Life Sciences Leade | Alexandria Real Estate Equities navigates market shifts as a premier developer of biotech campuses, balancing short-term challenges with long-term growth potential |
Financial Resilience | Explore ARE's steady Q2 performance, maintaining full-year guidance despite headwinds from strategic transactions and market fluctuations |
Strategic Positioning | Delve into ARE's focus on mega-campuses and trophy portfolios, positioning the company for future growth in prime life sciences locations |
Market Outlook | Analyst targets range from $130 to $140, reflecting mixed views on ARE's ability to overcome near-term hurdles and capitalize on long-term sector trends |
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. Alexandria has a total market capitalization of $34.4 billion and an asset base in North America of 74.1 million SF as of March 31, 2024, which includes 42.2 million RSF of operating properties, 5.3 million RSF of Class A/A+ properties undergoing construction and one committed near-term project expected to commence construction in the next two years, 2.5 million RSF of priority anticipated development and redevelopment projects, and 24.1 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science mega 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 companies through our venture capital platform. 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.
Metrics to compare | ARE | Sector Sector - Average of metrics from a broad group of related Real Estate sector companies | Relationship RelationshipAREPeersSector | |
---|---|---|---|---|
P/E Ratio | 151.7x | 34.0x | 7.7x | |
PEG Ratio | −2.01 | −0.62 | 0.01 | |
Price/Book | 1.2x | 2.0x | 0.9x | |
Price / LTM Sales | 7.0x | 8.9x | 3.8x | |
Upside (Analyst Target) | 7.3% | −3.3% | 11.8% | |
Fair Value Upside | Unlock | −16.0% | 0.8% | Unlock |