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Valued as a REIT (property company): Price to FFO and Dividend discount.
ACCE opinionAlexandria Real Estate Equities Inc. Common Stock (ARE)
Fair value (2 models)
Not available
ACCE price target
$37.40
Rating
Not rated
Horizon
12 months
ACCE price target published on 18 Oct 2026, 00:00 CEST; previously $52.00 since 11 May 2026, 00:00 CEST.
Price used: $43.02 at the close on 23 Oct 2026, 22:00 CEST.
Models: Dividend discount and Price to FFO.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
42
out of 100
Analysts
13% buy
16 covering
P/E
0.0x
forward 16.7x
1-year return
-44.1%
Dividend yield
8.23%
Alexandria Real Estate Equities Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Alexandria Real Estate Equities owns and develops laboratory and life-science campuses, leasing purpose-built lab space to biotech and pharmaceutical tenants in clusters such as South San Francisco, Boston and San Diego. Its moat is the specialised nature of the buildings, which carry higher build costs and tenant-specific fit-outs that make relocation expensive, and the cluster strategy that concentrates scientific talent around its assets. The thesis rests on a recovery in lab demand once the biotech funding slowdown eases and the current supply pipeline is absorbed, but the reported revenue decline of 11.9% and negative ROE of 4.1% show the cycle has not turned in the numbers yet. At a forward P/E of 16.7 and a 17.3% operating margin, the market is pricing in a rebound, so the case for a deeper look depends on how quickly leasing and occupancy recover. With a score of 44/100 and no index membership, this is a name to examine on the lab leasing data rather than on headline valuation.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Revenue decline and margin collapse
Revenue down 11.9% YoY with net margin at -36.1% and ROE at -4.1%. Operating margin of 17.3% masks severe bottom-line deterioration.
high
Office REIT structural headwinds
Office sector faces secular demand pressure. QoQ revenue down 1.2% signals ongoing contraction. High leverage (Debt/Equity 0.82) limits flexibility to weather prolonged weakness.
moderate
Valuation disconnect and earnings volatility
Earnings YoY up 648% but net margin deeply negative; likely one-time gains or non-cash items. Forward P/E 16.7 and EV/EBITDA 31.4 appear stretched given revenue trajectory.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow yield of 18.1% suggests the stock is deeply undervalued relative to cash generation.
Analyst consensus price target of $52.57 implies 15.5% upside from current levels.
Five-year revenue growth of 9.5% per year shows the business has expanded substantially over time.
Why it could disappoint
Revenue fell 11.9% year over year, signaling a sharp deterioration in current business momentum.
Net margin of negative 36.1% and ROE of negative 4.1% show the company is unprofitable and destroying shareholder value.
Only 13% of analysts rate the stock Buy or Strong Buy, indicating weak conviction among professionals.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 26, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where ARE's valuation models land
Price
$43.02
Model fair valueConfidence: medium
$37.33
Model
Fair value
Upside
Dividend discount
Price to FFO
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Quality
INVESTOR
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