Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500<sup>®</sup> urban office real estate investment trust ("REIT"), is the first, longest-tenured, and pioneering owner, operator, and developer uniquely focused on collaborative life science, technology, and agtech campuses in AAA innovation cluster locations, with a total market capitalization of $31.9 billion as of December 31, 2020, and an asset base in North America of 49.7 million square feet ("SF"). The asset base in North America includes 31.9 million RSF of operating properties and 3.3 million RSF of Class A properties undergoing construction, 7.1 million RSF of near-term and intermediate-term development and redevelopment projects, and 7.4 million SF of future development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, technology, and agtech campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, technology, and agtech companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.
Wall Street Analyst Weigh In
A number of analysts have recently commented on ARE shares. Credit Suisse Group started coverage on Alexandria Real Estate Equities in a research report on Wednesday, June 22nd. They issued a "neutral" rating and a $140.00 price objective for the company. StockNews.com cut Alexandria Real Estate Equities from a "hold" rating to a "sell" rating in a research report on Saturday. JMP Securities cut their price objective on Alexandria Real Estate Equities from $230.00 to $200.00 and set a "market outperform" rating for the company in a research report on Wednesday, July 27th. Finally, Mizuho dropped their price target on Alexandria Real Estate Equities from $219.00 to $172.00 and set a "buy" rating for the company in a research report on Thursday, June 23rd. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat.com, Alexandria Real Estate Equities has an average rating of "Moderate Buy" and an average price target of $193.40.
Alexandria Real Estate Equities Price Performance
Shares of ARE traded up $3.12 during trading hours on Friday, hitting $170.09. 655,168 shares of the stock were exchanged, compared to its average volume of 1,044,228. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.23 and a current ratio of 0.23. Alexandria Real Estate Equities has a 12-month low of $130.00 and a 12-month high of $224.95. The company has a market cap of $27.75 billion, a price-to-earnings ratio of 91.94, a price-to-earnings-growth ratio of 2.57 and a beta of 0.92. The stock's 50-day moving average price is $149.34 and its two-hundred day moving average price is $173.24.
Alexandria Real Estate Equities (NYSE:ARE - Get Rating) last issued its earnings results on Monday, July 25th. The real estate investment trust reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.66 by $1.01. The company had revenue of $643.80 million during the quarter, compared to analysts' expectations of $633.13 million. Alexandria Real Estate Equities had a return on equity of 1.93% and a net margin of 12.54%. The firm's quarterly revenue was up 26.3% on a year-over-year basis. During the same period in the prior year, the business earned $1.93 EPS. Research analysts expect that Alexandria Real Estate Equities will post 8.41 earnings per share for the current year.
Alexandria Real Estate Equities Increases Dividend
The business also recently announced a quarterly dividend, which was paid on Friday, July 15th. Shareholders of record on Thursday, June 30th were issued a $1.18 dividend. This is a boost from Alexandria Real Estate Equities's previous quarterly dividend of $1.15. This represents a $4.72 annualized dividend and a yield of 2.78%. The ex-dividend date was Wednesday, June 29th. Alexandria Real Estate Equities's dividend payout ratio is presently 255.14%.
Insider Buying and Selling at Alexandria Real Estate Equities
In related news, major shareholder Real Estate Equitie Alexandria bought 3,500,000 shares of the company's stock in a transaction on Monday, June 27th. The stock was bought at an average cost of $1.00 per share, for a total transaction of $3,500,000.00. Following the acquisition, the insider now directly owns 4,555,077 shares in the company, valued at $4,555,077. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In other Alexandria Real Estate Equities news, major shareholder Real Estate Equitie Alexandria purchased 3,500,000 shares of the firm's stock in a transaction dated Monday, June 27th. The shares were acquired at an average price of $1.00 per share, with a total value of $3,500,000.00. Following the purchase, the insider now directly owns 4,555,077 shares in the company, valued at approximately $4,555,077. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, General Counsel Jackie B. Clem sold 794 shares of the company's stock in a transaction on Wednesday, July 27th. The shares were sold at an average price of $156.60, for a total value of $124,340.40. Following the completion of the transaction, the general counsel now directly owns 22,824 shares in the company, valued at approximately $3,574,238.40. The disclosure for this sale can be found here. 0.96% of the stock is owned by company insiders.
