We recently published December Disappointments: 10 Big Names Troubled Early. Alexandria Real Estate Equities, Inc. (NYSE:ARE) is one of the worst performers of last week. Alexandria dropped its share prices by 15.86 percent week-on-week, as investor sentiment was primarily dented by its decision to slash its dividends to shareholders by 45 percent. In a statement earlier in the week, Alexandria Real Estate Equities, Inc. (NYSE:ARE) said that it was cutting its dividends for the fourth quarter of the year by $0.60 to $0.72 apiece from $1.32 apiece previously. The dividends are payable on January 15, 2026, to all common shareholders on record as of December 31, 2025.
“The Board’s decision to reduce the declared dividend per common share reflects the company’s commitment to fortify its already strong balance sheet, enhancing financial flexibility and preserving liquidity of approximately $410 million on an annual basis. In addition to conserving significant capital, the dividend provides an attractive yield on its common stock of 5.4 percent, based on the closing stock price on December 1, 2025,” Alexandria Real Estate Equities, Inc. (NYSE:ARE) said. The announcement followed the company’s disappointing earnings performance in the third quarter of the year, during which it swung to a net loss attributable to shareholders of $234.9 million from an attributable net income of $164.7 million in the same period last year. The figure brought its nine-month attributable net loss to $356.1 million, reversing a $374.5 million attributable net income in the first nine months of 2024. Total revenues in the third quarter declined by 5 percent to $751.9 million from $791.6 million year-on-year, as income from rentals dwindled by 5 percent to $735.8 million from $775.7 million. While we acknowledge the potential of ARE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
