Alexandria Real Estate Equities, Inc.’s (ARE) portfolio of high-quality, niche assets — life science, technology and agtech properties — in strategic markets is well-poised to benefit from solid demand for life science assets due to the increasing need for drug research and innovation. However, a huge development outlay raises the risks of cost overruns and lease-up concerns amid macroeconomic uncertainty.Recently, Alexandria announced the completion of the sale of 1165 Eastlake Avenue East in its Lake Unio ...

Shares of Alexandria Real Estate Equities, Inc. (ARE) were up more than 2% in Friday’s trading session after the REIT announced the completion of the sale of 1165 Eastlake Avenue East in its Lake Union submarket of Seattle. This was done through an affiliate to the longstanding tenant Fred Hutch Cancer Center (Fred Hutch). The move aligns with the company’s capital recycling strategy.The sale of the single-tenant Class A+ life science facility, encompassing 100,086 rentable square feet (RSF), was carried ou ...

PASADENA, Calif., Sept. 12, 2024 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative mega campuses in AAA life science innovation cluster locations, today announced the completion of the sale, through an affiliate, of 1165 Eastlake Avenue East in its Lake Union submarket of Seattle to longstanding tenant Fred Hutch Cancer Center (Fred Hutch). The fully leased 100,086 RSF single-tenant Class A+ ...

TanyaJoy/iStock via Getty ImagesContinuing with my venture into income analysis, including a predominant focus on REITs, today I'm focusing on one such stock that I own, which also operates in my main field of analysis of technology, Alexandria Real Estate Equities (NYSE:ARE). The company has a very strong moat in life sciences properties, and I consider the stock to be currently undervalued. Despite my bullish long-term outlook on the company, it is vulnerable to broader risks with the American macroec ...

MicroStockHub Co-produced by Austin Rogers. Real estate is back! After a long and painful bear market in real estate investment trusts (“REITs”) from 2022 to the first half of 2024, investors finally seem to be warming up to REITs again. Over the last 6 months, the Vanguard Real Estate Index Fund ETF Shares (VNQ), a good proxy for REITs, recently overtook the S&P 500 (SPY) in total returns. Data by YCharts The big tech stocks that have driven up the major indices are seeing substantial selling pressure, ...

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, ...