Thesis Review - Alexandria Real Estate Equities Inc (ARE) continues to trade at a depressed P/FFO multiple of 9.5x, which has improved since the initial bullish investment case due to increased earnings and a flat share price [3] - FFO per share increased by 5.4% or $2.36 in Q2 2024 compared to Q2 2023, leading to an annualized FFO payout ratio of 55% [3] - Management reiterated the midpoint of full-year 2024 FFO per share guidance at $9.47, representing a 5.6% increase compared to 2023 [3] - Same store NOI advanced by 3.9% on a cash basis, driven by embedded lease escalators and positive leasing momentum [3] - Total rental/lease increase for H1 2024 was 15% on a cash basis, with rental increases from releasing activity at 3.7% [3] - ARE delivered ~285,000 square feet of new space in Q2 2024, which was 100% leased, with 92% associated with mega campuses [3] - Remaining projects expected to be completed in 2024 and 2025 are already 87% leased, with NOI stabilization expected in early 2026 [3] - Incremental NOI from new development activity is projected at $480 million, significant compared to Q2 2024 annualized NOI of ~$1.9 billion [3] - ARE aims to increase the share of rental/lease income from mega campuses from 74% to 90% over the next few years through targeted organic CapEx activity [3] - ARE is divesting non-core assets, generating $60 million in Q2 2024, with total expected proceeds from non-core asset monetization estimated at $807 million [3] - The company maintains a robust balance sheet with a strong investment grade credit rating and a well-laddered debt maturity profile with a weighted average term to maturity of 13 years [3] Performance and Market Response - Since the initial bull thesis, ARE has performed somewhat in line with the overall REIT market but has shown a notable divergence starting from July, leading to negative alpha [1] - ARE has not responded well to the improved interest rate outlook, likely due to its well-laddered debt maturity profile, which reduces the impact of cheaper debt financing [4] Strategic Focus - ARE emphasizes its first-mover advantage in top life science clusters, high-quality assets in mega campuses, and efforts to reduce non-mega campus pipeline [3] - The company is focused on re-development and development efforts in its mega campuses and the sale of non-core assets to refine its footprint [3] Growth and De-risking - ARE's business is growing despite the single-digit multiple and struggling office sector, with positive organic growth and incremental earnings from development activity [3] - The current growth agenda is set to further de-risk the business and deliver additional cash flow generation [4] - The risk of increased vacancy rates is mitigated by strong fundamentals, core performance metrics, and new growth projects funded sustainably [4] Conclusion - ARE's business is strong, exhibiting clear patterns of continued and stable growth, with all core performance metrics showing positive trends [4] - The bullish stance on Alexandria Real Estate Equities is maintained due to its strong fundamentals and growth prospects [5]

DNY59/E+ via Getty Images Hi, my name is Austin, and I'm a chartaholic. I love words, don't get me wrong, but nothing can communicate the narrative behind data like a chart. Every week in articles like this, I share a selection of the most interesting charts that have crossed my screen while offering some commentary to make sense of them. The goal is to learn a thing or two about the economy in the process of becoming a better investor within it. Let's get to it then. Here's where we're going today: US ...

PASADENA, Calif., Sept. 3, 2024 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced that the company will conduct a conference call and audio webcast on Tuesday, October 22, 2024, at 3:00 p.m. Eastern Time (ET), in conjunction with the release of its third quarter 2024 operating and financial results. Alexandria will release its operating and financial results after the market closes on Monday, October 21, 2024.To participate in this conference call, dial (833) 366-1125 (U.S.) ...

Vivek Vishwakarma If you're confused about where interest rates are headed not only in September, but for the rest of the year, then you can join the club. First, there was the July Jobs report, which indicated that the unemployment rate shot up to 4.3%, a three-year high, suggesting the need for a rate cut. That was then followed by a strong retail report, indicating that consumers remain confident, which suggests continued potential for elevated rates. Then couple that with the fact that 59% of Americans ...

SIphotography The past few weeks have been very volatile as a result of: Growing recession fears The Japanese carry-trade thing Second quarter result announcements And Iran's anticipated attack on Israel It has caused some of my Top Picks to drop quite a bit, and today I want to review whether they present compelling opportunities to buy the dip. Let's start with Patria Investments, which is my biggest non-REIT position today: Patria Investments (PAX) For those of you who are not familiar with Patria, ...

Colin Anderson Productions pty ltdThe market has swung wildly in recent days, with DJIA dropping by over 1,000 points this past Monday and followed by a 300 rise the next day, and another drop on Wednesday. If bipolar is one word to describe the market, then this week would be the one to say it. One of the key drivers behind the volatility is fear around an economic slowdown due to lackluster job growth in July, making a September rate cut all the more likely. While a cooling labor market may be unwelco ...

A scientist looks through a microscope. Morsa Images Investing in real estate investment trusts (REITs) can be a great way to build wealth. This is precisely why I own 10 REITs in my portfolio. However, I believe there are at least a couple of important factors to take into consideration before buying a REIT. These are besides the usual suspects, such as an investment-grade balance sheet and well-covered dividend. For one, a REIT must be operating in an industry in which there is growth potential. Simply ...

Alexandria Real Estate Equities, Inc. (NYSE:ARE) Q2 2024 Earnings Conference Call July 23, 2024 3:00 PM ET Company Participants Paula Schwartz - Rx Communications Group LLC, Managing Director Joel S. Marcus - Executive Chairman and Founder Hallie Kuhn - Senior Vice President of Science and Technology and Capital Markets Peter M. Moglia - Chief Executive Officer and Chief Investment Officer Marc E. Binda - Chief Financial Officer and Treasurer Conference Call Participants Farrell Granath - Bank of America An ...

Alexandria Real Estate Equities, Inc. (ARE) reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $2.36, which beat the Zacks Consensus Estimate of $2.34. The reported figure also climbed 5.4% from the year-ago quarter.Results reflected a rise in revenues, aided by decent leasing activity and rental rate growth.Alexandria maintained its 2024 AFFO per share outlook.Total revenues of $ 766.7 million increased 7.4% on a year-over-year basis. However, revenues missed the consensus esti ...

Alexandria Real Estate Equities (ARE) reported $766.73 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 7.4%. EPS of $2.36 for the same period compares to $0.51 a year ago.The reported revenue represents a surprise of -1.23% over the Zacks Consensus Estimate of $776.26 million. With the consensus EPS estimate being $2.34, the EPS surprise was +0.85%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expect ...