Alexandria Equities (ARE) AI Stock Analysis

• Market Cap: $12.75B
• Dividend Yield: 7.06%
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 102.6
• Beta (1Y): 1.04
• Revenue Growth: 3.12%
• EPS Growth: -116.29%
• Country: US
• Employees: 552
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Office
• EPS (TTM): 2.33
• Shares Outstanding: 172,958,950
• 10 Day Avg. Volume: 1,790,132
• 30 Day Avg. Volume: 1,634,627
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.37
• Enterprise Value/Revenue: 9.92
• Enterprise Value/Gross Profit: 14.25
• Enterprise Value/Ebitda: 16.42
• 1Y Price Target: $96.38
• Price Target Upside: 29.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 58 Neutral
• Price Target: $86.00 ▲(15.42% Upside)

Alexandria Equities scores 70, driven by strong financial performance and positive earnings call sentiment, despite mixed technical indicators and an unfavorable valuation. The company's robust cash flow and strategic leasing activity are significant strengths, while occupancy declines and challenges in the biotech sector pose risks.

Positive Factors

Financial Performance

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

Leasing Activity

ARE executed on 1.3m 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 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 '18-'19.

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 and Demand

Supply/demand imbalance remains a concern for the asset class, which limits the growth outlook through '26 due to occupancy headwinds, narrowing re-leasing spreads, and minimal accretion from development.

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 presents a strong financial profile with consistent revenue growth, robust profitability, and efficient cash flow generation. The balance sheet is solid, with a strong equity position and zero debt recently, although past leverage fluctuations need monitoring.

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	3.04B	3.05B	2.84B	2.59B	2.11B	1.89B
Gross Profit	2.12B	2.14B	1.98B	1.81B	1.49B	1.36B
EBITDA	1.84B	1.90B	1.45B	1.63B	1.35B	1.23B
Net Income	-12.85M	322.95M	103.64M	521.66M	416.83M	591.20M
Balance Sheet
Total Assets	37.62B	37.53B	36.77B	35.52B	30.22B	22.83B
Cash, Cash Equivalents and Short-Term Investments	520.54M	552.15M	618.19M	825.19M	361.35M	568.53M
Total Debt	13.66B	12.75B	11.70B	10.16B	8.79B	7.56B
Total Liabilities	15.88B	15.13B	14.15B	12.84B	11.19B	9.38B
Stockholders Equity	17.18B	17.89B	18.47B	18.97B	16.19B	11.73B
Cash Flow
Free Cash Flow	1.42B	1.50B	1.63B	1.29B	-6.32B	-2.39B
Operating Cash Flow	1.42B	1.50B	1.63B	1.29B	1.01B	882.51M
Investing Cash Flow	-1.03B	-1.51B	-2.50B	-5.08B	-7.11B	-3.28B
Financing Cash Flow	-425.32M	-93.31M	674.16M	4.23B	5.92B	2.75B

Alexandria Equities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.51
• 50DMA: Negative
• 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 74.51 is below the 20-day moving average (MA) of 77.31, below the 50-day MA of 75.10, and below the 200-day MA of 86.86, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 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	74 Outperform	$6.24B	21.79	9.67%	4.32%	2.95%	―
CUZ	68 Neutral	$4.64B	74.76	1.30%	4.60%	13.07%	-4.94%
Sector *	63 Neutral	$6.82B	13.27	-0.71%	7.18%	3.67%	-27.43%
VNO	61 Neutral	$7.69B	9.11	14.93%	1.96%	1.38%	4370.96%
ARE	58 Neutral	$12.75B	102.63	-0.12%	7.06%	3.12%	-116.29%
SLG	58 Neutral	$4.08B	663.10	-0.37%	5.51%	15.25%	79.18%
BXP	57 Neutral	$11.08B	3,215.66	0.07%	5.98%	3.24%	-97.73%

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.