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lexandria Real Estate Equities is a top-tier life sciences REIT trading at a significant discount, with fundamentals remaining strong despite sector challenges. The stock's nearly 7% dividend yield and P/FFO valuation at half its historical average present an attractive value proposition for long-term investors willing to be patient.
Early indicators of sector recovery, including rising venture capital funding, employment growth, and leasing activity, suggest a potential bottoming out and re-rating, particularly if interest rates decline in 2026. While geographic concentration and macroeconomic headwinds pose risks, Alexandria's resilient tenant base, unique venture arm, and cluster strategy support long-term outperformance.
