Alexandria Real Estate Equities Inc
🇺🇸 ARE · NYSE/NASDAQ · US0152711091
Real Estate
USD 52.20 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
N/A
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
TTM period through: 2026-03-31
Why N/A?
EPS (TTM) = -6.23 (negative or zero)
Cannot calculate P/E with negative earnings.
Forward P/E (estimated): 34.0
Based on analyst estimates
Reference: Provider P/E (Forward): 34.0
Yield (Fwd)
8.97%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 7.96%
Div. Growth (5Y CAGR)
4.9%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
30.7x
Latest quarter: 26.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 26.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
-4.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
31.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Alexandria Real Estate Equities is a leading REIT specializing in life science and agricultural technology campuses. While the stock trades at distressed valuations (P/FFO of 6.55 and a 49% discount to NAV) due to a cyclical downturn in biotech funding and billions in non-cash impairments, structural threats from automated 'cloud labs' and ongoing securities litigation introduce heavy execution risk. Placing this stock in the CAUTION quadrant, the structural risks outweigh the deeply discounted pricing and attractive 7.9% yield. Not recommended for new positions in conservative dividend strategies until the core market stabilizes and legal clarity is achieved.
Sector Context
Alexandria Real Estate Equities is a real estate investment trust (REIT) that develops, owns, and operates collaborative life science, agtech, and advanced technology campuses. In the REIT sector, traditional metrics like GAAP P/E are often distorted by heavy depreciation charges; therefore, P/FFO (Funds From Operations) is the standard valuation metric, and high payout ratios are legally mandated.
Temporary Opportunity Identified
Massive non-cash real estate impairment charges (totaling $1.45B in Q4 2025) and a severe cyclical downturn in the life science real estate market driven by venture capital constraints and oversupply.
📊 Strategy Analysis
- • Trading at a highly distressed valuation with a P/FFO of 6.55x and a 49% discount to its NAV of $102.79, indicating massive market pessimism is already priced in.
- • Despite GAAP net losses driven by billions in non-cash real estate impairments, Free Cash Flow remains positive and comfortably covers the dividend with a Cash Flow Payout of 57.4%.
- • Offers an attractive trailing yield of 7.96%, providing significant income while waiting for life science venture capital funding to stabilize.
⚠ What to Watch
- • Ongoing securities fraud class-action litigation (Hern v. Alexandria) regarding alleged failures to disclose deteriorating lease values, which severely impacts management credibility.
- • Structural obsolescence risks emerging from AI-driven drug discovery and modular robotic 'cloud labs', which threaten to reduce long-term demand for traditional wet lab configurations.
- • Net Debt/EBITDA is extremely elevated at over 30x, compounded by five recent quarters of negative net income and a proposed 12.5% dividend cut to preserve capital.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-06-06
Disclaimer: This information is for educational purposes only. Not financial advice.