U.S. REITs Fail to Maintain Dividends, Market Cap Drops by 1 Trillion Won in a Day

Alexandria Real Estate Equities (ARE) plummeted 10.89% on the New York Stock Exchange, closing at $40.60, erasing roughly $700 million—about KRW 1 trillion—in market capitalization in a single day.

Intraday, the stock slid toward its 52-week low, pushing market cap down to around $7 billion (approximately KRW 9.8 trillion), while trading volume surged to 3.16 million shares, well above the norm.

Following its first-quarter earnings release—where revenue and leasing metrics disappointed and a drop in occupancy was spotlighted—the share price fell by more than 10%. The company then heightened growth-slowdown concerns by announcing plans to cut annual development investment by about $500 million beginning in 2026.

Research firms have recently downgraded their ratings, citing weakening results and demand, and the stock is down by the mid-teens percentage year-to-date and by the upper-30% range over the past 12 months.

Based in Pasadena, California, Alexandria Real Estate Equities is a U.S. real estate investment trust (REIT) specializing in life-sciences and technology research campuses. It owns lab and office campuses in leading biotech clusters, including Boston, San Diego, and San Francisco.

Once a marquee dividend REIT with 30 consecutive years of payouts, Alexandria slashed its dividend by 45% at the end of 2025. Combined with weak performance and rising vacancies, its reputation as a defensive “safe dividend” stock has been significantly shaken.