Alexandria Real Estate Equities, Inc. (ARE) is a life science REIT. Valued at $20.48 billion by market cap, the REIT is the preeminent and longest-tenured owner, operator, and developer of collaborative life science mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. It has a total market capitalization of $34.4 billion and an asset base in North America of 74.1 million SF as of March 31, 2024. The leading life sciences REIT is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Monday, July 22.
Ahead of the event, analysts expect ARE to report a profit of $2.35 per share on a diluted basis, up 4.9% from $2.24 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. During the previous quarter, the company reported strong rental rate growth for lease renewals and releasing space at 33% and 19% on a cash basis. Its outlook for rental rate growth for 2024 remains robust at 11% to 19% and 5% to 13% on a cash basis.
For fiscal 2024, analysts expect ARE to report EPS of $9.49, up 5.8% from $8.97 in fiscal 2023.
ARE stock has underperformed the S&P 500’s ($SPX) 24.3% gains over the past 52 weeks, with shares up 0.8% during this period. However, it has outperformed the S&P 500 Real Estate Sector SPDR’s (XLRE) 0.5% return over the same time frame.
On Apr. 22, ARE reported its Q1 results. Its adjusted funds from operations were $403.9 million, or $2.35 per share, surpassing the consensus estimate of $2.31. The company’s revenue was $769.1 million, beating the consensus estimate of $765.9 million. Its net income was $166.9 million or 97 cents per share. ARE expects full-year funds from operations to be between $9.41 and $9.53 per share. ARE shares closed up more than 2% on the day the results were released but have been sideways since then.
Analysts’ consensus opinion on ARE stock is bullish, with a “Strong Buy” rating overall. Out of 14 analysts covering the stock, 12 advise a “Strong Buy” rating, one has a “Moderate Buy” rating, and one suggests a “Hold.” The average analyst price target for ARE is $141.31, indicating a 20.7% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
