Alexandria Real Estate Equities ARE

Competitive advantage analysis · real-estate

REIT Specialized
Overall moat score
51/100
Moderate

Ranked against 30 peers in REIT - Office

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Mega campus ecosystems in AAA life science innovation cluster locations, … Full ARE analysis →

Key strengths

  • Strong AFFO Generation AFFO generation is strong (score 0.71), supporting dividend sustainability.
  • Dividend Well-Covered by AFFO Dividend coverage is healthy (score 0.75).

Key risks

  • Elevated Leverage Risk Leverage is elevated (score 0.38), raising refinancing risk.
  • Dilutive or Undisciplined Growth Growth discipline is questionable (score 0.29), raising dilution concerns.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Rent Pricing Power

Moderate
66
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Signals, strengths and risks for Rent Pricing Power

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Signals, strengths and risks for AFFO Strength

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Signals, strengths and risks for Balance Sheet & Cost of Capital

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Signals, strengths and risks for Capital Recycling & Growth

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Signals, strengths and risks for Operational Efficiency

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Signals, strengths and risks for Portfolio Quality & Diversification

Where ARE ranks in REIT - Office

Alexandria Real Estate Equities ranks #15 of 27 scored companies in REIT - Office by moat score — the top 56%. The widest moat in the group is Easterly Government Properties, (DEA) at 78/100.

# Company Moat score Rating
11 Net Lease Office Properties NLOP 57/100 Moderate
12 Douglas Emmett, Inc. DEI 56/100 Moderate
13 Postal Realty Trust, Inc. PSTL 55/100 Moderate
14 Equity EQC 55/100 Moderate
15 Alexandria Real Estate Equities ARE 51/100 Moderate
16 Piedmont Office Realty Trust, I PDM 49/100 Developing
17 SL Green Realty Corp SLG 44/100 Developing
18 Peakstone Realty Trust PKST 40/100 Developing
19 City Office REIT, Inc. CIO 37/100 Developing

See every Real Estate Investment Trusts company ranked by moat score →

How ARE scores on the REIT Specialized defenses

Rent Pricing Power

Score 66 · 20% of the moat score

For a REIT, pricing power is the ability to raise rents at renewal and still keep the space occupied.

AFFO Strength

Score 73 · 18% of the moat score

AFFO — adjusted funds from operations — is the cash a REIT can actually distribute after the recurring capital spending buildings need in order to stay leasable.

Balance Sheet & Cost of Capital

Score 22 · 20% of the moat score

Real estate is bought with borrowed money, so a REIT's cost of capital is its competitive advantage.

Capital Recycling & Growth

Score 31 · 16% of the moat score

REITs grow by issuing shares and debt to buy more property, which creates value only when the yield on the asset exceeds the cost of the capital raised.

Operational Efficiency

Score 70 · 14% of the moat score

Running property — leasing, maintenance, taxes, management — is the part of the business a REIT genuinely controls.

Portfolio Quality & Diversification

Score 48 · 12% of the moat score

Portfolio quality is really a question about what happens when a tenant fails.

How each REIT Specialized defense is measured, in full →

Understanding ARE's moat

What is Alexandria Real Estate Equities's moat score?

Alexandria Real Estate Equities (ARE) scores 51 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #15 of 27 scored companies in REIT - Office, the top 56%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 30 companies in REIT - Office. Its strongest defense is AFFO Strength (73/100) and its weakest is Balance Sheet & Cost of Capital (22/100).

How does Alexandria Real Estate Equities compare with other REIT - Office companies?

Alexandria Real Estate Equities ranks #15 of 27 scored companies in REIT - Office by moat score. The widest moat in REIT - Office is Easterly Government Properties, (DEA) at 78/100. The companies ranked closest are Equity (EQC) at 55 just above it and Piedmont Office Realty Trust, I (PDM) at 49 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — REIT Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 30 companies in REIT - Office. The defenses are then weighted to produce the overall score out of 100.

Why is Alexandria Real Estate Equities scored with the REIT Specialized template?

A REIT is a portfolio of buildings financed with debt and required to distribute most of its taxable income. Reported earnings are dominated by depreciation on assets that often appreciate, so net income says very little; the real question is how much cash the properties distribute, and how securely. The REIT template scores what determines that: rent pricing, distributable cash, cost of capital, and the discipline behind growth.

Which competitive defenses are measured for Alexandria Real Estate Equities?

The REIT Specialized template measures 6 defenses, and ARE scores: Rent Pricing Power (66), AFFO Strength (73), Balance Sheet & Cost of Capital (22), Capital Recycling & Growth (31), Operational Efficiency (70), Portfolio Quality & Diversification (48). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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