Added to YB: 2026-05-14
Pitch date: 2026-05-13
ARE [bullish]
Alexandria Real Estate Equities, Inc.
+0.21%
current return
Author Info
Under the Hood is a private investor (ex-NYSE, Bridgewater, Alliance Bernstein) writing about stocks. Sign up for their newsletter.
Company Info
Alexandria Real Estate Equities, Inc. an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world.
Market Cap
$8.3B
Pitch Price
$47.75
Price Target
N/A
Dividend
9.78%
EV/EBITDA
12.86
P/E
-7.63
EV/Sales
8.34
Sector
Health Care REITs
Category
value
Biotech Winter, Not Ice Age: The Bull Case for Alexandria at a Fire Sale
ARE (new position): Class A life science REIT w/ irreplaceable campuses adjacent to MIT, UCSF, UCSD trading at ~40% replacement cost ($560/sqft vs $1k-1.8k rebuild). Down 75% from '22 ATH on biotech funding winter, NIH policy fears & overbuilding. Even in 'worst case' 3yr stress test (100% lease expirations), generates $500M FCF/yr, covers debt. 53% rev from investment-grade pharma anchors (Biogen, Novartis, AstraZeneca). Mgmt executing reset: $2.9B asset sales, cut CapEx $300M, leverage 6.8x→5.6-6.2x by 4Q26. At 7% cap rate: $70/share; 5.5%: $109/share (55-140% upside). Plus $16/share in venture portfolio & dev pipeline. Position at $45 avg.
Read full article (11 min)