(ARE) Alexandria Real Estate - Overview
Sector: Real Estate | Industry: REIT - Office | Exchange: NYSE (USA) | Market Cap: 8.701m USD | Total Return: -19.2% in 12m
Avg Turnover: 77.7M
Qual. Beats: 0
Rev. Trend: 65.4%
Qual. Beats: -3
Warnings
High Debt/EBITDA (31.6) with thin interest coverage (-3.8)
Interest Coverage Ratio -3.8 is critical
Tailwinds
No distinct edge detected
Alexandria Real Estate Equities (ARE) is an S&P 500 real estate investment trust specializing in the life science sector. Founded in 1994, the company pioneered the Mega campus model, focusing on high-barrier-to-entry innovation clusters such as Greater Boston, San Francisco, and San Diego. Its portfolio consists primarily of Class A/A+ office and laboratory space designed to facilitate research and development for biotechnology and pharmaceutical tenants.
The business model integrates property management with a strategic venture capital platform that invests directly in transformative life science entities. Life science REITs typically benefit from high tenant retention rates due to the specialized, capital-intensive infrastructure required for laboratory environments, which makes relocation difficult for occupants. As of late 2025, Alexandria manages over 39 million rentable square feet of operating and development assets across North America.
Investors can further evaluate these operational metrics and valuation trends by visiting ValueRay. This specialized REIT structure aims to drive long-term asset value through high occupancy levels and extended lease terms supported by a diverse, creditworthy tenant base.
- Biotechnology venture funding levels dictate demand for new laboratory space leasing
- High interest rates increase debt servicing costs and pressure capitalization rates
- Concentration in core life science clusters maintains high occupancy and pricing power
- Clinical trial success rates drive tenant expansion within Mega campus ecosystems
- Supply glut in secondary markets threatens rental growth and asset valuations
| Net Income: -1.02b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 0.46 > 1.0 |
| NWC/Revenue: -72.86% < 20% (prev -39.10%; Δ -33.75% < -1%) |
| CFO/TA 0.04 > 3% & CFO 1.40b > Net Income -1.02b |
| Net Debt (12.8b) to EBITDA (405.6m): 31.60 < 3 |
| Current Ratio: 0.29 > 1.5 & < 3 |
| Outstanding Shares: last quarter (188.4m) vs 12m ago 10.47% < -2% |
| Gross Margin: 68.25% > 18% (prev 0.70%; Δ 6.76k% > 0.5%) |
| Asset Turnover: 8.08% > 50% (prev 8.08%; Δ -0.00% > 0%) |
| Interest Coverage Ratio: -3.78 > 6 (EBITDA TTM 405.6m / Interest Expense TTM 240.4m) |
| DSRI: 1.22 (Receivables 327.0m/280.2m, Revenue 2.90b/3.04b) |
| GMI: 1.02 (GM 68.25% / 69.80%) |
| AQI: 1.00 (AQ_t 0.94 / AQ_t-1 0.95) |
| SGI: 0.95 (Revenue 2.90b / 3.04b) |
| TATA: -0.07 (NI -1.02b - CFO 1.40b) / TA 34.2b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of June 03, 2026, the stock is trading at USD 52.74 with a total of 4,242,808 shares traded.
Over the past week, the price has changed by +8.81%,
over one month by +28.20%,
over three months by +1.79% and
over the past year by -19.20%.
Alexandria Real Estate has received a consensus analysts rating of 3.54. Therefore, it is recommended to hold ARE.
- StrongBuy: 3
- Buy: 1
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 51.1 | -3% |
P/E Forward = 16.6945
P/S = 2.9696
P/B = 0.553
P/EG = 3.2356
Revenue TTM = 2.90b USD
EBIT TTM = -908.2m USD
EBITDA TTM = 405.6m USD
Long Term Debt = 11.2b USD (from longTermDebt, last quarter)
Short Term Debt = 1.35b USD (from shortTermDebt, last quarter)
Debt = 13.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 358.6m
Net Debt = 12.8b USD (calculated: Debt 13.2b - CCE 418.7m)
Enterprise Value = 21.5b USD (8.70b + Debt 13.2b - CCE 418.7m)
Interest Coverage Ratio = -3.78 (Ebit TTM -908.2m / Interest Expense TTM 240.4m)
EV/FCF = 15.34x (Enterprise Value 21.5b / FCF TTM 1.40b)
FCF Yield = 6.52% (FCF TTM 1.40b / Enterprise Value 21.5b)
FCF Margin = 48.39% (FCF TTM 1.40b / Revenue TTM 2.90b)
Net Margin = -35.30% (Net Income TTM -1.02b / Revenue TTM 2.90b)
Gross Margin = 68.25% ((Revenue TTM 2.90b - Cost of Revenue TTM 920.4m) / Revenue TTM)
Gross Margin QoQ = 66.60% (prev 69.18%)
Tobins Q-Ratio = 0.63 (Enterprise Value 21.5b / Total Assets 34.2b)
Interest Expense / Debt = 1.82% (Interest Expense 240.4m / Debt 13.2b)
Taxrate = 21.0% (US default 21%)
NOPAT = -717.5m (EBIT -908.2m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.29 (Total Current Assets 843.1m / Total Current Liabilities 2.95b)
Debt / Equity = 0.84 (Debt 13.2b / totalStockholderEquity, last quarter 15.7b)
Debt / EBITDA = 31.60 (Net Debt 12.8b / EBITDA 405.6m)
Debt / FCF = 9.14 (Net Debt 12.8b / FCF TTM 1.40b)
Total Stockholder Equity = 16.3b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.85% (Net Income -1.02b / Total Assets 34.2b)
RoE = -6.29% (Net Income TTM -1.02b / Total Stockholder Equity 16.3b)
RoCE = -3.31% (EBIT -908.2m / Capital Employed (Equity 16.3b + L.T.Debt 11.2b))
RoIC = -2.20% (negative operating profit) (NOPAT -717.5m / Invested Capital 32.5b)
WACC = 4.25% (E(8.70b)/V(21.9b) * Re(8.54%) + D(13.2b)/V(21.9b) * Rd(1.82%) * (1-Tc(0.21)))
Discount Rate = 8.54% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -6.82 | Cagr: 4.37%
[DCF] Terminal Value 75.74% ; FCFF base≈1.39b ; Y1≈1.42b ; Y5≈1.56b
[DCF] Fair Price = 65.55 (EV 24.2b - Net Debt 12.8b = Equity 11.4b / Shares 174.3m; r=8.35% [WACC [floored]]; 5y FCF grow 2.29% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.83 | # QB: 0
Revenue Correlation: 65.41 | Revenue CAGR: 2.78% | SUE: -1.40 | # QB: -3
EPS current Quarter (2026-06-30): EPS=0.12 | Chg30d=N/A | Revisions=N/A | Analysts=1
EPS next Quarter (2026-09-30): EPS=-0.05 | Chg30d=N/A | Revisions=N/A | Analysts=1
EPS current Year (2026-12-31): EPS=1.85 | Chg30d=+414.11% | Revisions=+33% | GrowthEPS=+121.9% | GrowthRev=-13.8%
EPS next Year (2027-12-31): EPS=-0.88 | Chg30d=N/A | Revisions=N/A | GrowthEPS=-134.7% | GrowthRev=+2.6%
[Analyst] Revisions Ratio: +33%