Head to Head Review: Alexandria Real Estate Equities (NYSE:ARE) & Alpine Income Property Trust (NYSE:PINE)

July 17, 2022 Beth McCandry

Alexandria Real Estate Equities (NYSE:ARE – Get Rating) and Alpine Income Property Trust (NYSE:PINE – Get Rating) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

dividends

Alexandria Real Estate Equities pays an annual dividend of $4.72 per share and has a dividend yield of 3.3%. Alpine Income Property Trust pays an annual dividend of $1.08 per share and has a dividend yield of 6.3%. Alexandria Real Estate Equities pays out 169.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alpine Income Property Trust pays out 135.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities has increased its dividend for 13 consecutive years and Alpine Income Property Trust has increased its dividend for 2 consecutive years. Alpine Income Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

profitability

This table compares Alexandria Real Estate Equities and Alpine Income Property Trust’s net margins, return on equity and return on assets.

	net margins	return on equity	return on assets
Alexandria Real Estate Equities	18.30%	2.28%	1.39%
Alpine Income Property Trust	29.48%	4.58%	2.22%

Institutional and Insider Ownership

94.5% of Alexandria Real Estate Equities shares are held by institutional investors. Comparatively, 55.9% of Alpine Income Property Trust shares are held by institutional investors. 1.0% of Alexandria Real Estate Equities shares are held by insiders. Comparatively, 0.5% of Alpine Income Property Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Alexandria Real Estate Equities has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Alpine Income Property Trust has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500

Valuation & Earnings

This table compares Alexandria Real Estate Equities and Alpine Income Property Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross revenue	Price/sales ratio	Net Income	Earnings Per Share	Price/earnings ratio
Alexandria Real Estate Equities	$2.11 billion	03/11	$571.25 million	$2.79	51.19
Alpine Income Property Trust	$30.13 million	6.78	$9.96 million	$0.80	21.60

Alexandria Real Estate Equities has higher revenue and earnings than Alpine Income Property Trust. Alpine Income Property Trust is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Alexandria Real Estate Equities and Alpine Income Property Trust, as reported by MarketBeat.com.

	sell ratings	hold ratings	Buy rating	Strong Buy Ratings	rating score
Alexandria Real Estate Equities	0	2	4	0	2.67
Alpine Income Property Trust	0	1	3	0	2.75

Alexandria Real Estate Equities currently has a consensus target price of $157.40, suggesting a potential upside of 10.22%. Alpine Income Property Trust has a consensus target price of $21.06, suggesting a potential upside of 21.88%. Given Alpine Income Property Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Alpine Income Property Trust is more favorable than Alexandria Real Estate Equities.

Summary

Alexandria Real Estate Equities beats Alpine Income Property Trust on 10 of the 17 factors compared between the two stocks.

About Alexandria Real Estate Equities

(Get Rating)

Alexandria Real Estate Equities, Inc. (NYSE:ARE), on the S&P 500^® urban office real estate investment trust (“REIT”), is the first, longest-tenured, and pioneering owner, operator, and developer uniquely focused on collaborative life science, technology, and agtech campuses in AAA innovation cluster locations, with a total market capitalization of $31.9 billion as of December 31, 2020, and an asset base in North America of 49.7 million square feet (“SF”). The asset base in North America includes 31.9 million RSF of operating properties and 3.3 million RSF of Class A properties undergoing construction, 7.1 million RSF of near-term and intermediate-term development and redevelopment projects, and 7.4 million SF of future development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, technology, and agtech campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, technology, and agtech companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

About Alpine Income Property Trust