Sean Anthony Eddy Well, phooey. Alexandria Real Estate (NYSE:ARE) turns out to be just another ordinary REIT, with lower likely shareholder returns than some of them. I had thought they were a much stronger grower than they are. But perhaps there was a clue in their unique mission statement (from the 8-K): To create and grow life science ecosystems and clusters that ignite and accelerate the world’s leasing innovators in their noble pursuit to advance human health by curing disease and improving nutriti ...

BrettCharlton The year was 2020. The day was February 24. And we had no idea what we were in for. We thought we did, at least to some degree. But how wrong we were. Yet, one way or the other, Warren Buffett didn't care. He flat-out said so in an interview with CNBC early that morning. The discussion began as the show flashed "breaking news" that the Dow was set "to fall 800 points at open." And that was after it had fallen more than 350 points in the previous two-day span. Yet there Buffett was, sitting cal ...

PASADENA, Calif., Feb. 1, 2024 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. ("Alexandria" or the "Company") (NYSE: ARE) today announced that it has priced a public offering of $400,000,000 aggregate principal amount of 5.250% senior notes due 2036 and $600,000,000 aggregate principal amount of 5.625% senior notes due 2054 (collectively, the "notes"). Goldman Sachs & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Barclays Capital ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a ...

PASADENA, Calif., Feb. 1, 2024 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. ("Alexandria" or the "Company") (NYSE: ARE) today announced that it is commencing an underwritten public offering, subject to market conditions, of two tranches of senior notes (the "notes"). Goldman Sachs & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC will act as joint book-running managers in connection with the public offering. The notes will be un ...

Alexandria Real Estate Equities, Inc. (NYSE:ARE) Q4 2023 Earnings Conference Call January 30, 2024 3:00 PM ET Company Participants Paula Schwartz - Investor Relations Joel Marcus - Executive Chairman & Founder Peter Moglia - Chief Executive Officer & Chief Investment Officer Hallie Kuhn - Senior Vice President of Science and Technology & Capital Markets Marc Binda - Chief Financial Officer & Treasurer Conference Call Participants Josh Dennerlein - Bank of America Merrill Lynch Anthony Paolone - JPMorgan Vik ...

Shares of Alexandria Real Estate Equities, Inc. (ARE) witnessed a marginal decline in the after-hours trading session on Jan 29 after it reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $2.28, missing the Zacks Consensus Estimate by a penny. However, the reported figure climbed 6.5% from the year-ago quarter.Results reflect lower-than-anticipated AFFO per share. However, a rise in revenues, aided by decent leasing activity and rental rate growth, supports the results to some e ...

For the quarter ended December 2023, Alexandria Real Estate Equities (ARE) reported revenue of $757.22 million, up 13% over the same period last year. EPS came in at $2.28, compared to $0.31 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $739.31 million, representing a surprise of +2.42%. The company delivered an EPS surprise of -0.44%, with the consensus EPS estimate being $2.29.While investors scrutinize revenue and earnings changes year-over-year and how they com ...

Economic Conditions and Inflation - The consumer price index (CPI) rose by approximately 3.4% during the year ended December 31, 2023, with a peak of 9.1% in the past three years[48]. - The company may face increased operating costs due to inflation, impacting general and administrative expenses, which include compensation and technology services[50]. - Increased construction costs due to inflation could adversely impact net investments in real estate and expected yields on development projects[50]. - Prolonged periods of higher interest rates may negatively impact the valuation of the real estate asset portfolio, leading to higher cost of capital and lower sales proceeds from future dispositions[52]. Lease and Rental Income - Approximately 94% of the company's leases are triple net leases, allowing the recovery of operating expenses from tenants[50]. - As of December 31, 2023, about 96% of leases contained effective annual rent escalations of approximately 3%[48]. - Revenues are primarily derived from rental payments and reimbursement of operating expenses; financial distress among tenants could adversely affect timely payments[52]. - The inability to renew leases or re-lease space on favorable terms may significantly affect the business, potentially leading to reduced cash flows[52]. Supply Chain and Construction Risks - The company has not encountered significant difficulties with suppliers and contractors, but future supply chain disruptions could impact construction projects[50]. - The company relies on third-party suppliers for construction materials and skilled labor, which may be affected by economic or political changes[50]. - Infrastructure improvements for the company's properties are significantly more costly than traditional office space, which may impact leasing capabilities if costs increase or delays occur[88]. Financial and Debt Management - Adverse changes in credit ratings could increase borrowing costs and limit access to financing, impacting financial condition and operations[58]. - The company may face challenges in refinancing debt due to stricter credit underwriting guidelines and potential shortages of available funds from lenders[59]. - Debt service obligations may lead to forced property disposals or defaults, adversely affecting cash flows and distributions to stockholders[62]. - The company may not be able to sell properties quickly to raise capital, which could adversely affect cash flows and the ability to repay debt[57]. Regulatory and Compliance Risks - The company is subject to federal and state income taxes if it fails to qualify as a REIT, which could significantly reduce funds available for investment or distribution to stockholders[80]. - The company’s ability to qualify as a REIT may be affected by changes in federal income tax rules, which are under constant review by Congress and the IRS[82]. - The California Privacy Rights Act (CPRA) became effective on January 1, 2023, expanding consumer rights and increasing compliance obligations for the company[138]. - The company is subject to potential litigation and regulatory fines due to compliance failures, which could divert management resources and impact operations[142]. Market and Economic Volatility - Economic volatility and government policies may adversely affect overall economic growth and profitability, impacting tenant spending and business confidence[112]. - The company may experience adverse effects from market volatility, which could impact its financial condition and access to capital[146]. - The U.S. federal government's sovereign credit rating was downgraded from "AAA" to "AA+" in 2011, with the potential for further downgrades due to fiscal impasses, which could adversely affect market conditions and borrowing costs[151]. Tenant and Industry-Specific Risks - The company's tenant base is concentrated in the life science, agtech, and technology industries, making it susceptible to fluctuations in research and development budgets and funding availability[90]. - Recent bank failures, including Silicon Valley Bank and Signature Bank, may affect tenants' liquidity and ability to meet lease obligations, potentially impacting the company's financial results[88]. - Regulatory approval processes for life science products are costly and unpredictable, which may delay or prevent tenants from bringing products to market[94]. - Agtech industry tenants face risks including uncertain regulatory environment, seasonality, transportation issues, rising costs, labor strikes, and rapid technological changes[98]. Environmental and Climate Change Risks - Approximately 40% of the properties owned by the company are located in California, where climate change has increased the risk of wildfires, impacting utility service reliability[129]. - The company may incur significant costs related to compliance with environmental laws, including potential liabilities for hazardous substances at properties[130]. - Changes in federal, state, and local regulations regarding climate change could lead to increased capital expenditures for energy efficiency improvements without a corresponding revenue increase[129]. Cybersecurity and Data Security Risks - Cybersecurity threats, including ransomware attacks, pose significant risks to the company's operations and data security[140]. - The company relies on third-party service providers for critical business systems, which introduces additional cybersecurity vulnerabilities[140]. - A significant security incident could lead to theft of assets, operational inefficiencies, and reputational harm for the company[140]. Stockholder and Distribution Risks - The company is required to distribute at least 90% of its taxable income to stockholders, which may be affected by net cash provided by operating activities and capital expenditures[71]. - The company may not continue its current level of distributions to stockholders, which could negatively impact its stock price[69]. - The company’s Board of Directors can change business policies without stockholder approval, which could adversely affect distributions to stockholders[84].

DNY59 Co-produced by Austin Rogers There is a mountain of cash sitting on the sidelines. Yes, even after the stock market's recent rally back near all-time highs. Trillions of dollars is sitting in money market accounts, earning 5%+ yields. Earning over 5% on virtually risk-free cash is an irresistible proposition for many investors and savers. That's why nearly $6 trillion is currently housed in money market funds ("MMFs"). The Daily Spark Notice that this level of cash in MMFs is 50% higher than the ...