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Alexandria Real Estate Equities Inc (ARE) Fair Value & Analysis

Real Estate · US · Market cap $8.6B · ISIN US0152711091

What is Alexandria Real Estate Equities Inc really worth?

AR Alexandria Real Estate Equities Inc logo Alexandria Real Estate Equities Inc ARE · US
Price$52.69
Fair Value$58.69
Upside+11.4%
Quality41/100

Below-average quality, trading 10% below our fair value of $58.69.

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Strengths

Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +9.5 %/yr)
!Loss-making · -36.1% net margin
!Mixed vs. peers (6/14)
!Narrow moat 24/100
!Evidence only medium, so the estimate is less certain

For context

·7.74% dividend yield
Evidence: Medium Range $25.09 – $87.60

Fair value as of: Sep 3, 2026

From 11 valuation models · updated yesterday

Share price +7.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide ($25.09 to $87.60). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.

Price vs Fair Value (5 years)

$183.03 $40.41 Fair Value $58.69 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range $40.41 – $183.03 · fair‑value band $25.09 – $87.60 · the $52.69 price screens below the $58.69 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 3, 2026.

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Analysis

Alexandria Real Estate Equities Inc (ARE) currently trades at $52.69, while our model-based Fair Value estimate is $58.69, implying the stock looks roughly 10.2% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Real Estate sector. Bull case: the Growth DCF group reads highest at a median of $118.82 per share, and 8 of the 10 models we run sit above the $52.69 price. Bear case: the Multiples group reads lowest at $39.50, and 2 of the 10 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Alexandria Real Estate Equities Inc generated revenue of $2.9B at a net margin of −36.1%. Revenue declined 11.5% year over year. It earns a return on equity of −4.1%. Net debt stands at $12.2B. Fundamentals as of Sep 3, 2026

Our scenario range runs from $25.09 (bear case) to $87.60 (bull case); at $52.69, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 37% below its 52-week high and 34% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at −25% fair-value upside, at 11%, ARE screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
5Y EBITDA Exit $21.76 72
FCF DCF $63.08 $132.72 $349.87 71
Growth DCF $55.22 $151.90 $341.11 71
All 11 models by family
DCF Models
FCF DCF $63.08 $132.72 $349.87 71
5Y Revenue Exit $27.60 $95.54 $233.85 64
5Y EBITDA Exit $21.76 72
10Y Revenue Exit $35.22 $141.89 $223.88 63
10Y EBITDA Exit $3.53 $42.27 $100.54 59
Dividend Discount
Gordon GGM $45.93 $91.53 $138.60 67
DDM Multi-Stage $45.93 $79.10 $96.61 67
Multiples
EV/Revenue $7.86 $39.50 $71.15 48
Asset-Based
NCAV (Graham) $44.39 $59.48 $88.77 54
Growth DCF
Growth DCF $55.22 $151.90 $341.11 71
Rev-Margin DCF $27.60 $118.82 $266.02 65

Widest divergence: Growth DCF ($118.82) versus Multiples ($39.50). Highest evidence: 5Y EBITDA Exit (72).

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Key figures & financial health

P/S ratio 2.93 TTM
EPS (TTM) $−6.27
Dividend yield 7.7%
Net margin −48.2% FY2025
Return on equity −4.1% TTM
Return on assets (EBIT) 0.8% avg 5y
More key figures
Profitability
Operating margin 15.9% TTM
Growth
Revenue (TTM) $2.9B TTM
Revenue growth (YoY) −11.5% 3y avg +4.9%
EPS growth (YoY) +648%
Balance sheet & cash flow
Free cash flow $1.4B FY2025
Net debt $12.2B FY2025 · ≈ 8.6 yrs of FCF

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 44 · Market factors (momentum, volatility) 28

Profitability 3
Margins and returns on capital today
Quality Growth 20
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 36
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Alexandria Real Estate Equities, Inc., 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, Alexandria pioneered the life science real estate niche.

Full company description

Alexandria Real Estate Equities, Inc., 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, 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. Alexandria Real Estate Equities, Inc. is based in Pasadena, California and is established in January 05, 1994, and incorporated in Maryland.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Alexandria Real Estate Equities Inc reported revenue of $3.0B in FY2025 versus $2.1B in FY2021, a compound +8.9%/yr. Reported net income was −$1.4B in FY2025.

Growth Quality 36/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$3.0B
Latest YoY
−2.6%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.5%
Avg. revenue growth/yr (29Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+21.1%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +8.9%/yr
FY21 $2.1B
FY22 $2.6B
FY23 $2.8B
FY24 $3.0B
FY25 $3.0B
Net income
FY21 $571M
FY22 $522M
FY23 $104M
FY24 $323M
FY25 −$1.4B
Character of growth · EPS growth decomposed (2012-2023) +4.4 % p.a.
Revenue per share +5.5 %

of which total revenue +16.2 % · buybacks/dilution −9.2 %

EBIT margin +1.5 %
Tax rate −1.3 %
Residual (interest, one-offs) −1.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Alexandria Real Estate Equities Inc Fair Value". https://www.fairvalue-calculator.com/stock/ARE

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

REIT - Office · 69 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 43 · Below median
Fair Value upside +11% · Above median
Return on assets 1% · Bottom 25%
Net margin (TTM) −36% · Bottom 25%
Operating margin (TTM) 16% · Below median
Revenue growth −12% · Bottom 25%
Dividend yield (TTM) 7.7% · Above median
Debt / equity 0.78× · Higher than median

Valuation Multiples vs REIT - Office median · lower = cheaper

P/B 0.55× · Cheaper than median
P/S (TTM) 2.93× · Cheaper than median
P/FCF 6.1× · Cheaper than median
EV/EBITDA 10.8× · Cheaper than median
PEG 3.24× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE49 · sector 24
FUTURE0 · sector 0
PAST0 · sector 11
HEALTH61 · sector 66
DIVIDEND100 · sector 100

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more REIT - Office stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).

Stock Price Fair Value vs Fair Value
MERLIN Properties SOCIMI, S.A MRL €13.51 €5.66 −58%
BXP, Inc BXP $67.95 $53.27 −22%
Vornado Realty Trust VNORP $51.00 $40.45 −21%
Gecina GFC €67.25 €75.35 +12%
Hudson Pacific Properties, Inc HPP $12.74 $3.81 −70%
Mapletree Pan Asia Commercial Trust N2IU 1.27 SGD 1.14 SGD −10%
Cousins Properties Incorporated CUZ $29.25 $17.46 −40%
EMBASSYRR EMBASSYRR ₹449.01 ₹134.34 −70%
Embassy Office Parks REIT owns, EMBASSY ₹435.90 ₹141.82 −67%
DEXUS DXS A$5.96 A$4.49 −25%

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Frequently asked questions

Is Alexandria Real Estate Equities Inc (ARE) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of $58.69 versus a price of $52.69, about +11% upside (undervalued).
What is the fair value of ARE?
Our model-based fair value for Alexandria Real Estate Equities Inc is $58.69 (as of Sep 3, 2026), built from audited fundamentals. The current price: $52.69.
What is the quality score of ARE?
Alexandria Real Estate Equities Inc has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Alexandria Real Estate Equities Inc (ARE)?
Alexandria Real Estate Equities Inc reported trailing-twelve-month revenue of about $2.9B (latest available figure, as of Sep 3, 2026).
What is the net profit margin of ARE?
The net profit margin of Alexandria Real Estate Equities Inc is about −36.1%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Alexandria Real Estate Equities Inc pay a dividend?
Alexandria Real Estate Equities Inc currently shows a dividend yield of about 7.74% relative to its recent price (as of Sep 3, 2026).
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