Alexandria Real Estate ARE
Pioneer and market leader in collaborative life science, agtech, and technology mega-campuses in AAA innovation clusters.
Executive Summary: Alexandria Real Estate (ARE) Institutional Rating
Quantitative Verdict: Alexandria Real Estate (ARE) trades at an annualized dividend yield of 12.09% with an AFFO payout ratio of 64.2%, earning a Dividend Safety Score of 64 / 100 (Moderate Risk). The stock currently trades at a 40.0% discount to NAV (undervalued) relative to base Net Asset Value (NAV) of $68.00, backed by an institutional portfolio of 420 commercial properties operating at 86.9% physical occupancy.
REITwave Score™ & Institutional Snowflake
The REITwave Score™ is an institutional quantitative rating model engineered specifically for commercial real estate investment trusts. Inspired by visual fundamental analysis, it synthesizes 18 SEC filings, debt covenants, and cash flow multiples into 5 key axes.
Business Model & Capital Efficiency
SEC Form 10-K Item 1Operating Profile
Alexandria Real Estate operates as a Passive Capital Allocator in the Life Science / Biotech real estate sector. The firm generates revenue through long-term commercial lease agreements, maintaining an average portfolio occupancy of 86.9%.
Labor & Overhead Efficiency
- • Total Global Employees: Reported in 10-K
- • Estimated Market Cap: $5.16 B
- • Capital Per Employee: N/A
- • Guidance Status: In Line
Cap-Rate to NAV Sensitivity Matrix
Net Asset Value (NAV) estimates derived across commercial real estate capitalization rate scenarios. Market implied exit yield is currently 10.0%.
| Exit Cap Rate | Implied NAV / Share | % Variance to Base | Current Price | Market Arbitrage |
|---|---|---|---|---|
| 8.50% | $80.00 | +17.6% | $43.02 | Undervalued |
| 9.00% | $75.56 | +11.1% | $43.02 | Undervalued |
| 9.50% | $71.58 | +5.3% | $43.02 | Undervalued |
| 10.00% Base Case | $68.00 | 0.0% | $43.02 | Undervalued |
| 10.50% | $64.76 | -4.8% | $43.02 | Undervalued |
| 11.00% | $61.82 | -9.1% | $43.02 | Undervalued |
| 11.50% | $59.13 | -13.0% | $43.02 | Undervalued |
Dividend Distribution & Payout Safety
| Ex-Dividend Date | Payment Date | Cash Amount | Distribution Type |
|---|---|---|---|
| Current Run-Rate | Quarterly | $1.3000 | Regular Cash Distribution |
Deep-dive safety score, AFFO payout coverage buffer, and 5-year DRIP compounding model.
Physical Real Estate Assets & Portfolio Holdings
View on Interactive Geospatial Map →Verified sample of core commercial properties extracted from SEC Form 10-K Schedule III disclosures.
| Asset Name | City, State | Gross Leasable Area | Occupancy | Major Tenant | SEC Estimated Value |
|---|---|---|---|---|---|
| Kendall Square Mega-Campus | Cambridge, MA | 940,000 sq ft | 89.2% | Novartis, Moderna Therapeutics | $1,226,086,957 |
| Alexandria Center for Life Science - NYC | New York, NY | 720,000 sq ft | 88.5% | Pfizer, NYU School of Medicine, Eli Lilly | $778,378,378 |
| Torrey Pines Science Center | San Diego, CA | 480,000 sq ft | 94.5% | Eli Lilly & Co., Illumina, Neurocrine Biosciences | $619,354,839 |
| Torrey Pines Life Science Research Center | San Diego, CA | 420,000 sq ft | 83.1% | Bristol Myers Squibb, Illumina | $376,923,077 |
SEC EDGAR Governance & Executive Compensation
DEF 14A DisclosuresHead-to-Head Competitor Comparison: ARE vs Peers
Institutional CompsDirect peer benchmark comparing Alexandria Real Estate against its top competitors in the Life Science / Biotech industry.
| Metric | ARE (Current) | EQIX | PSA | WELL |
|---|---|---|---|---|
| Share Price | $43.02 | $955.03 | $309.89 | $237.32 |
| Dividend Yield | 12.09% | 1.78% | 3.87% | 1.16% |
| Dividend Safety Score | 64 / 100 | 91 / 100 | 93 / 100 | 88 / 100 |
| Price / AFFO Multiple | 5.3x | 26.24x | 18.56x | 57.88x |
| NAV Premium / Discount | -40.0% | +3.8% | -10.2% | +89.9% |
| Portfolio Occupancy | 86.9% | 97.4% | 92.4% | 87.5% |
| Commercial Properties | 420 | 260 | 3,050 | 2,100 |
Frequently Asked Questions (ARE FAQ)
Alexandria Real Estate (ARE) currently pays an annualized dividend of $5.20 per share, representing an annualized dividend yield of 12.09%. The distribution is paid on a Quarterly schedule. Its current AFFO payout ratio is 64.2%, earning a Dividend Safety Score of 64/100 with a risk rating of 'Moderate Risk'.
Based on REITwave's institutional property-level valuation models, Alexandria Real Estate's consensus base NAV is $68.00 per share. Trading at $43.02, the stock reflects an implied market cap rate of 10.0% and trades at a 40.0% discount to NAV (undervalued).
Alexandria Real Estate owns and operates approximately 420 commercial real estate properties across the United States. The portfolio reports an average physical occupancy rate of 86.9% with a weighted average lease term (WALT) of 7.1 years.
Alexandria Real Estate currently trades at a Price / AFFO multiple of 5.3x based on forward AFFO per share of $8.10. Its Price / FFO multiple stands at 4.6x against forward FFO per share of $9.45.
According to the latest SEC Form DEF 14A proxy statement filed with EDGAR, the Chief Executive Officer is Joel S. Marcus. Total annual reported compensation was $11,572,796, reflecting a CEO-to-median-worker pay ratio of 56:1.
Alexandria Real Estate maintains a Net Debt-to-EBITDA ratio of 5.7x and carries an investment-grade credit rating of BBB+ / Baa1. Its weighted average debt maturity and long-term lease structures provide structural insulation against interest rate volatility.