Alexandria Real Estate Equities, Inc. (NYSE:ARE) is one of the Stocks with the worst performance to invest in declines. On November 13, Citizens JMP downgraded the company’s stock to “Market Performance” from “Outperform.” The firm highlighted that this reduction was due to the uncertainties created by the results of the third quarter of 2025. According to the analyst, the quarter failed on several fronts, such as the reduction in profits for the third quarter of 2025.
The company’s diluted (adjusted) FFO per share was $2.22 for Q3 2025 compared to $2.33 in Q2 2025. This included 3 key impacts. First, occupancy decreased 1.1% due to challenging life sciences supply and demand dynamics. Second, there was a $0.03 reduction in rental income related to 1 tenant in the Seattle market. Finally, other income decreased $8.7 million or ~$0.05 compared to the previous quarter.
Additionally, Citizens JMP noted that supply issues in critical markets were a headwind for Alexandria Real Estate Equities, Inc. (NYSE:ARE), where there was a sustained slowdown in capital flows into the life sciences industry. The company’s total revenue for the third quarter of 2025 decreased to $751.9 million from $791.6 million in the third quarter of 2024, as rental income fell to $735.8 million from $775.7 million.
Alexandria Real Estate Equities, Inc. (NYSE:ARE) lowered its 2025 FFO per diluted (adjusted) share guidance by $0.25 to a midpoint of $9.01 per share. This was primarily due to lower investment gains and lower returns on the same properties due to reduced occupancy.
While we recognize the potential of ARE as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 unstoppable growth stocks to invest in now
Disclosure: None. This article was originally published in Internal jumpsuit.