Alexandria Real Estate EquitiesMEX:ARE 50 Return-on-Tangible-Equity is 9.28% as of Mar. 2026, which is 204% above its 10-year median of 3.05. GuruFocus rates MEX:ARE with a GF Score™ of 50/100 and a GF Value™ of MXN1,665.10 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 935 REITs companies, Alexandria Real Estate Equities ranks worse than 89.95% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Alexandria Real Estate Equities's annualized net income for the quarter that ended in Mar. 2026 was MXN26,086 Mil. Alexandria Real Estate Equities's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN281,139 Mil. Therefore, Alexandria Real Estate Equities's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.28%.
The historical rank and industry rank for Alexandria Real Estate Equities's Return-on-Tangible-Equity or its related term are showing as below:
MEX:ARE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.57 Med: 3.05 Max: 7.49
Current: -6.42
During the past 13 years, Alexandria Real Estate Equities's highest Return-on-Tangible-Equity was 7.49%. The lowest was -8.57%. And the median was 3.05%.
MEX:ARE's Return-on-Tangible-Equity is ranked worse than 89.95% of 935
companies
in the REITs industry
Industry Median: 6.23
vs MEX:ARE: -6.42
Alexandria Real Estate Equities (MEX:ARE) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Alexandria Real Estate Equities Return-on-Tangible-Equity Related Terms
Alexandria Real Estate Equities Return-on-Tangible-Equity 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-Equity Chart
MEX:ARE vs BXP, VNO, CUZ: Return-on-Tangible-Equity Comparison
For the REIT - Office subindustry, Alexandria Real Estate Equities's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Alexandria Real Estate Equities's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alexandria Real Estate Equities's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.28% mean?
Alexandria Real Estate Equities (MEX:ARE) has a Return-on-Tangible-Equity of 9.28% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alexandria Real Estate Equities and its competitors. This is 204% above median its historical median of 3.05. According to the industry distribution chart, Alexandria Real Estate Equities ranks #841 out of 935 companies in the REITs industry, placing it in the top 89.9%.
Is Alexandria Real Estate Equities' Return-on-Tangible-Equity too high?
Alexandria Real Estate Equities' current Return-on-Tangible-Equity of 9.28% is 204% above median its 10-year median of 3.05. The REITs industry median Return-on-Tangible-Equity is 6.23. Alexandria Real Estate Equities' value of 9.28% is 49% above this industry median. Based on the distribution chart, Alexandria Real Estate Equities ranks #841 out of 935 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-Equity compare to BXP and VNO?
According to the REITs industry distribution chart, Alexandria Real Estate Equities ranks #841 out of 935 companies for Return-on-Tangible-Equity. This places Alexandria Real Estate Equities in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.23. Alexandria Real Estate Equities' value of 9.28% is 49% above this benchmark. While the company's 10-year median is 3.05 vs. the industry median of 6.23, 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-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.23, based on 935 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 9.28% is 49% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alexandria Real Estate Equities and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.23 — 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-Equity is 9.28%, which is 204% above median its own 10-year median of 3.05. 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 MXN1,665.10, compared to a current price of MXN910.00 — trading 45.3% below its estimated fair value. The current Return-on-Tangible-Equity is 9.28%, which is 204% above median its 10-year median of 3.05 and 49% above the REITs industry median of 6.23. Alexandria Real Estate Equities' overall GF Score™ is 50/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Alexandria Real Estate Equities (MEX:ARE), the current Return-on-Tangible-Equity is 9.28% 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 MXN910.00 is trading 45.3% below its estimated GF Value™ of MXN1,665.10.
GuruFocus considers Alexandria Real Estate Equities to be Possible Value Trap.
Key valuation signals for MEX:ARE:
Return-on-Tangible-Equity: 9.28% (204% above median its 10-year median of 3.05)
GF Value™: MXN1,665.10 vs. price of MXN910.00 (45.3% below fair value)
Industry Position: 49% above the REITs median (#841 of 935)
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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