ARE vs. DLR: A Head-to-Head Stock Comparison

Updated on October 8, 2025

Here’s a clear look at ARE and DLR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Both ARE and DLR are Real Estate Investment Trusts (REITs). These entities are required to distribute the majority of their taxable income to shareholders, often resulting in higher dividend yields.

Symbol	ARE	DLR
Company Name	Alexandria Real Estate Equities, Inc.	Digital Realty Trust, Inc.
Country	United States	United States
GICS Sector	Real Estate	Real Estate
GICS Industry	Office REITs	Specialized REITs
Market Capitalization	13.66 billion USD	61.46 billion USD
Exchange	NYSE	NYSE
Listing Date	May 28, 1997	October 29, 2004
Security Type	REIT	REIT

Historical Performance

This chart compares the performance of ARE and DLR by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ARE vs. DLR: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	ARE	DLR
5-Day Price Return	-4.02%	2.36%
13-Week Price Return	6.60%	3.10%
26-Week Price Return	-12.24%	21.16%
52-Week Price Return	-30.67%	12.50%
Month-to-Date Return	-4.02%	2.36%
Year-to-Date Return	-18.00%	-0.21%
10-Day Avg. Volume	1.37M	1.39M
3-Month Avg. Volume	1.55M	1.66M
3-Month Volatility	29.12%	20.80%
Beta	1.37	1.14

Profitability

Return on Equity (TTM)

ARE

-0.06%

Office REITs Industry

Max: 9.67%
Q3: 6.69%
Median: 5.08%
Q1: 1.57%
Min: -0.31%

ARE has a negative Return on Equity of -0.06%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

DLR

6.37%

Specialized REITs Industry

Max: 21.01%
Q3: 17.78%
Median: 8.42%
Q1: 6.83%
Min: -1.71%

DLR’s Return on Equity of 6.37% is in the lower quartile for the Specialized REITs industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ARE vs. DLR: A comparison of their Return on Equity (TTM) against their respective Office REITs and Specialized REITs industry benchmarks.

Net Profit Margin (TTM)

ARE

-0.32%

Office REITs Industry

Max: 85.58%
Q3: 47.35%
Median: 43.44%
Q1: 6.51%
Min: -1.31%

In the Office REITs industry, Net Profit Margin is often not the primary profitability metric.

DLR

23.98%

Specialized REITs Industry

Max: 70.20%
Q3: 38.00%
Median: 23.98%
Q1: 6.53%
Min: -1.41%

In the Specialized REITs industry, Net Profit Margin is often not the primary profitability metric.

ARE vs. DLR: A comparison of their Net Profit Margin (TTM) against their respective Office REITs and Specialized REITs industry benchmarks.

Operating Profit Margin (TTM)

ARE

12.67%

Office REITs Industry

Max: 115.21%
Q3: 70.41%
Median: 29.81%
Q1: 26.15%
Min: 12.67%

In the Office REITs industry, Operating Profit Margin is often not the primary measure of operational efficiency.

DLR

12.40%

Specialized REITs Industry

Max: 107.13%
Q3: 54.03%
Median: 42.12%
Q1: 16.28%
Min: 5.86%

In the Specialized REITs industry, Operating Profit Margin is often not the primary measure of operational efficiency.

ARE vs. DLR: A comparison of their Operating Profit Margin (TTM) against their respective Office REITs and Specialized REITs industry benchmarks.

Profitability at a Glance

Symbol	ARE	DLR
Return on Equity (TTM)	-0.06%	6.37%
Return on Assets (TTM)	-0.03%	3.00%
Net Profit Margin (TTM)	-0.32%	23.98%
Operating Profit Margin (TTM)	12.67%	12.40%
Gross Profit Margin (TTM)	71.25%	57.91%

Financial Strength

Current Ratio (MRQ)

ARE

0.40

Office REITs Industry

Max: 2.11
Q3: 1.13
Median: 0.63
Q1: 0.40
Min: 0.14

ARE’s Current Ratio of 0.40 aligns with the median group of the Office REITs industry, indicating that its short-term liquidity is in line with its sector peers.

DLR

1.35

Specialized REITs Industry

Max: 1.74
Q3: 1.08
Median: 0.58
Q1: 0.34
Min: 0.10

DLR’s Current Ratio of 1.35 is in the upper quartile for the Specialized REITs industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ARE vs. DLR: A comparison of their Current Ratio (MRQ) against their respective Office REITs and Specialized REITs industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARE

0.77

Office REITs Industry

Max: 1.63
Q3: 1.36
Median: 0.87
Q1: 0.77
Min: 0.44

ARE’s Debt-to-Equity Ratio of 0.77 is typical for the Office REITs industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

DLR

0.81

Specialized REITs Industry

Max: 5.86
Q3: 3.80
Median: 1.22
Q1: 0.73
Min: 0.16

DLR’s Debt-to-Equity Ratio of 0.81 is typical for the Specialized REITs industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARE vs. DLR: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Office REITs and Specialized REITs industry benchmarks.

Interest Coverage Ratio (TTM)

ARE

2.75

Office REITs Industry

Max: 3.98
Q3: 3.17
Median: 1.73
Q1: 1.18
Min: 0.20

ARE’s Interest Coverage Ratio of 2.75 is positioned comfortably within the norm for the Office REITs industry, indicating a standard and healthy capacity to cover its interest payments.

DLR

2.12

Specialized REITs Industry

Max: 5.24
Q3: 3.92
Median: 2.94
Q1: 2.07
Min: 1.14

DLR’s Interest Coverage Ratio of 2.12 is positioned comfortably within the norm for the Specialized REITs industry, indicating a standard and healthy capacity to cover its interest payments.

ARE vs. DLR: A comparison of their Interest Coverage Ratio (TTM) against their respective Office REITs and Specialized REITs industry benchmarks.

Financial Strength at a Glance

Symbol	ARE	DLR
Current Ratio (MRQ)	0.40	1.35
Quick Ratio (MRQ)	0.40	1.35
Debt-to-Equity Ratio (MRQ)	0.77	0.81
Interest Coverage Ratio (TTM)	2.75	2.12

Growth

Revenue Growth

ARE vs. DLR: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARE vs. DLR: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ARE

6.29%

Office REITs Industry

Max: 8.13%
Q3: 6.22%
Median: 5.09%
Q1: 3.83%
Min: 2.00%

With a Dividend Yield of 6.29%, ARE offers a more attractive income stream than most of its peers in the Office REITs industry, signaling a strong commitment to shareholder returns.

DLR

2.84%

Specialized REITs Industry

Max: 6.92%
Q3: 5.29%
Median: 4.71%
Q1: 3.25%
Min: 2.16%

DLR’s Dividend Yield of 2.84% is in the lower quartile for the Specialized REITs industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ARE vs. DLR: A comparison of their Dividend Yield (TTM) against their respective Office REITs and Specialized REITs industry benchmarks.

Dividend Payout Ratio (TTM)

ARE

174.29%

Office REITs Industry

Max: 277.06%
Q3: 174.29%
Median: 94.90%
Q1: 92.69%
Min: 21.37%

ARE’s Dividend Payout Ratio of 174.29% is within the typical range for the Office REITs industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

DLR

123.72%

Specialized REITs Industry

Max: 338.69%
Q3: 202.75%
Median: 125.21%
Q1: 107.89%
Min: 16.73%

DLR’s Dividend Payout Ratio of 123.72% is within the typical range for the Specialized REITs industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARE vs. DLR: A comparison of their Dividend Payout Ratio (TTM) against their respective Office REITs and Specialized REITs industry benchmarks.

Dividend at a Glance

Symbol	ARE	DLR
Dividend Yield (TTM)	6.29%	2.84%
Dividend Payout Ratio (TTM)	174.29%	123.72%

Valuation

Price-to-Earnings Ratio (TTM)

ARE

Office REITs Industry

Max: 78.58
Q3: 40.95
Median: 23.89
Q1: 14.94
Min: 5.75

The P/E Ratio is often not the primary metric for valuation in the Office REITs industry.

DLR

43.49

Specialized REITs Industry

Max: 119.95
Q3: 64.19
Median: 27.78
Q1: 23.88
Min: 5.25

The P/E Ratio is often not the primary metric for valuation in the Specialized REITs industry.

ARE vs. DLR: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Office REITs and Specialized REITs industry benchmarks.

Price-to-Sales Ratio (TTM)

ARE

4.51

Office REITs Industry

Max: 14.25
Q3: 8.80
Median: 6.86
Q1: 4.53
Min: 2.59

In the lower quartile for the Office REITs industry, ARE’s P/S Ratio of 4.51 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

DLR

10.43

Specialized REITs Industry

Max: 10.35
Q3: 8.84
Median: 8.28
Q1: 5.39
Min: 1.68

With a P/S Ratio of 10.43, DLR trades at a valuation that eclipses even the highest in the Specialized REITs industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ARE vs. DLR: A comparison of their Price-to-Sales Ratio (TTM) against their respective Office REITs and Specialized REITs industry benchmarks.

Price-to-Book Ratio (MRQ)

ARE

0.73

Office REITs Industry

Max: 2.08
Q3: 1.35
Median: 1.06
Q1: 0.72
Min: 0.45

ARE’s P/B Ratio of 0.73 is within the conventional range for the Office REITs industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

DLR

2.56

Specialized REITs Industry

Max: 13.73
Q3: 7.48
Median: 2.56
Q1: 1.70
Min: 0.71

DLR’s P/B Ratio of 2.56 is within the conventional range for the Specialized REITs industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ARE vs. DLR: A comparison of their Price-to-Book Ratio (MRQ) against their respective Office REITs and Specialized REITs industry benchmarks.

Valuation at a Glance

Symbol	ARE	DLR
Price-to-Earnings Ratio (TTM)	--	43.49
Price-to-Sales Ratio (TTM)	4.51	10.43
Price-to-Book Ratio (MRQ)	0.73	2.56
Price-to-Free Cash Flow Ratio (TTM)	578.00	1,765.57