Jim Cramer on Alexandria Real Estate: “It’s Been Suffering From Muted Tenant Demand for a While”

“The 3rd worst performer, precise interesting, it’s a REIT, Alexandria Real Estate Equities, down astir 50%. This existent property concern spot focuses connected bureau abstraction for the beingness sciences industry, including laboratories, and it’s been suffering from muted tenant request for a while. That’s somewhat the effect of a weaker IPO marketplace successful the past fewer years, which made it harder for tiny biotechs to rise wealth and truthful instrumentality down existent estate. Last month, aft a mates of years of bleeding, Alexandria Real Estate, they spot the slug and slashed the dividend by 45%, becoming different cautionary communicative astir the illusory precocious output truthful galore radical seek. And earlier the cut, the dividend output was sitting conscionable nether 10%. It’s inactive beauteous precocious astatine astir 6%. Let’s anticipation they tin get their enactment together. Remember, a precocious output is often a motion of existent problems, not conscionable a juicy opportunity.”

Photo by Adam Nowakowski connected Unsplash

Alexandria Real Estate Equities, Inc. (NYSE:ARE) is simply a beingness subject REIT that builds and manages collaborative innovation campuses to enactment probe and biotech growth.

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