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Alexandria Real Estate Equities

NYSE:ARE
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARE
NYSE
$17B
Market Cap
  1. Home
  2. US
  3. Real Estate
Company 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 last earnings update was 48 days ago. More info.


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ARE Share Price and Events
7 Day Returns
-0.8%
NYSE:ARE
0.6%
US REITs
0.3%
US Market
1 Year Returns
18%
NYSE:ARE
12.9%
US REITs
0.7%
US Market
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.
Price Volatility
ARE
Industry
5yr Volatility vs Market

Value

 Is Alexandria Real Estate Equities undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alexandria Real Estate Equities.

NYSE:ARE Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:ARE
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.

NYSE:ARE DCF 1st Stage: Next 10 year cash flow forecast
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
NYSE:ARE DCF 2nd Stage: Terminal Value
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
NYSE:ARE Total Equity Value
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
NYSE:ARE Discount to Share Price
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
Amount off the current price Alexandria Real Estate Equities is available for.
Intrinsic value
5%
Share price is $149.16 vs Future cash flow value of $157.26
Current Discount Checks
For Alexandria Real Estate Equities to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
NYSE:ARE PE (Price to Earnings) Ratio Data Sources
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.

NYSE:ARE PE (Price to Earnings) Ratio Calculation
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?
Raw Data
NYSE:ARE PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

NYSE:ARE PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
NYSE:ARE PB (Price to Book) Ratio Data Sources
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
NYSE:ARE PB (Price to Book) Ratio Calculation
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.
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Value checks
We assess Alexandria Real Estate Equities's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. 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

 How is Alexandria Real Estate Equities expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

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!
Annual Growth Rate
-5.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alexandria Real Estate Equities expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:ARE Future Growth Rates Data Sources
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
Raw Data
NYSE:ARE Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ARE Future Estimates Data
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
NYSE:ARE Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Alexandria Real Estate Equities's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Alexandria Real Estate Equities's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ARE 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.

NYSE:ARE Future Estimates Data
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
NYSE:ARE Past Financials Data
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%).
X
Future performance checks
We assess Alexandria Real Estate Equities's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Alexandria Real Estate Equities's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Alexandria Real Estate Equities's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

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.

NYSE:ARE Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Alexandria Real Estate Equities's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Alexandria Real Estate Equities's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Alexandria Real Estate Equities Company Filings, last reported 2 months ago.

NYSE:ARE Past Debt and Equity Data
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).
X
Financial health checks
We assess Alexandria Real Estate Equities's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alexandria Real Estate Equities has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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

 What is Alexandria Real Estate Equities's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.68%
Current annual income from Alexandria Real Estate Equities dividends. Estimated to be 2.73% next year.
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
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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.
Raw Data
NYSE:ARE Annualized Past and Future Dividends
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.

NYSE:ARE Future Dividends Estimate Data
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
NYSE:ARE Past Annualized Dividends Data
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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (204.9x coverage).
X
Income/ dividend checks
We assess Alexandria Real Estate Equities's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Alexandria Real Estate Equities's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Moglia
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:

1.2
Average Tenure
57
Average Age
  • 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

TITLE
Founder & Executive Chairman
COMPENSATION
$12M
AGE
70
TENURE
25.4 yrs

Peter Moglia

TITLE
Co-CEO & Co-Chief Investment Officer
COMPENSATION
$7M
AGE
51
TENURE
1.2 yrs

Steve Richardson

TITLE
Co-Chief Executive Officer
COMPENSATION
$7M
AGE
57
TENURE
1.2 yrs

Tom Andrews

TITLE
Co-President & Regional Market Director of Greater Boston
COMPENSATION
$7M
AGE
58
TENURE
1.2 yrs

Dean Shigenaga

TITLE
Co-President & CFO
COMPENSATION
$7M
AGE
51
TENURE
1.2 yrs

Jennifer Banks

TITLE
Co-COO, General Counsel & Corporate Secretary
COMPENSATION
$4M
AGE
47
TENURE
1.2 yrs

Dan Ryan

TITLE
Co-Chief Investment Officer & Regional Market Director - San Diego
COMPENSATION
$7M
AGE
52

James Richardson

TITLE
Senior Management Consultant & Non-Executive Director
COMPENSATION
$296K
AGE
58
TENURE
10.3 yrs

Larry Diamond

TITLE
Co-COO, Senior VP & Regional Market Director of Maryland
AGE
60
TENURE
1.2 yrs

Andres Gavinet

TITLE
Chief Accounting Officer
Board of Directors Tenure

Average tenure and age of the Alexandria Real Estate Equities board of directors in years:

9.6
Average Tenure
61
Average Age
  • The tenure for the Alexandria Real Estate Equities board of directors is about average.
Board of Directors

James Richardson

TITLE
Senior Management Consultant & Non-Executive Director
COMPENSATION
$296K
AGE
58
TENURE
20.3 yrs

Richard Klein

TITLE
Director
COMPENSATION
$275K
AGE
62
TENURE
15.5 yrs

Joel Marcus

TITLE
Founder & Executive Chairman
COMPENSATION
$12M
AGE
70
TENURE
12.1 yrs

John Atkins

TITLE
Director
COMPENSATION
$275K
AGE
74
TENURE
12.3 yrs

Maria Freire

TITLE
Director
COMPENSATION
$260K
AGE
64
TENURE
7.2 yrs

Steve Hash

TITLE
Lead Independent Director
COMPENSATION
$337K
AGE
53
TENURE
3.3 yrs

James Cain

TITLE
Director
COMPENSATION
$246K
AGE
60
TENURE
3.5 yrs

Michael Woronoff

TITLE
Independent Director
COMPENSATION
$250K
AGE
57
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • Alexandria Real Estate Equities insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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
X
Management checks
We assess Alexandria Real Estate Equities's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Alexandria 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 -

I 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 -

Why 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 -

Should 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 -

Did 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 -

How 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 -

Is 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 -

With 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 -

How 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 -

Company 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
Staff numbers
386
Alexandria Real Estate Equities employees.
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.