One-glance verdict
Undervalued
$74.94 our estimate vs market $53.85
Wall Street consensus: $53.50 (-28.6% lower than our fair-value estimate)
28% below our estimate, below the bear case
Fundamentals snapshot
Alexandria Real Estate Equities, Inc.
ARE · NYQ · Real Estate · REIT - Office
Current price
$53.85
52-week range
$39.41 - $87.54
Market cap
$9.27B
Balance sheet
Stretched
2.45x Stretched
Net debt $12.70B. 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 5.4% with 29-year payout history.
- Risk Net debt grew 25.4% over 3 years.
- Risk Operating margin compressed from 23.8% to 17.3% over 3 years.
What this company does
Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities is a specialized landlord, known as a Real Estate Investment Trust (REIT), that owns and rents out offices and labs to life science and technology companies. The company makes money by collecting rent from these businesses, often by creating large campuses in top research cities like Boston and San Francisco. This strategy of grouping many science companies together makes its properties highly valuable and in-demand for innovation.
How the company got here
Founded in 1994 as a garage startup with a $19 million investment, Alexandria Real Estate Equities pioneered the idea of being a landlord specifically for the life science industry. They started by buying a few buildings in San Diego and proved there was a big need for specialized lab and office space for biotech companies. The company went public in 1997 through an initial public offering (a way for a private company to sell shares to the public for the first time) and has since grown into a major player, even joining the S&P 500, a list of the 500 largest U.S. publicly traded companies. Over the years, it expanded into key innovation hubs like Boston, San Francisco, and New York City, creating large campuses for science and technology companies.
What it actually does
Think of Alexandria as a specialized landlord for the science world. They own, manage, and build high-quality office and laboratory buildings in city-based clusters, often near major universities. Their tenants (the companies that rent space from them) are in the life science, technology, and agriculture technology (agtech) industries and include everything from large pharmaceutical companies and research institutions to startups. Instead of just providing empty rooms, Alexandria creates large, amenity-rich campuses called "Megacampuses" designed to help these companies attract top talent and do cutting-edge research. The company is structured as a Real Estate Investment Trust (REIT), which is a type of company that owns and often operates income-producing real estate.
Real Estate Rental Operations
This is the company's main business and where the vast majority of its money comes from. Alexandria makes money by leasing its specialized office and laboratory spaces to a diverse group of over 800 tenants, including well-known companies like Bristol-Myers Squibb, Eli Lilly, and Moderna. These are not short-term rentals; the average lease term is nearly eight years, which provides a steady and predictable stream of rental income. The company focuses on high-quality buildings in prime locations, which helps them maintain high occupancy levels (the percentage of their available space that is rented out). About three-quarters of this rental income is generated from their large "Megacampus" properties.
Venture Investments
Besides being a landlord, Alexandria also acts as an investor in the companies it serves through its venture capital arm, Alexandria Venture Investments. A venture capital arm is a part of a company that invests in small, early-stage firms that have high growth potential. This allows Alexandria to provide strategic capital (money invested to help a company grow) to promising life science companies. While this is a smaller part of their business compared to real estate rentals, it gives them deeper connections within the life science industry and a chance to profit from the success of their tenants.
What management is betting on now
Management is focused on strengthening its core business by concentrating on its high-quality "Megacampus" properties in top-tier locations. They are also selling off non-core assets (properties that are not central to their main strategy) to raise money, which can be used to pay down debt or reinvest in more profitable projects. The company is also navigating a challenging market by focusing on maintaining strong relationships with its diverse tenant base and ensuring its properties have the best amenities to attract and keep them. Additionally, they are adapting to new sources of demand, such as that created by AI-driven drug discovery, which requires specialized lab space.
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
$-72.78M
Diluted EPS
-0.43
Operating cash flow
$336.97M
Free cash flow
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Sources
Revenue
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Net income
$361.65M
Diluted EPS
2.10
Operating cash flow
$196.62M
Free cash flow
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Sources
Revenue
—
Net income
$-1.08B
Diluted EPS
-6.35
Operating cash flow
$312.38M
Free cash flow
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Sources
Revenue
—
Net income
$-232.75M
Diluted EPS
-1.38
Operating cash flow
$433.48M
Free cash flow
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Sources
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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Sources
Revenue
—
Net income
$-8.94M
Diluted EPS
-0.07
Operating cash flow
$207.95M
Free cash flow
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Sources
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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Sources
Revenue
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Net income
$167.95M
Diluted EPS
0.96
Operating cash flow
$477.39M
Free cash flow
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Is it cheap or expensive?
Fair value $74.94 vs current price $53.85
Wall Street consensus is the average analyst price target: $53.50 (-28.6% lower than our fair-value estimate).
Our most-likely fair value is $74.94 a share — about 39.2% above today's price of $53.85, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $12.7B. Interest coverage 2.4x.
Net debt
$12.70B
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 $13.17B Interest coverage 2.45x This is the baseline the peer rows are being compared against.
Total debt $16.36B Interest coverage 1.55x -37% vs ARE Carries about 1.6x less debt cushion than ARE.
Total debt $4.66B Interest coverage 2.46x +1% vs ARE Has roughly the same debt cushion as ARE.
Total debt $12.92B 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 5.4% with 29-year payout history.
Risks
-
Net debt grew 25.4% over 3 years.
-
Operating margin compressed from 23.8% to 17.3% over 3 years.
-
Return on equity was -4.1% 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
-66.48x
P/B
0.59x
P/S
3.26x
EV/EBITDA
14.42x
PEG ratio
3.24x
Profitability
How much profit each dollar creates
Gross margin
68.2%
Operating margin
17.3%
Net margin
-36.1%
ROE
-4.1%
ROA
0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
2.35x
Quick ratio
1.98x
Total debt
$13.17B
Total cash
$470.45M
Growth
How the business has been compounding
Revenue TTM
$2.84B
Revenue 5Y CAGR
4.6%
EPS TTM
-6.05
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.28B
Free CF TTM
$1.41B
FCF margin
49.8%
Dividend
Shareholder payout
Yield
5.4%
Payout ratio
689.5%
Last ex-div date
2026-09-30