Latest Ratios: P/E Ratio -5.6x · EV/EBITDA 137.7x · ROE -6.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.2B | $8.3B | $16.8B | $21.7B | $23.5B | $32.9B | $22.5B | $18.2B | $11.9B | $12.0B | $8.5B |
| Enterprise Value | $20.4B | $20.6B | $29.0B | $32.7B | $33.3B | $41.7B | $29.9B | $25.0B | $17.2B | $16.6B | $12.6B |
| P/E Ratio → | -5.57 | — | 54.19 | 234.76 | 45.81 | 58.37 | 38.16 | 101.62 | 23.00 | 82.65 | — |
| P/S Ratio | 2.76 | 2.81 | 5.50 | 7.62 | 9.14 | 15.59 | 11.90 | 11.99 | 8.97 | 10.69 | 9.42 |
| P/B Ratio | 0.42 | 0.44 | 0.75 | 0.96 | 1.04 | 1.73 | 1.68 | 1.79 | 1.51 | 1.85 | 1.57 |
| P/FCF | 5.80 | 5.90 | 11.16 | 13.29 | 18.19 | — | 25.54 | 26.59 | — | — | — |
| P/OCF | 5.80 | 5.90 | 11.16 | 13.29 | 18.19 | 32.55 | 25.54 | 26.59 | 20.88 | 26.70 | 21.55 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.92 | 9.50 | 11.52 | 12.92 | 19.80 | 15.78 | 16.51 | 12.92 | 14.78 | 13.98 |
| EV / EBITDA | 137.70 | 138.67 | 14.70 | 18.36 | 20.61 | 31.31 | 15.97 | 26.02 | 12.58 | 15.55 | 18.02 |
| EV / EBIT | — | — | 41.61 | 92.19 | 43.52 | 52.41 | 56.16 | 43.34 | 30.61 | 51.48 | 219.68 |
| EV / FCF | — | 14.53 | 19.27 | 20.08 | 25.72 | — | 33.86 | 36.62 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.9% | 68.9% | 70.2% | 69.8% | 69.6% | 70.4% | 72.0% | 70.6% | 71.3% | 71.0% | 69.0% |
| Operating Margin | -40.5% | -40.5% | 25.2% | 24.3% | 23.8% | 24.3% | 65.0% | 27.6% | 31.8% | 16.1% | 4.6% |
| Net Profit Margin | -48.2% | -48.2% | 10.6% | 3.6% | 20.3% | 27.1% | 40.7% | 23.9% | 39.0% | 15.0% | -7.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -6.9% | -6.9% | 1.4% | 0.5% | 2.5% | 3.5% | 6.5% | 4.0% | 7.2% | 2.9% | -1.4% |
| ROA | -4.0% | -4.0% | 0.9% | 0.3% | 1.6% | 2.2% | 3.7% | 2.2% | 3.9% | 1.5% | -0.7% |
| ROIC | -2.7% | -2.7% | 1.7% | 1.6% | 1.5% | 1.6% | 4.9% | 2.1% | 2.6% | 1.3% | 0.3% |
| ROCE | -3.6% | -3.6% | 2.2% | 2.0% | 2.0% | 2.0% | 6.3% | 2.7% | 3.4% | 1.7% | 0.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.67 | 0.67 | 0.57 | 0.52 | 0.47 | 0.48 | 0.59 | 0.69 | 0.69 | 0.75 | 0.78 |
| Debt / EBITDA | 86.11 | 86.11 | 6.47 | 6.56 | 6.54 | 6.92 | 4.23 | 7.32 | 4.02 | 4.54 | 6.06 |
| Net Debt / Equity | — | 0.64 | 0.54 | 0.49 | 0.43 | 0.47 | 0.55 | 0.67 | 0.66 | 0.71 | 0.76 |
| Net Debt / EBITDA | 82.40 | 82.40 | 6.19 | 6.21 | 6.03 | 6.65 | 3.92 | 7.13 | 3.85 | 4.30 | 5.88 |
| Debt / FCF | — | 8.64 | 8.11 | 6.80 | 7.53 | — | 8.32 | 10.03 | — | — | — |
| Interest Coverage | -4.37 | -4.37 | 3.75 | 4.79 | 8.12 | 5.60 | 3.10 | 3.33 | 3.56 | 2.51 | 0.53 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.43 | 0.43 | 0.40 | 0.39 | 0.58 | 0.41 | 0.64 | 0.27 | 0.33 | 0.47 | 0.29 |
| Quick Ratio | 0.43 | 0.43 | 0.40 | 0.39 | 0.58 | 0.41 | 0.64 | 0.27 | 0.33 | 0.47 | 0.29 |
| Cash Ratio | 0.25 | 0.25 | 0.28 | 0.31 | 0.49 | 0.21 | 0.50 | 0.15 | 0.22 | 0.34 | 0.18 |
| Asset Turnover | — | 0.09 | 0.08 | 0.08 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 11.4% | 10.9% | 5.4% | 3.9% | 3.2% | 2.0% | 2.4% | 2.5% | 3.2% | 2.6% | 2.8% |
| Payout Ratio | — | — | 278.2% | 817.7% | 145.3% | 114.8% | 69.1% | 123.1% | 73.6% | 184.6% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 1.8% | 0.4% | 2.2% | 1.7% | 2.6% | 1.0% | 4.3% | 1.2% | — |
| FCF Yield | 17.3% | 17.0% | 9.0% | 7.5% | 5.5% | — | 3.9% | 3.8% | — | — | — |
| Buyback Yield | 2.5% | 2.5% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 1.2% | 2.4% |
| Total Shareholder Yield | 13.9% | 13.4% | 5.7% | 3.9% | 3.2% | 2.0% | 2.4% | 2.5% | 3.3% | 3.8% | 5.3% |
| Shares Outstanding | — | $170M | $172M | $171M | $162M | $147M | $126M | $113M | $103M | $92M | $76M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying ARE stock.
Alexandria Real Estate Equities, Inc.'s current P/E ratio is -5.6x. The historical average is 42.0x.
Alexandria Real Estate Equities, Inc.'s current EV/EBITDA is 137.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.2x.
Alexandria Real Estate Equities, Inc.'s return on equity (ROE) is -6.9%. The historical average is 5.0%.
Based on historical data, Alexandria Real Estate Equities, Inc. is trading at a P/E of -5.6x. Compare with industry peers and growth rates for a complete picture.
Alexandria Real Estate Equities, Inc.'s current dividend yield is 11.37%.
Alexandria Real Estate Equities, Inc. has 68.9% gross margin and -40.5% operating margin.
Alexandria Real Estate Equities, Inc.'s Debt/EBITDA ratio is 86.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Negative AFFO and dividend coverage
Metrics are mathematically derived from official filings.
Valuation Premium Amidst Earnings Instability
The P/FFO multiple of 101.74 in 2026Q2, as reported in the financial data, represents a significant premium to historical levels and peers, suggesting the market is pricing in a recovery in FFO that has yet to materialize consistently.
The current P/FFO multiple is elevated relative to the company's own 10-quarter range, which saw lows near 101.74 and highs above 130. This premium appears disconnected from the recent FFO volatility, where quarterly results have swung from negative to positive. The implied cap rate, derived from NOI and enterprise value, would likely be compressed, indicating the market is assigning a high growth multiple to a portfolio facing near-term operational headwinds.
NOI Margin Volatility Masks Core Performance
NOI margin expanded sharply to 74.0% in 2026Q2 from 66.6% in the prior quarter, a swing that, based on the reported figures, appears driven by non-cash accounting adjustments rather than a fundamental improvement in property-level economics.
The dramatic quarterly fluctuation in NOI margin suggests the metric is being influenced by the timing of non-cash items, such as straight-line rent adjustments or impairment reversals, rather than organic leasing activity. This volatility obscures the true underlying profitability of the stabilized portfolio. Investors should focus on same-store NOI growth, which is not provided, to assess whether the core business is generating sustainable rental income growth.
Dividend Reliant on External Funding
The FFO payout ratio of 39.1% in 2026Q2 appears manageable, but the negative AFFO per share of -$0.46 indicates the dividend is not covered by core cash flow after accounting for maintenance capital expenditures.
The divergence between the FFO payout ratio and the negative AFFO highlights a critical sustainability issue. While FFO includes capitalized interest and excludes certain capital costs, AFFO provides a clearer view of distributable cash. The company's dividend payments are currently exceeding its internally generated cash flow, necessitating reliance on asset sales, debt, or equity issuances to bridge the gap, a strategy that is not sustainable long-term.
Leverage Rising on a Shrinking Equity Base
The debt-to-equity ratio has increased to 0.69 in 2026Q2 from 0.55 in 2024Q1, a trend that, as reported in the financial statements, is primarily driven by a decline in shareholder equity from persistent net losses rather than a significant increase in absolute debt levels.
The rising leverage ratio is a symptom of equity erosion from non-cash impairments, not necessarily an aggressive debt-funded expansion. However, this dynamic weakens the balance sheet's resilience. The interest coverage ratio of 0.85 in the latest quarter is a significant concern, suggesting that operating income is insufficient to cover interest expenses, which may indicate financial strain if the trend persists.
Concentration Risk in Biotech Ecosystems
The company's high geographic concentration in life science clusters, particularly Greater Boston, means its portfolio quality is intrinsically linked to the health of the biotech venture capital and NIH funding cycles.
While the specialized nature of the assets creates a competitive moat, it also introduces significant sector-specific risk. A downturn in biotech funding could lead to slower pre-leasing of new developments and potential tenant defaults among smaller, venture-backed firms. The high tenant retention rate, a key quality metric, would be the first indicator of stress if competitors begin offering more attractive lease terms.
The Misleading P/E and Debt-to-Equity Ratios
The standard P/E ratio of -6.25 is meaningless for this REIT due to massive non-cash depreciation and impairments, while the debt-to-equity ratio of 0.69 is distorted by a declining book value of equity.
For REITs like ARE, the P/E ratio is rendered useless by the significant non-cash depreciation of specialized lab infrastructure and periodic asset impairments, which can swing net income from positive to negative without affecting cash flow. Similarly, the debt-to-equity ratio uses a book value of equity that is being eroded by these same non-cash charges, making it a poor measure of true financial leverage. Analysts should instead use P/FFO or P/AFFO for valuation and debt-to-gross-assets for a more accurate leverage assessment.