NYSE:ARE

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Alexandria Real Estate Equities

Market Cap

US$30.7b

Last Updated

2021/08/01 22:11 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

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.


Market Performance


7 Day Return

2.2%

ARE

0.1%

US REITs

-0.4%

US Market


1 Year Return

13.4%

ARE

30.6%

US REITs

35.9%

US Market

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.


Shareholder returns

AREIndustryMarket
7 Day2.2%0.1%-0.4%
30 Day9.4%3.4%-0.3%
90 Day11.9%7.7%3.1%
1 Year16.3%13.4%34.9%30.6%38.0%35.9%
3 Year71.5%58.0%44.7%28.5%62.9%52.7%
5 Year108.0%80.7%52.9%23.5%121.3%96.9%

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

Valuation

Is Alexandria Real Estate Equities undervalued compared to its fair value and its price relative to the market?

20.1%

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).


Future Growth

How is Alexandria Real Estate Equities forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.5%

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%).


Past Performance

How has Alexandria Real Estate Equities performed over the past 5 years?

52.3%

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.


Financial Health

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.


Balance Sheet


Dividend

What is Alexandria Real Estate Equities's current dividend yield, its reliability and sustainability?

2.23%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Peter Moglia (54 yo)

3.25yrs

Tenure

US$8,040,857

Compensation

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.


Leadership Team

Experienced Management: ARE's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: ARE's board of directors are considered experienced (5.6 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.8%.


Top Shareholders

Company Information

Alexandria Real Estate Equities, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Alexandria Real Estate Equities, Inc.
  • 26 North Euclid Avenue
  • Pasadena
  • California
  • 91101
  • United States

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:11
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.