Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500<sup>®</sup> 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"). More Details
Solid track record established dividend payer.
Share Price & News
How has Alexandria Real Estate Equities's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ARE's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: ARE underperformed the US REITs industry which returned 30.2% over the past year.
Return vs Market: ARE underperformed the US Market which returned 35.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Alexandria Real Estate Equities's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall StHave Alexandria Real Estate Equities, Inc. (NYSE:ARE) Insiders Been Selling Their Stock?
5 days ago | Simply Wall StDo Alexandria Real Estate Equities's (NYSE:ARE) Earnings Warrant Your Attention?
Is Alexandria Real Estate Equities undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARE ($201.34) is trading below our estimate of fair value ($252.1)
Significantly Below Fair Value: ARE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ARE is good value based on its PE Ratio (30.2x) compared to the US REITs industry average (46.7x).
PE vs Market: ARE is poor value based on its PE Ratio (30.2x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: ARE is poor value based on its PEG Ratio (8.5x)
Price to Book Ratio
PB vs Industry: ARE is overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (1.9x).
How is Alexandria Real Estate Equities forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARE's forecast earnings growth (3.5% per year) is above the savings rate (2%).
Earnings vs Market: ARE's earnings (3.5% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: ARE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ARE's revenue (11.9% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: ARE's revenue (11.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARE's Return on Equity is forecast to be low in 3 years time (3%).
How has Alexandria Real Estate Equities performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARE has high quality earnings.
Growing Profit Margin: ARE's current net profit margins (44.8%) are higher than last year (23.5%).
Past Earnings Growth Analysis
Earnings Trend: ARE has become profitable over the past 5 years, growing earnings by 52.3% per year.
Accelerating Growth: ARE's earnings growth over the past year (128.6%) exceeds its 5-year average (52.3% per year).
Earnings vs Industry: ARE earnings growth over the past year (128.6%) exceeded the REITs industry -9.1%.
Return on Equity
High ROE: ARE's Return on Equity (6.1%) is considered low.
How is Alexandria Real Estate Equities's financial position?
Financial Position Analysis
Short Term Liabilities: ARE's short term assets ($1.4B) exceed its short term liabilities ($488.4M).
Long Term Liabilities: ARE's short term assets ($1.4B) do not cover its long term liabilities ($10.3B).
Debt to Equity History and Analysis
Debt Level: ARE's debt to equity ratio (54.6%) is considered high.
Reducing Debt: ARE's debt to equity ratio has reduced from 94.6% to 54.6% over the past 5 years.
Debt Coverage: ARE's debt is not well covered by operating cash flow (10.6%).
Interest Coverage: ARE earns more interest than it pays, so coverage of interest payments is not a concern.
What is Alexandria Real Estate Equities's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARE's dividend (2.23%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: ARE's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (3.55%).
Stability and Growth of Payments
Stable Dividend: ARE's dividends per share have been stable in the past 10 years.
Growing Dividend: ARE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.8%), ARE's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ARE's dividends in 3 years are forecast to be covered by earnings (53.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Peter Moglia (54 yo)
Mr. Peter M. Moglia has been the Co-Chief Investment Officer of Alexandria Real Estate Equities, Inc. since May 2018 and has been its Co-Chief Executive Officer since April 23, 2018. Mr. Moglia served as C...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD8.04M) is about average for companies of similar size in the US market ($USD11.20M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Experienced Management: ARE's management team is considered experienced (3.3 years average tenure).
Experienced Board: ARE's board of directors are considered experienced (5.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ARE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.8%.
Alexandria Real Estate Equities, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Alexandria Real Estate Equities, Inc.
- Ticker: ARE
- Exchange: NYSE
- Founded: 1993
- Industry: Office REITs
- Sector: Real Estate
- Market Cap: US$30.677b
- Shares outstanding: 152.36m
- Website: https://www.are.com
Number of Employees
- Alexandria Real Estate Equities, Inc.
- 26 North Euclid Avenue
- United States
Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500<sup>®</sup> urban office real estate investment trust ("REIT"), is the first, longest-tenured, and pioneering owner, operator, and developer uni...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/01 22:11|
|End of Day Share Price||2021/07/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.