Alexandria Real Estate: Thesis Has Evolved, Same Hold, Different Goalposts

2026-06-04 14:28:19 ET

In January, I had issued a Hold rating for Alexandria Real Estate Equities ( ARE ) - the argument was that low valuation is not a catalyst in itself. Dividends had just been cut, and fundamentals were still deteriorating. Since then, the stock is roughly flat on a total return basis. There is no opportunity lost on valuation grounds (although some corrections in the interim, when ARE was trading at ~$40, could have been a valuation-backed tactical entry point). If the thesis has evolved enough to indicate a turnaround or a better risk-reward asymmetry, we can still enter at current levels without losing out on the valuation edge versus January....

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