One-glance verdict
Undervalued
$108.16 our estimate vs market $44.80
Wall Street consensus: $49.93 (-53.8% lower than our fair-value estimate)
59% below our estimate, below the bear case
Fundamentals snapshot
Alexandria Real Estate Equities, Inc.
ARE · NYQ · Real Estate · REIT - Office
Current price
$44.80
52-week range
$38.34 - $59.76
Market cap
$7.80B
Balance sheet
Stretched
2.45x Stretched
Net debt $12.74B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 4/10 years.
- Reward Dividend yield is 6.4% with 29-year payout history.
- Risk Net debt grew 25.4% over 3 years.
- Risk Operating margin compressed from 23.8% to 14.6% over 3 years.
What this company does
Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities (ARE) owns and rents out specialized buildings designed for life science and technology companies, which is where most of their money comes from. This focus on providing homes for cutting-edge research and development means their rental income is pretty stable because these companies tend to stay put once they are established in these tailored spaces. This steady income stream from their real estate holdings is important because it helps them continue to invest in and expand their unique properties.
How the company got here
Alexandria Real Estate Equities (ARE) was founded in 1994 by Joel S. Marcus and Jerry M. Sudarsky, pioneering the concept of real estate specifically designed for the life science industry. Recognizing a gap in the market for specialized facilities, they established the company with a vision to support scientific advancement. ARE went public in 1997, allowing it to expand its reach and acquire more properties. Over the years, the company has grown by strategically acquiring and developing properties in key life science hubs across North America, becoming a leading owner and operator of these specialized campuses. Its focus on creating collaborative environments, known as "Megacampuses," has been central to its growth and success in attracting top-tier tenants.
What it actually does
Alexandria Real Estate Equities (ARE) is a real estate investment trust (REIT) that owns, operates, and develops specialized buildings for companies in the life science, technology, and agtech industries. Think of them as landlords, but instead of renting out apartments or regular office spaces, they provide state-of-the-art facilities like laboratories and research centers. These buildings are crucial for companies that are developing new medicines, conducting groundbreaking research, or creating innovative technologies. ARE's business model focuses on providing the essential infrastructure that allows these vital industries to thrive and innovate.
Real Estate Operations
This is the core business of Alexandria Real Estate Equities (ARE). They own and manage a vast portfolio of properties, primarily large, modern buildings designed to house life science and technology companies. These properties are strategically located in major innovation hubs, often near universities, to foster collaboration and access to talent. ARE generates revenue by leasing these spaces to a diverse range of tenants, from large pharmaceutical companies to smaller biotech startups. The company focuses on developing and maintaining high-quality, collaborative environments that help their tenants succeed in their research and development efforts.
Venture Investments
Beyond just providing real estate, Alexandria Real Estate Equities (ARE) also acts as a venture capital investor. This means they invest money directly into promising life science companies. By doing this, ARE not only earns a financial return on its investments but also strengthens its relationships within the life science ecosystem. This dual approach of real estate and venture capital allows ARE to be a comprehensive partner to the companies it serves, supporting their growth from multiple angles.
Thought Leadership
Alexandria Real Estate Equities (ARE) actively engages in "thought leadership," which means they contribute to discussions and share insights on important topics within the life science and real estate industries. This can involve hosting conferences, publishing research, or participating in industry forums. By positioning themselves as experts and conveners, ARE aims to shape the future of the life science sector, foster innovation, and build a strong reputation as a leader in the field. This also helps them stay connected to industry trends and potential future tenants.
What management is betting on now
Alexandria Real Estate Equities (ARE) is focused on continuing its leadership in the life science real estate sector by developing and operating collaborative "Megacampus" ecosystems in key innovation clusters. Management is betting on the sustained growth of the life science industry, driven by the ongoing need for new treatments and therapies. They are also investing in sustainability and healthy building practices, recognizing that these factors are increasingly important to attracting and retaining top-tier tenants. Furthermore, their venture capital arm signals a commitment to supporting the next generation of life-saving innovations, ensuring ARE remains at the forefront of the industry.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
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Net income
$-637.69M
Diluted EPS
-3.74
Operating cash flow
$341.82M
Free cash flow
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Sources
Revenue
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Net income
$-72.78M
Diluted EPS
-0.43
Operating cash flow
$336.97M
Free cash flow
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Revenue
—
Net income
$361.65M
Diluted EPS
2.10
Operating cash flow
$196.62M
Free cash flow
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Revenue
—
Net income
$-1.08B
Diluted EPS
-6.35
Operating cash flow
$312.38M
Free cash flow
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Sources
Revenue
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Net income
$-232.75M
Diluted EPS
-1.38
Operating cash flow
$433.48M
Free cash flow
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Revenue
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Net income
$-107.00M
Diluted EPS
-0.64
Operating cash flow
$460.24M
Free cash flow
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Revenue
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Net income
$-8.94M
Diluted EPS
-0.07
Operating cash flow
$207.95M
Free cash flow
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Revenue
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Net income
$-62.24M
Diluted EPS
-0.38
Operating cash flow
$274.18M
Free cash flow
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Is it cheap or expensive?
Fair value $108.16 vs current price $44.80
Wall Street consensus is the average analyst price target: $49.93 (-53.8% lower than our fair-value estimate).
Our most-likely fair value is $108.16 a share — about 141.4% above today's price of $44.80, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $12.7B. Interest coverage 2.4x.
Net debt
$12.74B
Interest coverage
2.45x
Alexandria Real Estate Equities, Inc.'s profit covers its interest bill about 2.4 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
ARE
BASELINE
Alexandria Real Estate Equities, Inc.
Total debt $13.25B Interest coverage 2.45x This is the baseline the peer rows are being compared against.
Total debt $17.33B Interest coverage 1.55x -37% vs ARE Carries about 1.6x less debt cushion than ARE.
Total debt $4.50B Interest coverage 2.46x +1% vs ARE Has roughly the same debt cushion as ARE.
Total debt $12.67B Interest coverage 1.40x -43% vs ARE Carries about 1.7x less debt cushion than ARE.
Total debt $8.19B Interest coverage 0.81x -67% vs ARE Carries about 3.0x less debt cushion than ARE.
What you should know
The case for and against ARE
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 6.4% with 29-year payout history.
Risks
-
Net debt grew 25.4% over 3 years.
-
Operating margin compressed from 23.8% to 14.6% over 3 years.
-
Return on equity was -6.2% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-47.66x
P/B
0.52x
P/S
2.83x
EV/EBITDA
14.22x
PEG ratio
3.24x
Profitability
How much profit each dollar creates
Gross margin
67.7%
Operating margin
14.6%
Net margin
-51.8%
ROE
-6.2%
ROA
0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.72x
Current ratio
2.15x
Quick ratio
1.80x
Total debt
$13.25B
Total cash
$508.86M
Growth
How the business has been compounding
Revenue TTM
$2.76B
Revenue 5Y CAGR
4.6%
EPS TTM
-8.41
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.19B
Free CF TTM
$1.41B
FCF margin
51.2%
Dividend
Shareholder payout
Yield
6.4%
Payout ratio
689.5%
Last ex-div date
2026-09-30