Alexandria Real Estate Equities (ARE)
Market Price (12/18/2025): $47.57 | Market Cap: $8.1 BilSector: Real Estate | Industry: Office REITs
Alexandria Real Estate Equities (ARE)
Market Price (12/18/2025): $47.57Market Cap: $8.1 BilSector: Real EstateIndustry: Office REITs
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 46%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 46% | Weak multi-year price returns2Y Excs Rtn is -101%, 3Y Excs Rtn is -132% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 94% |
| Attractive yieldDividend Yield is 6.4%, FCF Yield is 9.7% | Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -1.6%, Rev Chg QQuarterly Revenue Change % is -5.1% | |
| Low stock price volatilityVol 12M is 39% | Key risksARE key risks include [1] significant real estate impairment charges, Show more. | |
| Megatrend and thematic driversMegatrends include Precision Medicine, E-commerce Logistics & Data Centers, and Sustainable & Green Buildings. Themes include Biopharmaceutical R&D, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 46%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 46% |
| Attractive yieldDividend Yield is 6.4%, FCF Yield is 9.7% |
| Low stock price volatilityVol 12M is 39% |
| Megatrend and thematic driversMegatrends include Precision Medicine, E-commerce Logistics & Data Centers, and Sustainable & Green Buildings. Themes include Biopharmaceutical R&D, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -101%, 3Y Excs Rtn is -132% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 94% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -1.6%, Rev Chg QQuarterly Revenue Change % is -5.1% |
| Key risksARE key risks include [1] significant real estate impairment charges, Show more. |
Valuation, Metrics & Events
ARE Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Here are the key points for the movement of Alexandria Real Estate Equities (ARE) stock, which moved by -41.4% from approximately August 31, 2025, to December 18, 2025:
**1. Significant Decline in Q3 2025 Financial Results:** Alexandria Real Estate Equities reported a substantial decline in total revenues and a net loss of $197.8 million for the third quarter ended September 30, 2025, a significant drop from the net income reported in the prior year. This included an increase in impairment charges on real estate, notably a $323.9 million charge, with $206 million specifically attributed to the Long Island City (LIC) property. The company also experienced lower occupancy rates and slower leasing activity, contributing to a 7% decline in adjusted funds from operations (AFFO). This news led to an approximate 19.17% decline in the stock price on October 28, 2025.
**2. Failure to Meet Analyst Expectations and Downgraded Outlook:** The reported Q3 2025 financial results significantly missed analyst consensus estimates for both FFO (Funds From Operations) and revenue. Prior to this, analyst price targets for ARE had already seen a substantial decrease of -55.81% over the last five quarters, signaling a increasingly cautious outlook from analysts.
**3. Shifting Demand and Challenges in the Life Sciences Real Estate Market:** There was a notable shift in demand within the life sciences and biotech real estate market, a sector Alexandria Real Estate Equities is heavily concentrated in (approximately 70% of its revenue). Cooling venture funding and tenants re-evaluating their space needs contributed to uncertainties. A class-action lawsuit filed during this period alleged that the company lacked reliable information regarding leasing spreads, its development tenant pipeline, and anticipated occupancy growth for its life-science properties, specifically citing a decline in the value and potential growth of its Long Island City (LIC) property over several years.
**4. Impact of Elevated Interest Rates on Real Estate Investment Trusts (REITs):** The persistent environment of elevated interest rates posed a significant headwind for REIT stock performance. While the Federal Reserve had initiated rate cuts for the federal funds rate in 2025, the crucial 10-year Treasury rate increased by over 100 basis points from its September 2024 lows and remained elevated, hovering around 4.47% as of May 2025. Higher borrowing costs associated with these rates directly impacted real estate deals, leading to slimmer development margins and reduced leveraged returns for investors.
**5. Broader REIT Market Underperformance Amid Macroeconomic Concerns:** The broader REIT market experienced substantial underperformance, exhibiting a significant performance gap compared to the overall equity market over a three-year period. This was exacerbated by general investor concerns about the labor market, consumer spending, and uncertainty regarding the Federal Reserve's commitment to future rate cuts, contributing to a risk-off sentiment in the market.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| ARE Return | 13% | 28% | -33% | -9% | -19% | -49% | -64% |
| Peers Return | -22% | 33% | -41% | 26% | 22% | -4% | -11% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% |
Monthly Win Rates [3] | |||||||
| ARE Win Rate | 50% | 58% | 33% | 42% | 50% | 42% | |
| Peers Win Rate | 40% | 67% | 35% | 52% | 58% | 47% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 73% | |
Max Drawdowns [4] | |||||||
| ARE Max Drawdown | -29% | -11% | -41% | -35% | -21% | -52% | |
| Peers Max Drawdown | -47% | -5% | -45% | -31% | -17% | -25% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: KRC, BXP, VNO, PLD, SLG. See ARE Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/17/2025 (YTD)
How Low Can It Go
| Event | ARE | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -58.9% | -25.4% |
| % Gain to Breakeven | 143.5% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -34.3% | -33.9% |
| % Gain to Breakeven | 52.2% | 51.3% |
| Time to Breakeven | 128 days | 148 days |
| 2018 Correction | ||
| % Loss | -17.7% | -19.8% |
| % Gain to Breakeven | 21.5% | 24.7% |
| Time to Breakeven | 51 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -73.1% | -56.8% |
| % Gain to Breakeven | 271.4% | 131.3% |
| Time to Breakeven | 2674 days | 1480 days |
Compare to BXP, CUZ, HPP, BDN, ARE
In The Past
Alexandria Real Estate Equities's stock fell -58.9% during the 2022 Inflation Shock from a high on 12/30/2021. A -58.9% loss requires a 143.5% gain to breakeven.
Preserve Wealth
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Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Latest Trefis Analyses
Trade Ideas
Select past ideas related to ARE. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | MPW | Medical Properties Trust | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | -3.6% | -3.6% | -5.8% |
| 04302024 | ARE | Alexandria Real Estate Equities | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -1.5% | -34.1% | -34.2% |
| 09302022 | ARE | Alexandria Real Estate Equities | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -8.8% | -25.5% | -27.6% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | MPW | Medical Properties Trust | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | -3.6% | -3.6% | -5.8% |
| 04302024 | ARE | Alexandria Real Estate Equities | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -1.5% | -34.1% | -34.2% |
| 09302022 | ARE | Alexandria Real Estate Equities | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -8.8% | -25.5% | -27.6% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Alexandria Real Estate Equities
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 46.06 |
| Mkt Cap | 7.3 |
| Rev LTM | 2,397 |
| Op Inc LTM | 452 |
| FCF LTM | 1,270 |
| FCF 3Y Avg | 1,047 |
| CFO LTM | 1,270 |
| CFO 3Y Avg | 1,047 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 2.5% |
| Rev Chg 3Y Avg | 4.8% |
| Rev Chg Q | 1.9% |
| QoQ Delta Rev Chg LTM | 0.5% |
| Op Mgn LTM | 24.3% |
| Op Mgn 3Y Avg | 26.2% |
| QoQ Delta Op Mgn LTM | -0.2% |
| CFO/Rev LTM | 48.2% |
| CFO/Rev 3Y Avg | 48.6% |
| FCF/Rev LTM | 40.7% |
| FCF/Rev 3Y Avg | 42.0% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 7.3 |
| P/S | 4.5 |
| P/EBIT | 13.2 |
| P/E | 12.0 |
| P/CFO | 10.0 |
| Total Yield | 3.3% |
| Dividend Yield | 2.4% |
| FCF Yield 3Y Avg | 6.9% |
| D/E | 1.0 |
| Net D/E | 0.9 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 0.5% |
| 3M Rtn | -14.3% |
| 6M Rtn | -9.1% |
| 12M Rtn | -17.1% |
| 3Y Rtn | 24.5% |
| 1M Excs Rtn | -0.3% |
| 3M Excs Rtn | -17.1% |
| 6M Excs Rtn | -21.4% |
| 12M Excs Rtn | -27.2% |
| 3Y Excs Rtn | -47.0% |
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/27/2025 | -19.2% | -28.5% | -32.4% |
| 7/21/2025 | 3.1% | 1.1% | 0.0% |
| 4/28/2025 | -5.7% | -4.5% | -9.5% |
| 1/27/2025 | -4.8% | -7.4% | -3.0% |
| 10/21/2024 | -1.3% | -5.7% | -12.6% |
| 7/22/2024 | -3.5% | -6.7% | -8.8% |
| 4/22/2024 | 0.8% | 0.5% | 4.1% |
| 1/29/2024 | -4.1% | -6.7% | -4.0% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 11 | 10 |
| # Negative | 11 | 13 | 14 |
| Median Positive | 1.8% | 3.5% | 3.8% |
| Median Negative | -2.8% | -4.5% | -5.4% |
| Max Positive | 5.6% | 9.4% | 15.0% |
| Max Negative | -19.2% | -28.5% | -32.4% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 9302025 | 10272025 | 10-Q 9/30/2025 |
| 6302025 | 7212025 | 10-Q 6/30/2025 |
| 3312025 | 4282025 | 10-Q 3/31/2025 |
| 12312024 | 1272025 | 10-K 12/31/2024 |
| 9302024 | 10212024 | 10-Q 9/30/2024 |
| 6302024 | 7222024 | 10-Q 6/30/2024 |
| 3312024 | 4222024 | 10-Q 3/31/2024 |
| 12312023 | 1292024 | 10-K 12/31/2023 |
| 9302023 | 10232023 | 10-Q 9/30/2023 |
| 6302023 | 7242023 | 10-Q 6/30/2023 |
| 3312023 | 4242023 | 10-Q 3/31/2023 |
| 12312022 | 1302023 | 10-K 12/31/2022 |
| 9302022 | 10242022 | 10-Q 9/30/2022 |
| 6302022 | 7252022 | 10-Q 6/30/2022 |
| 3312022 | 4252022 | 10-Q 3/31/2022 |
| 12312021 | 1312022 | 10-K 12/31/2021 |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |