Alexandria Real Estate Equities
Market Cap
US$19.4b
Last Updated
2020/06/01 02:13 UTC
Data Sources
Company Financials +
Executive Summary
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 $24.3 billion as of March 31, 2020, and an asset base in North America of 41.5 million square feet ("SF").
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Established dividend payer with mediocre balance sheet.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.6%
ARE
5.0%
US REITs
3.0%
US Market
1 Year Return
4.4%
ARE
-10.1%
US REITs
9.9%
US Market
Return vs Industry: ARE exceeded the US REITs industry which returned -10.1% over the past year.
Return vs Market: ARE underperformed the US Market which returned 9.5% over the past year.
Shareholder returns
| ARE | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.6% | 5.0% | 3.0% |
| 30 Day | 1.8% | 4.8% | 8.2% |
| 90 Day | -2.6% | -13.7% | 0.4% |
| 1 Year | 7.3%4.4% | -6.3%-10.1% | 12.4%9.9% |
| 3 Year | 39.3%27.7% | 10.1%-3.5% | 31.0%22.3% |
| 5 Year | 97.4%69.6% | 40.5%11.5% | 58.1%40.3% |
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
5 days ago | Simply Wall St
Did Alexandria Real Estate Equities, Inc. (NYSE:ARE) Insiders Sell Shares?1 month ago | Simply Wall St
Alexandria Real Estate Equities, Inc. Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models1 month ago | Simply Wall St
Is It Time To Consider Buying Alexandria Real Estate Equities, Inc. (NYSE:ARE)?Valuation
Is Alexandria Real Estate Equities undervalued compared to its fair value and its price relative to the market?
72.25x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ARE ($153.72) is trading above our estimate of fair value ($122.22)
Significantly Below Fair Value: ARE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ARE is poor value based on its PE Ratio (72.3x) compared to the REITs industry average (27.3x).
PE vs Market: ARE is poor value based on its PE Ratio (72.3x) compared to the US market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: ARE is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: ARE is overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (1.4x).
Next Steps
Future Growth
How is Alexandria Real Estate Equities forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
19.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARE's forecast earnings growth (19.1% per year) is above the savings rate (2.2%).
Earnings vs Market: ARE's earnings (19.1% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: ARE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ARE's revenue (9.2% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: ARE's revenue (9.2% 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 (2.5%).
Next Steps
Past Performance
How has Alexandria Real Estate Equities performed over the past 5 years?
41.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARE has a large one-off loss of $75.9M impacting its March 31 2020 financial results.
Growing Profit Margin: ARE's current net profit margins (15.1%) are lower than last year (25.9%).
Past Earnings Growth Analysis
Earnings Trend: ARE's earnings have grown significantly by 41.6% per year over the past 5 years.
Accelerating Growth: ARE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ARE had negative earnings growth (-31.3%) over the past year, making it difficult to compare to the REITs industry average (5.3%).
Return on Equity
High ROE: ARE's Return on Equity (2.7%) is considered low.
Next Steps
Financial Health
How is Alexandria Real Estate Equities's financial position?
Financial Position Analysis
Short Term Liabilities: ARE's short term assets ($1.3B) exceed its short term liabilities ($389.1M).
Long Term Liabilities: ARE's short term assets ($1.3B) do not cover its long term liabilities ($8.4B).
Debt to Equity History and Analysis
Debt Level: ARE's debt to equity ratio (66.9%) is considered high.
Reducing Debt: ARE's debt to equity ratio has reduced from 103% to 66.9% over the past 5 years.
Debt Coverage: ARE's debt is not well covered by operating cash flow (10.1%).
Interest Coverage: ARE's interest payments on its debt are well covered by EBIT (6.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Alexandria Real Estate Equities's current dividend yield, its reliability and sustainability?
2.68%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARE's dividend (2.68%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: ARE's dividend (2.68%) is low compared to the top 25% of dividend payers in the US market (4.52%).
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 reasonable payout ratio (57.8%), ARE's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ARE's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Peter Moglia (52yo)
2.17yrs
Tenure
US$8,268,014
Compensation
Mr. Peter M. Moglia has been the Chief Investment Officer of Alexandria Real Estate Equities, Inc. since January 2009 and has been its Co-Chief Executive Officer since April 23, 2018. Mr. Moglia has been w ...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD8.27M) is about average for companies of similar size in the US market ($USD11.65M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman | 13.08yrs | US$11.04m | 0.32% $61.8m | |
| Co-CEO & Co-Chief Investment Officer | 2.17yrs | US$8.27m | 0.15% $30.0m | |
| Co-Chief Executive Officer | 2.17yrs | US$8.31m | 0.15% $28.9m | |
| Co-President & Regional Market Director of Greater Boston | 2.17yrs | US$6.31m | 0.11% $20.7m | |
| Co-President & CFO | 2.17yrs | US$7.20m | 0.11% $21.6m | |
| Co-COO, General Counsel & Corporate Secretary | 2.17yrs | US$3.89m | 0.048% $9.3m | |
| Co-Chief Investment Officer & Regional Market Director of San Diego | no data | US$6.97m | 0.11% $20.5m | |
| Senior Management Consultant & Non-Executive Director | 21.25yrs | US$312.53k | 0.035% $6.8m | |
| Co-COO & Regional Market Director of Maryland | 2.17yrs | no data | 0.058% $11.2m | |
| Chief Accounting Officer | 8yrs | no data | 0.035% $6.8m |
2.2yrs
Average Tenure
55.5yo
Average Age
Experienced Management: ARE's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman | 13.08yrs | US$11.04m | 0.32% $61.8m | |
| Senior Management Consultant & Non-Executive Director | 21.25yrs | US$312.53k | 0.035% $6.8m | |
| Independent Director | 2.92yrs | US$258.16k | 0.0011% $215.3k | |
| Independent Director | 16.5yrs | US$275.05k | 0.0089% $1.7m | |
| Independent Director | 13.25yrs | US$275.05k | 0.016% $3.2m | |
| Independent Director | 8.17yrs | US$260.05k | 0.0029% $560.6k | |
| Independent Director | 0.25yr | no data | 0.00079% $153.2k | |
| Lead Independent Director | 4.25yrs | US$342.72k | 0.0098% $1.9m | |
| Independent Director | 4.5yrs | US$248.70k | 0.0031% $607.2k |
8.2yrs
Average Tenure
61yo
Average Age
Experienced Board: ARE's board of directors are considered experienced (8.2 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 11.7%.
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$19.399b
- Shares outstanding: 126.19m
- Website: https://www.are.com
Number of Employees
Location
- Alexandria Real Estate Equities, Inc.
- 26 North Euclid Avenue
- Pasadena
- California
- 91101
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARE | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 1997 |
| A6W | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 1997 |
| ARE * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | May 1997 |
| 0HCH | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 1997 |
| A1RE34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
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 $24.3 billion as of March 31, 2020, and an asset base in North America of 41.5 million square feet ("SF"). The asset base in North America includes 28.8 million RSF of operating properties and 2.1 million RSF of Class A properties undergoing construction, 6.5 million RSF of near-term and intermediate-term development and redevelopment projects, and 4.1 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 arm. 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/01 02:13 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.