Alexandria Real Estate: Top Value Pick in Our Portfolio

For our investment strategy, the most sensible choice for reinvesting capital has consistently been, and continues to be, Alexandria Real Estate Equities (ARE). This company stands out as one of our most substantial overweight holdings as we approach the year 2025.

Over the past few years, we have maintained a steadfast commitment to Alexandria Real Estate, bolstered throughout by what we viewed as an excessively harsh market valuation. However, entering 2025, our resolve faced considerable strain as the company’s circumstances became markedly more intricate and challenging.

The stock market’s response to Alexandria during the final quarter of 2025 was both rapid and pronounced, with a sharp negative reaction that caught many off guard. Despite these turbulent developments, we remained confident in the underlying strengths of the business.

In our detailed assessment, Alexandria’s sharply declining share price has not aligned with the long-term fair value that we have meticulously calculated. This divergence has created a rare opportunity, positioning the stock as one of the standout investment values within our entire portfolio of holdings today.

This perspective underscores our belief that patient investors who look beyond short-term volatility can uncover substantial potential in Alexandria Real Estate. The company’s strategic positioning in high-demand sectors, combined with its robust asset base, supports our conviction that the current pricing reflects an overreaction rather than any fundamental deterioration.

As market dynamics continue to evolve, Alexandria’s capacity to navigate complexities while delivering on its core competencies reinforces its appeal. We see this as a prime example of how undervalued assets can emerge during periods of uncertainty, offering discerning investors a chance to build meaningful positions at attractive valuations.