Alexandria Real Estate Lowers 2025 Guidance After Q3 Earnings Miss

Alexandria Real Estate Equities (ARE), a life-science-focused REIT, reported disappointing Q3 2025 results with adjusted funds from operations (AFFO) per share of $2.22, missing analyst estimates and declining from the previous year. The company also posted quarterly revenue of approximately $751.9 million, slightly below expectations and down year-over-year, leading to a downward revision of its full-year AFFO guidance to $9.01 per share from $9.26. Despite a solid market presence in key U.S. and Canadian locations, Alexandria faces financial challenges, including a distressed Altman Z-Score of 0.55 indicating potential financial instability, a high dividend payout ratio, and liquidity concerns highlighted by a low current ratio of 0.29. Operating margins stand at 21.4%, but the company recorded a negative net margin, reflecting profitability pressures. Investor sentiment has been affected by these developments, contributing to a share price decline of about 20.7% year-to-date, underperforming the broader market. The company's moderate leverage, with a debt-to-equity ratio of 0.8, and insider selling activity further underscore investor caution amid these financial headwinds.