Investing.com -- Alexandria Real Estate Equities (NYSE:ARE) stock tumbled 11% Wednesday after the company announced a significant reduction in its quarterly dividend.
The real estate investment trust declared a quarterly cash dividend of $0.72 per common share for the fourth quarter of 2025, representing a 45% decrease from the $1.32 dividend paid in the third quarter. The reduced dividend will be payable on January 15, 2026, to stockholders of record on December 31, 2025.
According to the company, the Board’s decision to cut the dividend aims to "fortify its already strong balance sheet" and enhance financial flexibility. The move will preserve approximately $410 million in liquidity on an annual basis.
Despite the reduction, Alexandria Real Estate Equities noted that the new dividend still provides a 5.4% yield based on the December 1, 2025 closing stock price.
The significant dividend cut appears to have rattled investors, contributing to the sharp decline in the company’s share price during Wednesday’s trading session.
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