According to Zacks, “Shares of Alexandria have underperformed its industry, over the past year. Despite the company posting better-than-expected results in first-quarter 2019, the trend in estimate revisions of 2019 funds from operations (FFO) per share does not indicate an upbeat outlook for the company. The first-quarter 2019 results were backed by strong leasing velocity and same-property net operating income (NOI) growth. Amid robust fundamentals of the life-science industry, Alexandria is focusing on strategic development and redevelopment projects. However, a significant development pipeline increases operational risks and exposes the company to rising construction costs. Further, it aims to monetize operating assets to fund its pipeline. However, the near-term dilutive impact on earnings from these assets cannot be bypassed. In addition, international footprint exposes the company to currency fluctuation risks.”
Several other equities research analysts have also commented on the company. Barclays lowered Alexandria Real Estate Equities from an overweight rating to an equal weight rating and boosted their price objective for the stock from $130.00 to $136.00 in a research note on Thursday, April 4th. CIBC reiterated a buy rating and set a $23.00 price objective on shares of Alexandria Real Estate Equities in a research note on Tuesday, January 15th. Mitsubishi UFJ Financial Group boosted their price objective on Alexandria Real Estate Equities to $132.00 and gave the stock a neutral rating in a research note on Thursday, March 7th. Canaccord Genuity reiterated an average rating and set a $25.00 price objective on shares of Alexandria Real Estate Equities in a research note on Thursday, March 7th. Finally, ValuEngine upgraded Alexandria Real Estate Equities from a hold rating to a buy rating in a research note on Tuesday, January 29th. One research analyst has rated the stock with a sell rating, three have given a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock has an average rating of Buy and a consensus target price of $111.38.
NYSE:ARE opened at $142.73 on Tuesday. Alexandria Real Estate Equities has a 12 month low of $109.04 and a 12 month high of $144.46. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.71. The company has a market cap of $15.90 billion, a price-to-earnings ratio of 21.63, a PEG ratio of 4.69 and a beta of 0.90.
Alexandria Real Estate Equities (NYSE:ARE) last posted its quarterly earnings data on Monday, April 29th. The real estate investment trust reported $1.11 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.68 by ($0.57). Alexandria Real Estate Equities had a return on equity of 4.91% and a net margin of 27.29%. The firm had revenue of $358.80 million for the quarter, compared to analysts’ expectations of $356.93 million. During the same quarter last year, the firm posted $1.62 earnings per share. Alexandria Real Estate Equities’s quarterly revenue was up 12.1% on a year-over-year basis. Equities research analysts forecast that Alexandria Real Estate Equities will post 6.96 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Monday, April 15th. Stockholders of record on Friday, March 29th were given a $0.97 dividend. The ex-dividend date of this dividend was Thursday, March 28th. This represents a $3.88 dividend on an annualized basis and a dividend yield of 2.72%. Alexandria Real Estate Equities’s dividend payout ratio (DPR) is presently 58.79%.
In other news, CEO Stephen Richardson sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 19th. The stock was sold at an average price of $135.37, for a total value of $1,353,700.00. Following the completion of the sale, the chief executive officer now directly owns 182,475 shares in the company, valued at $24,701,640.75. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Thomas J. Andrews sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, February 14th. The shares were sold at an average price of $134.18, for a total value of $3,354,500.00. Following the completion of the sale, the insider now owns 146,916 shares of the company’s stock, valued at $19,713,188.88. The disclosure for this sale can be found here. Insiders sold 132,551 shares of company stock valued at $18,276,765 over the last 90 days. Company insiders own 1.43% of the company’s stock.
Several hedge funds have recently bought and sold shares of ARE. Citigroup Inc. grew its position in shares of Alexandria Real Estate Equities by 583.3% in the fourth quarter. Citigroup Inc. now owns 1,082,030 shares of the real estate investment trust’s stock valued at $124,693,000 after purchasing an additional 923,675 shares in the last quarter. Norges Bank purchased a new stake in shares of Alexandria Real Estate Equities in the fourth quarter valued at approximately $99,599,000. Lasalle Investment Management Securities LLC grew its position in shares of Alexandria Real Estate Equities by 981.6% in the fourth quarter. Lasalle Investment Management Securities LLC now owns 918,415 shares of the real estate investment trust’s stock valued at $105,838,000 after purchasing an additional 833,504 shares in the last quarter. Resolution Capital Ltd grew its position in shares of Alexandria Real Estate Equities by 61.3% in the fourth quarter. Resolution Capital Ltd now owns 1,499,119 shares of the real estate investment trust’s stock valued at $172,758,000 after purchasing an additional 570,005 shares in the last quarter. Finally, Vanguard Group Inc grew its position in shares of Alexandria Real Estate Equities by 2.3% in the third quarter. Vanguard Group Inc now owns 16,605,056 shares of the real estate investment trust’s stock valued at $2,088,750,000 after purchasing an additional 377,569 shares in the last quarter. Institutional investors and hedge funds own 98.53% of the company’s stock.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc (NYSE:ARE), an S&P 500 company, is an urban office real estate investment trust ("REIT") uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $18.4 billion and an asset base in North America of 33.1 million square feet ("SF") as of December 31, 2018.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Alexandria Real Estate Equities Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alexandria Real Estate Equities and related companies with MarketBeat.com's FREE daily email newsletter.