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ARE: Biotech Campus Expansion Will Drive Recovery Following Impairment Losses

Update shared on 27 Nov 2025

Fair value Decreased 12%
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AnalystConsensusTarget's Fair Value
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1Y
-51.4%
7D
2.3%

Analysts have lowered their price target for Alexandria Real Estate Equities from $77.85 to $68.50. This decision is based on revised assessments of revenue growth and updated discount rate assumptions.

What's in the News

  • Levi & Korsinsky, LLP filed a complaint alleging losses for investors, citing misrepresentations related to Alexandria's development pipeline and property valuations. The lead plaintiff deadline is set for January 26, 2026 (Key Developments).
  • The company reported a real estate impairment of $323.9 million for the third quarter ended September 30, 2025, compared to $5.7 million a year ago (Key Developments).
  • Alexandria Real Estate Equities lowered its earnings guidance for the year ending December 31, 2025, reducing the midpoint of projected net (loss) income per share from $0.50 to $(2.94) (Key Developments).
  • Lilly Gateway Labs San Diego opened at One Alexandria Square Megacampus, expanding shared innovation and collaborative biotech research facilities in partnership with Alexandria and key regional institutions (Key Developments).
  • The company completed the repurchase of 2,648,569 shares for $258.25 million as part of its previously announced buyback program (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target has fallen significantly, decreasing from $77.85 to $68.50.
  • Discount Rate has increased slightly, moving from 9.42% to 9.54%.
  • Revenue Growth forecasts were revised downward, dropping from -0.22% to -0.27%.
  • Net Profit Margin is nearly unchanged, edging up from 7.45% to 7.46%.
  • Future P/E ratio is lower, declining from 75.29x to 68.46x.

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Disclaimer

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