Alexandria Real Estate has become a battleground stock. But it shouldn't be. This is a blue-chip REIT that's dealing with a temporary crisis. As its growth accelerates, I expect up to 50% upside as Alexandria reprices at a more reasonable valuation multiple.
These 2 unloved dividend growth powerhouses could deliver serious upside once Mr. Market wakes up. Both combine aggressive buybacks when their shares trade at deep discounts with consistently impressive dividend growth. Both also have fortress balance sheets and world-class business models.
The real estate sector is off to a strong start in 2025, outperforming the S&P 500 (^GSPC 0.64%) by about 6 percentage points through mid-March. However, not all real estate investment trusts (REITs) have outperformed, and there are some excellent buying opportunities for patient long-term investors.
Some REITs are truly exceptional. So much so that they could make sense for most investors. I present two such exceptional REITs.
The REIT recovery has stalled in recent months. But I think that it will soon resume. I present the powerful catalyst that could push REITs a lot higher.
Alexandria Real Estate Equities has solid fundamentals and financials despite market pessimism, making it an attractive long-term investment with a 5%+ dividend yield. ARE's strong performance includes a 6% growth year-over-year and impressive leasing activity, supported by a robust balance sheet and low leverage. The REIT's current valuation at a forward P/FFO multiple of 10.21x is a bargain, offering significant upside potential over the next 12–24 months.
Alexandria Real Estate Equities (ARE) reported earnings 30 days ago. What's next for the stock?
Alexandria Real Estate Equities (ARE) is deeply undervalued, trading at just 10x AFFO with a 5.52% dividend yield, offering a 50% upside over three years. ARE's unique life science real estate assets in key markets are critical for top biotech and pharmaceutical companies, ensuring strong demand and high-quality tenants. The company has a robust development pipeline, high leasing rates, and strong financials, with 77% of rental revenue from Megacampuses and 52% from investment-grade tenants.
Alexandria Real Estate has experienced a 50% drop in share price, but its high-quality life science assets and strong tenant base suggest this decline is unreasonable. There are risks due to a (current) oversupply in this sector, but a flight to quality should protect ARE going forward. With a well-covered dividend and prudent capital allocation, including buybacks, my conservative analysis warrants at least a $130 share price (+36%).
REITs are priced at decade-low valuations. Even the highest quality REITs are discounted. We highlight three blue-chip REITs that are absurdly cheap.
The 60/40 rule's bond allocation faces risks from inflation; durable income-generating stocks with growing dividends offer a better alternative. In this article, I highlight two such picks that are undervalued and provide well-covered dividends. Both carry moat-worthy asset bases are strongly positioned to deliver potentially rewarding total returns from here.
Volatility is back, making solid income generation all the more important. In this article, I highlight two undervalued dividend giants with high yields. Both have long growth runways, making them strong picks for value, income, and growth.