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Alexandria Real Estate Equities Inc

Exchange: NYSESector: Real EstateIndustry: REIT - Office

Alexandria Real Estate Equities, Inc., an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. As of December 31, 2025, Alexandria has a total market capitalization of $20.75 billion and an asset base in North America that includes 35.9 million RSF of operating properties. Alexandria has a long-standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants' 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 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.

Did you know?

Carries 22.4x more debt than cash on its balance sheet.

Current Price

$43.23

-0.14%
Profile
Valuation (TTM)
Market Cap$7.47B
P/E-5.20
EV$20.17B
P/B0.48
Shares Out172.83M
P/Sales2.47
Revenue$3.03B
EV/EBITDA130.88

Alexandria Real Estate Equities Inc (ARE) Valuation

GoodMoat Analysis

Based on data as of March 26, 2026

Alexandria Real Estate Equities Inc presents a complex picture for a value investor. While the high FCF yield and dividend yield suggest a deeply discounted price, the negative profitability metrics and declining revenue are severe quality concerns that likely fail the initial Moat & Quality Gate of the framework.

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From a pure valuation standpoint, the stock appears deeply undervalued on certain metrics. A Free Cash Flow yield of 22.8% is exceptionally high, implying a P/FCF multiple of approximately 4.4x, which would be considered favourable in the framework. The dividend yield of 11.15% is also a significant premium. However, the core value investing framework requires assessing business quality first, and here ARE shows major weaknesses. The company is not GAAP profitable, with a negative EPS of -$8.44, a negative ROE of -9.2%, and a negative operating margin of -30.5%. Revenue is also declining YoY at -5.2%. These metrics would result in multiple 'Weak' ratings in the Quality Indicators section, likely causing the analysis to stop at Step 1: The Moat & Quality Gate. The negative P/E of -5.7 is not directly comparable to a sector average but signals deep financial distress. For a value investor focused on durable competitive advantages and financial strength, the apparent cheapness is likely a 'value trap,' where the low price reflects justified fundamental deterioration rather than a margin of safety. The assessment would be unfavourable due to failing the quality threshold, despite superficially attractive yields.

ARE Valuation Metrics

FCF$1.86B
FCF Growth Rate
EPS Growth (CAGR)
WACC10.00%

ARE Valuation & Fair Value Analysis

Alexandria Real Estate Equities Inc (ARE) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The price-to-earnings (P/E) ratio is -5.20. Price-to-book ratio is 0.48. Price-to-sales ratio is 2.47. Enterprise value to EBITDA is 130.88. PEG ratio is -0.00.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Alexandria Real Estate Equities Inc's intrinsic value.