Alexandria Equities (ARE) AI Stock Analysis

• Market Cap: $12.60B
• Dividend Yield: 7.19%
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 95.6
• Beta (1Y): 0.98
• Revenue Growth: 5.13%
• EPS Growth: -28.94%
• Country: US
• Employees: 552
• Sector: Real Estate
• Sector Strength: 67
• Industry: REIT - Office
• EPS (TTM): 0.32
• Shares Outstanding: 172,988,880
• 10 Day Avg. Volume: 1,903,329
• 30 Day Avg. Volume: 2,075,689
• PEG Ratio: -1.60
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $102.33
• Price Target Upside: 38.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Alexandria Equities scores a 66, driven by strong financial performance and a solid dividend yield. However, technical indicators are currently weak, and the high P/E ratio suggests overvaluation risks. While the earnings call reflects resilience, challenges such as occupancy decline and macroeconomic uncertainties weigh on the outlook.

Positive Factors

Investment Income

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.

Supply/Demand Imbalance

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.

Vacancy Rates

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

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 Real Estate Equities, Inc. generates revenue primarily through leasing its properties to tenants in the life sciences, technology, and agtech sectors. The company's revenue model is based on long-term lease agreements, which provide a stable and predictable cash flow. Additionally, Alexandria benefits from property development and redevelopment projects, which add value to its real estate portfolio. The company may also engage in strategic partnerships and joint ventures to enhance its development capabilities and expand its market reach. By maintaining a focus on urban innovation clusters, Alexandria is able to attract high-quality tenants and maintain high occupancy rates, which are critical factors in its earnings.

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
	EBIT
931.79M	836.39M	1.09B	627.03M	530.33M	532.12M
	EBITDA
2.08B	1.93B	1.45B	1.63B	1.35B	1.23B
	Net Income Common Stockholders
137.53M	322.95M	103.64M	521.66M	416.83M	591.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
476.43M	552.15M	618.19M	825.19M	361.35M	568.53M
	Total Assets
37.60B	37.53B	36.77B	35.52B	30.22B	22.83B
	Total Debt
0.00	12.75B	11.70B	10.16B	8.79B	7.56B
	Net Debt
-476.43M	12.20B	11.08B	9.33B	8.43B	6.99B
	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: Neutral
• Last Price: 74.05
• 50DMA: Negative
• 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 Neutral. The current price of 74.05 is above the 20-day moving average (MA) of 73.87, below the 50-day MA of 82.85, and below the 200-day MA of 100.07, indicating a neutral trend. The MACD of -2.60 indicates Negative momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 40.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$6.19B	22.06	9.49%	4.34%	5.22%	―
ARE	66 Neutral	$12.60B	95.64	0.73%	7.19%	5.13%	-28.94%
CUZ	66 Neutral	$4.81B	85.60	1.15%	4.47%	10.93%	-31.07%
VNO	66 Neutral	$8.27B	76.08	3.06%	1.87%	0.63%	258.59%
BXP	65 Neutral	$11.80B	732.74	-0.10%	5.78%	3.74%	-102.51%
Sector *	60 Neutral	$2.82B	10.29	0.39%	8508.26%	5.90%	-17.41%
SLG	58 Neutral	$4.47B	663.10	-0.13%	5.15%	13.36%	94.82%

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.

Spark’s Take on ARE Stock

According to Spark, TipRanks’ AI Analyst, ARE is a Neutral.

Alexandria Equities scores a 66, driven by strong financial performance and a solid dividend yield. However, technical indicators are currently weak, and the high P/E ratio suggests overvaluation risks. While the earnings call reflects resilience, challenges such as occupancy decline and macroeconomic uncertainties weigh on the outlook.

To see Spark’s full report on ARE stock, click here.