Alexandria Real Estate Equities, Inc. (ARE) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Alexandria Real Estate Equities, Inc.

Updated on October 4, 2026 · accounts published on August 3, 2026

Reading of October 4, 2026: A REIT whose cash flow still covers the dividend while its operating margins have collapsed

Alexandria Real Estate Equities trades at 5.7× fiscal 2025 FFO, far below the 15× to 20× REIT range, while FFO covers the dividend 1.6×.

• Is Alexandria Real Estate Equities expensive or cheap? It trades at 5.7× fiscal 2025 FFO, far below the 15× to 20× range considered healthy for REITs.
• How is the business doing? The operating margin is −46 % over the last 12 months, against a 20 % average for fiscal 2014-2025.
• How strong is the balance sheet? Debt is 37 % of assets in fiscal 2025, but net debt is 33.9× EBITDA, far above the 6× REIT ceiling.
• What to expect from the next earnings? Results are due October 26, 2026; analysts expect EPS of −$0.03 after a −$0.43 miss last quarter.
• Does FFO cover the dividend, and at what multiple does it trade? FFO covered the dividend 1.6× in fiscal 2025, above the 1.1× REIT threshold, with a 6.1 % yield.

Is Alexandria Real Estate Equities expensive or cheap?

Alexandria Real Estate Equities trades at 5.7× its fiscal 2025 FFO, well under the 15× to 20× band where healthy REITs usually sit. Its P/B is 0.6× over the last 12 months, so the market values its assets at a steep discount to book. The free cash flow yield of 21 % over the last 12 months points the same way. The stock has fallen 41 % over the last 12 months and sits 41 % below its 52-week high of $83.80. Multiples this low suggest investors doubt that asset values or cash flow will hold. The EV/EBITDA of 48.4× tells the opposite story, because EBITDA has shrunk.

How is the business doing?

Revenue slipped 2.6 % over the last 12 months, a modest decline, but profitability has swung hard. The operating margin was −46 % over the last 12 months and −41 % in fiscal 2025, the lowest of the 12 fiscal years since 2014, against a 20 % average for that period. A REIT's reported earnings carry heavy property depreciation, so the accounting margin can overstate the damage to cash. Operating cash flow per share, used here as a proxy for FFO, was $8.30 in fiscal 2025. That figure, more than the margin, is the one to track from year to year.

How strong is the balance sheet?

The balance sheet gives two readings. Debt equals 37 % of assets in fiscal 2025, comfortably inside the 60 % considered healthy for a REIT, and debt to equity is 0.82 over the last 12 months. Measured against earnings, the picture darkens: net debt reached 33.9× EBITDA in fiscal 2025, more than five times the 6× ceiling for the sector. That gap says the asset base looks solid on paper while the income it generates has fallen too far to carry the debt comfortably. A recovery in EBITDA matters more here than the absolute level of debt.

What to expect from the next earnings?

Alexandria Real Estate Equities reports on October 26, 2026, and analysts expect EPS of −$0.03 for the quarter. The record against estimates is weak: it beat EPS forecasts in only 2 of the last 8 quarters, and on August 3, 2026 it posted −$0.43 against $0.09 expected. The 2026 EPS consensus barely moved in the last 18 days, from $1.52 to $1.51 among 6 analysts, while the 2026 revenue consensus rose 51 % over the same span. Of 25 analysts, 9 rate it a buy, 14 a hold and 2 a sell. For a REIT, the FFO in the report will say more than EPS.

Does FFO cover the dividend, and at what multiple does it trade?

In a REIT, EPS and P/E mislead because property depreciation distorts reported profit, so the useful measures are FFO and how well it covers the dividend. Using operating cash flow per share as a proxy, FFO was $8.30 in fiscal 2025 and covered the dividend 1.6×, above the 1.1× considered healthy. The dividend yield is 6.1 % over the last 12 months, and the payout per share has risen for 11 consecutive fiscal years through 2025. At 5.7× FFO, the market is pricing the stock as if that cash flow will shrink, something the coverage figures do not yet show.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.