Alexandria Equities (ARE) AI Stock Analysis

• Market Cap: $9.61B
• Dividend Yield: 9.49%
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -0.76%
• EPS Growth: -250.60%
• Country: US
• Employees: 552
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -1.38
• Shares Outstanding: 172,825,060
• 10 Day Avg. Volume: 4,801,452
• 30 Day Avg. Volume: 2,780,840
• PEG Ratio: 0.22
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 5.50
• P/FCF Ratio: 11.16
• Enterprise Value/Market Cap: 3.35
• Enterprise Value/Revenue: 10.65
• Enterprise Value/Gross Profit: 15.40
• Enterprise Value/Ebitda: 23.10
• 1Y Price Target: $64.78
• Price Target Upside: 16.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): -0.81
• Revenue Forecast (FY): $3.00B

• Rating: 48 Neutral
• Price Target: $58.00 ▲(4.30% Upside)

The overall stock score reflects significant challenges in financial performance, particularly with declining revenue growth and profitability issues. Technical indicators suggest bearish momentum, and valuation metrics highlight potential risks despite a high dividend yield. The earnings call provided a mixed outlook, with positive leasing activity and liquidity offset by occupancy declines and reduced guidance.

Positive Factors

Leasing Volume

Strong leasing volume indicates sustained demand for Alexandria's properties, supporting stable long-term revenue through tenant retention.

Megacampus ARR Growth

Focus on high-quality Megacampuses enhances Alexandria's competitive edge, attracting premium tenants and ensuring robust revenue streams.

Strong Financial Position

High liquidity provides Alexandria with financial flexibility to navigate economic challenges and invest in strategic growth opportunities.

Negative Factors

Occupancy Decline

Declining occupancy rates can pressure revenue and profitability, indicating potential challenges in maintaining tenant demand.

Impairment Charges

Significant impairment charges reflect potential overvaluation of assets and can impact future earnings and asset management strategies.

Profitability Challenges

Ongoing profitability issues, as indicated by negative net income, may limit Alexandria's ability to reinvest and grow its portfolio.

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 faces challenges with declining revenue growth and profitability, as evidenced by negative net income in the TTM period. While the balance sheet remains stable with a reasonable debt-to-equity ratio, the negative return on equity is concerning. Cash flow generation is under pressure, but the company maintains some ability to generate free cash flow. Overall, the financial health is mixed, with significant areas needing improvement.

Income Statement

The income statement shows a concerning trend with declining revenue growth and negative net profit margin in the TTM period. Gross profit margin remains strong, but the net income has turned negative, indicating profitability challenges. The EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a moderate debt-to-equity ratio, indicating manageable leverage. However, the return on equity has turned negative in the TTM period, which is a concern. The equity ratio remains healthy, suggesting a solid asset base.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, and the operating cash flow to net income ratio is not calculable due to negative net income. The free cash flow to net income ratio is positive, indicating some cash generation capability despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02B	3.05B	2.84B	2.59B	2.11B	1.89B
Gross Profit	2.09B	2.14B	1.98B	1.81B	1.49B	1.36B
EBITDA	1.39B	1.90B	1.45B	1.63B	1.35B	1.23B
Net Income	-415.73M	322.95M	103.64M	521.66M	416.83M	591.20M
Balance Sheet
Total Assets	37.38B	37.53B	36.77B	35.52B	30.22B	22.83B
Cash, Cash Equivalents and Short-Term Investments	579.47M	552.15M	618.19M	825.19M	361.35M	568.53M
Total Debt	14.10B	12.75B	11.70B	10.57B	9.23B	7.91B
Total Liabilities	16.26B	15.13B	14.15B	12.84B	11.19B	9.38B
Stockholders Equity	16.64B	17.89B	18.47B	18.97B	16.19B	11.73B
Cash Flow
Free Cash Flow	1.38B	1.50B	1.63B	1.29B	-6.32B	-2.39B
Operating Cash Flow	1.38B	1.50B	1.63B	1.29B	1.01B	882.51M
Investing Cash Flow	-991.27M	-1.51B	-2.50B	-5.08B	-7.11B	-3.28B
Financing Cash Flow	-738.72M	-93.31M	674.16M	4.23B	5.92B	2.75B

Alexandria Equities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 55.61 is below the 20-day moving average (MA) of 67.40, below the 50-day MA of 76.26, and below the 200-day MA of 78.83, indicating a bearish trend. The MACD of -6.71 indicates Positive momentum. The RSI at 26.48 is Positive, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARE.

Alexandria Equities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	72 Outperform	$5.19B	16.04	5.94%	4.97%	0.77%	62.58%
CDP	70 Outperform	$6.55B	21.97	10.01%	4.18%	0.06%	8.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CUZ	63 Neutral	$4.39B	75.43	1.26%	4.89%	16.38%	3.60%
BXP	61 Neutral	$12.60B	―	-3.74%	5.03%	2.54%	-155.17%
VNO	57 Neutral	$7.77B	8.86	15.97%	1.99%	2.41%	―
ARE	48 Neutral	$9.61B	―	-2.42%	9.49%	-0.76%	-250.60%

Alexandria Equities Corporate Events

Alexandria Real Estate Equities: Navigating Mixed Earnings Call

The recent earnings call for Alexandria Real Estate Equities painted a mixed picture of the company’s current standing and future prospects. While the company demonstrated strengths in leasing volume and liquidity, it faced challenges such as a decline in occupancy, reduced Funds From Operations (FFO) guidance, and significant impairment charges. Additionally, the regulatory environment and a government shutdown present further hurdles for the industry.

Alexandria Real Estate Equities Reports Q3 2025 Loss

Alexandria Real Estate Equities, Inc., a leading real estate investment trust (REIT) specializing in life science properties, operates and develops collaborative Megacampus™ ecosystems in key innovation clusters across North America. In its latest earnings report for the quarter ending September 30, 2025, Alexandria Real Estate Equities reported a decline in total revenues to $751.9 million from $791.6 million in the same quarter last year. The company also faced a net loss of $197.8 million, a significant drop from the net income of $213.6 million reported in the previous year. Key financial metrics revealed a decrease in rental income and an increase in impairment charges on real estate, which contributed to the overall net loss. Despite the challenges, Alexandria Real Estate Equities continues to maintain a robust asset base with investments in prime locations and ongoing construction projects. Looking ahead, the company’s management remains focused on strategic growth and optimizing its portfolio to navigate the current market conditions.