Assessing Alexandria Real Estate Equities (ARE) Valuation After Recent Mixed Share Price Performance

What recent performance says about Alexandria Real Estate Equities

Alexandria Real Estate Equities (ARE) has drawn fresh attention after a mixed stretch in the stock, with a small gain over the past week, a decline over the past month, and a modest rise across the past 3 months.

See our latest analysis for Alexandria Real Estate Equities.

That recent mix of short term gains and a softer 30 day share price return of 9.95% sits against a year to date share price return of 9.76%. At the same time, the 1 year total shareholder return is a 41.12% loss, suggesting momentum has been fading over the longer stretch as investors reassess risk and income expectations for the REIT sector.

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With Alexandria’s shares trading at $53.75 alongside an indicated 38.15% intrinsic discount and an 11.76% gap to analyst targets, the key question is whether this is a genuine entry point or if markets already reflect future growth.

Most Popular Narrative: 38.9% Undervalued

Alexandria Real Estate Equities’ most followed valuation narrative, according to Ivoed, points to a fair value of $88 versus the recent close at $53.75, which is a wide gap investors will want to understand.

As a starting point, we take NAV per share of approximately $98, representing intrinsic value based on book equity divided by shares outstanding. Given ARE’s nature as a property investment company, NAV is a standard valuation anchor.

Read the complete narrative.

Curious how that fair value is built? The narrative leans heavily on net asset value, adjusted cash flows, and a reset dividend stream. The real twist is how those moving parts are combined into one number.

Result: Fair Value of $88 (UNDERVALUED)

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

However, that discount can quickly narrow if occupancy weakens further, or if asset sales and refinancing plans do not land on terms the market is comfortable with.

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

Next Steps

If this mix of risks and upsides feels finely balanced, it is worth checking the numbers yourself and moving quickly to form your own stance. You can start with 3 key rewards and 2 important warning signs.

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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.

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