Alexandria downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Michael Carroll downgraded Alexandria Real Estate (ARE) to Sector Perform from Outperform with a price target of $125, down from $130. The firm remains encouraged by the long-term life science demand drivers and still believes Alexandria is well positioned to capitalize on the backdrop. However, to fund the company’s investments in mega campuses, management is being more aggressive pursuing non-core asset sales at higher cap rates, the analyst tells investors in a research note. RBC believes these transactions along with a “handful of known tenant moveouts cast uncertainty on the near-term earnings trend.”