Why Alexandria Real Estate Equities Inc (NYSE: ARE) stock is rising

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Alexandria Real Estate Equities Inc (NYSE: ARE) stock rose over 1.5% on 4th February, 2020 (as of 10:49 am GMT-5; Source: Google finance) post the fourth quarter of FY 19. The company has reported the Net operating income (cash basis) of $1 billion for 4Q19 annualized, which is up 15.3%, compared to 4Q18 annualized. The company posted the Same property net operating income growth of 2.0% and 4.0% (cash basis) for 4Q19, compared to 4Q18. The company during 4Q19, had completed the acquisition of 23 properties for an aggregate purchase price of $956.5 million, comprising 3.3 million RSF, including 2.1 million RSF of current and future value-creation opportunities. As of February 3, 2020, the company had completed acquisitions of four properties in 2020 for an aggregate purchase price of $341.2 million, that comprised of 800,346 RSF of operating and redevelopment opportunities strategically located across multiple markets.

Moreover, In January 2020, the company had signed forward equity sales agreements for selling an aggregate of 6.9 million shares of the common stock (including the exercise of an underwriters’ option) at a public offering price of $155 per share, before underwriting discounts. The company intends to settle these forward equity sales agreements in 2020, and receive proceeds of approximately $1 billion, to be further adjusted as provided in the sales agreements, which will fund pending and recently completed acquisitions and the construction of our highly leased development projects.

Furthermore, in January 2020, the company had formed a real estate joint venture with Boston Properties, Inc., in which the company is targeting a 51% ownership interest over time. The company’s partner has contributed three office buildings and land supporting 260,000 square feet of future development, and the company contributed one office building, one office/laboratory building, one amenity building, at 701, 681, and 685 Gateway Boulevard, respectively, and land supporting 377,000 square feet of future development. This future mega campus in our South San Francisco submarket is expected to aggregate 1.7 million RSF, approximately 50% of which represents future development and redevelopment opportunities.

ARE in the fourth quarter of FY 19 has reported the adjusted funds from operations per share of $1.77, missing the analysts’ estimates for the adjusted funds from operations per share of $1.78, according to Zacks Investment Research. The company had reported the adjusted revenue of $408.1 million in the fourth quarter of FY 19.

Additionally, the company has declared the dividend declared for 4Q19 of $1.03 per common share, for the total $4.00 per common share for the year ended December 31, 2019, up 27 cents, or 7%, over the year ended December 31, 2018

Alexandria Real Estate Equities expects full-year funds from operations to be in the range of $7.28 to $7.48 per share.

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