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Alexandria Equities
(NYSE:ARE)
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Rating:52Neutral
Price Target:
$52.00
â–¼(-1.70% Downside)
Action:Reiterated
Date:09/25/26
The score is held back primarily by the sharp deterioration in profitability and weakening recent free cash flow despite positive operating cash generation. Guidance stability, leasing execution, and solid liquidity support the outlook, while technicals are neutral and valuation is helped by the high dividend yield but constrained by loss-making results and elevated leverage/NOI headwinds.
Positive Factors
Specialized Life-Science Real Estate Platform
Concentration in major innovation clusters and specialized laboratory environments creates a differentiated real estate platform. These locations and facilities are tailored to scientific users, supporting tenant relevance, embedded operating expertise, and durable demand relative to more generic office properties.
Negative Factors
Sharp Profitability Deterioration
Deep net losses and negative operating profit indicate that strong gross margins are not translating into sustainable earnings. If this persists, weaker profitability can reduce internal funding capacity, constrain capital allocation, and make future development and portfolio investment more dependent on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialized Life-Science Real Estate Platform
Concentration in major innovation clusters and specialized laboratory environments creates a differentiated real estate platform. These locations and facilities are tailored to scientific users, supporting tenant relevance, embedded operating expertise, and durable demand relative to more generic office properties.
Read all positive factors
Alexandria Equities Key Performance Indicators (KPIs)
Any
Revenue By Segment
Details revenue across different business lines (e.g., long‑term lab leases, tenant recoveries, development gains, management services) to reveal whether growth is coming from repeatable leasing activity or episodic development events that may not persist.
Details revenue across different business lines (e.g., long‑term lab leases, tenant recoveries, development gains, management services) to reveal whether growth is coming from repeatable leasing activity or episodic development events that may not persist.
Data provided by:
The Fly
The FlyAlexandria Equities (ARE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.25B
Dividend Yield6.08%
Average Volume (3M)1.84M
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth-8.40%
EPS Growth-4485.62%
CountryUS
Employees514
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-5.57
Shares Outstanding174,247,570
10 Day Avg. Volume1,864,308
30 Day Avg. Volume1,844,744
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.54
Price to Sales (P/S)2.81
P/FCF Ratio5.90
Enterprise Value/Market Cap3.08
Enterprise Value/Revenue8.61
Enterprise Value/Gross Profit12.39
Enterprise Value/Ebitda59.81
Forecast
1Y Price Target
$53.64Price Target Upside1.39% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)1.52
Revenue Forecast (FY)$2.63B
Alexandria Equities Business Overview & Revenue Model
Company Description
Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500® real estate investment trust, stands as the pioneering and most seasoned entity in the specialized domain of urban office properties. Since its inception in 1994, Alexandria has uniquel...
How the Company Makes Money
Alexandria Real Estate Equities primarily makes money by leasing its properties to tenants and collecting rental revenue, consistent with a landlord/REIT business model. Its core revenue stream is recurring lease income from laboratory and related...
Alexandria Equities Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but balanced picture: strong operational execution in leasing, liquidity, margin control, and a reaffirmed FFO outlook and credit extension provide key positives, while occupancy pressures, a double-digit same-property NOI decline, meaningful impairments, elevated leverage and concentrated 2027 lease rollover risk represent significant near-term headwinds. Management has actionable plans (dispositions, pivoting projects, cost savings) and progress on those plans is evident, but material execution risk remains over the next several quarters.Positive Updates
Strong Leasing Volume
Total leasing volume of 1,039,000 rentable sq ft in 2Q26, up 60% QoQ and up 9% versus the prior 4-quarter average; new leasing ~400,000 sq ft (second largest quarterly total since 2Q24 excluding last year's large build-to-suit).
Negative Updates
Occupancy Decline
Operating occupancy at end of 2Q26 was 86.9%, down 80 basis points QoQ (including a 40 bps reduction from reclassification of a 160,000 sq ft building); occupancy pressures drove same-property performance weakness.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Leasing Volume
Total leasing volume of 1,039,000 rentable sq ft in 2Q26, up 60% QoQ and up 9% versus the prior 4-quarter average; new leasing ~400,000 sq ft (second largest quarterly total since 2Q24 excluding last year's large build-to-suit).
Read all positive updates
Company Guidance
Management reaffirmed 2026 FFO per share diluted as adjusted at a $6.40 midpoint (tightened to ±$0.05) after Q2 FFO/sh of $1.73, and said 3Q FFO should be stronger while 4Q is expected toward the low end of $1.40–$1.50 driven by a ~$20M midpoint increase in interest expense and a $5M reduction in capitalized interest (Q2 capitalized interest was $73.7M); average real estate basis capitalized is expected to bottom in 4Q at $3.4B–$4.9B. They reiterated a $2.9B 2026 disposition target (midpoint) with 46% ($1.3B) completed/pending, 38% ($1.1B) in process and 16% remaining, with projected composition of land 15–35%, noncore 10–20% and partial interest/other 50–70%, and noted no common equity is assumed. Other key metrics: realized investment gains guidance $60M–$90M; 2026 G&A $134M–$154M (~14% midpoint savings vs. 2024) with trailing 12‑month G&A at 6.6% of NOI; leverage target 5.6x–6.2x net debt/annualized adjusted EBITDA (2Q was ~7x; medium‑term mid‑5s), liquidity $3.6B and a $5B credit line extended to 2032; development pipeline roughly $1.75B this year with 1.4M sq ft under construction (71% leased), 1.4M sq ft leased to commence in November (~$69M of annual rent), Q2 leasing of 1,039,000 sq ft and Q3 leasing projected around 950,000 sq ft.Alexandria Equities Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.96B | 2.97B | 3.05B | 2.84B | 2.58B | 2.11B |
| Gross Profit | 2.05B | 2.05B | 2.14B | 1.98B | 1.79B | 1.48B |
| EBITDA | 425.62M | 360.45M | 1.90B | 1.45B | 1.77B | 1.62B |
| Net Income | -904.00M | -1.43B | 322.95M | 103.64M | 521.66M | 571.25M |
Balance Sheet | ||||||
| Total Assets | 34.63B | 34.08B | 37.53B | 36.77B | 35.52B | 30.22B |
| Cash, Cash Equivalents and Short-Term Investments | 470.45M | 549.06M | 552.15M | 618.19M | 825.19M | 361.35M |
| Total Debt | 12.81B | 12.76B | 12.75B | 11.70B | 10.57B | 9.23B |
| Total Liabilities | 15.47B | 14.93B | 15.13B | 14.15B | 12.84B | 11.19B |
| Stockholders Equity | 15.55B | 15.47B | 17.89B | 18.47B | 18.97B | 16.19B |
Cash Flow | ||||||
| Free Cash Flow | 876.13M | 1.41B | 1.50B | 1.63B | 1.29B | -6.32B |
| Operating Cash Flow | 1.28B | 1.41B | 1.50B | 1.63B | 1.29B | 1.01B |
| Investing Cash Flow | 415.27M | 362.10M | -1.51B | -2.50B | -5.08B | -7.11B |
| Financing Cash Flow | -1.75B | -1.78B | -93.31M | 674.16M | 4.23B | 5.92B |
Alexandria Equities Technical Analysis
Negative
52.90
Price Trends
50.25
Negative
49.61
Negative
48.82
Negative
Market Momentum
-0.82
Positive
38.96
Neutral
12.30
Positive
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 52.9 is above the 20-day moving average (MA) of 50.39, above the 50-day MA of 50.25, and above the 200-day MA of 48.82, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 12.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARE.
Alexandria Equities Risk Analysis
Alexandria Equities disclosed 11 risk factors in its most recent earnings report. Alexandria Equities reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alexandria Equities Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $3.95B | 23.35 | 3.17% | 6.42% | -3.76% | -22.82% | |
62 Neutral | $6.86B | 1,091.59 | 1.14% | 2.19% | 1.37% | -99.27% | |
61 Neutral | $3.73B | -19.07 | -4.61% | 4.85% | 7.60% | -387.48% | |
59 Neutral | $10.55B | 32.50 | 5.80% | 4.63% | 1.88% | 7630.99% | |
52 Neutral | $8.25B | -8.50 | -5.70% | 6.08% | -8.40% | -4485.62% | |
50 Neutral | $1.64B | -71.89 | -1.21% | 7.74% | 0.78% | -167.70% |
* Real Estate Sector Average
ARE
Alexandria Equities
47.37
-28.09
-37.22%
BXP
BXP
60.45
-10.83
-15.19%
DEI
Douglas Emmett
9.82
-4.35
-30.72%
KRC
Kilroy Realty
33.63
-6.19
-15.54%
SLG
SL Green Realty
48.81
-7.15
-12.77%
VNO
Vornado Realty
33.73
-6.62
-16.40%
Alexandria Equities Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Alexandria Equities Announces New $5 Billion Credit Facility
Positive
Sep 24, 2026
On July 9, 2026, Alexandria Real Estate Equities, Inc. and its operating partnership placed signatures for a fourth amended and restated credit agreement into escrow, and on September 24, 2026, they executed an amendment that refined the treatment...
Financial DisclosuresRegulatory Filings and Compliance
Alexandria Equities Reports Technical Direct Financial Obligation
Neutral
Aug 21, 2026
Alexandria Equities filed a current report indicating that information previously disclosed about certain notes and their governing indenture applies equally to another disclosure item concerning direct financial obligations. The filing appears to...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Alexandria Equities Announces $1 Billion Notes Offering
Positive
Aug 14, 2026
On August 12, 2026, Alexandria Real Estate Equities, Inc. entered into an underwriting agreement for a $1,000,000,000 public offering of 7.250% Series A Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2057. The notes, priced at 100% of pri...
Business Operations and StrategyPrivate Placements and Financing
Alexandria Equities Establishes New $5 Billion Credit Facility
Positive
Jul 9, 2026
On July 9, 2026, Alexandria Real Estate Equities, Inc. and its operating partnership entered into an escrow agreement with Citibank and a syndicate of lenders to prepare a fourth amended and restated credit agreement. The escrow structure allows t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.