Citizens JMP Downgrades Alexandria Real Estate Equities (ARE) Stock

Alexandria Real Estate Equities, Inc. (NYSE:ARE) is one of the Worst Performing Stocks to Invest in on the Dip. On November 13, Citizens JMP downgraded the company’s stock to “Market Perform” from “Outperform.” The firm highlighted that this downgrade was due to the uncertainties created by the Q3 2025 results. As per the analyst, the quarter missed on several fronts, such as reduced Q3 2025 earnings.

Citizens JMP Downgrades Alexandria Real Estate Equities (ARE) Stock

The company’s FFO per share diluted (as adjusted) was $2.22 for Q3 2025 compared to $2.33 in Q2 2025. This included 3 key impacts. Firstly, the occupancy was down 1.1% due to the challenging life science supply and demand dynamics. Secondly, there was $0.03 reduction in the rental income related to 1 tenant in the Seattle market. Finally, other income was down $8.7 million or ~$0.05 as compared to the previous quarter.

Furthermore, Citizens JMP noted that supply issues in critical markets were a headwind for Alexandria Real Estate Equities, Inc. (NYSE:ARE) where there was a sustained slowdown in capital flows in the life science industry. The company’s total revenues for Q3 2025 declined to $751.9 million from $791.6 million in Q3 2024 as income from rentals fell to $735.8 million from $775.7 million.

Alexandria Real Estate Equities, Inc. (NYSE:ARE) reduced its guidance for FFO per share diluted (as adjusted) for 2025 by $0.25 to a midpoint of $9.01 per share. This was mainly because of reduced investment gains and lower same-property performance due to reduced occupancy.

While we acknowledge the potential of ARE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ARE and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.