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Alexandria Real Estate EquitiesMEX:ARE 50 Return-on-Tangible-Asset is 4.24% as of Mar. 2026, which is 174% above its 10-year median of 1.55. GuruFocus rates MEX:ARE with a GF Score™ of 50/100 and a GF Value™ of MXN1,527.24 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 933 REITs companies, Alexandria Real Estate Equities ranks worse than 90.35% on this metric.
The historical rank and industry rank for Alexandria Real Estate Equities's Return-on-Tangible-Asset or its related term are showing as below:
MEX:ARE'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -3.99 Med: 1.55 Max: 3.74
Current: -2.93
During the past 13 years, Alexandria Real Estate Equities's highest Return-on-Tangible-Asset was 3.74%. The lowest was -3.99%. And the median was 1.55%.
MEX:ARE's Return-on-Tangible-Asset is ranked worse than 90.35% of 933
companies
in the REITs industry
Industry Median: 3.27
vs MEX:ARE: -2.93
Alexandria Real Estate Equities (MEX:ARE) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Alexandria Real Estate Equities Return-on-Tangible-Asset Related Terms
Alexandria Real Estate Equities Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Chart
MEX:ARE vs BXP, VNO, CUZ: Return-on-Tangible-Asset Comparison
For the REIT - Office subindustry, Alexandria Real Estate Equities's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs REITs Industry
For the REITs industry and Real Estate sector, Alexandria Real Estate Equities's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Alexandria Real Estate Equities's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 4.24% mean?
Alexandria Real Estate Equities (MEX:ARE) has a Return-on-Tangible-Asset of 4.24% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Alexandria Real Estate Equities and its competitors. This is 174% above median its historical median of 1.55. According to the industry distribution chart, Alexandria Real Estate Equities ranks #843 out of 933 companies in the REITs industry, placing it in the top 90.4%.
Is Alexandria Real Estate Equities' Return-on-Tangible-Asset too high?
Alexandria Real Estate Equities' current Return-on-Tangible-Asset of 4.24% is 174% above median its 10-year median of 1.55. The REITs industry median Return-on-Tangible-Asset is 3.27. Alexandria Real Estate Equities' value of 4.24% is 29.7% above this industry median. Based on the distribution chart, Alexandria Real Estate Equities ranks #843 out of 933 companies in the REITs industry, which is in the bottom quartile relative to peers. 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' Return-on-Tangible-Asset compare to BXP and VNO?
According to the REITs industry distribution chart, Alexandria Real Estate Equities ranks #843 out of 933 companies for Return-on-Tangible-Asset. This places Alexandria Real Estate Equities in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.27. Alexandria Real Estate Equities' value of 4.24% is 29.7% above this benchmark. While the company's 10-year median is 1.55 vs. the industry median of 3.27, Alexandria Real Estate Equities has consistently been above 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 Return-on-Tangible-Asset for a REITs company?
The median Return-on-Tangible-Asset among REITs companies is 3.27, based on 933 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alexandria Real Estate Equities's current Return-on-Tangible-Asset of 4.24% is 29.7% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Alexandria Real Estate Equities and its competitors. For the REITs industry, the median Return-on-Tangible-Asset is 3.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alexandria Real Estate Equities's current Return-on-Tangible-Asset is 4.24%, which is 174% above median its own 10-year median of 1.55. 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 MXN1,527.24, compared to a current price of MXN800.00 — trading 47.6% below its estimated fair value. The current Return-on-Tangible-Asset is 4.24%, which is 174% above median its 10-year median of 1.55 and 29.7% above the REITs industry median of 3.27. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Alexandria Real Estate Equities (MEX:ARE), the current Return-on-Tangible-Asset is 4.24% 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 MXN800.00 is trading 47.6% below its estimated GF Value™ of MXN1,527.24.
GuruFocus considers Alexandria Real Estate Equities to be Possible Value Trap.
Key valuation signals for MEX:ARE:
Return-on-Tangible-Asset: 4.24% (174% above median its 10-year median of 1.55)
GF Value™: MXN1,527.24 vs. price of MXN800.00 (47.6% below fair value)
Industry Position: 29.7% above the REITs median (#843 of 933)
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.
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