Alexandria Real Estate Equities (ARE)
NYSE:ARE
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Alexandria Equities
(NYSE:ARE)
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Rating:54Neutral
Price Target:
$47.00
▲(4.82% Upside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by weak price/indicator trends and a sharp deterioration in profitability, despite supportive underlying cash generation. A high dividend yield and earnings-call positives (liquidity, dispositions, leasing, cost cuts) partially offset this, but near-term occupancy/NOI pressure and impairment-related uncertainty keep the overall rating in the mid range.
Positive Factors
Operating cash flow stability
Consistently positive operating cash flow and generally positive free cash flow provide a durable source of internal funding for dividends, development and capex. This recurring cash generation cushions earnings volatility and supports liquidity and deleveraging over a multi‑quarter horizon.
Negative Factors
Large impairments & sharp earnings hit
Material impairments signal permanent or long‑lived asset value deterioration in parts of the portfolio and directly produced a severe 2025 earnings loss. Such write‑downs weaken book value, constrain distributable earnings and complicate capital allocation until asset fundamentals recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash flow stability
Consistently positive operating cash flow and generally positive free cash flow provide a durable source of internal funding for dividends, development and capex. This recurring cash generation cushions earnings volatility and supports liquidity and deleveraging over a multi‑quarter horizon.
Read all positive factors
Alexandria Equities (ARE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.77B
Dividend Yield10.9%
Average Volume (3M)2.52M
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth-0.76%
EPS Growth-250.60%
CountryUS
Employees552
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-6.35
Shares Outstanding173,300,350
10 Day Avg. Volume2,342,143
30 Day Avg. Volume2,516,858
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.54
Price to Sales (P/S)2.81
P/FCF Ratio5.90
Enterprise Value/Market Cap2.57
Enterprise Value/Revenue6.73
Enterprise Value/Gross Profit9.76
Enterprise Value/Ebitda55.44
Forecast
1Y Price Target
$56.10Price Target Upside25.11% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.04
Revenue Forecast (FY)$2.68B
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...
How the Company Makes Money
ARE primarily makes money by leasing space in its properties to tenants and earning rental income under long-term lease agreements, which may include base rent and reimbursements for certain property-level operating expenses (often structured as t...
Alexandria Equities Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down revenue by different business segments, highlighting which areas are driving growth and profitability, and where there might be challenges.
Breaks down revenue by different business segments, highlighting which areas are driving growth and profitability, and where there might be challenges.
Data provided by:
The Fly
The FlyAlexandria Equities Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Neutral
The call described strong execution on balance sheet management, sizable Q4 dispositions ($1.5B), notable leasing momentum (1.2M sqft in Q4 and nearly 900k sqft signed to commence in Q3 2026), substantial G&A savings (30%, $51.3M), healthy liquidity ($5.3B) and a robust adjusted EBITDA margin (70%). Offsetting these positives were material Q4 impairments ($1.45B), same-property NOI declines (-6% Q4, -3.5% FY), elevated free rent and near-term occupancy headwinds driven by 1.2M sqft of lease expirations and an assumed ~$6M per quarter rent reduction tied to tenant wind-downs. Management expects a Q1 2026 dip in occupancy and a temporary leverage increase, with recovery anticipated in the back half of 2026 as dispositions and signed-lease commencements occur. Overall, the company conveyed operational resilience and strong liquidity while also acknowledging significant near-term earnings and asset-value pressures that create uncertainty into 2026.Positive Updates
Strong Q4 Dispositions and Execution
Completed $1.5 billion of dispositions in Q4 across 26 transactions, helping achieve the company’s leverage target and advance the 2026 non-core disposition program.
Negative Updates
Same-Property NOI Declines
Same-property NOI decreased 6% in Q4 2025 (down 1.7% on a cash basis) and was down 3.5% for full-year 2025 (up 0.9% on a cash basis), reflecting lower occupancy and market pressures.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Dispositions and Execution
Completed $1.5 billion of dispositions in Q4 across 26 transactions, helping achieve the company’s leverage target and advance the 2026 non-core disposition program.
Read all positive updates
Company Guidance
The company reiterated its 2026 financial framework: year‑end occupancy guidance of 87.7%–89.3% (while expecting an occupancy dip in Q1 2026 driven by ~1.2M rsf of key lease expirations—~60% of which expired in mid‑January—and recovery in H2), Q4’26 FFO/share of $1.40–$1.60 (treated as the trough), same‑property NOI guidance centered around ±8.5% at the midpoint, and dispositions/sales of partial interest guidance with a $2.9B midpoint (with ~65%–75% of that amount expected to be non‑core assets and land, and most closings weighted to Q2–Q4 with a third‑quarter weighted average). Key operating and capital assumptions include ~900k rsf of signed leases (≈2.5% of the portfolio) expected to commence in Q3’26 generating ~$52M of incremental annual rent; an assumed ~$6M/quarter revenue headwind from tenant wind‑downs starting Q1’26; a 2%–3% assumed benefit from assets sold/HFS in H2’26; capitalized interest guidance of $250M for 2026 (down 24% YoY); realized investment gains of $60M–$90M for 2026 (≈$19M/quarter at midpoint); liquidity of $5.3B; Q4’25 net debt/annualized adjusted EBITDA of 5.7x and reiterated Q4’26 target of 5.6x–6.2x (with Q1’26 quarterly‑annualized leverage expected to be temporarily ~1.0–1.5x higher); and continued cost discipline after $51.3M (30%) G&A savings in 2025, with those savings versus 2024 expected to be roughly half in 2026.Alexandria Equities Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.97B | 3.05B | 2.84B | 2.58B | 2.11B |
| Gross Profit | 2.05B | 2.14B | 1.98B | 1.79B | 1.48B |
| EBITDA | 360.45M | 1.90B | 1.45B | 1.77B | 1.62B |
| Net Income | -1.43B | 322.95M | 103.64M | 521.66M | 571.25M |
Balance Sheet | |||||
| Total Assets | 34.08B | 37.53B | 36.77B | 35.52B | 30.22B |
| Cash, Cash Equivalents and Short-Term Investments | 549.06M | 552.15M | 618.19M | 825.19M | 361.35M |
| Total Debt | 12.76B | 12.75B | 11.70B | 10.57B | 9.23B |
| Total Liabilities | 14.93B | 15.13B | 14.15B | 12.84B | 11.19B |
| Stockholders Equity | 15.47B | 17.89B | 18.47B | 18.97B | 16.19B |
Cash Flow | |||||
| Free Cash Flow | 1.41B | 1.50B | 1.63B | 1.29B | -6.32B |
| Operating Cash Flow | 1.41B | 1.50B | 1.63B | 1.29B | 1.01B |
| Investing Cash Flow | 527.59M | -1.51B | -2.50B | -5.08B | -7.11B |
| Financing Cash Flow | -1.95B | -93.31M | 674.16M | 4.23B | 5.92B |
Alexandria Equities Technical Analysis
Negative
44.84
Price Trends
50.38
Negative
50.15
Negative
61.78
Negative
Market Momentum
-1.87
Positive
40.04
Neutral
35.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARE, the sentiment is Negative. The current price of 44.84 is below the 20-day moving average (MA) of 46.47, below the 50-day MA of 50.38, and below the 200-day MA of 61.78, indicating a bearish trend. The MACD of -1.87 indicates Positive momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 35.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARE.
Alexandria Equities Risk Analysis
Alexandria Equities disclosed 11 risk factors in its most recent earnings report. Alexandria Equities reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alexandria Equities Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $7.17B | 20.54 | 10.14% | 4.30% | 0.06% | 8.88% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $3.39B | 16.11 | 5.11% | 5.75% | 0.77% | 62.58% | |
56 Neutral | $5.62B | 7.05 | 15.43% | 2.24% | 2.41% | ― | |
54 Neutral | $7.77B | -1.93 | -8.57% | 10.90% | -0.76% | -250.60% | |
54 Neutral | $3.79B | 106.88 | 0.85% | 5.08% | 16.38% | 3.60% | |
50 Neutral | $9.15B | 38.78 | 5.34% | 5.26% | 2.54% | -155.17% |
* Real Estate Sector Average
ARE
Alexandria Equities
44.84
-25.09
-35.88%
BXP
BXP
52.54
-4.35
-7.65%
CUZ
Cousins Properties
22.57
-2.11
-8.54%
KRC
Kilroy Realty
28.34
0.77
2.80%
VNO
Vornado Realty
27.12
-5.05
-15.70%
CDP
COPT Defense Properties
31.72
7.58
31.38%
Alexandria Equities Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Alexandria Equities Adopts Simple Majority Director Removal Standard
Positive
Mar 31, 2026
On March 31, 2026, Alexandria Real Estate Equities, Inc. filed Articles Supplementary in Maryland to opt out of Section 3-804(a) of the Maryland General Corporation Law, which had required a two-thirds stockholder vote to remove directors. As a re...
Private Placements and FinancingRegulatory Filings and Compliance
Alexandria Equities Reports New Direct Financial Obligation
Neutral
Feb 25, 2026
The filing from Alexandria Equities offers no specific description of its industry, products, services, or market focus, limiting insight into the company’s operational profile.The disclosure merely states that information about certain note...
Business Operations and StrategyPrivate Placements and Financing
Alexandria Equities Prices $750 Million Senior Notes Offering
Positive
Feb 12, 2026
On February 10, 2026, Alexandria Real Estate Equities, Inc. and its operating partnership entered into an underwriting agreement with a syndicate of major banks for a $750 million issuance of 5.25% senior notes due 2036, which will be fully and un...
Business Operations and StrategyExecutive/Board Changes
Alexandria Equities boosts performance-based pay, promotes co-president
Positive
Jan 12, 2026
On January 9, 2026, Alexandria Real Estate Equities amended Executive Chairman Joel S. Marcus’s long-term incentive compensation for the 2025 fiscal year so that 100% of his $3.6 million target equity award is now subject to performance-base...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.