Alexandria Equities (ARE) AI Stock Analysis

• Market Cap: $14.65B
• Dividend Yield: 6.21%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 102.6
• Beta (1Y): 1.03
• Revenue Growth: 3.12%
• EPS Growth: -116.29%
• Country: US
• Employees: 552
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Office
• EPS (TTM): -0.64
• Shares Outstanding: 172,958,950
• 10 Day Avg. Volume: 1,044,184
• 30 Day Avg. Volume: 1,387,982
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 9.92
• Enterprise Value/Gross Profit: 14.25
• Enterprise Value/Ebitda: 16.42
• 1Y Price Target: $98.33
• Price Target Upside: 16.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 60 Neutral
• Price Target: $80.00 ▼(-5.55% Downside)

The overall stock score of 60 reflects a balanced view of Alexandria Equities. Strong revenue growth and efficient cash flow management are positive indicators, but the net loss and negative ROE are significant concerns. The earnings call provided a balanced outlook with notable achievements and challenges. Technical indicators suggest mixed momentum, and the valuation is hindered by a negative P/E ratio, though the high dividend yield offers some appeal.

Positive Factors

Financial Performance

Investment income came in strong, with ARE realizing ~$32.1m of investment gains during the quarter, above estimates.

Leasing Activity

ARE executed on 1.3m sq.ft. of leasing activity during the quarter, which is above historical averages, a positive given high supply in the market.

Stock Valuation

ARE is trading at an approximately 30% discount to NAV, offering a potential total return of around 39% including capital appreciation and yield.

Negative Factors

Job Market

Life science job listings in ARE's markets continued to decline, with job listings soft relative to the 'go-go' years of 2020-2022, and below the average of '18-'19.

Market Conditions

New supply continues to be an overhang, with high vacancy rates in the nation's two largest lab markets, the Bay Area and Boston.

Supply and Demand

Supply/demand imbalance remains a concern for the asset class, which limits the growth outlook through '26 due to occupancy headwinds, narrowing re-leasing spreads, and minimal accretion from development.

Alexandria Equities Business Overview & Revenue Model

Company Description

Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500® urban office real estate investment trust (REIT), is the first, longest-tenured, and pioneering owner, operator, and developer uniquely focused on collaborative life science, technology, and agtech campuses in AAA innovation cluster locations, with a total market capitalization of $31.9 billion as of December 31, 2020, and an asset base in North America of 49.7 million square feet (SF). The asset base in North America includes 31.9 million RSF of operating properties and 3.3 million RSF of Class A properties undergoing construction, 7.1 million RSF of near-term and intermediate-term development and redevelopment projects, and 7.4 million SF of future development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, technology, and agtech campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, technology, and agtech companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

How the Company Makes Money

Alexandria Equities generates revenue primarily through leasing its properties to tenants in the life sciences and technology sectors. The company's revenue model is based on long-term leases, which provide a stable income stream. Key revenue streams include rental income from both traditional office spaces and specialized lab facilities. Alexandria also engages in development projects, enhancing its portfolio's value and generating additional income through the eventual leasing of these newly developed spaces. Significant partnerships with universities and research institutions further contribute to its earnings by securing long-term tenants and fostering collaborative environments that attract additional clients.

Alexandria Equities Financial Statement Overview

Summary

Alexandria Equities shows strong revenue growth and efficient cash flow management. However, the recent net loss and negative return on equity are significant concerns impacting long-term profitability and shareholder value.

Income Statement

Alexandria Equities shows a strong revenue growth rate of 22.6% TTM, indicating robust top-line expansion. However, the net profit margin has turned negative TTM, primarily due to a net loss, which raises concerns about profitability. The gross profit margin remains healthy at approximately 69.6%, and the EBIT margin is stable at 17.3%, suggesting operational efficiency despite the net loss.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.71, indicating moderate leverage. However, the return on equity has turned negative TTM, reflecting the net loss and impacting shareholder returns. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE is a concern.

Cash Flow

Operating cash flow remains strong with a high coverage ratio of 6.18 TTM, indicating good cash generation relative to net income. Free cash flow growth is positive at 3.53% TTM, showing improvement. The free cash flow to net income ratio is 1.0, highlighting efficient cash conversion despite the net loss.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	3.05B	2.84B	2.59B	2.11B	1.89B
Gross Profit	2.12B	2.14B	1.98B	1.81B	1.49B	1.36B
EBITDA	1.84B	1.90B	1.45B	1.63B	1.35B	1.23B
Net Income	-12.85M	322.95M	103.64M	521.66M	416.83M	591.20M
Balance Sheet
Total Assets	37.62B	37.53B	36.77B	35.52B	30.22B	22.83B
Cash, Cash Equivalents and Short-Term Investments	520.54M	552.15M	618.19M	825.19M	361.35M	568.53M
Total Debt	13.66B	12.75B	11.70B	10.57B	9.23B	7.91B
Total Liabilities	15.88B	15.13B	14.15B	12.84B	11.19B	9.38B
Stockholders Equity	17.18B	17.89B	18.47B	18.97B	16.19B	11.73B
Cash Flow
Free Cash Flow	1.42B	1.50B	1.63B	1.29B	-6.32B	-2.39B
Operating Cash Flow	1.42B	1.50B	1.63B	1.29B	1.01B	882.51M
Investing Cash Flow	-1.03B	-1.51B	-2.50B	-5.08B	-7.11B	-3.28B
Financing Cash Flow	-425.32M	-93.31M	674.16M	4.23B	5.92B	2.75B

Alexandria Equities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARE, the sentiment is Positive. The current price of 84.7 is above the 20-day moving average (MA) of 78.70, above the 50-day MA of 77.94, and below the 200-day MA of 84.87, indicating a neutral trend. The MACD of 1.75 indicates Negative momentum. The RSI at 67.94 is Neutral, neither overbought nor oversold. The STOCH value of 88.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARE.

Alexandria Equities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDP	76 Outperform	$6.92B	24.14	9.67%	3.91%	2.95%	―
KRC	74 Outperform	$4.95B	22.47	4.06%	5.06%	2.26%	10.15%
CUZ	69 Neutral	$4.95B	79.82	1.30%	4.34%	13.07%	-4.94%
VNO	65 Neutral	$8.62B	10.22	14.93%	1.79%	1.38%	4370.96%
Sector *	63 Neutral	$7.09B	13.59	-0.50%	6.85%	4.08%	-25.24%
BXP	62 Neutral	$13.11B	3,802.53	0.07%	5.10%	3.24%	-97.73%
ARE	60 Neutral	$14.65B	102.63	-0.12%	6.21%	3.12%	-116.29%

Alexandria Equities Corporate Events

Alexandria Equities Approves Key Proposals at Annual Meeting

On May 13, 2025, Alexandria Real Estate Equities, Inc. held its 2025 Annual Meeting of Stockholders, where several key proposals were approved, including the amendment and restatement of the Amended 1997 Incentive Plan. This amendment increases the number of shares available for grant, specifies the treatment of performance-based awards in the event of a change of control, and clarifies the prohibition of granting stock options and stock appreciation rights. Additionally, the meeting saw the election of eight directors, approval of executive compensation, ratification of Ernst & Young LLP as auditors, and the approval of a stockholder proposal titled ‘Simple Majority Vote’.

The most recent analyst rating on (ARE) stock is a Hold with a $117.00 price target. To see the full list of analyst forecasts on Alexandria Equities stock, see the ARE Stock Forecast page.