Citizens has maintained a Market Perform rating on Alexandria Real Estate Equities (NYSE: ARE) after reviewing the firm’s fourth-quarter financial results and recent strategic actions.
In the quarter, Alexandria reported Core Funds From Operations (FFO) of $2.16 per share, topping both Citizens' internal estimate and the consensus view of $2.14 per share. Management reasserted the full-year 2026 guidance range of $6.25 to $6.55 per share, with a midpoint of $6.40 - guidance that was initially disclosed at the company’s December 3, 2025 investor day.
Operationally, Alexandria has moved to shrink its development pipeline, cutting future construction commitments by more than $300 million during the fourth quarter of 2025. The company also surpassed its fiscal 2025 disposition midpoint target, completing $1.8 billion of asset sales for the year, of which $1.47 billion closed in the fourth quarter. Those moves occur against a backdrop of meaningful share-price pressure: the stock has fallen 28.31% over the past six months, per InvestingPro data cited alongside the report.
Citizens highlighted a set of uncertainties that temper its view. The research firm expressed concern over potential disruption to drug development financing tied to agency overhauls at the NIH and FDA since the Trump administration took office. Investors should also note that Alexandria faces lease expirations affecting roughly 20% of its rentable square footage across 2026 and 2027, a concentration that raises rollover risk during a period of industry change.
Despite those headwinds, the company’s long track record on shareholder distributions remains intact. Alexandria has paid dividends for 29 consecutive years and currently offers a yield of 5.04%, which the report identified as a potential source of income stability while the REIT navigates a transition in its tenant and financing environment.
Citizens described Alexandria’s portfolio as “best in class” and acknowledged the strategic significance of U.S. biotechnology over the long term. Nevertheless, the research house concluded the shares appear fairly valued when measured against the company's Net Asset Value - stating the stock trades at a roughly 60% discount to NAV versus a 10% premium for the peer group. That view contrasts with InvestingPro’s Fair Value assessment, which indicates the stock may be undervalued at the then-current price of $57.16.
In related corporate developments, Alexandria approved a new $500 million stock repurchase program, extending repurchase authority through December 31, 2026. The company may repurchase shares on the open market or via other permitted transactions under that authorization.
Brokerage and research actions in close succession underscore divergent analyst views. Cantor Fitzgerald trimmed its price target for Alexandria to $48.00 from $52.00 while retaining an Overweight rating, citing concerns including an oversupply of, and weak demand for, lab space. Separately, Morgan Stanley initiated coverage with an Equalweight rating and a $55.00 price target.
The release also noted unrelated corporate activity from Aecon Group Inc. Aecon, via its subsidiary Aecon Utilities Group Inc., completed the acquisitions of K.P.C. Power Electrical Ltd. and K.P.C. Energy Metering Solutions Ltd. The company declared a quarterly dividend of $0.19 per common share, payable on January 5, 2026 to shareholders of record as of December 24, 2025.
Collectively, the quarter’s results, asset-sales progress and the buyback authorization frame a company balancing near-term operational adjustments with capital-return actions. Analysts and investors now face contrasting valuation signals, persistent lease-rollover exposure and sector-specific financing uncertainties as they weigh the stock’s risk-reward profile.
Key points:
- Alexandria reported Core FFO of $2.16 per share in Q4, beating $2.14 estimates; full-year 2026 guidance of $6.25-$6.55 was reaffirmed.
- Management reduced future construction commitments by more than $300 million and sold $1.8 billion of assets in fiscal 2025, with $1.47 billion closing in Q4, while authorizing a $500 million buyback program.
- Analyst opinions vary - Citizens maintains Market Perform; Cantor Fitzgerald lowered its price target but kept an Overweight rating; Morgan Stanley started coverage with Equalweight.
Sectors impacted: Health Care REITs, biotechnology real estate, and utilities/construction through the Aecon note.
Risks and uncertainties:
- Drug development financing - Citizens pointed to uncertainty tied to NIH and FDA agency changes, which could affect tenant financing in biotech and lab sectors.
- Lease rollover concentration - Roughly 20% of Alexandria’s rentable square footage faces lease turnover in 2026 and 2027, introducing occupancy and renewal risk.
- Lab-space market dynamics - Analyst commentary cites potential oversupply and weak demand for lab space, which could pressure rents and valuations in the Health Care REIT sector.
Bottom line: Alexandria’s latest quarter delivered modest top-line FFO upside and continued asset-management activity, but analyst sentiment and valuation metrics reflect differing interpretations of near-term demand and financing risks for life-science real estate.