4. Alexandria Real Estate Equities, Inc. (NYSE:ARE)
Number of Hedge Fund Holders: 33
Alexandria Real Estate Equities, Inc. (NYSE:ARE) owns and manages advanced life science, agtech, and technology campuses in highly sought-after innovation hubs such as Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. It is one of the best commercial real estate stocks to invest in. On June 5, Alexandria Real Estate Equities, Inc. (NYSE:ARE) declared a $1.24 per share quarterly dividend, a 2.5% increase from its prior dividend of $1.21. The dividend is payable on July 14, to shareholders of record on June 30.
On May 4, RBC Capital maintained an Outperform rating on Alexandria Real Estate Equities, Inc. (NYSE:ARE) but lowered the firm’s price target on the shares to $166 from $198. The firm acknowledged that while the long-term prospects for the life science sector remain strong, the near-term outlook appears less promising. Despite this, RBC believes that Alexandria Real Estate Equities, Inc. (NYSE:ARE) is well-equipped to handle the current situation and is ready to take advantage of opportunities when the market conditions stabilize.
According to Insider Monkey’s first quarter database, 33 hedge funds held stakes worth $284.5 million in Alexandria Real Estate Equities, Inc. (NYSE:ARE), compared to 29 funds in the prior quarter holding stakes valued at $296 million. Ian Simm’s Impax Asset Management is the largest position holder in the company.
Baron Real Estate Income Fund made the following comment about Alexandria Real Estate Equities, Inc. (NYSE:ARE) in its Q4 2022 investor letter:
“Alexandria Real Estate Equities, Inc. (NYSE:ARE) is the leading landlord and developer for the life science industry. A best-in-class company with several competitive advantages including an irreplaceable life science office portfolio concentrated in the premier life science markets in the U.S. and deep customer relationships.
Alexandria’s shares declined 33% in 2022 and are now valued at a 5.8% implied capitalization rate versus recent life science real estate transactions that have been valued in the 4% to 5% capitalization range. Alexandria’s real estate is attractively valued at approximately $600 per square foot versus private market transactions for life science real estate in the $1,000 to $1,500 per square foot range.
We are bullish on the long-term prospects for Alexandria Real Estate Equities, Inc., the life science industry leader and sole publicly traded life science pure play REIT. The company has acquired and developed an irreplaceable life science portfolio and has significant tenant relationships. Chairman and co-founder Joel Marcus has assembled a deep and experienced management team. Alexandria has been benefiting from an increase in funding for health care drug development, which has been contributing to demand for life science buildings that continues to exceed supply, resulting in strong business fundamentals in key geographic markets.”
