Alexandria Equities (ARE) AI Stock Analysis

• Market Cap: $12.89B
• Dividend Yield: 6.92%
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 97.8
• Beta (1Y): 1.03
• Revenue Growth: 5.13%
• EPS Growth: -28.94%
• Country: US
• Employees: 552
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.32
• Shares Outstanding: 172,988,880
• 10 Day Avg. Volume: 1,930,631
• 30 Day Avg. Volume: 1,628,492
• PEG Ratio: -1.53
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.00
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 13.03
• Enterprise Value/Ebitda: 1.38
• 1Y Price Target: $94.88
• Price Target Upside: 24.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $81.00 ▲(6.20%Upside)

Alexandria's overall stock score reflects strong financial performance and positive earnings call outcomes, balanced by technical analysis signals and valuation concerns. While robust revenue growth and a high dividend yield are strengths, caution is warranted due to high P/E ratio and bearish technical indicators.

Positive Factors

Investment Gains

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 square feet 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 an approximately 30% discount to NAV, offering a potential total return of around 39% including capital appreciation and yield.

Negative Factors

Job Market

Life science job listings in ARE's markets continued to decline, with job listings soft relative to the 'go-go' years of 2020-2022, and below the average of 2018-2019.

Market Conditions

New supply continues to be an overhang, with high vacancy rates in the nation's two largest lab markets, the Bay Area and Boston.

Supply Demand Imbalance

Supply/demand imbalance remains a concern for the asset class, which limits the growth outlook due to occupancy headwinds, narrowing re-leasing spreads, and minimal accretion from development.

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 presents a robust financial profile with consistent revenue growth, strong profitability, and sound financial management. The balance sheet is solid with a strong equity position and recent zero debt, although historical leverage fluctuations need attention. Positive cash flow generation further supports 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.41B	3.12B	2.89B	2.59B	2.11B	1.89B
Gross Profit	911.26M	2.21B	2.03B	1.81B	1.49B	1.36B
EBITDA	2.08B	1.93B	1.45B	1.63B	1.35B	1.23B
Net Income	137.53M	322.95M	103.64M	521.66M	416.83M	591.20M
Balance Sheet
Total Assets	37.60B	37.53B	36.77B	35.52B	30.22B	22.83B
Cash, Cash Equivalents and Short-Term Investments	476.43M	552.15M	618.19M	825.19M	361.35M	568.53M
Total Debt	0.00	12.75B	11.70B	10.16B	8.79B	7.56B
Total Liabilities	15.60B	15.13B	14.15B	12.84B	11.19B	9.38B
Stockholders Equity	21.99B	17.89B	18.47B	18.97B	16.19B	11.73B
Cash Flow
Free Cash Flow	1.37B	1.50B	1.63B	1.29B	-6.32B	-2.39B
Operating Cash Flow	1.37B	1.50B	1.63B	1.29B	1.01B	882.51M
Investing Cash Flow	-1.10B	-1.51B	-2.50B	-5.08B	-7.11B	-3.28B
Financing Cash Flow	-794.53M	-93.31M	674.16M	4.23B	5.92B	2.75B

Alexandria Equities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.27
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 76.27 is above the 20-day moving average (MA) of 71.55, above the 50-day MA of 71.35, and below the 200-day MA of 92.32, indicating a neutral trend. The MACD of 0.76 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 67.36 is Neutral, 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
CDP	76 Outperform	$6.32B	22.54	9.49%	4.33%	5.22%	―
ARE	72 Outperform	$12.89B	97.79	0.73%	6.92%	5.13%	-28.94%
CUZ	66 Neutral	$5.01B	89.07	1.15%	4.33%	10.93%	-31.07%
Sector *	63 Neutral	$6.98B	18.97	-1.16%	6.86%	4.65%	-25.28%
SLG	63 Neutral	$4.74B	663.10	-0.13%	4.96%	14.28%	94.75%
VNO	61 Neutral	$7.99B	73.49	3.06%	1.93%	0.63%	258.59%
BXP	59 Neutral	$11.85B	732.74	-0.10%	5.74%	3.74%	-102.51%

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.