The Real Reason Alexandria Real Estate Is Down 69% And Yields 7.4%

(13min)

Summary

  • Alexandria Real Estate Equities, Inc.'s fundamentals remain strong, with a safe 7.4% yield, conservative payout ratio, and robust pipeline despite market pessimism.
  • Occupancy remains healthy at 91.7%, with prime locations and sticky tenants, ensuring structural demand even in a challenging market.
  • Management's shareholder-friendly actions, including a rare share buyback, signal confidence in the business and dividend safety.
  • I explain why ARE stock dropped 69% and where it goes from now.
  • Looking for more investing ideas like this one? Get them exclusively at The Dividend Freedom Tribe. Learn More »

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Written by Sam Kovacs.

Introduction

Alexandria Real Estate Equities, Inc. (NYSE:ARE) pays out an eye-watering 7.4% dividend yield at today's price of $70.

It can't seem to catch a bid, down from lofty highs of $220 per share.

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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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