Jim Cramer Recommends Selling Alexandria Real Estate

Alexandria Real Estate Equities, Inc. (NYSE:ARE) was one of the stocks on Jim Cramer’s radar as he highlighted AI winners to buy for 2026. A caller asked if it is time to “pull the trigger” on the stock, and Cramer replied:

No. As a matter of fact, both Don Wood, Don Wood last night said it. He was so glad that he didn’t get into this life science world. I know that Debra Cafaro didn’t either. They know more than I do. I say [sell, sell, sell].

Image by Sergei Tokmakov Terms.Law from Pixabay

Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a life science REIT that builds and manages collaborative innovation campuses to support research and biotech growth. Cramer mentioned the stock during the January 5 episode and said:

The third worst performer, very interesting, it’s a REIT, Alexandria Real Estate Equities, down almost 50%. This real estate investment trust focuses on office space for the life sciences industry, including laboratories, and it’s been suffering from muted tenant demand for a while. That’s somewhat the result of a weaker IPO market in the past few years, which made it harder for small biotechs to raise money and therefore take down real estate. Last month, after a couple of years of bleeding, Alexandria Real Estate, they bit the bullet and slashed the dividend by 45%, becoming another cautionary tale about the illusory high yield so many people seek. And before the cut, the dividend yield was sitting just under 10%. It’s still pretty high at almost 6%. Let’s hope they can get their act together. Remember, a high yield is often a sign of real problems, not just a juicy opportunity.

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