Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Alexandria Real Estate Equities's
Operating Income
for the
three
months ended in Mar. 2026 was MXN1,600 Mil. Alexandria Real Estate Equities's Interest Expense for the
three
months ended in Mar. 2026 was MXN-1,165 Mil.
Alexandria Real Estate Equities's interest coverage for the quarter that ended in Mar. 2026 was 1.37.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Alexandria Real Estate Equities's Interest Coverage or its related term are showing as below:
MEX:ARE'
s Interest Coverage Range Over the Past 10 Years
Min: 2.08 Med: 2.73 Max: 9.3
Current: 2.08
MEX:ARE's Interest Coverage is ranked worse than 68.14% of 700
companies
in the REITs industry
Industry Median: 3.095
vs MEX:ARE: 2.08
Alexandria Real Estate Equities (MEX:ARE) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Alexandria Real Estate Equities Interest Coverage Related Terms
Alexandria Real Estate Equities Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Alexandria Real Estate Equities Interest Coverage Chart
MEX:ARE vs BXP, VNO, CUZ: Interest Coverage Comparison
For the REIT - Office subindustry, Alexandria Real Estate Equities's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Alexandria Real Estate Equities's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Alexandria Real Estate Equities's Interest Coverage falls into.
Alexandria Real Estate Equities Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:ARE) has a Interest Coverage of 1.37 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alexandria Real Estate Equities and its competitors. This is 50% below median its historical median of 2.73. Over the past decade, Alexandria Real Estate Equities' Interest Coverage has ranged from 2.08 to 9.30. According to the industry distribution chart, Alexandria Real Estate Equities ranks #477 out of 700 companies in the REITs industry, placing it in the top 68.1%.
Is Alexandria Real Estate Equities' Interest Coverage too high?
Alexandria Real Estate Equities' current Interest Coverage of 1.37 is 50% below median its 10-year median of 2.73. Over the past 10 years, this metric has ranged from a low of 2.08 to a high of 9.30. The REITs industry median Interest Coverage is 3.10. Alexandria Real Estate Equities' value of 1.37 is 55.7% below this industry median. Based on the distribution chart, Alexandria Real Estate Equities ranks #477 out of 700 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' Interest Coverage compare to BXP and VNO?
According to the REITs industry distribution chart, Alexandria Real Estate Equities ranks #477 out of 700 companies for Interest Coverage. This places Alexandria Real Estate Equities in the lower half of its industry. The industry median Interest Coverage is 3.10. Alexandria Real Estate Equities' value of 1.37 is 55.7% below this benchmark. Historically, Alexandria Real Estate Equities' own Interest Coverage has ranged from 2.08 to 9.30 over the past decade. While the company's 10-year median is 2.73 vs. the industry median of 3.10, 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 Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.10, based on 700 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alexandria Real Estate Equities's current Interest Coverage of 1.37 is 55.7% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alexandria Real Estate Equities and its competitors. For the REITs industry, the median Interest Coverage is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alexandria Real Estate Equities's current Interest Coverage is 1.37, which is 50% below median its own 10-year median of 2.73. 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 Interest Coverage is 1.37, which is 50% below median its 10-year median of 2.73 and 55.7% below the REITs industry median of 3.10. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Alexandria Real Estate Equities (MEX:ARE), the current Interest Coverage is 1.37 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:
Interest Coverage: 1.37 (50% below median its 10-year median of 2.73)
GF Value™: MXN1,571.58 vs. price of MXN899.49 (42.8% below fair value)
Industry Position: 55.7% below the REITs median (#477 of 700)
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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