ARE Stock Forecast & Price Target

Alexandria Real Estate is viewed positively because its core life science and mega-campus portfolio is benefiting from improving leasing trends, stronger demand for core assets, and a strategic shift away from lower-quality holdings toward higher-value properties. Management’s execution appears to support this view, with 4Q26 FFO expected at $1.45/share midpoint, a $6.00/share annualized run-rate, and $2.1-3.7 billion of asset sales aimed at recycling capital into better-endmarket opportunities while developments and redevelopments add growth. Despite near-term pressure from 1.5 million SF of expected February 2027 move-outs and higher G&A, the company’s sustainable building leadership, 2026 revenue growth outlook, and trading discount to peers suggest meaningful long-term upside as the portfolio quality improves.

Alexandria Real Estate is facing weakening same-store fundamentals, with 2Q26 same-property NOI down 10.6% year over year, operating occupancy at 86.9%, and additional pressure from known lease expirations and future move-outs expected to reduce NOI by approximately $100mm. Its outlook is further burdened by a softer operating environment, a re-evaluated development strategy across 5 assets totaling 1.6M SF with a $1.4 billion book value, and the need to sell higher-quality assets, which can dilute earnings and capex flexibility. The stock also remains highly sensitive to interest rates, geographic concentration risk in key life science markets, and dependence on capital markets for tenants and for its own growth, leaving near-term Core FFO trends uncertain despite a 2026 estimate of $6.40 per share.