Alexandria Real Estate downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Omotayo Okusanya downgraded Alexandria Real Estate (ARE) to Hold from Buy with a price target of $112, down from $135. While the company’s Q3 results were in-line with consensus, and the fiscal 2024 guidance midpoint remained unchanged, Deutsche has become increasingly cautious about Alexandria’s earnings growth outlook into 2025, the analyst tells investors in a research note. The firm says “already well-telegraphed” move-outs expected in Q4 and Q1 will put pressure on the company’s occupancy until at least the first half of 2025 while $1.2B in expected disposition activity with the asset recycling program is likely to be dilutive to earnings in the near-term.