09:10 AM EDT, 04/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our target price by $13 to $143, applying a forward P/FFO of 15.0x our 2024 FFO estimate, a discount to ARE's 10-year average of 18.7x given new supply and interest rate headwinds that are weighing on life sciences funding. We raise our 2024 FFO estimate by $0.03 to $9.50 and lower 2025 by $0.05 to $9.86. ARE reported Q1 2024 FFO of $2.35 vs. $2.19, a $0.02 consensus beat. Same-store cash NOI rose 4.2% Y/Y as ARE maintained modest pricing power, with cash rental rates rising 19%, while same-store occupancy fell 40 bps Y/Y to 94.5%. Leasing remained healthy at 1.1 million RSF in Q1 and rent collections of 99.9% continue to showcase resiliency within the sector despite interest rate headwinds. In Q1, ARE made acquisitions of $195M while disposing of $17M in properties. The balance sheet remains strong, with leverage of 5.2x vs. 5.3x Y/Y, $6.0B of available liquidity, and minimal variable rate debt (1.1%). We continue to view 2024 as a transition year due to supply headwinds but see comps easing in 2025.