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lexandria Real Estate Equities (ARE) is under scrutiny as investors weigh whether it remains a bargain or a trap. The stock trades around $48.76, up 2.5% last week but has fallen 4.8% over the past month and about 50% year‑to‑date, indicating a long‑term slide in sentiment even as short‑term buyers test the waters. Rising rates and a shift in demand for specialized life‑science office and lab space have reshaped expectations for REITs like ARE, prompting debate over whether the asset base can justify pre‑sell‑off valuations. Meanwhile, the resilience of premier research hubs in Boston and San Diego keeps long‑term, fundamentals‑driven investors engaged.

    Our valuation framework gives ARE a 5‑out‑of‑6 score, suggesting it appears undervalued on most key metrics. A discounted‑cash‑flow (DCF) model, based on trailing free cash flow of about $1.63 billion, projects growth to roughly $1.17 billion by 2035. Discounting those cash flows yields an intrinsic value of $78.69 per share—about 38% below the current price—indicating a meaningful margin of safety if the forecast holds.

    Despite this, ARE’s 47.9% return over the past year lags behind peers, underscoring the need to monitor its trajectory. In short, the DCF analysis points to a 38% undervaluation, making ARE a candidate for watchlists or portfolios seeking cash‑flow‑based value plays.