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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Alexandria Real Estate EquitiesMEX:ARE 46 5-Year Yield-on-Cost % is 8.99 as of Jul. 16, 2026, which is 171% above its 10-year median of 3.32. GuruFocus rates MEX:ARE with a GF Score™ of 46/100 and a GF Value™ of MXN1,572.40 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 868 REITs companies, Alexandria Real Estate Equities ranks better than 56.57% on this metric.
The historical rank and industry rank for Alexandria Real Estate Equities's 5-Year Yield-on-Cost % or its related term are showing as below:
MEX:ARE'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.32 Med: 3.32 Max: 13.39
Current: 8.99
During the past 13 years, Alexandria Real Estate Equities's highest Yield on Cost was 13.39. The lowest was 2.32. And the median was 3.32.
MEX:ARE's 5-Year Yield-on-Cost % is ranked better than 56.57% of 868
companies
in the REITs industry
Industry Median: 7.32
vs MEX:ARE: 8.99
Alexandria Real Estate Equities (MEX:ARE) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Alexandria Real Estate Equities 5-Year Yield-on-Cost % Related Terms
MEX:ARE vs BXP, VNO, CUZ: 5-Year Yield-on-Cost % Comparison
For the REIT - Office subindustry, Alexandria Real Estate Equities's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs REITs Industry
For the REITs industry and Real Estate sector, Alexandria Real Estate Equities's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Alexandria Real Estate Equities's 5-Year Yield-on-Cost % falls into.
Alexandria Real Estate Equities 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Alexandria Real Estate Equities (MEX:ARE) has a 5-Year Yield-on-Cost % of 8.99 as of Jul. 16, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Alexandria Real Estate Equities and its competitors. This is 171% above median its historical median of 3.32. Over the past decade, Alexandria Real Estate Equities' 5-Year Yield-on-Cost % has ranged from 2.32 to 13.39. According to the industry distribution chart, Alexandria Real Estate Equities ranks #377 out of 868 companies in the REITs industry, placing it in the top 43.4%.
Is Alexandria Real Estate Equities' 5-Year Yield-on-Cost % too high?
Alexandria Real Estate Equities' current 5-Year Yield-on-Cost % of 8.99 is 171% above median its 10-year median of 3.32. Over the past 10 years, this metric has ranged from a low of 2.32 to a high of 13.39. The REITs industry median 5-Year Yield-on-Cost % is 7.32. Alexandria Real Estate Equities' value of 8.99 is 22.8% above this industry median. Based on the distribution chart, Alexandria Real Estate Equities ranks #377 out of 868 companies in the REITs industry, which is above the industry midpoint. Overall, Alexandria Real Estate Equities has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alexandria Real Estate Equities' 5-Year Yield-on-Cost % compare to BXP and VNO?
According to the REITs industry distribution chart, Alexandria Real Estate Equities ranks #377 out of 868 companies for 5-Year Yield-on-Cost %. This puts Alexandria Real Estate Equities in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 7.32. Alexandria Real Estate Equities' value of 8.99 is 22.8% above this benchmark. Historically, Alexandria Real Estate Equities' own 5-Year Yield-on-Cost % has ranged from 2.32 to 13.39 over the past decade. While the company's 10-year median is 3.32 vs. the industry median of 7.32, 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 5-Year Yield-on-Cost % for a REITs company?
The median 5-Year Yield-on-Cost % among REITs companies is 7.32, based on 868 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alexandria Real Estate Equities's current 5-Year Yield-on-Cost % of 8.99 is 22.8% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Alexandria Real Estate Equities and its competitors. For the REITs industry, the median 5-Year Yield-on-Cost % is 7.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alexandria Real Estate Equities's current 5-Year Yield-on-Cost % is 8.99, which is 171% above median its own 10-year median of 3.32. 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 MXN1,572.40, compared to a current price of MXN800.00 — trading 49.1% below its estimated fair value. The current 5-Year Yield-on-Cost % is 8.99, which is 171% above median its 10-year median of 3.32 and 22.8% above the REITs industry median of 7.32. Alexandria Real Estate Equities' overall GF Score™ is 46/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Alexandria Real Estate Equities (MEX:ARE), the current 5-Year Yield-on-Cost % is 8.99 as of Jul. 16, 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 49.1% below its estimated GF Value™ of MXN1,572.40.
GuruFocus considers Alexandria Real Estate Equities to be Possible Value Trap.
Key valuation signals for MEX:ARE:
5-Year Yield-on-Cost %: 8.99 (171% above median its 10-year median of 3.32)
GF Value™: MXN1,572.40 vs. price of MXN800.00 (49.1% below fair value)
Industry Position: 22.8% above the REITs median (#377 of 868)
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.
46GF Score
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