Alexandria Real Estate Equities, Inc. has massive potential to retake $100 quickly as fundamentals improve. Premier life science property locations, absurd rent collection, and good EBITDA margins, but occupancy running below what we would like. Robust ARE shareholder returns buoyed by a respectable balance sheet, but a we need to see updates on leverage.
Green bond issuance by US equity real estate investment trusts subsided in the first half of 2025, according to an S&P Global Market Intelligence analysis. Datacenter REIT Equinix was the sole US REIT to issue green bonds in the first half, raising roughly $1.67 billion through two euro-denominated offerings. Since 2018, 25 US REITs have issued green bonds, totaling $42.67 billion in proceeds.
ARE's securing of a long-term lease from a longtime multi-national pharmaceutical tenant highlights healthy demand for its San Diego Megacampus.
We are facing very high risks. Now is not the time to speculate with risky REITs. I present two REITs that I sold recently.
Alexandria Real Estate Equities is a best-in-class life sciences REIT trading at a deep discount, with fundamentals intact despite sector headwinds. The current nearly 7% dividend yield and a P/FFO at half its historical average create a compelling value opportunity for patient, long-term investors. Early signs of sector recovery—rising VC funding, employment, and leasing—suggest a bottoming and potential re-rating, especially if interest rates decline in 2026.
ARE offers a cream of the crop REIT investment case at a price that is characteristic to a speculative and deeply cyclical business. The 6.9% yield that we are getting is underpinned by top-tier fundamentals and actually a well-performing business. In the article, I discuss why the several areas where we see ARE struggling do not match the level of discount that is baked into the cake by the market.
Alexandria Real Estate is a sector leader, with a strong client base, long-term leases, and predictable income, making it resilient, despite recent headwinds. The stock's recent 20% decline is driven by short-term revenue contraction and lowered FFO guidance, but I see this as a compelling buy opportunity. ARE boasts a best-in-class dividend profile, stable AFFO and EBITDA growth, and prudent debt management, supporting long-term value and financial flexibility.
Despite some volatility earlier this year, the S&P 500 has rallied about 10% over the last 12 months. However, while most stocks are up in the past year, several have missed the market's current rally.
Retirement income portfolios must prioritize risk mitigation and avoid speculation to safeguard future cash flows and financial independence. So, the notion of making tactical investment plays seems to be inconsistent with such a philosophy. Yet, under certain circumstances and with all of the retirement-proof investment criteria being fulfilled, it could be a justified decision.
AI may "retire" me. I need to prepare for this scenario. Here are 4 of my favorite REITs to earn safe and growing dividend income.
Alexandria is now priced at a decade-low valuation. We think that its challenges are only temporary. This sets the stage for an epic recovery in the coming years, and while you wait, you earn a 7.3% dividend yield.
The Dividend Harvesting Portfolio hit a new all-time high, delivering a 26.95% return and $2,310.77 in forward annual dividend income. I continue to diversify across ETFs, REITs, CEFs, BDCs, and equities, with a focus on mitigating downside risk and growing recurring income. Recent additions include ARE, PDI, and MSTY, all chosen for their income potential and upside as rate cuts approach.