Alexandria Real Estate Equities, Inc.
Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.
ARE remains a hold as the life-science REIT shows nascent operational stabilization but has not yet proven a durable earnings recovery.
Q2 2026 revenue grew 8.0% YoY to $796M — the first positive quarterly revenue growth in over a year — yet operating income was just $25M, and FY2025's $1.43B net loss with -$8.44 diluted EPS from impairments underscores how far the company remains from normalized profitability. The stock at $45.51 is technically oversold (RSI 33.4) and trades in line with peers on P/S at 2.68, but carries an EV/EBITDA of 47.6 versus the peer median of 13.6, while leverage at 7.0x per recent news remains well above management's 5.6x–6.2x year-end target.
What could go wrong
- Leverage overhang. Leverage at 7.0x per recent news coverage remains well above management's 5.6x–6.2x year-end target, constraining financial flexibility despite the newly closed $5.0B unsecured credit facility.
- Impairment recurrence. FY2025 operating income swung to -$1.2B from $770M in FY2024, driven by impairments; another round of write-downs could further erode book equity, which fell from $17.9B to $15.5B year-over-year.
- Occupancy and NOI deterioration. Per recent Seeking Alpha coverage, occupancy and same-store NOI continued to decline through Q2 2026 despite improved leasing activity exceeding 1 million square feet.
- Valuation disconnect on EV/EBITDA. EV/EBITDA of 47.6 is 251% above the peer median of 13.6, reflecting deeply depressed earnings power; if revenue growth does not translate into margin recovery, the multiple compresses further.
What would change my mind
Where this comes from: quarterly results · FY25 fundamentals · technicals · peer comparison. Orin's read on ARE; not advice.
How has the share price moved?
Down 47.5% over twelve months, from $77.87 on 27 Oct 2025 to $40.86 at the Tue 27 Oct 2026 close. Its highest close in that time was $77.87 on 27 Oct 2025; the last close is 47.5% below it.
- Green line: the closing price each trading day.
- Grey line: the average closing price over the last 50 trading days.
- Dashed amber line: the same over the last 200 trading days — a slower, smoother line.
- Bars along the bottom: shares traded each day — green when it closed higher than the day before, rose when lower (the most, 12.6M, on 27 Feb 2026).
- Flags: the company's filings, on the day they were made (a 10-Q is the quarterly report and a 10-K the annual report; an 8-K reports a major event).
On file
All ARE filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| BlackRock | $1.1B | 0.0% |
| Norges Bank | $868.7M | 0.1% |
| Vanguard Portfolio Management | $740.0M | 0.0% |
| Vanguard Capital Management | $573.0M | 0.0% |
| State Street | $567.5M | 0.0% |
| AQR Capital Management | $404.2M | 0.1% |
| Invesco | $374.2M | 0.0% |
| Geode Capital Management | $243.7M | 0.0% |
| Morgan Stanley | $155.8M | 0.0% |
| Charles Schwab Investment Management | $151.2M | 0.0% |
78 of the 815 filers we track · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 205 Form 4 filings; open-market trades net $1.3M. Of the 50 on hand, 9 were open-market purchases and 4 sales — the rest are grants, option exercises and tax withholding.
Ask Orin about ARE
Orin answers questions about ARE from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →How is it priced, against its own past and its sector?
It lost money over the last 12 months, so it has no P/E (Tue 27 Oct close). It is priced at 2.46× its yearly sales.
| Measure | Now | Its usual | Sector |
|---|---|---|---|
| P/E | lost money | — | 42.4× |
| P/S | 2.46× | — | — |
| EV/EBITDA | not meaningful | — | — |
| P/B | 0.4×below usual | 1.2× | — |
- P/E: no usual level — it ran from 45.8× to 235× over its last 5 fiscal years, so a middle value says little.
- P/E: lost money — no P/E over the last 12 months.
- P/S: no usual level — it ran from 2.81× to 15.5× over its last 5 fiscal years, so a middle value says little.
- EV/EBITDA: not meaningful — over the last 12 months the business itself lost money before depreciation (operating income plus depreciation is below zero); a profit from one-off gains does not count.
- "Its usual" is the middle of its own last 5 fiscal years.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
P/S: the company's total market value divided by one year of revenue. Used when there is no profit to measure.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
P/B: the share price divided by the book value per share — what the company owns minus what it owes, as its accounts record it. When book value is tiny, P/B swings wildly and says little.
What do the analysts who cover it publish?
The analysts' average 12-month price target is $50.11 (from $41 to $60) — 23% above the Tue 27 Oct close price. That is their published opinion, not Orin's.
$50.11
$41 – $60 · +23% against the last close
- 2 buy or overweight
- 8 hold
- 3 underweight or sell
Price target: the share price an analyst publishes for about 12 months ahead. It is the opinion of the firm that wrote it; the average is across the firms that cover the company.
Overweight / underweight: analysts' rating words: overweight means the firm expects the stock to do better than the others it covers, underweight worse. Their words, not Orin's.
How is it priced next to the companies it is compared to?
It lost money over the last 12 months, so it has no P/E. Only 1 of the 1 companies it is compared to made a profit (BXP 32.7×), so there is no typical P/E.
| Company | Market value | P/E | EV/EBITDA | Gross margin | Net margin | ROE |
|---|---|---|---|---|---|---|
| AREAlexandria Real Estate Equities, Inc. | $7B | lost money | n/m | n/a | −45.3% | −8% |
| BXPBXP, Inc. | $10B | 32.7× | 13.7× | n/a | 8.4% | 6% |
- ARE, BXP: gross margin is not used (n/a) for a bank, an insurer or a property trust — what it sells is money or space, not goods.
- ARE: EV/EBITDA is not meaningful (n/m) — its cash exceeds its market value plus debt, or the business lost money before depreciation.
- The list of companies is the data vendor's choice, so it can include a company a person would not have picked.
Market value: the share price times the number of shares — what the whole company is priced at.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
Gross margin: the share of each $1 of sales left after the direct cost of making what was sold.
Net margin: the share of each $1 of sales kept as profit after every cost. Below zero, the company lost money.
ROE: return on equity: one year of profit as a share of the shareholders' money in the business (its book value).
Is it priced high or low compared with its own past?
It has lost money and has no full fiscal year on file since its history starts, so it has no P/E history.
- Nowlost money
- Now: no P/E — it lost money over the last 12 months.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
Fiscal year (FY): the company's own 12-month accounting year, which need not match the calendar year.
How has its sector been priced?
Real Estate companies on the NYSE were priced at a typical 42.4× their yearly profit (Tue 27 Oct close).
- Now42.4×
- Each year is the middle of that calendar year's daily sector P/E; "Now" is the Tue 27 Oct close figure, the same one in the table above.
Sector P/E: the middle P/E of the companies in the same sector on the same stock exchange, as the data vendor works it out each day.
What does a cash-flow model say a share is worth?
A standard cash-flow model puts it at $224 a share — 443% above the $41.35 price it was computed against (27 Oct).
| Model | Value a share | Against the price then |
|---|---|---|
| Standard | $224 | 443% above $41.35 |
| Levered | $154 | 273% above $41.35 |
Discounted cash flow: a model's estimate of what the company is worth today, from the cash it is forecast to make in future years. Small changes in the forecast move it a lot, and it says little about a company that loses money.
Standard / levered: two versions of the cash-flow model: the standard one counts the cash before the company pays its lenders, the levered one after.