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Alexandria to Post Q4 Earnings: What to Expect From the Stock?

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Key Takeaways

  • ARE will release Q4 2025 earnings after the bell on Jan. 26, with declines expected.
  • ARE faces occupancy pressure from slow re-leasing of expiring spaces and lease-up vacancy.
  • Alexandria's Q4 revenue estimate is $738.3M, while adjusted FFO per share is seen down 10% YOY.

Alexandria Real Estate Equities Inc. (ARE - Free Report) is scheduled to release its fourth-quarter 2025 results on Jan. 26, after the closing bell. Its quarterly results are likely to reflect a decline in revenues and funds from operations (FFO) per share.

In the last reported quarter, this Pasadena, CA-based life science real estate investment trust (REIT), focusing on collaborative life science, agtech and technology campuses in AAA innovation cluster locations, missed the Zacks Consensus Estimate in terms of adjusted FFO per share by 3.9%. ARE’s performance in the quarter reflected lower occupancy and higher interest expenses. However, decent leasing activity and rental rate growth supported the results to some extent.

Alexandria has a decent surprise history. Over the preceding four quarters, its adjusted FFO per share surpassed the Zacks Consensus Estimate on two occasions, met once and missed in the remaining period, with the average miss 0.32%. This is depicted in the graph below:

 

 

Factors at Play and Projections for ARE

ARE owns a premium portfolio of Class A/A+ properties in the high-barrier-to-entry markets of the United States. However, it has a vast development pipeline. This exposes the company to the risk of lease-up concerns.

The slow re-leasing of expiring spaces and lease-up vacancy in its operating portfolio is likely to have pressured its occupancy level in the quarter under consideration, affecting its revenue growth.

The Zacks Consensus Estimate for Alexandria’s quarterly revenues currently stands at $738.3 million, suggesting a decrease of 6.4% from the prior-year period’s reported figure.

Moreover, Alexandria’s same-property revenues are likely to have been adversely impacted owing to pressure on occupancy. For the fourth quarter of 2025, our estimate indicates a 13.7% decrease in same-store revenues and a 37.8% decline in same-store net operating income.

Alexandria’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly adjusted FFO per share has decreased 4 cents to $2.15 over the past month. Moreover, the figure suggests a 10% decrease from the year-ago quarter’s tally.

What Our Quantitative Model Predicts for ARE

Our proven model does not conclusively predict a surprise in terms of FFO per share for Alexandria this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

Alexandria currently has an Earnings ESP of +0.25% and carries a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT sector, EastGroup Properties (EGP - Free Report) and Welltower, Inc. (WELL - Free Report) , you may want to consider, as our model shows that these have the right combination of elements to report an FFO per share beat this quarter.

EGP is slated to report quarterly numbers on Feb. 4. EGP has an Earnings ESP of +0.55% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

WELL is slated to report quarterly numbers on Feb. 10. WELL has an Earnings ESP of +2.63% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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Alexandria Real Estate Equities, Inc. (ARE) - free report >>

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