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Alexandria Real Estate Equities (ARE) Valuation After Lawsuits Impairment Charge Dividend Cut And Weaker Q3 2025 Results

Simply Wall St · 4d ago

Alexandria Real Estate Equities (ARE) is back in focus after multiple securities class action lawsuits linked to its Long Island City property, a substantial real estate impairment charge, and missed third quarter 2025 financial expectations.

See our latest analysis for Alexandria Real Estate Equities.

The legal overhang and asset impairment news come amid a sharp reset in investor sentiment, with a 30 day share price return of 15.17% following a 90 day share price decline of 30.36% and a 1 year total shareholder return loss of 42.73%, suggesting that recent momentum has picked up after a tough stretch.

If this kind of volatility has you comparing options, it could be a good moment to widen your search and look at healthcare stocks as potential alternatives in the same broad space.

With the share price sharply lower over 1 year, an intrinsic discount of 33% and a value score of 5, the key question now is whether Alexandria is genuinely undervalued or if the lawsuits, dividend cut and weaker fundamentals are exactly what the market is already pricing in.

Most Popular Narrative: 10.2% Undervalued

At a last close of US$52.38 versus a narrative fair value of US$58.33, Alexandria is framed as undervalued, with that gap tied to detailed revenue and margin forecasts.

The analysts have a consensus price target of $96.417 for Alexandria Real Estate Equities based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $144.0, and the most bearish reporting a price target of just $71.0.

Read the complete narrative.

Curious what justifies that fair value and wide target range? The narrative leans on shifting revenue expectations, a sharp margin reset and a valuation multiple more typical of fast growth stories.

Result: Fair Value of $58.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still have to weigh slower expected revenue, weaker projected margins, and higher cap rate asset sales, any of which could undermine the undervalued narrative.

Find out about the key risks to this Alexandria Real Estate Equities narrative.

Build Your Own Alexandria Real Estate Equities Narrative

If you see the story differently or prefer to work through the numbers yourself, you can build a full Alexandria view in minutes by starting with Do it your way.

A great starting point for your Alexandria Real Estate Equities research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Alexandria is only one piece of your watchlist, now is the time to broaden your research and compare it with other focused sets of opportunities.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.