Alexandria Real Estate Equities (MEX:ARE) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alexandria Real Estate Equities had a gross margin of 65.68% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alexandria Real Estate Equities Gross Margin % Related Terms
Alexandria Real Estate Equities Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alexandria Real Estate Equities Gross Margin % Chart
MEX:ARE vs BXP, VNO, CUZ: Gross Margin % Comparison
For the REIT - Office subindustry, Alexandria Real Estate Equities's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alexandria Real Estate Equities Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Alexandria Real Estate Equities's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alexandria Real Estate Equities's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Alexandria Real Estate Equities (MEX:ARE) has a Gross Margin % of 65.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alexandria Real Estate Equities and its competitors. This is near median its historical median of 70.31. Over the past decade, Alexandria Real Estate Equities' Gross Margin % has ranged from 67.76 to 71.77. According to the industry distribution chart, Alexandria Real Estate Equities ranks #368 out of 680 companies in the REITs industry, placing it in the top 54.1%.
Is Alexandria Real Estate Equities' Gross Margin % too high?
Alexandria Real Estate Equities' current Gross Margin % of 65.68% is near median its 10-year median of 70.31. Over the past 10 years, this metric has ranged from a low of 67.76 to a high of 71.77. The REITs industry median Gross Margin % is 69.71. Alexandria Real Estate Equities' value of 65.68% is 5.8% below this industry median. Based on the distribution chart, Alexandria Real Estate Equities ranks #368 out of 680 companies in the REITs industry, which is below the industry midpoint. Overall, Alexandria Real Estate Equities has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alexandria Real Estate Equities' Gross Margin % compare to BXP and VNO?
According to the REITs industry distribution chart, Alexandria Real Estate Equities ranks #368 out of 680 companies for Gross Margin %. This places Alexandria Real Estate Equities in the lower half of its industry. The industry median Gross Margin % is 69.71. Alexandria Real Estate Equities' value of 65.68% is 5.8% below this benchmark. Historically, Alexandria Real Estate Equities' own Gross Margin % has ranged from 67.76 to 71.77 over the past decade. While the company's 10-year median is 70.31 vs. the industry median of 69.71, Alexandria Real Estate Equities has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.71, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alexandria Real Estate Equities's current Gross Margin % of 65.68% is 5.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Alexandria Real Estate Equities and its competitors. For the REITs industry, the median Gross Margin % is 69.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alexandria Real Estate Equities's current Gross Margin % is 65.68%, which is near median its own 10-year median of 70.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alexandria Real Estate Equities stock overvalued right now?
Based on GuruFocus' analysis, Alexandria Real Estate Equities (MEX:ARE) is currently considered Possible Value Trap. The stock's GF Value™ is MXN1,571.58, compared to a current price of MXN899.49 — trading 42.8% below its estimated fair value. The current Gross Margin % is 65.68%, which is near median its 10-year median of 70.31 and 5.8% below the REITs industry median of 69.71. Alexandria Real Estate Equities' overall GF Score™ is 50/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Alexandria Real Estate Equities (MEX:ARE), the current Gross Margin % is 65.68% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alexandria Real Estate Equities (MEX:ARE) Overvalued in 2026?
Based on GuruFocus' analysis, Alexandria Real Estate Equities stock appears to be undervalued.
The current stock price of MXN899.49 is trading 42.8% below its estimated GF Value™ of MXN1,571.58.
GuruFocus considers Alexandria Real Estate Equities to be Possible Value Trap.
Key valuation signals for MEX:ARE:
Gross Margin %: 65.68% (near median its 10-year median of 70.31)
GF Value™: MXN1,571.58 vs. price of MXN899.49 (42.8% below fair value)
Industry Position: 5.8% below the REITs median (#368 of 680)
No single metric tells the full story. See the MEX:ARE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alexandria Real Estate Equities Business Description
Alexandria Real Estate Equities Inc is an urban office real estate investment trust (REIT). It is engaged in the business of providing space for lease to life science, agtech, and technology tenants. The company has established a market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle, Texas, and Canada. The Company is a life science real estate investment trust focused on developing, redeveloping, and operating properties that provide space for lease to tenants in the life science industry.
50GF Score
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