# Alexandria Real Estate Equities (ARE.US)

Canonical: https://gigainvestors.com/s/ARE

Analysis as of: 2026-10-16T07:26:34.603Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $42.34 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 2.36×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.16×

- FY2018: 0.32×

- FY2019: 0.29×

- FY2020: 0.28×

- FY2021: 0.25×

- FY2022: 0.24×

- FY2023: 0.24×

- FY2024: 0.25×

- FY2025: -0.40×

- LTM to Jun 2026: -0.46×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 1.8%

- ROIC, second-lowest year: 0.4%

- Typical minus recent gross margin: 1.4 pp

- Typical gross margin (annual median): 70.3%

- Recent gross margin (lower of latest and 3-year median): 68.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 153.2%

- ROIC including acquisitions, ten-year median: -8.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.4%

- FY2017: 1.5%

- FY2018: 3.4%

- FY2019: 1.8%

- FY2020: 2.0%

- FY2021: 1.4%

- FY2022: 1.8%

- FY2023: 2.3%

- FY2024: 2.0%

- FY2025: -3.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -147.92×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$13B

- Net income, five-year total: $89M

- Return on incremental invested capital: -4.5%

- Working capital / revenue, annual change: -0.6 pp

- Working capital / revenue, change between three-year averages: 12.0 pp

- Working capital / revenue, final three-year average: -11.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -10.25×

- FY2022: -8.53×

- FY2023: -3.48×

- FY2024: -1.68×

- FY2025: 1.36×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 1.5% vs 2.0%

- Per-share earnings: 1.84 to 0.61 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.1%

- Ordinary dilution, 5-year annual growth: 6.1%

- Market cap gain: -$1.4B

- Cumulative retained earnings: $11B

- Diluted shares, 10-year annual growth: 9.1%

- Diluted shares, 5-year annual growth: 6.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -12.9%

- Per-share value change: -$1.23

- Per-share value, starting three-year median: $1.84

- Per-share value, ending three-year median: $0.61

- Buybacks concentrated in cheaper years (correlation): -0.75

- Average buyback yield: 0.9%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: $574M

- Cumulative net income, 10 years: $1.7B

- ROIC, first three-year median: 1.5%

- ROIC, last three-year median: 2.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.87

- FY2017: $1.84

- FY2018: $3.67

- FY2019: $3.23

- FY2020: $6.10

- FY2021: $3.87

- FY2022: $3.23

- FY2023: $0.61

- FY2024: $1.88

- FY2025: -$8.40

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -8.3%

- Receivables to sales index (DSRI): 1.97×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 2.9%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.4%

- FY2017: -2.3%

- FY2018: -1.3%

- FY2019: -1.7%

- FY2020: -0.5%

- FY2021: -1.5%

- FY2022: -2.2%

- FY2023: -4.2%

- FY2024: -3.1%

- FY2025: -8.3%

## Holders

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 81% since Dec 2021 · "This surge created supply that materially exceeded current demand." (SEC filing, Jan 2026) · sales -0.5%

Story as of 2026-10-16T09:58:19.394Z; price observation 2026-10-15.

- 2025-04-29: Alexandria Q1 AFFO Beats Estimates, 2025 View Lowered ([finance.yahoo.com](https://finance.yahoo.com/news/alexandria-q1-affo-beats-estimates-135900504.html))

- 2025-07-22: Alexandria outlines $1.1B asset sales pipeline and maintains 2025 FFO guidance amid leasing momentum ([seekingalpha.com](https://seekingalpha.com/news/4470304-alexandria-outlines-1_1b-asset-sales-pipeline-and-maintains-2025-ffo-guidance-amid-leasing?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-10-27: Alexandria Real Estate reduces AFFO guidance after Q3 earnings fall short ([seekingalpha.com](https://seekingalpha.com/news/4509035-alexandria-real-estate-reduces-affo-guidance-after-q3-earnings-fall-short?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-12-08: Alexandria (ARE) Loses 15.86% After Slashing Dividends ([finance.yahoo.com](https://finance.yahoo.com/news/alexandria-loses-15-86-slashing-041105786.html))

### Sales · FY2025–2026

sales -0.5%; source https://www.sec.gov/Archives/edgar/data/1035443/000103544326000013/are-20251231.htm; observed 2026-01-26.

- FY2017: $1.1B 

- FY2018: $1.3B 

- FY2019: $1.5B 

- FY2020: $1.9B 

- FY2021: $2.1B 

- FY2022: $2.6B 

- FY2023: $2.8B 

- FY2024: $3.0B 

- FY2025: $3.0B 

- FY2026: $3.0B 

### Gross margin · FY2025

gross margin 68.9%; source https://www.sec.gov/Archives/edgar/data/1035443/000103544326000013/are-20251231.htm; observed 2026-01-26.

- FY2016: 69.0% 

- FY2017: 71.0% 

- FY2018: 71.3% 

- FY2019: 70.9% 

- FY2020: 71.9% 

- FY2021: 70.5% 

- FY2022: 69.6% 

- FY2023: 69.8% 

- FY2024: 70.2% 

- FY2025: 68.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are USD 3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1035443/000103544326000013/are-20251231.htm (filed 2026-01-26); FY2025: revenue 2970717000; grossProfit 2048112000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 68.9% to 70.2% during 2023–25; it earns 1.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-26); FY2023: grossProfit / revenue = 69.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-26); FY2024: grossProfit / revenue = 70.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1035443/000103544326000013/are-20251231.htm (filed 2026-01-26); FY2025: grossProfit / revenue = 68.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-26); 10-year return on capital observations [[2016,0.003605737768528461],[2017,0.01491753268036939],[2018,0.03354939548494963],[2019,0.01829064219030676],[2020,0.019947221193282388],[2021,0.013849437827565633],[2022,0.018400371543631087],[2023,0.02336425448310425],[2024,0.020209271367962873],[2025,-0.03431087396312983]]; median 0.018345506866968925. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 70% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1035443/000103544326000013/are-20251231.htm (filed 2026-01-26); Gross margin observations: [[2021,0.7050564056476598],[2022,0.6959856989798295],[2023,0.6977332278846181]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 208.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-26); Dividend observations: [[2016,262761000],[2017,321750000],[2018,385839000],[2019,451170000],[2020,532980000],[2021,655968000],[2022,757742000],[2023,847483000],[2024,898557000],[2025,911450000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1035443/000103544326000013/are-20251231.htm (filed 2026-01-26); FY2025: cash repurchases 208187000 USD.

### Are managers owners

Insiders own 1.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARE.US SharesStats.PercentInsiders = 1.377 percentage points; cache date 2026-10-16.

### What could break it

"The inability of a tenant to pay us rent could adversely affect our business." (SEC filing, Jan 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1035443/000103544326000013/are-20251231.htm (filed 2026-01-26); The inability of a tenant to pay us rent could adversely affect our business.

### What the price says

The price is 2.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-26); Closing price 42.34 USD; reporting-to-trading FX 1; FY2025 annual sales per share 17.443305325089398; price multiple 2.4272922597473943. FY2025 cash earnings/share -11.455671229015836. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $107.81 per share

- 2016-11: $109.59 per share

- 2016-12: $111.13 per share

- 2017-01: $110.82 per share

- 2017-02: $119.31 per share

- 2017-03: $110.52 per share

- 2017-04: $112.51 per share

- 2017-05: $116.68 per share

- 2017-06: $120.47 per share

- 2017-07: $121.25 per share

- 2017-08: $121.31 per share

- 2017-09: $118.97 per share

- 2017-10: $123.96 per share

- 2017-11: $127.06 per share

- 2017-12: $130.59 per share

- 2018-01: $129.70 per share

- 2018-02: $121.31 per share

- 2018-03: $124.89 per share

- 2018-04: $124.57 per share

- 2018-05: $124.92 per share

- 2018-06: $126.17 per share

- 2018-07: $127.44 per share

- 2018-08: $128.35 per share

- 2018-09: $125.79 per share

- 2018-10: $122.23 per share

- 2018-11: $124.50 per share

- 2018-12: $115.24 per share

- 2019-01: $131.71 per share

- 2019-02: $135.89 per share

- 2019-03: $142.56 per share

- 2019-04: $142.39 per share

- 2019-05: $146.41 per share

- 2019-06: $141.09 per share

- 2019-07: $146.36 per share

- 2019-08: $149.84 per share

- 2019-09: $154.04 per share

- 2019-10: $158.75 per share

- 2019-11: $162.52 per share

- 2019-12: $161.58 per share

- 2020-01: $163.20 per share

- 2020-02: $151.88 per share

- 2020-03: $137.06 per share

- 2020-04: $157.09 per share

- 2020-05: $153.72 per share

- 2020-06: $162.25 per share

- 2020-07: $177.55 per share

- 2020-08: $168.38 per share

- 2020-09: $160.00 per share

- 2020-10: $151.52 per share

- 2020-11: $163.73 per share

- 2020-12: $178.22 per share

- 2021-01: $167.11 per share

- 2021-02: $159.69 per share

- 2021-03: $164.30 per share

- 2021-04: $181.10 per share

- 2021-05: $178.26 per share

- 2021-06: $181.94 per share

- 2021-07: $201.34 per share

- 2021-08: $206.37 per share

- 2021-09: $191.07 per share

- 2021-10: $204.14 per share

- 2021-11: $200.07 per share

- 2021-12: $222.96 per share

- 2022-01: $194.84 per share

- 2022-02: $189.40 per share

- 2022-03: $201.25 per share

- 2022-04: $182.16 per share

- 2022-05: $165.95 per share

- 2022-06: $145.03 per share

- 2022-07: $165.78 per share

- 2022-08: $153.40 per share

- 2022-09: $140.19 per share

- 2022-10: $145.30 per share

- 2022-11: $155.61 per share

- 2022-12: $145.67 per share

- 2023-01: $160.74 per share

- 2023-02: $149.78 per share

- 2023-03: $125.59 per share

- 2023-04: $124.18 per share

- 2023-05: $113.46 per share

- 2023-06: $113.49 per share

- 2023-07: $125.68 per share

- 2023-08: $116.34 per share

- 2023-09: $100.10 per share

- 2023-10: $93.13 per share

- 2023-11: $109.40 per share

- 2023-12: $126.77 per share

- 2024-01: $120.90 per share

- 2024-02: $124.73 per share

- 2024-03: $128.91 per share

- 2024-04: $115.87 per share

- 2024-05: $119.00 per share

- 2024-06: $116.97 per share

- 2024-07: $117.29 per share

- 2024-08: $119.57 per share

- 2024-09: $118.75 per share

- 2024-10: $111.55 per share

- 2024-11: $110.23 per share

- 2024-12: $97.55 per share

- 2025-01: $97.35 per share

- 2025-02: $102.26 per share

- 2025-03: $92.51 per share

- 2025-04: $72.66 per share

- 2025-05: $70.19 per share

- 2025-06: $72.63 per share

- 2025-07: $76.43 per share

- 2025-08: $82.44 per share

- 2025-09: $83.34 per share

- 2025-10: $58.22 per share

- 2025-11: $53.67 per share

- 2025-12: $48.94 per share

- 2026-01: $54.64 per share

- 2026-02: $54.04 per share

- 2026-03: $46.42 per share

- 2026-04: $40.51 per share

- 2026-05: $49.68 per share

- 2026-06: $52.85 per share

- 2026-07: $51.45 per share

- 2026-08: $51.29 per share

- 2026-09: $47.46 per share

- 2026-10: $42.34 per share

## Annual estimated value (USD per share)

- FY2016: low $23.88 per share, central $26.98 per share, high $31.10 per share

- FY2017: low $21.18 per share, central $23.75 per share, high $27.17 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:32:11.233Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1035443/000103544326000013/are-20251231.htm); period 2025-12-31, filed 2026-01-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Christopher Davis](https://gigainvestors.com/DAV): 80,467 ARE shares; USD 4,253,000 reported position value; 0.02% of portfolio; reduce; quarter 2026 Q2.

# ARE — Alexandria RE Equities Inc.

Held by 1 investor · USD 4,253,000 total · 2026 Q2 · reported price USD 52.85 (split-adjusted).
Page: https://gigainvestors.com/s/ARE

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Christopher Davis (https://gigainvestors.com/DAV) | USD 4,253,000 | <0.1% | reduce -55.5% |

## Total held by quarter

- 2019 Q4: USD 19,127,356 · 1 holder · USD 161.58
- 2020 Q1: USD 15,240,661 · 1 holder · USD 137.06
- 2020 Q2: USD 14,744,793 · 1 holder · USD 162.25
- 2020 Q3: USD 14,917,920 · 1 holder · USD 160.00
- 2020 Q4: USD 13,733,099 · 1 holder · USD 178.22
- 2021 Q1: USD 11,616,224 · 1 holder · USD 164.31
- 2021 Q2: USD 42,228,419 · 2 holders · USD 181.95
- 2021 Q3: USD 212,747,347 · 2 holders · USD 191.07
- 2021 Q4: USD 251,036,461 · 2 holders · USD 222.96
- 2022 Q1: USD 19,363,671 · 1 holder · USD 201.25
- 2022 Q2: USD 14,437,301 · 1 holder · USD 145.03
- 2022 Q3: USD 13,955,494 · 1 holder · USD 140.19
- 2022 Q4: USD 16,396,178 · 1 holder · USD 145.67
- 2023 Q1: USD 14,252,832 · 1 holder · USD 125.59
- 2023 Q2: USD 13,192,872 · 1 holder · USD 113.49
- 2023 Q3: USD 11,952,641 · 1 holder · USD 100.10
- 2023 Q4: USD 18,251,964 · 1 holder · USD 126.77
- 2024 Q1: USD 18,261,004 · 1 holder · USD 128.91
- 2024 Q2: USD 16,561,431 · 1 holder · USD 116.97
- 2024 Q3: USD 16,869,269 · 1 holder · USD 118.75
- 2024 Q4: USD 14,651,717 · 1 holder · USD 97.55
- 2025 Q1: USD 13,998,336 · 1 holder · USD 92.51
- 2025 Q2: USD 11,343,862 · 1 holder · USD 72.63
- 2025 Q3: USD 15,014,284 · 1 holder · USD 83.34
- 2025 Q4: USD 8,717,535 · 1 holder · USD 48.94
- 2026 Q1: USD 8,393,061 · 1 holder · USD 46.42
- 2026 Q2: USD 4,253,000 · 1 holder · USD 52.85