ARE - Alexandria Real Estate: Bargain-Buy Office REIT Deserving Of Another Look

2024-04-23 11:30:00 ET

Summary

• Alexandria Real Estate Equities investors have underperformed in 2024 as long-term yields staged a resurgence.
• The market has priced in fewer expected rate cuts, leading to a de-rating of ARE.
• ARE's solid execution within its life sciences-focused thesis deserves another look from income investors.
• ARE's well-battered valuation suggests investors can still capitalize on the market's pessimism.
• ARE has shifted from a downtrend bias to an uptrend one, underscoring the appeal of buying steep pullbacks.

Alexandria Real Estate Equities, Inc. ( ARE ) investors have struggled to replicate the market-beating performance in late 2023, as ARE met with stiff selling resistance after it topped out in December 2023. Interestingly, ARE's relative underperformance over the past few months coincided with the resurgence in long-term bond yields, as seen in the recovery of the United States 10-Year Bond Yield ( US10Y )....

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