ARE bucks a weak tape — but the bigger picture for life-science REITs is still the story

On a broadly down day for U.S. equities, Alexandria Real Estate Equities (NYSE: ARE) managed a +1.26% gain, closing at $47.56 (Dec. 17, 2025). The move stood out because major indices were notably weaker (S&P 500 -1.16%, Dow -0.47%).

Even after that green day, ARE is still deeply below its annual peak: the stock remains about 54.77% under its 52-week high of $105.14 (Mar. 10, 2025)—a reminder that a single-session bounce doesn’t erase the sector’s drawdown.

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What happened in the session

ARE’s “outperformance” was mostly relative. While the broader market slid, ARE rose modestly and beat several REIT peers cited in the same trading-day comparison:

• Boston Properties (BXP): -1.64%
• Healthpeak Properties (DOC): +0.24%
• Medical Properties Trust (MPW): +2.04%

Trading activity also suggested this wasn’t a high-conviction breakout: ~2.3M shares traded, below its 50-day average (~3.0M).

As of Dec. 18, ARE last traded around $48.02 (intraday), essentially flat vs. the prior close—again reinforcing the “modest bounce” framing rather than a sharp reversal.

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Why ARE can rise when markets fall (without “good news”)

On down-index days, defensive positioning and rotation can lift certain REITs even when fundamentals haven’t changed much. With ARE, that can show up as:

• Oversold mechanics: after a large multi-month drawdown, small positive moves can come from short-covering or bargain-hunting.
• Rate sensitivity: REITs often react to shifting interest-rate expectations (and day-to-day bond moves), sometimes diverging from broader equities.
• “Best house in a troubled neighborhood” behavior: investors may prefer higher-quality balance sheets and specialized portfolios during risk-off sessions.

But it’s worth pairing that with the fundamentals management has been flagging.

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The fundamental overhang: slower leasing and softer life-science demand

Alexandria’s own 3Q25 supplemental materials highlighted that it reduced the midpoint of 2025 adjusted FFO per share guidance from $9.26 to $9.01, citing (among other things):

• slower-than-anticipated re-leasing of expiring spaces
• lease-up of vacancy
• conditions “reflecting reduced demand across the life science industry”

That guidance update matters because ARE is widely owned as a cash-flow and leasing story. When leasing velocity cools, REIT investors typically re-rate the multiple (especially if capital markets also feel tighter).

Separately, coverage has pointed out that after a weak quarter, the company lowered 2025 adjusted FFO guidance to $9.01 and faced negative sentiment tied to revenue/FFO pressure.

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So why is the stock still so far from its highs?

The distance from the highs is less about one trading day and more about a multi-factor reset:

• Life-science real estate demand has cooled, pushing lease-up timelines out.
• Earnings/FFO expectations have been revised lower, which tends to compress REIT valuations.
• Sentiment has been damaged by dividend and outlook concerns, with some market commentary noting major distribution changes and steep YTD declines.

In other words: Wednesday’s +1.26% is notable versus the tape, but the market is still pricing a tougher operating environment.

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What to watch next (practical checklist)

If you’re tracking ARE from here, the next “tell” usually comes from a few operating signals:

1. Leasing momentum

   • renewal spreads, new leasing volume, and vacancy backfill pace (especially in key clusters)

2. Updated 2026 outlook

   • whether guidance stabilizes or sees another reset (and the drivers management cites)

3. Balance sheet and asset sales

   • progress on dispositions and leverage targets (particularly if cap rates remain elevated)

4. Life-science funding cycle

   • tenant demand often tracks biotech funding conditions with a lag

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Bottom line

ARE’s +1.26% move is a genuine one-day “relative win” against a weak market, and it did beat several REIT peers in that session.
But the stock remains dramatically below its annual highs, and company guidance commentary points to slower re-leasing and reduced life-science demand as key pressures—factors that generally take quarters, not days, to work through.