Alexandria Real Estate: Despite Headwinds, It Remains A Buy

Alexandria Real Estate Equities remains a Buy, supported by a compelling margin of safety despite headwinds.

ARE faces persistent supply-demand imbalances in key life science markets, but recent improvements in venture funding and leasing trends offer cautious optimism.

Alexandria is responding defensively—asset sales, a 45% dividend cut, lower G&A, and a pivot to JV capital—as credit downgrades reflect the same headwinds already priced in.

Valuation assumes zero FFO growth post-2027, yet a fair value estimate of $64.59 per share materially exceeds current trading levels.

We last published an article on Alexandria Real Estate Equities, Inc. ( ARE ) in May 2025 when we issued a buy recommendation on the stock.

The stock has underperformed since that time, and, in this article, we