Valued at a market cap of $11.9 billion, Alexandria Real Estate Equities, Inc. (ARE) is a prominent real estate investment trust (REIT) specializing in life science, agtech, and technology campuses. Founded in 1994 and headquartered in Pasadena, California, the company is a pioneer in the life science real estate niche, focusing on developing collaborative Megacampus™ environments in key innovation clusters across North America.

Shares of ARE have significantly lagged behind the broader market over the past 52 weeks, falling 44.1%, while the broader S&P 500 Index ($SPX) has gained 10.1%. Moreover, on a YTD basis, the stock is down 29.7%, compared to $SPX’s marginal drop. 

Narrowing the focus, ARE has also trailed the Real Estate Select Sector SPDR Fund’s (XLRE) 6.5% return over the past 52 weeks and a marginal dip on a YTD basis.

On April 29, Alexandria Real Estate Equities’ stock fell nearly 6% after reporting disappointing Q1 2025 results. The company posted a net loss of $11.6 million, reversing a $167 million profit from the prior year, while revenue declined to $758 million. Although funds from operations remained positive at $2.30 per share, it marked a year-over-year drop. 

Investor sentiment worsened due to sharp cuts in full-year 2025 guidance, with projected GAAP EPS slashed to $1.36–$1.56 (from $2.57–$2.77) and FFO lowered to $8.51–$8.71. Persistent weakness in the office real estate market, driven by remote work trends, added to the bearish outlook.

For the current fiscal year, ending in December, analysts expect ARE’s FFO to decline 2.8% year over year to $9.21. The company’s FFO surprise history is mixed. It exceeded or met the Wall Street estimates in three of the last four quarters while missing on another occasion. 

Among the 13 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on four “Strong Buy” and nine “Hold” ratings. 

On April 30, 2025, JMP Securities reaffirmed its "Market Outperform" rating for Alexandria Real Estate Equities and maintained a 12-month price target of $130.

The mean price target of $106.15 represents a 54.7% upside from ARE’s current price levels, while the Street-high price target of $144 suggests an upside potential of 109.9%.