
to
NULL
Reason
Baird analyst Wesley Golladay lowered the firm's price target on Alexandria Real Estate to $67 from $73 and keeps an Outperform rating on the shares. The firm updated its model following its Investor Day.
BMO Capital
John Kim
Outperform
to
NULL
downgrade
$67 -> $60
2025-12-04
New
Reason
BMO Capital
John Kim
Price Target
$67 -> $60
2025-12-04
New
downgrade
Outperform
to
NULL
Reason
BMO Capital analyst John Kim lowered the firm's price target on Alexandria Real Estate to $60 from $67 and keeps an Outperform rating on the shares. The REIT's investor day was worse-than-expected with a steep 45% dividend cut, FY26 earnings guidance reduced below consensus, and lower-quality earnings with negative 8% same-store net operating income and FY26 capitalized interest guidance of $250M vs. expected $139M, the analyst tells investors in a research note. The market reacted to leverage concerns, though progress on $3.9B of planned dispositions would address this, the firm added.
Evercore ISI
Outperform
to
NULL
downgrade
$72 -> $64
2025-12-04
New
Reason
Evercore ISI
Price Target
$72 -> $64
2025-12-04
New
downgrade
Outperform
to
NULL
Reason
Evercore ISI lowered the firm's price target on Alexandria Real Estate to $64 from $72 and keeps an Outperform rating on the shares. Incorporating the quantitative and qualitative content of yesterday's investor day, the firm is trimming its 2026 estimates and slashing its 2027 estimate by about 14% as the recovery in lab demand will likely take longer and there could be more dilution from unwinding the excessive land bank.
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.
See All Ratings
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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