Alexandria Real Estate Equities

ARE

Market cap $8.24B

Indexes for US equity real estate investment trusts continued to climb during the week ended April 10, in tandem with the broader stock market indexes. The Dow Jones Equity All REIT closed the recent week up 3.26%, compared to a 3.56% gain for the S&P 500 and a 3.04% increase for the Dow Jones Industrial Average. All Dow Jones US real estate property sector indexes closed the recent week in the black.

The office REIT sector is bifurcating: true moats and prime locations are separating from distressed, obsolete assets. Alexandria Real Estate, Douglas Emmett, Empire State Realty Trust, and Highwoods are highlighted for durable moats and unique competitive advantages. Deep value opportunities exist where market fear has mispriced assets with irreplaceable locations, fortress balance sheets, or unique cash engines.

REITs have delivered strong long-term returns, but recent rate fears crushed valuations. Oversupplied sectors dropped even more and now offer generational opportunities. I highlight two REITs with massive long-term upside potential.

We have continued to stay out of Alexandria Real Estate Equities, thanks to deteriorating fundamentals. ARE's planned $2.6 billion asset sales in 2026 are overshadowed by construction spending and mounting debt, driving debt-to-EBITDA higher. Occupancy and rent spreads are under pressure, with property values in key markets plummeting and supply-demand imbalances intensifying.

Rental properties are far from passive; the workload never ends. REITs offer scalable, truly passive real estate exposure. I present a REIT portfolio that generates me $3,000 of monthly income.

U.S. equity markets snapped a five-week losing streak this week, while interest rates retreated, as resilient economic data pushed back against stagflation concerns amid a continuation of the Iran conflict. Major equity benchmarks rebounded sharply, with the S&P 500 gaining 3.4% and the Nasdaq 100 rising 4.0%, while real estate stocks outperformed as falling Treasury yields boosted rate-sensitive sectors. Treasury yields declined despite surging oil prices, breaking their recent correlation with crude, as investors weighed solid U.S. employment data against risks that higher energy costs could slow growth abroad.

Alexandria Real Estate still faces severe headwinds as life science real estate demand remains weak and development oversupply persists. ARE's aggressive development pipeline and capital commitments have led to declining occupancy, a shrinking portfolio, and a nearly 30% projected FFO per share drop year-over-year. Management has slashed the dividend, cut development spending by 40% from post-pandemic peaks, and is selling noncore assets to stabilize leverage.

This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks. In addition to the primary list that yields 4.26%, we present two other groups of five DGI stocks each, from moderate to high yields of up to 8%.

PASADENA, Calif., April 2, 2026 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, today announced that it has been named one of the Most Trustworthy Companies in America by Newsweek.

U.S. equity markets fell for a fifth-straight week— pulling several major benchmarks into correction territory— as the Iran conflict remained locked in a volatile stalemate, keeping energy markets on edge. The fourth week of the Iran conflict delivered little progress toward de-escalation, as Washington maintained strikes on Iranian nuclear sites while Tehran continued retaliatory attacks across the Persian Gulf. The S&P 500 declined 2.1% this week and now sits 8.7% below its late-January record. The Dow and Nasdaq both entered "correction" territory, while the VIX volatility index topped 30.