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lexandria Real Estate Equities, a REIT focused on life sciences properties, has announced a $500 million stock buyback program. The move comes as the life sciences real estate market faces challenges, with nearly a third of the nation's lab space currently available and an expected worsening supply imbalance.
The company's stock price had dipped to near its 52-week low before rising slightly after the announcement. Alexandria executives have been navigating a "stubborn economic and operating environment," according to Chairman Joel Marcus, who also noted plans to sell $1.2 billion in underperforming assets by year's end as part of a strategy to focus on megacampus properties.
The REIT missed Q4 earnings estimates by a penny, but revenue improved. However, leasing forecasts for major life sciences markets suggest a bumpy road ahead due to an industrywide supply glut. The buyback program may help stabilize the company's stock price amid these challenges.
