Alexandria to Post Q2 Earnings: What to Expect From the Stock?

Core Viewpoint - Alexandria Real Estate Equities Inc. (ARE) is expected to report a decline in revenues and funds from operations (FFO) per share for the second quarter of 2025, with results reflecting challenges in leasing and occupancy levels [1][9]. Financial Performance - In the last reported quarter, ARE beat the Zacks Consensus Estimate for adjusted FFO per share by 2 cents, driven by decent leasing activity and rental rate growth, although lower occupancy and higher interest expenses negatively impacted results [2][3]. - The Zacks Consensus Estimate for Alexandria's quarterly revenues is currently $750.7 million, indicating a 2.1% decrease from the prior-year period [4]. - For Q2 2025, rental income is projected to decline by 1.7%, and same-store net operating income is expected to decrease by 13% year over year [5][9]. Market Position and Risks - Alexandria owns a premium portfolio of Class A/A+ properties in high-barrier-to-entry markets in the U.S., but faces risks related to slow re-leasing of expiring spaces and lease-up vacancies, which may adversely affect occupancy levels [3][4]. - The company currently has an Earnings ESP of 0.00% and a Zacks Rank of 5 (Strong Sell), indicating a lack of confidence among analysts regarding a surprise in FFO per share this quarter [6][7]. Comparative Analysis - Other REITs such as Digital Realty Trust (DLR) and Highwoods Properties (HIW) are highlighted as potential investment opportunities, with both showing positive Earnings ESP and favorable Zacks Ranks [8][10].