Life-science real estate investment trust Alexandria Real Estate Equities has trimmed its full-year outlook, citing weakening leasing momentum and macro-headwinds. The company lowered its adjusted funds from operations (FFO) forecast for 2025 to a range of USD 9.16-9.36 per share, down from its earlier expectation of USD 9.23-9.43.
The Pasadena-based REIT, specialising in lab and technology campuses, pointed to slower tenant demand, increased interest-rate costs and a softening in the innovation-real-estate space as key challenges. Its occupancy rate edged down, and leasing volumes lagged prior periods.
Investors reacted cautiously. While Alexandria maintains a strong property portfolio and leading market presence, the guidance revision underscores pressure points in the life-science REIT niche—particularly with longer lease-up times, elevated capex and financing burdens. Analysts say a rebound in leasing from biotech and technology firms will be essential to restore confidence.
For now, Alexandria’s valuation narrative is shifting from growth-driven momentum to execution risk management. Stakeholders should watch tenant renewal trends, development completions and interest-cost trajectories to assess whether the REIT can regain stability and orientation toward long-term growth.
