ARE Stock Recent News

The 'Undercovered' Dozen series highlights 12 lesser-covered stocks weekly, providing investment ideas and sparking community discussion on their potential. Analysts recommend Canadian Natural Resources, Alexandria Real Estate, and A-Mark Precious Metals as strong buys. Analysts recommend Armada Hoffler, Athene Holding, B2Gold, Schlumberger, Capital Group Dividend Value, and QYLD as buys.

REITs have largely disappointed investors since 2022. Many think that REITs are no longer a destination of choice, even for core income investing. Such moments tend to create opportunities. But it could also result in a "catching a falling knife" moment.

For my Top 5 ideas list, I focus on Buffett-style "fat pitch" blue-chip bargains: Wonderful companies at wonderful prices, based on fundamentals, not technicals or short-term sentiment. A disciplined, fundamentals-driven approach uses historical fair value multiples and consensus analyst data. My Top 5 Buy List for June - AES, ARE, AMZN, NVDA, and O - offers a 49% historical discount and over 100% return potential if they revert to fair value.

Life Science R&D real estate faces a tough environment with falling occupancy rates, making me cautious about near-term prospects. I examine worst-case scenarios in this article, working through a bear thesis. The dividend yield is highly attractive and currently well covered, providing some income cushion despite risks.

The Dividend Harvesting Portfolio rebounded strongly, hitting a new record value and delivering a 25% return on invested capital with robust income growth. I continue to focus on diversification, risk mitigation, and recurring income, adding to NNN REIT, BP, and MSTY for their strong yields and income potential. Dividend income is up significantly year-over-year, and I expect to surpass $2,500 in forward annualized income by year-end, revising projections higher.

Alexandria Real Estate (ARE) looks undervalued, offering a 7.5% dividend yield and trading at a low forward price/FFO ratio of 7.6x. The dividend appears safe and well-covered by forward FFO and AFFO, despite short-term headwinds like declining occupancy and lowered guidance. ARE's fundamentals remain solid: high rent collections, resilient tenant base, long lease terms, and prudent capital recycling through asset sales and buybacks.

The trade war is making a comeback. This is bad news for REITs as higher tariffs lead to higher inflation and interest rates. But there's a silver lining for long-term oriented investors.

Alexandria Real Estate Equities is a high-quality REIT facing short-term challenges, creating a rare buying opportunity due to its undervalued share price. Despite recent headwinds, ARE maintains one of the strongest balance sheets in the REIT sector, supporting growth and reducing shareholder risk. The company's track record of outperformance, especially in FFO growth, highlights its strong management and industry positioning.

Share buyback activity by US equity real estate investment trusts more than doubled in the first quarter, according to an analysis by S&P Global Market Intelligence. The US REIT sector bought back around $993.2 million in common stock in the period, more than twice as much as the $456.2 million in the fourth quarter of 2024 and up 15.5% year over year. More than a dozen REITs announced new share repurchase programs during the first quarter.

ARE trades at decade-low valuations, offering a 7.5%+ yield and significant discounts to book value and equity versus peers. Operational strength is driven by high-quality tenants, resilient lease structures, and a robust development pipeline expected to boost NOI by $350M by 2028. Dividend is well-covered by FFO, with a 14-year growth streak and strong FFO coverage ratio, making the yield attractive and sustainable.