Alexandria Real Estate Equities (ARE)
Real Estate · $7.9B market cap · SEC CIK 0001035443
ahead of 7% of the S&P 500 · #27 of 30 in Real Estate
Next reports on Jan 25, 2027, after the close, with analysts expecting −$0.13 in earnings per share.
52-week range $38.34 to $59.76. 25% below its 52-week high and 17% above its low.
The case for ARE
- Trades at 0.56× book value, below what the balance sheet says it owns.
- Pays a 4.7% dividend while you wait.
- Gross margin of 68% absorbs cost shocks.
- Price/sales of 2.9× is lower than 86% of Real Estate companies.
The case against
- Losing money over the last year: net margin −53.0%, return on equity −9%.
- Revenue fell 15.4% year over year.
- Long-term debt of $12.4B would take 9 years of operating cash flow to repay.
- Pays a dividend while losing money over the last twelve months.
- Current liabilities exceed current assets (ratio 0.41).
- The price trend is weak (29/100): −15.7% over a year, −9.9% over three months, 25% below its 52-week high.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 70 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 37 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 12 |
| Momentumhow the price has behaved lately | 29 |
| Stabilityhow violently it moves, what it owes and what it pays you | 25 |
- It is losing money, so it has no P/E; that counts against value rather than being skipped.
- Each factor except momentum is half fixed thresholds, half rank among the 30 Real Estate companies.
The financials
Revenue growth
Is the business growing? No, shrinking
| Last 12 months | −15.4% |
|---|---|
| Over 5 years | +9.8% a year |
| FY2025 revenue | $3.0B (−3%) |
Free cash flow
Is it generating real cash? Can't tell: no capital spending in its filings
| FY2025 operating cash flow | $1.4B |
|---|---|
| Of profit, before capital spending | n/a |
Its filings do not give capital spending, so free cash flow cannot be worked out. Operating cash flow, which is before that spending, is shown instead, and the score judges it against a stricter bar.
Profit margins
Is profitability improving? No, slipping
| Gross margin | 68% |
|---|---|
| Operating margin | −68% |
| Net margin, FY24 → FY25 → now | 10.4% → −47.2% → −53.0% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $549M |
|---|---|
| Long-term debt | $12.4B |
| Net debt | $11.9B |
| Years to repay | 8.8 yrs |
Valuation
Is the stock price reasonable? Mixed: no earnings, but cheap on cash flow
| P/E | n/a (a loss) |
|---|---|
| Fair P/E for its growth | 10× |
| Price / operating cash flow | 5.6× |
| Forward P/E | 892.9× |
| EV / EBITDA | 14.8× |
| Price / sales | 2.9× |
It has no earnings to price, so the verdict leans on its cash flow. At 5.6× operating cash flow it trades well below the 10× that 1% a year of growth would justify; for a REIT that counts for more than earnings, since depreciation makes its P/E look worse than the business is.
The financials, five years deep
Pulled from Alexandria Real Estate Equities's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $3.0B | $3.1B | $2.9B | $2.6B | $2.1B |
| Change on the year | −3% | +8% | +11% | +22% | — |
| Profit margins | |||||
| Net margin | −47.2% | 10.4% | 3.6% | 20.1% | 27.0% |
| Debt vs. cash | |||||
| Cash | $549M | $552M | $618M | $825M | $361M |
| Long-term debt | $12.4B | $12.2B | $11.3B | $10.2B | $8.8B |
| Net cash (debt) | −$11.9B | −$11.7B | −$10.7B | −$9.3B | −$8.4B |
What Alexandria Real Estate Equities says it does
Overview We are a Maryland corporation formed in October 1994 that has elected to be taxed as a REIT for federal income tax purposes. Alexandria Real Estate Equities, Inc. (NYSE: ARE), 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 and 3.5 million RSF of Class A/A+ properties undergoing construction . We develop…