BMO Capital Downgrades Alexandria Real Estate (ARE) to Underperform

BMO Capital analyst John P. Kim downgraded Alexandria Real Estate (NYSE: ARE) from Market Perform to Underperform with a price target of $41.00 (from $48.00).

The analyst comments "We downgrade ARE to Underperform with a $41 price target (-$7/share from prior). We forecast 2027 Core FFOps of $4.74 (-26.3% y/y), with further downside in 2028. ARE is focused on maintaining its strong balance sheet (BBB+/Baa2), with its $3.15B capex spend in 2026-27 likely to be funded through dispositions. Given rising interest rates, a potentially-stalled transaction market, rising life science vacancy, and ARE's high capitalized interest, we see the likely outcome as a multi-year earnings decline. We incorporate a higher cap rate in our NAV and updated SOFR rates."

For an analyst ratings summary and ratings history on Alexandria Real Estate click here. For more ratings news on Alexandria Real Estate click here.

Shares of Alexandria Real Estate closed at $45.51 yesterday.

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