Diamond Hill Funds Buys Alexandria REIT as Q4 Revenue Drops 4.4%
Diamond Hill’s Small-Mid Cap Fund initiated a position in Alexandria Real Estate Equities during Q4 2025, underscoring confidence in its life sciences portfolio focus. Alexandria reported Q4 revenues of $754.41 million, down 4.4% year over year, and recorded EPS of -$6.35 versus $2.39 a year earlier.
1. Diamond Hill Initiates Position in Alexandria
Diamond Hill’s Small-Mid Cap Fund added Alexandria Real Estate Equities to its Q4 2025 portfolio, marking the REIT as a new holding due to its leadership in life sciences real estate concentrated in major biotech clusters.
2. Q4 2025 Financial Results Show Revenue Decline
Alexandria generated $754.41 million in fourth-quarter revenues, a 4.4% decrease from the prior year, reflecting softer leasing activity in its core life sciences properties.
3. Q4 EPS Reflects Mark‐to‐Market Charges
The REIT posted a loss of $6.35 per share in Q4 2025, contrasted with earnings of $2.39 per share in the same quarter of 2024, driven largely by valuation adjustments and higher financing costs.
4. Analyst Estimates Point to Further Earnings Pressure
Consensus forecasts call for Q1 2026 EPS of $1.73, a 24.8% year-over-year decline, suggesting ongoing headwinds in the near term despite institutional buying interest.