Alexandria Real Estate reduces AFFO guidance after Q3 earnings fall short

[Science Laboratory]
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Alexandria Real Estate Equities (NYSE:ARE [https://seekingalpha.com/symbol/ARE]) shares dipped 2.7% in Monday after-hours trading after the life-science-focused REIT lowered its full-year guidance for adjusted FFO on the back of worse-than-expected Q3 results.

It now sees FY25 AFFO per share [https://seekingalpha.com/pr/20280988-alexandria-real-estate-equities-inc-reports-3q25-and-ytd-3q25-net-loss-per-share-diluted-of] of $9.01 at the midpoint (range $8.98-$9.04), down from $9.26 in the prior outlook (range ($9.16-$9.36) and trailing the $9.22 average analyst estimate.

Meanwhile, Q3 AFFO per share of $2.22, missing the $2.31 expected, fell from $2.33 in Q2 and $2.37 a year ago.

Q3 revenue of $751.9M, vs. $754.4M consensus, slid from $762.0M in the previous quarter and $791.6M in Q3 2024.

Expenses were $987.5M, up from $784.6M in Q2 and $620.5M in last year's Q3.

Occupancy of operating properties in North America

Alexandira's (NYSE:ARE [https://seekingalpha.com/symbol/ARE]) same-property net operating income stood at 90.6% as of Sept. 30, compared with 90.8% at June 30.

During the three-month period, the company recorded leasing volume of 1.2M rentable square feet. Some 82% of ARE's leasing activity during the last twelve months was generated from its existing tenant base.

Conference call [https://www.are.com/] on Oct. 28 at 2:00 p.m. ET.

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* The Real Catalyst Behind Alexandria Real Estate [https://seekingalpha.com/article/4827922-the-real-catalyst-behind-alexandria-real-estate]
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