Alexandria Real Estate Equities
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Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500<sup>®</sup> 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 $21.8 billion and an asset base in North America of 33.7 million square feet ("SF") as of March 31, 2019. The last earnings update was 48 days ago. More info.
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ARE Share Price and Events
7 Day Returns
1 Year Returns
ARE Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Alexandria Real Estate Equities (ARE) | -0.8% | 2% | 6.8% | 18% | 52.3% | 94.3% |
| US REITs | 0.6% | 1.6% | 5% | 12.9% | 10.5% | 25.8% |
| US Market | 0.3% | 0.4% | 0.6% | 0.7% | 37.2% | 37.4% |
1 Year Return vs Industry and Market
- ARE outperformed the REITs industry which returned 12.9% over the past year.
- ARE outperformed the Market in United States of America which returned 0.7% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Alexandria Real Estate Equities
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Alexandria Real Estate Equities.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations | |
| Levered Adjusted Funds From Operations | Average of 4 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| REITs Unlevered Beta | Simply Wall St/ S&P Global | 0.5 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.499 (1 + (1- 21%) (36.15%)) |
0.759 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%) |
7.5% |
Discounted Cash Flow Calculation for NYSE:ARE using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model
The calculations below outline how an intrinsic value for Alexandria Real Estate Equities is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Alexandria Real Estate Equities is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.
| Adjusted Funds From Operations (AFFO) (USD, Millions) | Source |
Present Value Discounted (@ 7.5%) |
|
|---|---|---|---|
| 2019 | 622.39 | Analyst x7 | 578.98 |
| 2020 | 693.12 | Analyst x6 | 599.80 |
| 2021 | 780.85 | Analyst x2 | 628.59 |
| 2022 | 849.17 | Est @ 8.75% | 635.91 |
| 2023 | 908.14 | Est @ 6.94% | 632.63 |
| 2024 | 959.72 | Est @ 5.68% | 621.93 |
| 2025 | 1,005.73 | Est @ 4.79% | 606.29 |
| 2026 | 1,047.72 | Est @ 4.18% | 587.55 |
| 2027 | 1,086.93 | Est @ 3.74% | 567.02 |
| 2028 | 1,124.30 | Est @ 3.44% | 545.60 |
| Present value of next 10 years cash flows | $6,004.29 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $1,124.30 × (1 + 2.73%) ÷ (7.5% – 2.73%) |
$24,223.80 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $24,223.80 ÷ (1 + 7.5%)10 |
$11,755.43 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $6,004.29 + $11,755.43 |
$17,759.72 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $17,759.72 / 112.94 |
$157.26 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $157.26 |
| Current discount | Discount to share price of
$149.16
= -1 x ($149.16 - $157.26) / $157.26 |
5.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Alexandria Real Estate Equities's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Alexandria Real Estate Equities's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Alexandria Real Estate Equities's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Alexandria Real Estate Equities's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $3.36 |
| NYSE:ARE Share Price ** | NYSE (2019-06-17) in USD | $149.16 |
| United States of America REITs Industry PE Ratio | Median Figure of 155 Publicly-Listed REITs Companies | 32.95x |
| United States of America Market PE Ratio | Median Figure of 3,093 Publicly-Listed Companies | 17.68x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Alexandria Real Estate Equities.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:ARE Share Price ÷ EPS (both in USD) = 149.16 ÷ 3.36 |
44.43x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Alexandria Real Estate Equities is overvalued based on earnings compared to the US REITs industry average.
- Alexandria Real Estate Equities is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Alexandria Real Estate Equities's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 44.43x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
-5.1%per year |
| United States of America REITs Industry PEG Ratio | Median Figure of 142 Publicly-Listed REITs Companies | 2.42x |
| United States of America Market PEG Ratio | Median Figure of 2,125 Publicly-Listed Companies | 1.52x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 44.43x ÷ -5.1% |
-8.78x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Alexandria Real Estate Equities earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Alexandria Real Estate Equities's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $67.54 |
| NYSE:ARE Share Price * | NYSE (2019-06-17) in USD | $149.16 |
| United States of America REITs Industry PB Ratio | Median Figure of 191 Publicly-Listed REITs Companies | 1.87x |
| United States of America Market PB Ratio | Median Figure of 5,245 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:ARE Share Price ÷ Book Value per Share (both in USD) = 149.16 ÷ 67.54 |
2.21x |
* Primary Listing of Alexandria Real Estate Equities.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Alexandria Real Estate Equities is overvalued based on assets compared to the US REITs industry average.
Value checks
We assess Alexandria Real Estate Equities's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check) Alexandria Real Estate Equities has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Alexandria Real Estate Equities's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
- Alexandria Real Estate Equities's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
- Alexandria Real Estate Equities's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:ARE Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | -5.1% |
| NYSE:ARE Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 11.5% |
| United States of America REITs Industry Earnings Growth Rate | Market Cap Weighted Average | 6.1% |
| United States of America REITs Industry Revenue Growth Rate | Market Cap Weighted Average | 4.5% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.8% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 252 | |||
| 2020-12-31 | 1,682 | 287 | 1 | |
| 2019-12-31 | 1,517 | 270 | 1 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 1,374 | 578 | 355 |
| 2018-12-31 | 1,335 | 570 | 364 |
| 2018-09-30 | 1,293 | 507 | 431 |
| 2018-06-30 | 1,232 | 485 | 273 |
| 2018-03-31 | 1,179 | 472 | 252 |
| 2017-12-31 | 1,129 | 451 | 145 |
| 2017-09-30 | 1,080 | 458 | 83 |
| 2017-06-30 | 1,025 | 444 | 38 |
| 2017-03-31 | 977 | 398 | -122 |
| 2016-12-31 | 922 | 393 | -151 |
| 2016-09-30 | 896 | 388 | -91 |
| 2016-06-30 | 885 | 363 | -64 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
All data from Alexandria Real Estate Equities Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 2.46 | 2.46 | 2.46 | 1.00 |
| 2020-12-31 | 2.66 | 2.83 | 2.32 | 4.00 |
| 2019-12-31 | 2.53 | 2.92 | 1.93 | 4.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 3.36 |
| 2018-12-31 | 3.53 |
| 2018-09-30 | 4.30 |
| 2018-06-30 | 2.80 |
| 2018-03-31 | 2.67 |
| 2017-12-31 | 1.59 |
| 2017-09-30 | 0.95 |
| 2017-06-30 | 0.45 |
| 2017-03-31 | -1.52 |
| 2016-12-31 | -1.99 |
| 2016-09-30 | -1.23 |
| 2016-06-30 | -0.88 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Alexandria Real Estate Equities is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess Alexandria Real Estate Equities's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Alexandria Real Estate Equities has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Alexandria Real Estate Equities performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Alexandria Real Estate Equities has delivered over 20% year on year earnings growth in the past 5 years.
- Alexandria Real Estate Equities's 1-year earnings growth exceeds its 5-year average (40.9% vs 31.8%)
- Alexandria Real Estate Equities's earnings growth has exceeded the US REITs industry average in the past year (40.9% vs 16%).
Earnings and Revenue History
All data from Alexandria Real Estate Equities Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 1,373.71 | 355.19 | 92.66 | |
| 2018-12-31 | 1,335.00 | 363.98 | 90.41 | |
| 2018-09-30 | 1,292.67 | 430.91 | 86.93 | |
| 2018-06-30 | 1,231.94 | 273.10 | 81.91 | |
| 2018-03-31 | 1,179.46 | 252.12 | 78.20 | |
| 2017-12-31 | 1,129.42 | 145.40 | 75.01 | |
| 2017-09-30 | 1,079.50 | 83.44 | 73.56 | |
| 2017-06-30 | 1,024.79 | 37.62 | 71.78 | |
| 2017-03-31 | 977.07 | -121.66 | 67.93 | |
| 2016-12-31 | 921.52 | -151.14 | 63.88 | |
| 2016-09-30 | 896.06 | -90.88 | 61.53 | |
| 2016-06-30 | 884.72 | -63.68 | 60.82 | |
| 2016-03-31 | 863.49 | 95.26 | 60.42 | |
| 2015-12-31 | 845.13 | 116.91 | 59.62 | |
| 2015-09-30 | 810.57 | 63.90 | 58.38 | |
| 2015-06-30 | 776.87 | 59.05 | 55.85 | |
| 2015-03-31 | 748.57 | 55.84 | 54.69 | |
| 2014-12-31 | 727.43 | 70.88 | 53.53 | |
| 2014-09-30 | 707.03 | 125.15 | 52.42 | |
| 2014-06-30 | 679.73 | 121.96 | 51.48 | |
| 2014-03-31 | 657.25 | 119.12 | 50.10 | |
| 2013-12-31 | 631.15 | 107.85 | 48.52 | |
| 2013-09-30 | 612.67 | 88.81 | 47.29 | |
| 2013-06-30 | 597.21 | 79.03 | 48.10 | |
| 2013-03-31 | 588.87 | 66.70 | 47.94 | |
| 2012-12-31 | 574.50 | 58.81 | 47.75 | |
| 2012-09-30 | 563.40 | 65.54 | 44.72 | |
| 2012-06-30 | 558.60 | 73.56 | 42.54 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Alexandria Real Estate Equities has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Alexandria Real Estate Equities used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
- Alexandria Real Estate Equities's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Alexandria Real Estate Equities's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Alexandria Real Estate Equities has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Alexandria Real Estate Equities's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Alexandria Real Estate Equities's finances.
The net worth of a company is the difference between its assets and liabilities.
- Alexandria Real Estate Equities is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Alexandria Real Estate Equities's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Alexandria Real Estate Equities Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 8,354.91 | 6,089.25 | 261.87 |
| 2018-12-31 | 7,894.71 | 5,479.02 | 236.79 |
| 2018-09-30 | 7,413.38 | 5,684.00 | 208.91 |
| 2018-06-30 | 7,000.14 | 5,614.11 | 293.02 |
| 2018-03-31 | 6,733.35 | 5,210.80 | 228.11 |
| 2017-12-31 | 6,483.17 | 4,764.91 | 259.64 |
| 2017-09-30 | 5,904.81 | 4,817.62 | 122.30 |
| 2017-06-30 | 5,654.49 | 4,776.36 | 128.66 |
| 2017-03-31 | 5,576.33 | 4,432.50 | 155.67 |
| 2016-12-31 | 5,382.28 | 4,167.61 | 129.15 |
| 2016-09-30 | 4,292.92 | 4,336.80 | 158.11 |
| 2016-06-30 | 4,367.48 | 4,128.87 | 256.11 |
| 2016-03-31 | 4,187.29 | 4,102.05 | 146.22 |
| 2015-12-31 | 4,293.96 | 3,940.01 | 125.69 |
| 2015-09-30 | 3,775.18 | 4,322.91 | 76.38 |
| 2015-06-30 | 3,839.12 | 4,096.92 | 68.62 |
| 2015-03-31 | 3,796.85 | 3,907.34 | 90.64 |
| 2014-12-31 | 3,909.56 | 3,679.49 | 86.01 |
| 2014-09-30 | 3,957.12 | 3,502.36 | 67.98 |
| 2014-06-30 | 3,988.88 | 3,337.53 | 61.75 |
| 2014-03-31 | 4,004.51 | 3,255.05 | 74.97 |
| 2013-12-31 | 3,978.94 | 3,067.25 | 57.70 |
| 2013-09-30 | 3,980.97 | 2,880.16 | 53.84 |
| 2013-06-30 | 3,999.48 | 2,971.97 | 302.21 |
| 2013-03-31 | 3,495.28 | 3,201.02 | 87.00 |
| 2012-12-31 | 3,503.06 | 3,202.61 | 140.97 |
| 2012-09-30 | 3,516.62 | 3,057.48 | 94.90 |
| 2012-06-30 | 3,456.59 | 3,027.23 | 80.94 |
- Alexandria Real Estate Equities's level of debt (70%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (81.3% vs 70% today).
- Debt is not well covered by operating cash flow (9.9%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).
Financial health checks
We assess Alexandria Real Estate Equities's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Alexandria Real Estate Equities has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Alexandria Real Estate Equities
shares you are expected to receive
$54
in your first year as a dividend.
Dividend Amount
- Alexandria Real Estate Equities's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
- Alexandria Real Estate Equities's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment
Purchase Alexandria Real Estate Equities before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| United States of America REITs Industry Average Dividend Yield | Market Cap Weighted Average of 185 Stocks | 3.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2011 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 4.36 | 3.00 |
| 2020-12-31 | 4.10 | 6.00 |
| 2019-12-31 | 3.93 | 7.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-06-03 | 4.000 | 2.662 |
| 2019-03-04 | 3.880 | 2.730 |
| 2018-12-03 | 3.880 | 3.110 |
| 2018-09-04 | 3.720 | 3.003 |
| 2018-06-04 | 3.720 | 2.942 |
| 2018-03-05 | 3.600 | 2.892 |
| 2017-12-04 | 3.600 | 2.867 |
| 2017-09-06 | 3.440 | 2.801 |
| 2017-06-05 | 3.440 | 2.864 |
| 2017-03-06 | 3.320 | 2.917 |
| 2016-12-05 | 3.320 | 2.955 |
| 2016-09-06 | 3.200 | 2.979 |
| 2016-06-06 | 3.200 | 3.035 |
| 2016-03-07 | 3.200 | 3.475 |
| 2015-12-08 | 3.080 | 3.770 |
| 2015-09-14 | 3.080 | 3.433 |
| 2015-06-08 | 3.080 | 3.407 |
| 2015-03-16 | 2.960 | 3.130 |
| 2014-12-01 | 2.960 | 3.169 |
| 2014-09-15 | 2.880 | 3.619 |
| 2014-06-16 | 2.880 | 3.682 |
| 2014-03-17 | 2.800 | 3.772 |
| 2013-12-11 | 2.720 | 3.992 |
| 2013-09-10 | 2.720 | 4.217 |
| 2013-06-13 | 2.600 | 3.945 |
| 2013-03-14 | 2.400 | 3.351 |
| 2012-11-27 | 2.240 | 3.149 |
| 2012-09-10 | 2.120 | 2.971 |
| 2012-06-12 | 2.040 | 2.809 |
| 2012-03-08 | 1.960 | 2.718 |
| 2011-12-01 | 1.960 | 2.799 |
| 2011-09-14 | 1.880 | 2.910 |
| 2011-06-14 | 1.800 | 2.403 |
| 2011-03-21 | 1.800 | 2.303 |
| 2010-11-29 | 1.800 | 2.411 |
| 2010-09-14 | 1.400 | 1.958 |
| 2010-06-14 | 1.400 | 2.032 |
| 2010-03-16 | 1.400 | 2.050 |
| 2009-12-15 | 1.400 | 2.248 |
| 2009-09-15 | 1.400 | 2.487 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Alexandria Real Estate Equities's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (2x coverage).
- Dividends after 3 years are expected to be thoroughly covered by earnings (204.9x coverage).
Income/ dividend checks
We assess Alexandria Real Estate Equities's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Alexandria Real Estate Equities afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Alexandria Real Estate Equities has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $7,447,459 |
| AGE | 51 |
| TENURE AS CEO | 1.2 years |
CEO Bio
Mr. Peter M. Moglia has been the Chief Investment Officer of Alexandria Real Estate Equities, Inc. since January 2009 and has been its Co-Chief Executive Officer since April 23, 2018. Mr. Moglia has been with Alexandria Real Estate Equities serving in a number of capacities since April 1998. From April 2003 to 2008, Mr. Moglia was responsible for the management of the Alexandria Real Estate Equities’s Seattle asset base and operations. From 1998 to 2003, Mr. Moglia’s responsibilities were focused on underwriting, acquisitions and due diligence activities. Prior to joining the Company, Mr. Moglia served as an Analyst for Lennar Partners, Inc. Mr. Moglia began his real estate career in the Management Advisory Services group within the E&Y Kenneth Leventhal Real Estate Group, Ernst & Young, LLP where he spent six years providing valuation, feasibility, financial modeling and other analytical services to a number of real estate developers, financial institutions, pension funds and government agencies. Mr. Moglia holds a Bachelor of Arts in Economics from the University of California at Los Angeles.
CEO Compensation
- Peter's compensation has been consistent with company performance over the past year, both up more than 20%.
- Peter's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Alexandria Real Estate Equities management team in years:
- The average tenure for the Alexandria Real Estate Equities management team is less than 2 years, this suggests a new team.
Management Team
Joel Marcus
Founder & Executive Chairman
$12M
70
25.4 yrs
Peter Moglia
Co-CEO & Co-Chief Investment Officer
$7M
51
1.2 yrs
Steve Richardson
Co-Chief Executive Officer
$7M
57
1.2 yrs
Tom Andrews
Co-President & Regional Market Director of Greater Boston
$7M
58
1.2 yrs
Dean Shigenaga
Co-President & CFO
$7M
51
1.2 yrs
Jennifer Banks
Co-COO, General Counsel & Corporate Secretary
$4M
47
1.2 yrs
Dan Ryan
Co-Chief Investment Officer & Regional Market Director - San Diego
$7M
52
James Richardson
Senior Management Consultant & Non-Executive Director
$296K
58
10.3 yrs
Larry Diamond
Co-COO, Senior VP & Regional Market Director of Maryland
60
1.2 yrs
Andres Gavinet
Chief Accounting Officer
Board of Directors Tenure
Average tenure and age of the Alexandria Real Estate Equities board of directors in years:
- The tenure for the Alexandria Real Estate Equities board of directors is about average.
Board of Directors
James Richardson
Senior Management Consultant & Non-Executive Director
$296K
58
20.3 yrs
Richard Klein
Director
$275K
62
15.5 yrs
Joel Marcus
Founder & Executive Chairman
$12M
70
12.1 yrs
John Atkins
Director
$275K
74
12.3 yrs
Maria Freire
Director
$260K
64
7.2 yrs
Steve Hash
Lead Independent Director
$337K
53
3.3 yrs
James Cain
Director
$246K
60
3.5 yrs
Michael Woronoff
Independent Director
$250K
57
1.9 yrs
Who owns this company?
Recent Insider Trading
- Alexandria Real Estate Equities insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 10. May 19 | Sell | Joel Marcus | Individual | 08. May 19 | 08. May 19 | -8,500 | $140.67 | $-1,195,695 | ||
| 08. May 19 | Sell | Richard Klein | Individual | 06. May 19 | 06. May 19 | -227 | $142.00 | $-32,234 | ||
| 06. May 19 | Sell | Joel Marcus | Individual | 02. May 19 | 02. May 19 | -15,000 | $142.03 | $-2,130,450 | ||
| 01. Apr 19 | Sell | Richard Klein | Individual | 28. Mar 19 | 28. Mar 19 | -1,103 | $142.50 | $-157,178 | ||
| 29. Mar 19 | Sell | Lawrence Diamond | Individual | 27. Mar 19 | 27. Mar 19 | -1,000 | $142.58 | $-142,580 | ||
| 29. Mar 19 | Sell | Joel Marcus | Individual | 27. Mar 19 | 28. Mar 19 | -45,000 | $142.83 | $-6,408,050 | ||
| 21. Mar 19 | Sell | Peter Moglia | Individual | 19. Mar 19 | 19. Mar 19 | -3,000 | $139.89 | $-419,670 | ||
| 19. Mar 19 | Sell | Peter Moglia | Individual | 15. Mar 19 | 15. Mar 19 | -3,721 | $141.44 | $-526,298 | ||
| 15. Mar 19 | Sell | James Richardson | Individual | 13. Mar 19 | 13. Mar 19 | -3,000 | $141.46 | $-424,380 | ||
| 26. Feb 19 | Sell | Daniel Ryan | Individual | 22. Feb 19 | 22. Feb 19 | -7,000 | $136.84 | $-957,880 | ||
| 21. Feb 19 | Sell | Stephen Richardson | Individual | 19. Feb 19 | 19. Feb 19 | -10,000 | $135.37 | $-1,353,700 | ||
| 20. Feb 19 | Sell | Dean Shigenaga | Individual | 15. Feb 19 | 15. Feb 19 | -15,000 | $134.47 | $-2,017,050 | ||
| 20. Feb 19 | Sell | Joel Marcus | Individual | 15. Feb 19 | 15. Feb 19 | -10,000 | $134.41 | $-1,344,100 | ||
| 19. Feb 19 | Sell | Thomas Andrews | Individual | 14. Feb 19 | 14. Feb 19 | -25,000 | $134.18 | $-3,354,500 | ||
| 13. Feb 19 | Sell | John Cunningham | Individual | 11. Feb 19 | 11. Feb 19 | -5,000 | $132.26 | $-661,300 | ||
| 12. Feb 19 | Sell | Vincent Ciruzzi | Individual | 08. Feb 19 | 08. Feb 19 | -6,621 | $132.07 | $-874,435 | ||
| 12. Feb 19 | Sell | James Richardson | Individual | 08. Feb 19 | 08. Feb 19 | -5,000 | $132.03 | $-660,150 | ||
| 12. Feb 19 | Sell | Jennifer Banks | Individual | 08. Feb 19 | 08. Feb 19 | -5,000 | $131.92 | $-659,600 | ||
| 11. Feb 19 | Sell | Joel Marcus | Individual | 07. Feb 19 | 07. Feb 19 | -10,000 | $130.01 | $-1,300,100 | ||
| 13. Dec 18 | Sell | Joel Marcus | Individual | 11. Dec 18 | 11. Dec 18 | -10,000 | $126.26 | $-1,262,600 | ||
| 06. Dec 18 | Sell | Stephen Richardson | Individual | 04. Dec 18 | 04. Dec 18 | -7,500 | $125.09 | $-938,175 | ||
| 06. Dec 18 | Sell | Peter Moglia | Individual | 03. Dec 18 | 03. Dec 18 | -5,000 | $124.67 | $-623,350 | ||
| 04. Dec 18 | Sell | Joel Marcus | Individual | 30. Nov 18 | 03. Dec 18 | -10,000 | $125.00 | $-1,246,250 | ||
| 08. Nov 18 | Sell | Joel Marcus | Individual | 06. Nov 18 | 06. Nov 18 | -5,000 | $122.81 | $-614,050 | ||
| 06. Nov 18 | Sell | Daniel Ryan | Individual | 02. Nov 18 | 02. Nov 18 | -10,000 | $119.55 | $-1,195,500 | ||
| 05. Nov 18 | Sell | James Cain | Individual | 01. Nov 18 | 01. Nov 18 | -450 | $122.23 | $-55,004 | ||
| 05. Nov 18 | Sell | Joel Marcus | Individual | 01. Nov 18 | 01. Nov 18 | -10,000 | $123.02 | $-1,230,200 | ||
| 12. Sep 18 | Sell | Daniel Ryan | Individual | 10. Sep 18 | 10. Sep 18 | -7,000 | $127.66 | $-893,620 | ||
| 30. Aug 18 | Sell | Thomas Andrews | Individual | 28. Aug 18 | 29. Aug 18 | -10,000 | $128.04 | $-1,277,000 | ||
| 22. Aug 18 | Sell | Dean Shigenaga | Individual | 20. Aug 18 | 20. Aug 18 | -9,000 | $129.59 | $-1,166,310 | ||
| 22. Aug 18 | Sell | Joel Marcus | Individual | 20. Aug 18 | 20. Aug 18 | -10,000 | $128.38 | $-1,283,800 | ||
| 20. Aug 18 | Sell | Maria Freire | Individual | 16. Aug 18 | 16. Aug 18 | -3,000 | $128.67 | $-386,010 | ||
| 07. Aug 18 | Sell | Stephen Richardson | Individual | 03. Aug 18 | 03. Aug 18 | -7,500 | $126.66 | $-949,950 | ||
| 06. Aug 18 | Sell | Lawrence Diamond | Individual | 02. Aug 18 | 02. Aug 18 | -250 | $126.99 | $-31,748 | ||
| 06. Aug 18 | Sell | Joel Marcus | Individual | 02. Aug 18 | 02. Aug 18 | -29,500 | $126.87 | $-3,742,665 | ||
Management checks
We assess Alexandria Real Estate Equities's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Alexandria Real Estate Equities has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Should Alexandria Real Estate Equities, Inc. (NYSE:ARE) Be Part Of Your Dividend Portfolio?
Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Alexandria Real Estate Equities has grown its earnings per share at 16% per annum over the past five years. … Earnings per share have been growing rapidly, but given that it is paying out more than half of its earnings as dividends, we wonder how Alexandria Real Estate Equities will keep funding its growth projects in the future. … Conclusion To summarise, shareholders should always check that Alexandria Real Estate Equities's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.
Simply Wall St - – Full articleAlexandria Real Estate Equities, Inc. (NYSE:ARE) Insiders Have Been Selling
So shareholders might well want to know whether insiders have been buying or selling shares in Alexandria Real Estate Equities, Inc. … Alexandria Real Estate Equities Insiders Are Selling The Stock Over the last three months, we've seen significant insider selling at Alexandria Real Estate Equities. … Alexandria Real Estate Equities insiders own about US$233m worth of shares (which is 1.4% of the company).
Simply Wall St - – Full articleI Ran A Stock Scan For Earnings Growth And Alexandria Real Estate Equities (NYSE:ARE) Passed With Ease
So if you're like me, you might be more interested in profitable, growing companies, like Alexandria Real Estate Equities (NYSE:ARE). … View our latest analysis for Alexandria Real Estate Equities. … Alexandria Real Estate Equities's Earnings Per Share Are Growing.
Simply Wall St - – Full articleWhy Alexandria Real Estate Equities, Inc. (NYSE:ARE) Could Be Worth Watching
saw a significant share price rise of over 20% in the past couple of months on the NYSE. … As a large-cap stock, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?
Simply Wall St - – Full articleShould We Be Cautious About Alexandria Real Estate Equities, Inc.'s (NYSE:ARE) ROE Of 5.1%?
To keep the lesson grounded in practicality, we'll use ROE to better understand Alexandria Real Estate Equities, Inc. … Our data shows Alexandria Real Estate Equities has a return on equity of 5.1% for the last year. … Check out our latest analysis for Alexandria Real Estate Equities?
Simply Wall St - – Full articleDid You Miss Alexandria Real Estate Equities's 88% Share Price Gain?
To wit, the Alexandria Real Estate Equities share price has climbed 88% in five years, easily topping the market return of 41% (ignoring dividends). … Over half a decade, Alexandria Real Estate Equities managed to grow its earnings per share at 17% a year. … We know that Alexandria Real Estate Equities has improved its bottom line lately, but is it going to grow revenue
Simply Wall St - – Full articleHow Much Are Alexandria Real Estate Equities, Inc. (NYSE:ARE) Insiders Taking Off The Table?
So before you buy or sell Alexandria Real Estate Equities, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Alexandria Real Estate Equities Insider Transactions Over The Last Year.
Simply Wall St - – Full articleIs Alexandria Real Estate Equities, Inc. (NYSE:ARE) A Healthy REIT?
Alexandria Real Estate Equities, Inc. … real estate investment trust (REIT) based in Pasadena, United States. … View our latest analysis for Alexandria Real Estate Equities
Simply Wall St - – Full articleWith A Return On Equity Of 6.3%, Has Alexandria Real Estate Equities Inc's (NYSE:ARE) Management Done Well?
By way of learning-by-doing, we'll look at ROE to gain a better understanding Alexandria Real Estate Equities Inc (NYSE:ARE). … Alexandria Real Estate Equities has a ROE of 6.3%, based on the last twelve months. … View our latest analysis for Alexandria Real Estate Equities?
Simply Wall St - – Full articleHow To Look At Alexandria Real Estate Equities Inc (NYSE:ARE)
Alexandria Real Estate Equities Inc is a US$13.57b. … real estate investment trust (REIT) based in Pasadena, United States. … See our latest analysis for Alexandria Real Estate Equities
Simply Wall St - – Full articleCompany Info
Description
Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500<sup>®</sup> 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 $21.8 billion and an asset base in North America of 33.7 million square feet ("SF") as of March 31, 2019. The asset base in North America includes 23.2 million RSF of operating properties and 4.4 million RSF of new Class A properties currently undergoing construction or pre-construction, consisting of 2.1 million RSF of development and redevelopment projects under construction, and 2.3 million RSF undergoing pre-construction activities. Additionally, the asset base in North America includes 6.1 million SF of intermediate-term and 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 and technology 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 and technology companies through our venture capital arm. 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.
Details
| Name: | Alexandria Real Estate Equities, Inc. |
| ARE | |
| Exchange: | NYSE |
| Founded: | 1993 |
| $16,845,489,459 | |
| 112,935,703 | |
| Website: | http://www.are.com |
| Address: |
Alexandria Real Estate Equities, Inc. 385 East Colorado Boulevard, Suite 299, Pasadena, California, 91101, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | ARE | Common Stock | New York Stock Exchange | US | USD | 28. May 1997 | |
| DB | A6W | Common Stock | Deutsche Boerse AG | DE | EUR | 28. May 1997 | |
| LSE | 0HCH | Common Stock | London Stock Exchange | GB | USD | 28. May 1997 | |
| BMV | ARE * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 28. May 1997 | |
| NYSE | ARE.PRD | PFD CONV SER D | New York Stock Exchange | US | USD | 20. Mar 2008 |
Number of employees
Current staff
Industry
| Office REITs | |
| Real Estate |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/17 23:31 |
| End of day share price update: | 2019/06/17 00:00 |
| Last estimates confirmation: | 2019/06/11 |
| Last earnings filing: | 2019/04/30 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
