Valued at a market cap of $21.8 billion, Alexandria Real Estate Equities, Inc. (ARE) is an urban office real estate investment trust (REIT) with a particular focus on collaborative life science, agtech, and technology campuses. The California-based company also provides strategic capital to transformative life science, tech, and technology campuses through its venture capital platform.
Companies valued at $10 billion or more are generally described as “large-cap” stocks, and Alexandria Real Estate Equities fit right into that category. The company is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world and believes in utmost professionalism, humility, and teamwork.
Shares of ARE are trading 7.7% below their 52-week high of $135.45, reached on Dec. 14, 2023. This life science REIT stock has gained 8.5% over the past three months, surpassing the broader S&P 500 Index’s ($SPX) 3.3% return over the same time frame.
In the longer term, ARE stock is down 1.4% on a YTD basis, lagging behind SPX’s 18.6% gains. Shares of ARE have gained 9.9% over the past 52 weeks, underperforming SPX’s 27.1% returns over the same time frame.
To confirm its recent bullish trend, ARE has been trading above its 200-day and 50-day moving average since early September.
On Jul. 22, shares of ARE fell 3.5% following its Q2 earnings release as revenue of $766.7 million fell short of the consensus estimates of $776.3 million. However, the company reported an FFO of $2.36, which surpassed Street forecasts of $2.34. ARE expects full-year FFO in the range of $9.41 to $9.53 per share.
ARE has lagged behind its rival, BXP, Inc. (BXP), which gained nearly 23.2% over the past 52 weeks and 16.4% on a YTD basis.
Given that ARE outperformed the broader market recently, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 14 analysts in coverage, and the mean price target of $137.62 suggests a 10.4% premium to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
