• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    A Look At Alexandria Real Estate Equities (ARE) Valuation After US$750 Million Senior Notes And Debt Refinancing Moves

    Simply Wall St·02/15/2026 16:30:44
    Listen to the news

    Alexandria Real Estate Equities (ARE) has been in focus after pricing US$750 million of 5.25% senior unsecured notes due 2036 and increasing the size of its early cash tender offers for several longer dated bonds.

    See our latest analysis for Alexandria Real Estate Equities.

    The refinancing news comes after a choppy period for investors, with a 7 day share price return of a 6.10% decline and a 30 day share price return of a 9.33% decline, while the 1 year total shareholder return of a 41.09% decline and 5 year total shareholder return of a 61.20% decline point to pressure that recent debt moves are aiming to address.

    If this refinancing story has you thinking about where else capital is flowing in real assets, it could be worth scanning 25 power grid technology and infrastructure stocks as a starting point for ideas.

    With the shares down sharply over 1 and 5 years, yet trading at about a 39% discount to one estimate of intrinsic value and below the average analyst target, you have to ask: is this a reset entry point, or is the market already discounting future growth?

    Most Popular Narrative: 40.4% Undervalued

    With Alexandria Real Estate Equities closing at $52.49 against a narrative fair value of $88.00, according to Ivoed the gap between price and story is wide and deliberate.

    Given these risks, we apply a margin of safety to NAV. Under the StockWatch methodology, this typically ranges from 0 to 35%. ARE’s specialized portfolio and structural headwinds justify a relatively high risk assessment. We conservatively apply a 20% margin of safety. This accounts for further NOI declines, additional impairments, or weaker-than-expected asset sales. In a very negative scenario, a 30% margin could be justified; in a very optimistic scenario, 10% would suffice.

    Read the complete narrative.

    If you want to see how a falling dividend, pressure on occupancy, and a life science focused pipeline can still justify a higher fair value, the full narrative sets out detailed assumptions on future margins, cash generation, and required returns that are not obvious from the share price alone.

    Result: Fair Value of $88 (UNDERVALUED)

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

    However, the story breaks quickly if occupancy weakens further or refinancing costs bite harder into Funds From Operations than this narrative currently allows.

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

    Build Your Own Alexandria Real Estate Equities Narrative

    If you look at these numbers and come to a different conclusion, or just want to test your own assumptions, you can build a custom thesis in minutes by starting with 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?

    If you are serious about tightening your process, do not stop at one stock. Use focused screeners to surface ideas that actually fit your goals.

    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.