Apr. 1 at 10:53 PM
$ARE The market hates logical analysis but I’m gonna provide some anyways. First off it’s no secret that different REITs will a command significantly different valuations and it is often difficult to compare two directly. However let’s work with a key assumption that
$BXP AND
$ARE
both have some key similarities.
Namely
1. They both provide premium office real estate in premium US hubs. (ARE does only lab space)
2. They are both industry leaders
3. They are both facing potential headwinds from occupancy and supply
Now let’s consider the indisputable facts that
$ARE has significantly stickier tenants and a much stronger moat in its respective industry. Let’s also consider that
$ARE’s occupancy rate is currently 4% higher, and their debt to equity ratio is extremely trim compared to BXPs high leverage and weaker cash position. Lets also consider that lab space is a lot more “necessary” than traditional office space in the sense that wet labs are in person research is a requirement
