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Alexandria Real Estate Equities Inc
🇺🇸 ARE · NYSE/NASDAQ
Real Estate
Price at analysis: USD 41.98 Current price: USD 41.92 * updated every night
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: 2026-06-30
Why N/A?
EPS (TTM) = -5.54 (negative or zero)
Cannot calculate P/E with negative earnings.
Forward P/E (estimated): 16.7
Based on analyst estimates
Reference: Provider P/E (Forward): 16.7
Net Debt/EBITDA (TTM)
29.0x
Latest quarter: 34.4x
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: 2026-06-30
Latest quarter (2026-06-30): 34.4x
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
31.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
8.45%
TTM: 6.86%
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.
Forward Yield (estimated): 8.45%
Trailing Yield (TTM, last 12 months): 6.86%
Payout Ratio (Fwd)
689.5% TTM
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Cash Flow Payout (TTM): 54.9%
FCF Coverage (TTM): 1.25x
Div. Growth (5Y)
2.0%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 30 Sep 2027 | — | USD | 0.72 |
| Forecast* | Quarterly | — | 30 Jun 2027 | — | USD | 0.72 |
| Forecast* | Quarterly | — | 31 Mar 2027 | — | USD | 0.72 |
| Forecast* | Quarterly | — | 31 Dec 2026 | — | USD | 0.72 |
| Paid | Quarterly | 01 Sep 2026 | 30 Sep 2026 | 15 Oct 2026 | USD | 0.72 |
| Paid | Quarterly | 01 Jun 2026 | 30 Jun 2026 | 15 Jul 2026 | USD | 0.72 |
| Paid | Quarterly | 27 Feb 2026 | 31 Mar 2026 | 15 Apr 2026 | USD | 0.72 |
| Paid | Quarterly | 03 Dec 2025 | 31 Dec 2025 | 15 Jan 2026 | USD | 0.72 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
ARE offers an exceptionally cheap valuation (5.21x P/FFO) and high immediate yield, supported by the recent dismissal of a major securities lawsuit and strong structural decarbonization moats. However, fundamental quality has degraded due to massive non-cash impairments, emerging obsolescence risks, and a recent 9.8% strategic dividend cut. Not recommended for new DGI positions (CAUTION), as the broken dividend streak and elevated execution risks overshadow the deep value opportunity.
Sector Context
Alexandria Real Estate Equities is an office REIT specializing in collaborative life science and advanced technology mega-campuses. In the DGI strategy, REITs provide essential physical infrastructure and high yields, evaluated primarily on P/FFO rather than GAAP P/E due to heavy non-cash depreciation and impairment charges.
Temporary Opportunity Identified
Massive non-cash real estate impairments and temporary tenant budget tightening due to patent cliffs have caused a sharp drop in GAAP earnings and the stock price, masking underlying positive FFO and long-term structural demand.
📊 Strategy Analysis
- • Deeply discounted valuation at 5.21x P/FFO, trading at a steep 58.7% discount to its reported NAV of $101.74.
- • High 6.86% forward dividend yield that remains covered by free cash flow (1.25x coverage) despite massive GAAP net losses.
- • Formidable structural moat driven by strict municipal decarbonization mandates (e.g., LL97) that disproportionately squeeze low-capital competitors.
- • Major legal overhang resolved following the dismissal of the Long Island City securities class action lawsuit in September 2026.
⚠ What to Watch
- • Dividend track record was fundamentally broken by a 9.8% strategic cut in 2025 to preserve liquidity amidst life science market strains.
- • Massive non-cash real estate impairments (including a $1.45 billion charge in Q4 2025) drove a $1.08 billion net loss and severely distorted leverage metrics (Net Debt/EBITDA of 29.0x).
- • Emerging long-term structural obsolescence risk for physical human-centric wet labs as the biopharma industry shifts toward AI-driven computational R&D.
📊 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: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.