• Analysts predict a decline in both revenues and adjusted funds from operations (FFO) per share for Alexandria Real Estate Equities, Inc. (NYSE:ARE).
• Occupancy pressures are impacting ARE's financial performance, with slow re-leasing of expiring spaces and lease-up vacancies.
• Financial metrics indicate challenges, including a negative price-to-earnings (P/E) ratio and potential liquidity issues highlighted by a low current ratio.

Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a leading real estate investment trust (REIT) specializing in life science, agtech, and technology campuses. As the company approaches its quarterly earnings release on January 26, 2026, analysts have set expectations for an earnings per share (EPS) of $2.15 and revenue of approximately $742.6 million.

Despite these forecasts, concerns loom over ARE's financial performance. Revenue is expected to slightly decline to $738.3 million. Moreover, the adjusted FFO per share is projected to decrease by 10% year-over-year, signaling potential challenges ahead for the company.

ARE is currently grappling with occupancy pressures, attributed to the slow re-leasing of expiring spaces and filling up vacancies. This was evident in the previous quarter when ARE missed the Zacks Consensus Estimate for adjusted FFO per share by 3.9%, due to lower occupancy rates and increased interest expenses. Nonetheless, the company did report some positive leasing activity and rental rate growth.

Key financial metrics further illuminate ARE's challenges. The company's negative price-to-earnings (P/E) ratio stands at -23.92, reflecting its negative earnings. The price-to-sales ratio is 3.35, and the enterprise value to sales ratio is 7.82, indicating how the market values the company's sales. Additionally, the enterprise value to operating cash flow ratio is 17.02, showing investor willingness to pay for operating cash flow.

The financial health of ARE is also underscored by its debt-to-equity ratio of 0.84, suggesting a moderate level of debt compared to equity. However, the current ratio of 0.27 indicates potential liquidity challenges in meeting short-term obligations. The earnings yield of -4.18% aligns with the negative earnings situation, further underscoring the company's financial hurdles.