VNO - Alexandria Real Estate Equities Is Still Worth The Premium

2024-05-31 17:14:38 ET

Summary

• Alexandria Real Estate Equities, Inc. is a REIT that focuses on markets in the medical, pharmaceutical, and biopharmaceutical industries.
• Despite not being cheap, the company's rapid growth and low leverage make it a worthwhile investment.
• Revenue and profitability metrics have shown consistent growth, and the company's market has a positive outlook for continued expansion.

As a value investor, I prioritize valuation above pretty much everything else. But every so often, there is a company that may not look cheap, but that could still warrant an investment. One such prospect, in my opinion, is none other than Alexandria Real Estate Equities, Inc. ( ARE ), a REIT that focuses on markets where the medical, pharmaceutical, and biopharmaceutical industries represent a major source of economic activity. Leveraging this niche, the company has been successful in achieving rapid growth recently. Unfortunately, shares, while not exactly expensive, are not cheap either. And relative to other REITs, you could even consider units to be expensive....

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