Is Alexandria Real Estate Stock Underperforming the S&P 500?

Core Viewpoint - Alexandria Real Estate Equities, Inc. (ARE) is facing significant challenges, including declining stock performance and disappointing financial results, which have led to a substantial dividend cut [1][5]. Company Overview - Alexandria Real Estate is a leading real estate investment trust (REIT) based in Pasadena, California, specializing in the life sciences sector and developing collaborative workspaces [1]. - The company has a market capitalization of $7.83 billion [2]. Stock Performance - Alexandria Real Estate's shares reached a 52-week low of $44.10 on December 8, but have since increased by 5.4% from that level [3]. - Over the past three months, the stock has dropped 44.7%, while the S&P 500 Index has gained 5.4% during the same period [3]. - Over the past 52 weeks, the stock has declined by 55.5%, and by 36.6% over the past six months, contrasting with the S&P 500's gains of 14.1% and 14%, respectively [4]. Financial Results - In the third quarter of 2025, Alexandria Real Estate reported total revenues of $751.94 million, a 5% year-over-year decrease, falling short of analysts' expectations [5]. - The adjusted funds from operations (FFO) declined 6.3% year-over-year to $2.22 per share, missing the $2.31 per share estimate [5]. - Following these results, the stock dropped 19.2% intraday on October 28, and a subsequent 45% reduction in the Q4 dividend led to a further 10.1% drop on December 3 [5]. Comparative Performance - Compared to another office REIT, BXP, Inc. (BXP), which has declined 13.4% over the past 52 weeks and 3.5% over the past six months, Alexandria Real Estate has been a clear underperformer [6].