Alexandria Real Estate: Now Too Cheap To Ignore, With Just ~1% Annual Growth Priced In

  • Alexandria Real Estate (ARE) looks undervalued, offering a 7.5% dividend yield and trading at a low forward price/FFO ratio of 7.6x. The dividend appears safe and well-covered by forward FFO and AFFO, despite short-term headwinds like declining occupancy and lowered guidance. ARE's fundamentals remain solid: high rent collections, resilient tenant base, long lease terms, and prudent capital recycling through asset sales and buybacks.