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1. Company Snapshot

1.a. Company Description


Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle.Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, technology, and agtech campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success.Alexandria also provides strategic capital to transformative life science, technology, and agtech companies through our venture capital platform.


We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.">

Alexandria Real Estate Equities, Inc.(NYSE:ARE), an S&P 500® urban office real estate investment trust ("REIT"), is the first, longest-tenured, and pioneering owner, operator, and developer uniquely focused on collaborative life science, technology, and agtech campuses in AAA innovation cluster locations, with a total market capitalization of $31.9 billion as of December 31, 2020, and an asset base in North America of 49.7 million square feet ("SF").The asset base in North America includes 31.9 million RSF of operating properties and 3.3 million RSF of Class A properties undergoing construction, 7.1 million RSF of near-term and intermediate-term development and redevelopment projects, and 7.4 million SF of future development projects.


Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle.Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, technology, and agtech campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success.Alexandria also provides strategic capital to transformative life science, technology, and agtech companies through our venture capital platform.


We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

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1.b. Last Insights on ARE

Breaking News: Alexandria Real Estate Equities, Inc. recently announced a quarterly cash dividend of $0.72 per common share for the fourth quarter of 2025, representing a 45% reduction from the dividend declared for the third quarter of 2025. A class action lawsuit has been filed against the company and certain senior executives for securities fraud after a significant stock drop resulting from potential violations of federal securities laws. Investors are urged to contact law firms Bleichmar Fonti & Auld LLP, Bernstein Liebhard LLP, or Rosen Law Firm for more information.

1.c. Company Highlights

2. Alexandria Real Estate Equities' Q3 Earnings: Navigating a Challenging Landscape

Alexandria Real Estate Equities reported a decline in FFO per share and occupancy in Q3, with FFO per share coming in at $2.22, below analyst estimates of $2.31. The company's adjusted EBITDA margins remained strong at 71%, consistent with its 5-year average. Revenue growth is expected to be negative at -1.5% next year, according to analyst estimates.

Publication Date: Nov -01

📋 Highlights
  • FFO per Share Decline:: Alexandria reported a decrease in FFO per share, with a revised midpoint guidance of $9.01 ($0.25 or 2.7% reduction) due to lower investment gains and same-property performance.
  • Occupancy and Guidance Adjustment:: Year-end occupancy guidance reduced by 90 basis points to 90–91.6%, reflecting market challenges and biotech sector volatility.
  • Significant Impairment Charges:: Recognized $323.9 million in impairments, primarily from the Long Island City redevelopment property, which will be repurposed to industrial flex and cinema use.
  • Capital Allocation Shifts:: Plans to reduce development spending from 20% to 10–15% over coming years, with $1.5 billion in projected 2024 dispositions to meet capital needs.
  • Dividend Policy Stability:: Maintains a 30–40% payout ratio, with $15 million quarterly dividend adjusted to align with current market conditions and portfolio performance.

Operational Performance

The company's Megacampus platform outperformed overall market occupancy in its three largest markets by 18%. Rental rate growth for lease renewals and re-leasing space was solid at 15.2% and 6.1% on a cash basis. However, the company reduced its guidance for 2025 rental rate increases on renewals and re-leasing space by 2%. As Joel Marcus mentioned, "demand from various sectors exists, but it's case-specific and depends on factors like cost of capital, federal interest rates, and regulatory issues."

Capital Allocation and Guidance

Alexandria is carefully evaluating its large development pipeline and plans to curtail its development pipeline and reduce the size of its land bank through dispositions. The company revised its guidance down to a range of $100 million to $120 million for its venture investments. The company's dividend policy aims to share cash flows from operating activities with investors while retaining a meaningful amount for reinvestment.

Valuation and Outlook

With a P/E Ratio of -23.93 and a Dividend Yield of 9.07%, the company's valuation suggests a challenging outlook. The company's ROE is -2.26%, and its Net Debt / EBITDA is -0.27, indicating a relatively healthy balance sheet. As the company navigates the current challenging landscape, it is well-positioned to weather the storm, given its strong balance sheet, flexible capital structure, and relentless mission to build the future of life-changing innovation.

Future Prospects

The company's development run rate is expected to come down from 20% to 10% to 15% over the coming years. Alexandria's dividend policy is to maintain a payout ratio of around 30% to 40%. The company needs to pay a dividend and intends to do so. As Joel Marcus mentioned, "the industry needs a few more pieces to be put in place for a full rebound."

3. NewsRoom

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ARE ALERT: Kirby McInerney LLP Reminds Alexandria Real Estate Equities, Inc. Investors of Important Deadline in Class Action Lawsuit

Dec -05

Source: businesswire.com

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INVESTOR ALERT: The Alexandria Real Estate Equities, Inc. Securities Fraud Class Action is Pending, Investors Urged to Contact BFA Law by January 26 Deadline

Dec -04

Source: newsfilecorp.com

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Deadline Approaching: Alexandria Real Estate Equities, Inc. (ARE) Shareholders Who Lost Money Urged To Contact Law Offices of Howard G. Smith

Dec -04

Source: businesswire.com

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LRN INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that Stride, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Dec -04

Source: globenewswire.com

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Alexandria Cuts Dividend Amid Deepening Life Science Strains

Dec -04

Source: zacks.com

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Alexandria Real Estate Shareholder Alert: ClaimsFiler Reminds Investors With Losses In Excess Of $100,000 Of Lead Plaintiff Deadline In Class Action Lawsuits Against Alexandria Real Estate Equities, Inc. - ARE

Dec -04

Source: globenewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in Alexandria Real Estate Equities, Inc. of Class Action Lawsuit and Upcoming Deadlines - ARE

Dec -04

Source: prnewswire.com

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Portnoy Law Firm Announces Class Action on Behalf of Alexandria Real Estate Equities, Inc. Investors

Dec -04

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.77%)

6. Segments

Rental - Same Properties

Expected Growth: 5.8%

Alexandria Real Estate Equities' 5.8% Rental - Same Properties growth is driven by strong life science and technology industry trends, increasing demand for lab and office space, and strategic property acquisitions and developments in high-growth markets, such as Boston and San Francisco.

Rental - Non-Same Properties

Expected Growth: 5.9%

Alexandria Real Estate Equities' 5.9% growth in Rental - Non-Same Properties is driven by increasing demand for life science and technology facilities, strategic acquisitions, and rent escalations. Additionally, the company's focus on high-growth markets, such as Boston and San Francisco, and its ability to maintain high occupancy rates also contribute to its growth.

Tenant Recoveries - Same Properties

Expected Growth: 5.5%

The 5.5% growth in Tenant Recoveries - Same Properties is driven by increasing rental rates, high occupancy levels, and a strong life science industry demand. Additionally, Alexandria's strategic property acquisitions and redevelopment initiatives have enhanced the quality of its portfolio, leading to higher recoveries from tenants.

Tenant Recoveries - Non-Same Properties

Expected Growth: 5.7%

Alexandria Real Estate Equities' 5.7% growth in Tenant Recoveries - Non-Same Properties is driven by increasing demand for life science and technology spaces, strategic lease renewals and expansions, and rising reimbursement rates for biotech and pharmaceutical companies. Additionally, the company's focus on high-quality, amenity-rich properties and strong relationships with tenants contribute to this growth.

Other - Non-Same Properties

Expected Growth: 6.1%

Alexandria Real Estate Equities' 6.1% growth in Other - Non-Same Properties is driven by strategic acquisitions, increasing demand for life science and technology facilities, and expansion into high-growth markets. Additionally, the company's focus on providing mission-critical infrastructure and its strong relationships with top-tier tenants contribute to its growth momentum.

Other - Same Properties

Expected Growth: 5.6%

Alexandria Real Estate Equities' 5.6% growth in 'Other - Same Properties' is driven by increasing demand for life science and technology facilities, strategic acquisitions, and rent escalations. Additionally, the company's focus on high-quality, Class A properties in prime locations, such as San Francisco and Boston, contributes to its growth.

7. Detailed Products

Life Science Real Estate

Alexandria Real Estate Equities, Inc. provides life science real estate solutions, including laboratory and office space, to life science companies, enabling them to focus on their core business of discovering and developing new treatments and therapies.

Technology and Office Space

The company offers technology and office space solutions to technology and office tenants, providing flexible and amenity-rich environments that foster innovation and collaboration.

AgTech Real Estate

Alexandria provides AgTech real estate solutions, including greenhouses, research facilities, and office space, to companies focused on agricultural technology and sustainable agriculture.

Manufacturing and Logistics Space

The company offers manufacturing and logistics space solutions to life science and technology companies, providing flexible and efficient facilities to support their operations.

8. Alexandria Real Estate Equities, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Alexandria Real Estate Equities, Inc. is medium due to the availability of alternative investment options in the real estate industry.

Bargaining Power Of Customers

The bargaining power of customers for Alexandria Real Estate Equities, Inc. is low due to the company's strong brand reputation and diversified portfolio of properties.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Alexandria Real Estate Equities, Inc. is medium due to the company's dependence on a few large suppliers for construction materials and services.

Threat Of New Entrants

The threat of new entrants for Alexandria Real Estate Equities, Inc. is high due to the relatively low barriers to entry in the real estate industry and the increasing popularity of real estate investment trusts (REITs).

Intensity Of Rivalry

The intensity of rivalry for Alexandria Real Estate Equities, Inc. is high due to the competitive nature of the real estate industry and the presence of several large and established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.78%
Debt Cost 3.95%
Equity Weight 61.22%
Equity Cost 9.36%
WACC 7.26%
Leverage 63.33%

11. Quality Control: Alexandria Real Estate Equities, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Alexandria Real Estate Equities

A-Score: 5.8/10

Value: 7.9

Growth: 4.4

Quality: 6.1

Yield: 9.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Vornado Realty

A-Score: 5.2/10

Value: 5.4

Growth: 2.2

Quality: 6.6

Yield: 6.0

Momentum: 5.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Cousins Properties

A-Score: 5.2/10

Value: 3.6

Growth: 2.8

Quality: 4.2

Yield: 8.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Douglas Emmett

A-Score: 4.9/10

Value: 4.3

Growth: 4.6

Quality: 3.7

Yield: 8.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Boston Properties

A-Score: 4.8/10

Value: 3.3

Growth: 3.1

Quality: 3.8

Yield: 8.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
SL Green Realty

A-Score: 4.1/10

Value: 2.1

Growth: 0.9

Quality: 3.5

Yield: 9.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.48$

Current Price

45.48$

Potential

-0.00%

Expected Cash-Flows