Alexandria Equities (ARE) AI Stock Analysis

• Market Cap: $14.19B
• Dividend Yield: 6.41%
• Average Volume (3M): 1.67M
• 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: 61
• Industry: REIT - Office
• EPS (TTM): 2.33
• Shares Outstanding: 172,958,950
• 10 Day Avg. Volume: 1,753,803
• 30 Day Avg. Volume: 1,669,946
• PEG Ratio: 9.12
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.83
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: 1.83
• 1Y Price Target: $94.88
• Price Target Upside: 15.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: $93.00 ▲(13.35%Upside)

Alexandria Equities scores well due to strong financial performance and strategic achievements in leasing activities. Technical analysis indicates positive price momentum, though caution is advised due to overbought signals. While the valuation highlights potential risks with a negative P/E ratio, the high dividend yield offers some compensation. Overall, the company's robust operational performance and strategic direction support a favorable score, tempered by market challenges.

Positive Factors

Investment Income

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

Leasing Activity

ARE executed on 1.3 million 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 a 41% discount to NAV, which is considered attractive and near trough levels.

Negative Factors

Leasing and Development Challenges

Development and redevelopment lease-up remains muted, with ARE only leasing 13,000 sq.ft during the quarter.

Market Environment

The tone on the call was not positive as supply headwinds persist, capital markets are less available for Biotech firms, and poor real estate asset pricing remains an overhang.

Supply Concerns

Supply headwinds are a concern, affecting the near-term market conditions for the company.

Alexandria Equities Business Overview & Revenue Model

Company Description

Alexandria Equities (ARE) is a leading real estate investment trust (REIT) specializing in the ownership, operation, and development of collaborative life science, technology, and agtech campuses. The company focuses on providing high-quality office and laboratory spaces primarily in key urban innovation clusters across North America, which include Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria Equities supports a diverse range of tenants, including multinational pharmaceutical companies, biotechnology firms, academic institutions, and government agencies.

How the Company Makes Money

Alexandria Equities generates revenue primarily through leasing its specialized office and laboratory spaces to a wide array of tenants in the life science, technology, and agtech industries. The company's revenue model is built on long-term lease agreements that provide a steady and predictable income stream. Additionally, Alexandria Equities enhances its earnings through property development and redevelopment projects, which often lead to higher rental rates and increased property values. The company may also strategically partner with other real estate firms or investors to co-develop properties, further diversifying its income sources and spreading investment risk. Revenue is further supplemented through the sale of non-core assets and strategic acquisitions that align with its focus on urban innovation clusters.

Alexandria Equities Financial Statement Overview

Summary

Alexandria Equities demonstrates strong financial performance with consistent revenue growth, robust profitability, and sound financial management. The balance sheet is solid with recent zero debt and strong equity, although historical leverage fluctuations need monitoring. Positive cash flow generation further supports the company's stability.

Income Statement

Alexandria Equities has shown robust revenue growth over the years, with a notable increase from 2019 to 2024. The Gross Profit Margin and Net Profit Margin have been strong, reflecting efficient operations and good cost management. The EBIT and EBITDA margins are healthy, indicating strong operational performance. Overall, the income statement reflects a well-managed growth trajectory with stable profitability.

Balance Sheet

The company's balance sheet is strong, with significant stockholders' equity and a zero debt level in the most recent year, indicating excellent financial health and stability. The Equity Ratio is solid, showing a healthy proportion of equity financing. However, fluctuations in the debt levels over previous years suggest attention to leverage management is necessary.

Cash Flow

Alexandria Equities has demonstrated positive free cash flow, with good growth over the years. The Operating Cash Flow to Net Income Ratio is favorable, indicating efficient cash flow generation relative to earnings. While there have been fluctuations in free cash flow, the company maintains a strong cash position, highlighting its ability to manage cash effectively.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.05B	2.84B	2.59B	2.11B	1.89B
Gross Profit	2.14B	1.98B	1.81B	1.49B	1.36B
EBITDA	1.90B	1.45B	1.63B	1.35B	1.23B
Net Income	322.95M	103.64M	521.66M	416.83M	591.20M
Balance Sheet
Total Assets	37.53B	36.77B	35.52B	30.22B	22.83B
Cash, Cash Equivalents and Short-Term Investments	552.15M	618.19M	825.19M	361.35M	568.53M
Total Debt	12.75B	11.70B	10.16B	8.79B	7.56B
Total Liabilities	15.13B	14.15B	12.84B	11.19B	9.38B
Stockholders Equity	17.89B	18.47B	18.97B	16.19B	11.73B
Cash Flow
Free Cash Flow	1.50B	1.63B	1.29B	-6.32B	-2.39B
Operating Cash Flow	1.50B	1.63B	1.29B	1.01B	882.51M
Investing Cash Flow	-1.51B	-2.50B	-5.08B	-7.11B	-3.28B
Financing Cash Flow	-93.31M	674.16M	4.23B	5.92B	2.75B

Alexandria Equities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.05
• 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 82.05 is above the 20-day moving average (MA) of 77.41, above the 50-day MA of 73.05, and below the 200-day MA of 89.59, indicating a neutral trend. The MACD of 2.28 indicates Negative momentum. The RSI at 67.32 is Neutral, neither overbought nor oversold. The STOCH value of 83.95 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
ARE	74 Outperform	$14.19B	102.63	-0.12%	6.41%	3.12%	-116.29%
CDP	74 Outperform	$6.28B	22.59	9.49%	4.31%	5.22%	―
VNO	66 Neutral	$8.25B	77.27	3.06%	1.87%	0.63%	258.59%
Sector *	64 Neutral	$6.87B	17.44	-1.93%	6.95%	4.65%	-24.33%
CUZ	63 Neutral	$4.66B	84.77	1.15%	4.61%	10.93%	-31.07%
BXP	61 Neutral	$12.31B	732.74	-0.10%	5.54%	3.74%	-102.51%
SLG	58 Neutral	$4.51B	663.10	-0.35%	5.14%	14.21%	79.46%

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.