Alexandria Real Estate: Buy The Dip

Summary

• Alexandria Real Estate is a top-tier REIT with strong cash flow, high tenant loyalty, and excellent management, currently undervalued by the market.
• Despite recent mixed results, ARE's fundamentals remain strong, with a 6% FFO growth and efficient tenant collections at 99.8%.
• The company's valuation is attractive at less than 12.7x P/AFFO, with a historical average of 21x P/E, justifying a "BUY" rating.
• I maintain a $150/share price target for ARE, emphasizing its qualitative strengths, conservative management, and realistic upside based on earnings growth.