UPDATE: JP Morgan Cuts PT to $68 on Alexandria Real Estate Equities on Upcoming Earnings Pressure

JP Morgan reiterated its Neutral rating on Alexandria Real Estate Equities

but reduced its price target from $72 to $68. JP Morgan said, "We highlight that the company has a ramp in development and redevelopment spending in the next couple years that we think will dampen earnings. In essence, we assume that through 2014 ARE will spend about $1.2 billion on its development/re-development pipeline and fund it with land/building sales (almost $500 million), common equity (about $350 million), free cash flow (about $200 million), and debt (about $150 million). … ARE plans to lay out its plan for funding itself at its December investor day, but even if it varies from our numbers, we think Street FFO estimates will have to come down some." Alexandria Real Estate Equities closed at $67.46 on Wednesday.