Alexandria Real Estate Equities Inc. (ARE) is an urban office real estate investment trust (REIT) focused on collaborative life science, technology and ag-tech campuses in AAA innovation cluster locations with more than 45 million sq. ft. of space in North America.
The company is focused on developing office properties that are strategically located around academic institutions and leading scientific and managerial talent. Currently, the company operates properties in Greater Boston, San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and the Research Triangle.
On a financial level, the company has a 10.6 year weighted-average remaining term on its debt with just 1.5% of its debt maturing prior to 2024. The company also has nearly $4 billion in liquidity via an unsecured senior line of credit. Many of its tenants also have higher barriers to exit given their substantial investment in improvements to meet FDA requirements.
Outperforming During COVID-19
While many commercial REITs have suffered from lower rents and occupancy during the COVID-19 pandemic, the company’s focus on high-growth industries in innovation clusters helped it achieve third-quarter revenue that rose by nearly 40% to reach $545 million, beating consensus estimates by $94.49 million, with FFO that was in line with estimates at $1.83 per share.
The company raised its dividend by 2.8% to $1.09 per share following the strong performance, which represents a forward yield of 2.55%. The dividend is payable to shareholders on January 15, 2020, who are on record as of December 31, 2020.
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