[BTinSF]

All companies are hoarding cash these days. REITs in general have substantial debt that has to be rolled over periodically (typically equal to about 50% of equity) and, in an era where the ability to borrow when needed is uncertain, having plenty of cash on hand is wise. The problem is not so much that Alexandria isn't doing OK (see below) but that the companies that lend to commercial real estate are doing far from OK--many of them are on the verge of going out of business.

Concerning Alexandria:

Alexandria Real Estate lowers 2008 FFO forecast
Thursday October 30, 3:31 pm ET
Alexandria Real Estate Equities reduces full year FFO guidance by a penny

PASADENA, Calif. (AP) -- Alexandria Real Estate Equities Inc. gave updated guidance for 2008 funds from operations on Thursday, lowering its outlook by a penny.

The company updated its full-year 2008 outlook to $5.85 per share, down from guidance of $5.86 given in August. Analysts polled by Thomson Reuters expect funds from operations, or FFO, of $5.87 per share.

The company, which owns and operates properties in the science industry, reported Thursday that funds from operations increased 6 percent on a per share basis in the third quarter, matching analysts' estimates.

Funds from operations was $48.8 million, or $1.53 per share, compared to $42.7 million, or $1.45 per share, for the third quarter of 2007.

FFO, which adds such items as amortization and depreciation back into net income, is considered a key measure of REIT strength because it gives a more accurate picture of cash performance.

On Wednesday, a J.P. Morgan analyst report reduced its rating on Alexandria Real Estate Equities to "Neutral" from "Overweight."

Analyst Anthony Paolone wrote that the neutral rating was due to earnings challenges in 2009 "from rising interest rates and deteriorating fundamentals in the labspace business."

Shares were down 64 cents to $66.51 in afternoon trading.

Source: http://biz.yahoo.com/ap/081030/alexa....v=2&printer=1

So it has its own issues but so far they seem manageable. Restricting building and borrowing is one way to manage them.