Alexandria Equities (ARE) AI Stock Analysis

• Market Cap: $12.79B
• Dividend Yield: 7.14%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 102.6
• Beta (1Y): 1.03
• Revenue Growth: 3.12%
• EPS Growth: -116.29%
• Country: US
• Employees: 552
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.64
• Shares Outstanding: 172,958,950
• 10 Day Avg. Volume: 2,109,977
• 30 Day Avg. Volume: 1,542,401
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.36
• Enterprise Value/Revenue: 9.92
• Enterprise Value/Gross Profit: 14.25
• Enterprise Value/Ebitda: 16.42
• 1Y Price Target: $93.78
• Price Target Upside: 26.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 61 Neutral
• Price Target: $84.00 ▲(13.64% Upside)

Alexandria Equities shows strong revenue growth and efficient cash flow management, which are positive indicators for future performance. The earnings call provided a balanced outlook with significant achievements and challenges. However, the negative P/E ratio and recent net loss are concerns that weigh on the overall score. The attractive dividend yield provides some support, but technical indicators suggest caution in the short term.

Positive Factors

Revenue Growth

The robust revenue growth rate of 22.6% TTM indicates strong demand for Alexandria's properties, supporting long-term business expansion and stability.

Largest Lease in Company History

Securing the largest lease in company history demonstrates Alexandria's strong market position and ability to attract high-credit tenants, ensuring stable future cash flows.

Strong Cash Flow Management

Efficient cash flow management, indicated by a high coverage ratio, supports Alexandria's ability to fund operations and growth initiatives, enhancing financial resilience.

Negative Factors

Net Loss and Negative ROE

The net loss and negative ROE highlight profitability challenges, potentially impacting shareholder value and limiting reinvestment capacity.

Occupancy Decline

Declining occupancy rates indicate challenges in maintaining leasing momentum, which could pressure revenue and profitability if not addressed.

Asset Impairments

Significant asset impairments reflect potential overvaluation of properties and could strain financial performance, affecting future earnings and balance sheet health.

Alexandria Equities Business Overview & Revenue Model

Company Description

Alexandria Equities (ARE) is a leading real estate investment trust (REIT) specializing in the acquisition, development, and management of high-quality, innovative office and lab spaces primarily for the life sciences, technology, and agtech sectors. The company focuses on urban markets that foster innovation and collaboration, providing tenants with essential environments to thrive. Alexandria's portfolio includes properties designed to support cutting-edge research and development, catering to a diverse range of clients from biotech firms to academic institutions.

How the Company Makes Money

Alexandria Equities generates revenue primarily through leasing its properties to tenants in the life sciences and technology sectors. The company's revenue model is based on long-term leases, which provide a stable income stream. Key revenue streams include rental income from both traditional office spaces and specialized lab facilities. Alexandria also engages in development projects, enhancing its portfolio's value and generating additional income through the eventual leasing of these newly developed spaces. Significant partnerships with universities and research institutions further contribute to its earnings by securing long-term tenants and fostering collaborative environments that attract additional clients.

Alexandria Equities Financial Statement Overview

Summary

Alexandria Equities shows strong revenue growth and efficient cash flow management. However, the recent net loss and negative return on equity are significant concerns impacting long-term profitability and shareholder value.

Income Statement

Alexandria Equities shows a strong revenue growth rate of 22.6% TTM, indicating robust top-line expansion. However, the net profit margin has turned negative TTM, primarily due to a net loss, which raises concerns about profitability. The gross profit margin remains healthy at approximately 69.6%, and the EBIT margin is stable at 17.3%, suggesting operational efficiency despite the net loss.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.71, indicating moderate leverage. However, the return on equity has turned negative TTM, reflecting the net loss and impacting shareholder returns. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE is a concern.

Cash Flow

Operating cash flow remains strong with a high coverage ratio of 6.18 TTM, indicating good cash generation relative to net income. Free cash flow growth is positive at 3.53% TTM, showing improvement. The free cash flow to net income ratio is 1.0, highlighting efficient cash conversion despite the net loss.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	3.05B	2.84B	2.59B	2.11B	1.89B
Gross Profit	2.12B	2.14B	1.98B	1.81B	1.49B	1.36B
EBITDA	1.84B	1.90B	1.45B	1.63B	1.35B	1.23B
Net Income	-12.85M	322.95M	103.64M	521.66M	416.83M	591.20M
Balance Sheet
Total Assets	37.62B	37.53B	36.77B	35.52B	30.22B	22.83B
Cash, Cash Equivalents and Short-Term Investments	520.54M	552.15M	618.19M	825.19M	361.35M	568.53M
Total Debt	13.66B	12.75B	11.70B	10.57B	9.23B	7.91B
Total Liabilities	15.88B	15.13B	14.15B	12.84B	11.19B	9.38B
Stockholders Equity	17.18B	17.89B	18.47B	18.97B	16.19B	11.73B
Cash Flow
Free Cash Flow	1.42B	1.50B	1.63B	1.29B	-6.32B	-2.39B
Operating Cash Flow	1.42B	1.50B	1.63B	1.29B	1.01B	882.51M
Investing Cash Flow	-1.03B	-1.51B	-2.50B	-5.08B	-7.11B	-3.28B
Financing Cash Flow	-425.32M	-93.31M	674.16M	4.23B	5.92B	2.75B

Alexandria Equities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 73.92 is below the 20-day moving average (MA) of 82.13, below the 50-day MA of 79.64, and below the 200-day MA of 81.47, indicating a bearish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 26.73 is Positive, neither overbought nor oversold. The STOCH value of 4.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARE.

Alexandria Equities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	69 Neutral	$4.72B	21.47	4.06%	5.46%	2.26%	10.15%
CDP	68 Neutral	$6.24B	21.78	9.67%	4.37%	2.95%	―
CUZ	67 Neutral	$4.47B	72.10	1.30%	4.81%	13.07%	-4.94%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
VNO	61 Neutral	$7.93B	9.40	14.93%	1.95%	1.38%	4370.96%
ARE	61 Neutral	$12.79B	102.63	-0.12%	7.14%	3.12%	-116.29%
BXP	61 Neutral	$12.10B	3,509.60	0.07%	5.24%	3.24%	-97.73%

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.