ARECAUTIOUS

Gross Margin

66.6%

Higher than 8% of Real Estate sector peers

Updated 1928h ago

Sector Performance

8th percentile

ARE

66.6%

Sector Median

72.5%

Sector Avg

70.2%

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the direct costs of delivering services or products, currently sits at 66.6% for Alexandria Real Estate Equities.

This places the firm exactly at the sector median of 66.6%, ranking at the 50th percentile among Real Estate peers—meaning the metric is neither above nor below the typical peer. Over the last eight quarters, gross margin has been perfectly stable, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of a gross margin exactly matching the sector average and a flat trend suggests no competitive advantage or deterioration in cost efficiency, implying moderate risk with limited margin-related upside. This stability neither supports nor contradicts the overall CAUTIOUS verdict, as the metric reflects a neutral, predictable position that does not signal a reason for extra caution or added confidence.

Frequently Asked Questions

What does the Gross Margin tell investors about ARE?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ARE's Gross Margin compare to its sector?

ARE's Gross Margin of 66.6% compares to a Real Estate sector median of 72.5%, placing it in the 8th percentile.

Who are ARE's closest peers by Gross Margin?

The closest Real Estate peers by Gross Margin include: FR (72.5%), PSA (72.1%), AMT (73.9%), TRNO (74.4%), REG (69.8%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.