Alexandria Real Estate Equities Is Expensive For A Reason

WideAlpha
5.8K Followers

Summary

  • Alexandria Real Estate Equities is one of the best managed REITs we have ever encountered.
  • While shares look expensive, the premium is probably warranted, given the high-quality and superb management of the company.
  • We estimate shares are currently fairly valued and would consider buying on a pull-back.
Boston Harbor and Financial District
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Alexandria Real Estate Equities (NYSE:ARE) is a REIT focused on the Life Sciences sector that has performed extraordinarily well, while growing its FFO at a very fast pace. Despite the massive run-up in the share price, the company is still reasonably valued

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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