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Alexandria Equities
(NYSE:ARE)
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Rating:57Neutral
Price Target:
$55.00
▲(13.10% Upside)
Action:Reiterated
Date:05/15/26
ARE’s score is held back primarily by weakened profitability and rising leverage, partially offset by resilient operating cash flow. The earnings call reinforces a balanced outlook: reaffirmed FFO guidance and strong liquidity/disposition plans, but with declining occupancy and a deeper same-property NOI downturn. Valuation is a clear positive with a low P/E and high yield, while technicals suggest only a tentative recovery within a still-weaker longer-term trend.
Positive Factors
Dominant market position / mega campuses
Large, campus-style holdings concentrated in top life-science clusters create durable competitive advantages: scale, tenant agglomeration, and pricing power in core markets. High share in Boston/SF/San Diego supports long-term leasing leverage and lower marketing costs versus smaller owners.
Negative Factors
Occupancy decline
Sustained occupancy erosion materially reduces rental revenue and drives downtime-related costs in a sector with long fit-out cycles. Lower effective occupancy pressures same-property NOI and lengthens time to restore cash generation, making operating recovery contingent on tougher leasing market dynamics.
Read all positive and negative factors
Positive Factors
Negative Factors
Dominant market position / mega campuses
Large, campus-style holdings concentrated in top life-science clusters create durable competitive advantages: scale, tenant agglomeration, and pricing power in core markets. High share in Boston/SF/San Diego supports long-term leasing leverage and lower marketing costs versus smaller owners.
Read all positive factors
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 (ARE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.16B
Dividend Yield10.9%
Average Volume (3M)2.01M
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth-5.35%
EPS Growth-923.18%
CountryUS
Employees552
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-6.27
Shares Outstanding174,269,490
10 Day Avg. Volume2,153,513
30 Day Avg. Volume2,011,131
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 Cap2.30
Enterprise Value/Revenue7.26
Enterprise Value/Gross Profit10.63
Enterprise Value/Ebitda51.86
Forecast
1Y Price Target
$50.22Price Target Upside3.27% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)1.69
Revenue Forecast (FY)$2.68B
Alexandria Equities Business Overview & Revenue Model
Company Description
Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500® real estate investment trust, stands as the pioneering and most seasoned entity in the specialized domain of urban office properties. Since its inception in 1994, Alexandria has uniquel...
How the Company Makes Money
ARE primarily makes money by leasing laboratory and office space to tenants and collecting rental income under long-term lease agreements. Its revenue model is centered on (1) rental revenue from its operating property portfolio, including base re...
Alexandria Equities Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: solid corporate-level strengths (strong liquidity, long debt duration, active disposition pipeline, dominant market share in core markets, G&A reductions, and maintained full-year FFO midpoint) contrasted with meaningful near-term operational pressures (drop in occupancy, a double-digit same-property NOI decline, rental-rate pressure on renewals, elevated lease expirations and vacancy headwinds, and dependence on dispositions to reduce leverage). Management articulated clear mitigations (leasing momentum on development/redevelopment, JV/disposition flexibility, and capital/expense discipline) but multiple near-term execution and market risks remain.Positive Updates
FFO Results and 2026 Guidance
FFO per share diluted as adjusted of $1.73 for 1Q 2026; reaffirmed full-year 2026 midpoint guidance of $6.40 per share (range tightened). Fourth quarter 2026 guidance refined to $1.40–$1.50 (midpoint $1.45), representing only a $0.05 reduction from prior midpoint assumptions.
Negative Updates
Occupancy Decline and Near-Term Pressure
Occupancy finished 1Q 2026 at 87.7%, down 320 basis points from the prior quarter. Year-end 2026 occupancy midpoint guidance was reduced from 88.5% to 87.0% (a 1.5% reduction) driven by retention of some assets with vacancy and expected downtime.
Read all updates
Q1-2026 Updates
Positive
Negative
FFO Results and 2026 Guidance
FFO per share diluted as adjusted of $1.73 for 1Q 2026; reaffirmed full-year 2026 midpoint guidance of $6.40 per share (range tightened). Fourth quarter 2026 guidance refined to $1.40–$1.50 (midpoint $1.45), representing only a $0.05 reduction from prior midpoint assumptions.
Read all positive updates
Company Guidance
Management reaffirmed 2026 FFO per share (diluted, as adjusted) midpoint of $6.40 while tightening the range and narrowed 4Q‑26 FFO guidance to $1.40–$1.50 (midpoint $1.45); 1Q FFO per share diluted as adjusted was $1.73. Company ended 1Q occupancy at 87.7% (down 320 bps), updated year‑end 2026 occupancy midpoint to 87% (from 88.5%, -1.5%), and lowered same‑property NOI midpoint to down 9.5% (from down 8.5%, -1%). Leasing totaled 647,000 sq ft in 1Q with 118,000 sq ft executed and 276,000 sq ft in LOIs (394,000 sq ft total development/redev activity), 1.1M sq ft of previously vacant space is leased for average September delivery, and management expects ~900,000 sq ft of leasing in Q2. Capitalized interest was $70M in 1Q (down ~$12M q/q) and guidance was reduced ~$5M at the midpoint; realized investment gains guidance remains $60M–$90M (1Q realized gains $18M). Balance sheet metrics: $4.2B liquidity, corporate ratings in top 15% of U.S. REITs, longest average remaining debt maturity (~10 years), current quarterly‑annualized net debt/adjusted EBITDA ~6.8x (expected to fall to a 4Q target of 5.6–6.2x), dispositions/sales of partial interest midpoint $2.9B (≈80% pending/identified), G&A guidance $134M–$154M for 2026 (midpoint ≈$144M, ~14% savings vs 2024; combined 2025–26 savings ~$76M), trailing 12‑month G&A as % of NOI 6% (vs ~14.3% S&P REIT avg.), 1.9M sq ft under construction (77% leased, ~600k stabilizing in 2026 at 93% leased) and 1.6M sq ft (5 projects) under evaluation with ~$567M land basis and ~$1.3B of projects having 2027 milestones.Alexandria Equities Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
55
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.90B | 2.97B | 3.05B | 2.84B | 2.58B | 2.11B |
| Gross Profit | 1.98B | 2.05B | 2.14B | 1.98B | 1.79B | 1.48B |
| EBITDA | 405.64M | 360.45M | 1.90B | 1.45B | 1.77B | 1.62B |
| Net Income | -1.02B | -1.43B | 322.95M | 103.64M | 521.66M | 571.25M |
Balance Sheet | ||||||
| Total Assets | 34.17B | 34.08B | 37.53B | 36.77B | 35.52B | 30.22B |
| Cash, Cash Equivalents and Short-Term Investments | 418.72M | 549.06M | 552.15M | 618.19M | 825.19M | 361.35M |
| Total Debt | 12.88B | 12.76B | 12.75B | 11.70B | 10.57B | 9.23B |
| Total Liabilities | 14.80B | 14.93B | 15.13B | 14.15B | 12.84B | 11.19B |
| Stockholders Equity | 15.73B | 15.47B | 17.89B | 18.47B | 18.97B | 16.19B |
Cash Flow | ||||||
| Free Cash Flow | 1.40B | 1.41B | 1.50B | 1.63B | 1.29B | -6.32B |
| Operating Cash Flow | 1.40B | 1.41B | 1.50B | 1.63B | 1.29B | 1.01B |
| Investing Cash Flow | 491.78M | 362.10M | -1.51B | -2.50B | -5.08B | -7.11B |
| Financing Cash Flow | -1.96B | -1.78B | -93.31M | 674.16M | 4.23B | 5.92B |
Alexandria Equities Technical Analysis
Positive
48.63
Price Trends
48.14
Positive
48.23
Positive
53.28
Negative
Market Momentum
1.28
Negative
55.85
Neutral
47.57
Neutral
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 48.63 is below the 20-day moving average (MA) of 51.74, above the 50-day MA of 48.14, and below the 200-day MA of 53.28, indicating a neutral trend. The MACD of 1.28 indicates Negative momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 47.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $8.52B | 27.30 | 10.35% | 4.30% | 3.86% | 10.46% | |
66 Neutral | $8.32B | 10.64 | 13.16% | 2.24% | -0.27% | 600.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $5.11B | -949.85 | -0.11% | 5.08% | 12.11% | -109.72% | |
63 Neutral | $4.62B | 21.25 | 4.05% | 5.75% | -1.42% | 8.81% | |
58 Neutral | $12.14B | 34.66 | 6.17% | 5.26% | 1.62% | ― | |
57 Neutral | $9.16B | -8.39 | -6.29% | 10.90% | -5.35% | -923.18% |
* Real Estate Sector Average
ARE
Alexandria Equities
52.58
-19.92
-27.48%
BXP
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KRC
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39.32
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18.37%
VNO
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40.58
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CDP
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37.67
10.41
38.18%
Alexandria Equities Corporate Events
Executive/Board ChangesShareholder Meetings
Alexandria Equities Stockholders Approve Directors and Key Proposals
Positive
May 14, 2026
On May 13, 2026, Alexandria Real Estate Equities, Inc. held its 2026 Annual Meeting of Stockholders, with approximately 89% of eligible votes represented, at which stockholders elected eight directors to serve until the 2027 annual meeting, includ...
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.