Alexandria Equities (ARE) AI Stock Analysis

• Market Cap: $9.31B
• Dividend Yield: 10.9%
• Average Volume (3M): 2.38M
• 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): -6.35
• Shares Outstanding: 173,300,350
• 10 Day Avg. Volume: 1,718,143
• 30 Day Avg. Volume: 2,375,427
• PEG Ratio: 0.01
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 2.81
• P/FCF Ratio: 5.90
• Enterprise Value/Market Cap: 2.32
• Enterprise Value/Revenue: 7.27
• Enterprise Value/Gross Profit: 10.54
• Enterprise Value/Ebitda: 59.88
• 1Y Price Target: $56.45
• Price Target Upside: 5.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): $1.82B

• Rating: 60 Neutral
• Price Target: $56.00 ▲(4.24% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily driven by uneven fundamentals: strong and improving cash generation and solid liquidity/disposition execution are offset by a sharp 2025 earnings reversal and ongoing same-property NOI/occupancy headwinds flagged on the earnings call. Technicals are mixed-to-soft versus longer-term averages, while valuation is supported by a high dividend yield but constrained by negative earnings (negative P/E).

Positive Factors

Consistent operating cash flow and FCF rebound

Stable, multi-year positive operating cash flow and a strong free cash flow rebound in 2025 provide durable internal funding for development, dividends, and buybacks. This recurring cash generation supports capital deployment and reduces near-term reliance on external financing over the next 2–6 months.

Strong liquidity and long debt maturity

Large liquidity reserves and an extended debt maturity profile materially reduce refinancing and short-term funding risk. Combined with modest leverage on an annualized basis, this enhances financial flexibility to execute dispositions, fund development, and sustain dividends during cyclical pressure.

Backlog of signed leases set to drive revenue

A substantial pipeline of leases scheduled to commence supports forward revenue visibility and eases near-term occupancy risk once starts materialize. This contracted future cash flow provides a durable earnings tail that should bolster stabilized NOI and FFO as commencements occur later in the year.

Negative Factors

Large asset impairments

Substantial non-cash impairments materially reduced reported earnings and indicate permanent or structural asset-value pressure in parts of the portfolio. This weakens equity returns and signals potential for continued mark-to-market volatility and cautious capital allocation over the medium term.

Same-property NOI declines & occupancy pressure

Material same-property NOI declines and imminent downtime from concentrated lease expirations reduce near-term recurring cash flow. Elevated downtime and free rent used to win deals compresses margins and delays recovery of stabilized NOI and FFO until leased space re-stabilizes.

Prolonged industry/regulatory headwinds

A multi-year weakness in the life-sciences market and regulatory uncertainty lengthen leasing cycles and capex/timing decisions for key tenants. Structural demand erosion or slower absorption in core markets can depress leasing spreads and keep occupancy recovery elongated beyond the next several quarters.

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 life science and technology tenants. The company operates on a long-term lease model, which provides a steady stream of rental income. Additionally, it enhances its revenue by engaging in property development and redevelopment projects, which can yield higher rental rates upon completion. The company also benefits from the increasing demand for specialized lab and office spaces, driven by growth in the biotech and pharmaceutical sectors. Significant partnerships with leading academic institutions and research organizations further bolster its revenue potential, as these collaborations often lead to increased occupancy rates and long-term leases.

Alexandria Equities Financial Statement Overview

Summary

Cash flow is the key support (consistently positive operating cash flow and generally positive free cash flow, with a strong rebound in 2025), but financial performance is weighed down by sharply deteriorating profitability (2025 swung to a large net loss) and materially slowing revenue growth. Balance sheet leverage looks reasonable historically, though 2025’s reported step-change to zero debt adds comparability risk.

Income Statement

Revenue has grown over the period, but growth has decelerated materially (2022: ~22% to 2024: ~7%), and 2025 shows only ~1% growth. Profitability has deteriorated sharply: after positive net margins in 2020–2024, 2025 swung to a large loss (net margin ~-48%), which overwhelms the otherwise strong gross profit profile (~70% gross margin). Overall, the income statement reflects weakening earnings quality and a major downside break in the most recent year.

Balance Sheet

The balance sheet was moderately levered through 2020–2024 with debt-to-equity generally in the ~0.54–0.71 range, which is reasonable for a REIT, and equity has remained sizable. However, profitability on equity has been low and volatile, turning negative in 2025 alongside the net loss. Notably, 2025 reports zero total debt (and a zero debt-to-equity ratio), a major step-change versus prior years that is supportive if accurate, but it also introduces comparability/consistency risk when assessing leverage trends.

Cash Flow

Operating cash flow is consistently positive and relatively stable (~$0.9B–$1.6B across the period), providing a solid core cash earnings base. Free cash flow is generally positive and closely tracks operating cash flow, with strong growth in 2022 and 2023 and a modest decline in 2024; 2025 rebounds strongly (reported free cash flow growth ~2.8x). The main weakness is volatility, including a very large negative free cash flow in 2021, which signals episodic cash demands despite otherwise healthy cash generation.

Breakdown	Dec 2025	Dec 2023	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

• Technical Analysis Sentiment: Negative
• Last Price: 53.72
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 53.72 is below the 20-day moving average (MA) of 54.43, above the 50-day MA of 52.85, and below the 200-day MA of 66.43, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 49.99 is Neutral, 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
CDP	71 Outperform	$7.29B	24.35	10.13%	4.30%	0.06%	8.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ARE	60 Neutral	$9.31B	-6.36	-8.62%	10.90%	-0.76%	-250.60%
KRC	56 Neutral	$3.71B	13.48	5.09%	5.75%	0.77%	62.58%
VNO	55 Neutral	$5.78B	6.68	16.24%	2.24%	2.41%	―
CUZ	53 Neutral	$3.88B	97.29	0.85%	5.08%	16.38%	3.60%
BXP	52 Neutral	$10.36B	34.22	5.24%	5.26%	2.54%	-155.17%

Alexandria Equities Corporate Events

Alexandria Equities Prices $750 Million Senior Notes Offering

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 unconditionally guaranteed by the partnership. The notes, offered under an existing shelf registration, are expected to be delivered to purchasers around February 25, 2026, adding a new long-dated unsecured debt tranche to the REIT’s capital structure.

Also on February 10, 2026, Alexandria commenced an underwritten public offering of these unsecured senior notes, managed by Citigroup, BofA Securities, J.P. Morgan, Scotia and TD, with proceeds earmarked primarily to repay commercial paper borrowings incurred to fund the repurchase or redemption of certain outstanding senior unsecured notes under a previously announced cash tender offer. This refinancing move is set to extend the company’s debt maturities and reduce reliance on short-term funding, with potential implications for interest costs and balance-sheet flexibility for stakeholders, including bondholders and shareholders.

The most recent analyst rating on (ARE) stock is a Hold with a $54.00 price target. To see the full list of analyst forecasts on Alexandria Equities stock, see the ARE Stock Forecast page.

Alexandria Equities boosts performance-based pay, promotes co-president

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-based vesting rather than a mix of time- and performance-based vesting, raising the maximum potential value to $5.4 million but making all shares contingent on meeting corporate performance criteria. The company also elevated John Hart Cole to Co-President & Co-Regional Market Director – Seattle, effective January 1, 2026, building on his prior capital markets and strategic operations roles, with only a salary increase tied to the promotion, underscoring Alexandria’s emphasis on performance-linked executive pay and strengthening leadership in a key regional market.

The most recent analyst rating on (ARE) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Alexandria Equities stock, see the ARE Stock Forecast page.

Alexandria Equities Announces New Stock Repurchase Program

On December 3, 2025, Daniel J. Ryan, Co-President and Regional Market Director for San Diego at Alexandria Real Estate Equities, Inc., resigned from his positions due to personal and health reasons, effective December 31, 2025. Ryan had been with the company since 2010, and his departure was acknowledged with gratitude by the Board of Directors for his strategic contributions. Additionally, on December 5, 2025, Alexandria’s Board approved a new common stock repurchase program, replacing the existing authorization set to expire at the end of 2025. The new program allows for the repurchase of up to $500 million of common stock until December 31, 2026, with the company opting to fund these repurchases on a leverage-neutral basis through operating activities and real estate transactions.

The most recent analyst rating on (ARE) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Alexandria Equities stock, see the ARE Stock Forecast page.