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One of my buddies told me to look into Alexandria Real Estate (NYSE:ARE) last month. After going through the 10-K, several earnings calls, the most recent quarter, and tearing through the financials, I think there
Alexandria Real Estate: Undervalued, Yielding Over 7% With 14 Years Of Dividend Growth
Summary
- ARE trades at decade-low valuations, offering a 7.5%+ yield and significant discounts to book value and equity versus peers.
- Operational strength is driven by high-quality tenants, resilient lease structures, and a robust development pipeline expected to boost NOI by $350M by 2028.
- Dividend is well-covered by FFO, with a 14-year growth streak and strong FFO coverage ratio, making the yield attractive and sustainable.
- Risks include high leverage and sector concentration, but liquidity, fixed-rate debt, and potential Fed rate cuts support a bullish outlook.
I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ARE over the next 72 hours. 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.
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