Real Estate Trusts Show Diverging Performance; Alexandria Down 50% Over 12 Months
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Source: CNBC
- Weak Real Estate Market: The S&P real estate sector has declined by 0.5% over the past 12 months, making it the worst-performing sector among 11, indicating ongoing concerns about office leasing demand that could impact future earnings for related companies.
- Diverging Stock Performance: Alexandria Real Estate has plummeted by 50% over the past year, while SL Green and CBRE have risen by 11% and 2.2% respectively in the last month, reflecting varying investor confidence in different REITs, which may lead to a reevaluation of investment portfolios.
- Attractive Dividend Yields: SL Green offers a dividend yield of 6.52%, while BXP provides a yield of 4.17%, which may attract income-seeking investors amid market uncertainty, enhancing their competitive position in the sector.
- Private Equity Industry Changes: Private equity firms like Blue Owl and KKR have seen declines of 34% and 11.5% over the past year, and although there has been some recent recovery, the overall performance indicates challenges facing the industry that could affect investor confidence.
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Analyst Views on ARE
Wall Street analysts forecast ARE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARE is 51.53 USD with a low forecast of 15.84 USD and a high forecast of 67.00 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.
15 Analyst Rating
4 Buy
11 Hold
0 Sell
Moderate Buy
Current: 54.610
Low
15.84
Averages
51.53
High
67.00
Current: 54.610
Low
15.84
Averages
51.53
High
67.00
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
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.
Alexandria Real Estate Reports $1.08 Billion Q4 Net Loss, Expenses Surge
- Widening Net Loss: Alexandria Real Estate reported a net loss of $1.08 billion for Q4, translating to $6.35 per share, a significant increase from last year's loss of $64.92 million or $0.07 per share, indicating heightened financial pressure on the company.
- Surging Expenses: Total expenses for the quarter soared to $2.37 billion, up from $845.49 million a year earlier, reflecting a substantial increase in operational and management costs that could impact future profitability.
- Revenue Decline: The company's total revenues fell to $754.41 million in Q4, down from $788.95 million last year, suggesting challenges in market competition and potential implications for long-term growth prospects.
- Future Outlook: Despite the losses, Alexandria expects adjusted funds from operations per share to range between $6.25 and $6.55 for 2026, demonstrating the company's confidence in a potential recovery in profitability.
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Alexandria Real Estate Launches Cash Tender Offers
- Cash Tender Offers: Alexandria Real Estate Equities has announced cash tender offers to purchase up to $800 million of its 3% and 4% Senior Notes, aimed at optimizing its capital structure and reducing financing costs.
- Priority Acceptance: The tender offers will be conducted based on acceptance priority levels, ensuring that higher-priority notes are accepted first, which could enhance investor confidence and potentially improve the company's credit rating.
- Early Tender Premium: Holders who validly tender their notes by February 9, 2026, will receive an early tender premium of $50 per $1,000 of notes, further incentivizing investor participation and enhancing liquidity.
- Financing Condition: The completion of the tender offers is contingent upon the company securing at least $500 million from other capital market financing, demonstrating the company's sensitivity to market conditions and flexibility in its financing strategy.
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