Alexandria Real Estate Equities (ARE) Valuation After Q3 Miss, Dividend Cut and Mounting Investor Lawsuits

Alexandria Real Estate Equities (ARE) is back in the spotlight after a cluster of securities class action filings and investigations tied to its tough third quarter, impairment charge and 45% dividend cut.

See our latest analysis for Alexandria Real Estate Equities.

The latest wave of litigation, leadership changes and a new share repurchase program all sit against a steep reset, with the share price now at $46.97 and a roughly 52% year to date share price decline. Multi year total shareholder returns have also been deeply negative, signaling momentum that has clearly been fading rather than building.

If this kind of volatility has you reconsidering your exposure to individual names, it may be worth exploring other real estate linked and income ideas through healthcare stocks for fresh candidates to research.

With the stock now trading well below both its recent history and Wall Street targets, investors are left weighing whether ARE is a beaten down life science leader at a discount or a value trap with future pain already priced in.

Most Popular Narrative Narrative: 25.5% Undervalued

Against a last close of $46.97, the most followed narrative pegs fair value at about $63.08, implying material upside if its assumptions hold.

An active development and redevelopment pipeline in top tier markets, along with the successful execution of transformative build to suit projects, positions Alexandria for incremental NOI growth and earnings acceleration as new projects are delivered and leased.

Read the complete narrative.

Curious how a shrinking revenue base can still support rising earnings and a richer future valuation multiple? Want to see the cash flow math behind that optimism?

Result: Fair Value of $63.08 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, stubbornly high interest rates and ongoing biotech funding pressure could keep leasing sluggish, undermine NOI recovery and challenge the bullish recovery case.

Find out about the key risks to this Alexandria Real Estate Equities narrative.

Build Your Own Alexandria Real Estate Equities Narrative

If you see the story differently or want to dig into the numbers yourself, you can quickly craft a custom view in under three minutes using Do it your way.

A great starting point for your Alexandria Real Estate Equities research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Before you move on, you can use the Simply Wall Street Screener to uncover fresh, data backed ideas across different corners of the market.

• Explore income potential by targeting reliable payers with these 13 dividend stocks with yields > 3% that may support long term compounding.
• Review these 25 AI penny stocks at the forefront of intelligent automation and data driven innovation.
• Look for potential mispriced quality by scanning these 915 undervalued stocks based on cash flows that trade below their estimated cash flow value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com