realestate

Should Investors Reconsider Alexandria REE After a 50% 2025 Decline?

Considering Alexandria Real Estate Equities? Stock fell 14.2% in a week, nearly 50% down overall—value in question.

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lexandria Real Estate Equities (ARE) has plunged 14.2 % in a single week and almost 50 % over the past year, sparking debate over whether the current price is a bargain or a warning sign. Investors are watching the company’s recent pipeline updates and balance‑sheet strengthening plans, especially as it faces higher interest rates while expanding life‑science campuses.

    Our valuation framework rates ARE 5 out of 6, suggesting it may be undervalued relative to peers. We’ll explain this using several methods, so stay tuned for the final take.

    **DCF Snapshot**

    The Discounted Cash Flow model estimates value by projecting future adjusted funds from operations (FFO) and discounting them to today. ARE’s trailing 12‑month free cash flow is $1.63 B. Analysts forecast a short‑term dip, but expect a rebound to about $1.51 B per year in ten years. Extending beyond the typical five‑year horizon, the two‑stage DCF yields an intrinsic value of $106.01 per share.

    At the current market price, ARE trades at a 49.1 % discount to this intrinsic value, confirming it as undervalued. Add it to your watchlist or explore 841 other cash‑flow‑based undervalued stocks.

    For a deeper dive, see the Valuation section of our Company Report.

Alexandria REE stock plummets 50% in 2025, investors reconsider.