NYSE$ARE

Alexandria Real Estate Equities Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Alexandria reported strong Q2 2021 results, driven by high demand for its office/laboratory space and strategic acquisitions and dispositions.

Alexandria Real Estate Equities reported a solid second quarter, marked by record leasing activity and rental rate growth. The company continues to execute its strategy of providing high-quality office/laboratory space to the life science industry, with strong tenant collections and a robust balance sheet.

  • Historic leasing activity of 1.9 million RSF, the highest in a single quarter.
  • Rental rate increases of 42.4% over expiring rates on renewed and re-leased space.
  • North America occupancy of operating properties was 94.3% (98.1% excluding recent acquisitions).
  • Liquidity of $4.5 billion as of June 30, 2021.

Headline financials

Total Revenue

$510M

Previous: $437M+16.6%
EPS (adj)

$1.93

Previous: $1.81+6.6%
Operating Margin

72.0%

No prior period
Adjusted EBITDA Margin

69.0%

No prior period
Rental Rate Changes

42.4%

No prior period
Rental Rate Changes (Cash)

25.4%

No prior period
Capital Expenditures

-$3.95B

Previous: -$1.43B-177.0%
Free Cash Flow

-$3.56B

Previous: -$1.2B-198.0%
Net Income

$385M

Previous: $230M+67.7%
Operating Income

$186M

Previous: $106M+74.9%
Gross Profit

$419M

Previous: $319M+31.2%
Cash & Equivalents

$324M

Previous: $207M+56.6%
Total Assets

$27B

Previous: $20.1B+34.6%
Stock-Based Comp

$12.2M

Previous: $9.19M+33.3%

Revenue & EPS history

Alexandria · Revenue · Quarterly

$510M

Q2 2021+16.6%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Alexandria provided its 2021 guidance, with EPS expected to be between $3.46 and $3.54 and FFO per share, as adjusted, expected to be between $7.71 and $7.79.

Tailwinds

  • Occupancy percentage in North America as of December 31, 2021, is expected to be between 94.3% and 94.9%.
  • Lease renewals and re-leasing of space: Rental rate increases are projected to be between 31.0% and 34.0%.
  • Lease renewals and re-leasing of space: Rental rate increases (cash basis) are projected to be between 18.0% and 21.0%.
  • Same property net operating income increase is expected to be between 2.0% and 4.0%.
  • Same property net operating income increase (cash basis) is expected to be between 4.7% and 6.7%.

Headwinds

  • Unrealized (gains) losses on non-real estate investments are projected to be $(1.39).
  • Realized gains on non-real estate investments are projected to be $(0.41).
  • General and administrative expenses are projected to be between $146 million and $151 million.
  • Capitalization of interest is projected to be between $172 million and $182 million.
  • Interest expense is projected to be between $128 million and $138 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.7%

Avg return

Earnings day

-0.6%

Avg return

5 days after

-0.2%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+6.2%

Q3 2022

Best reaction

-19.2%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+3.3%+1.8%+23.1%
Q1 2026-10.2%-9.2%+8.1%
Q3 2025-19.2%-25.2%-31.2%
Q1 2025-5.7%-3.3%-7.4%
Q4 2024-4.8%-4.7%-1.1%
Q3 2024-3.1%-7.2%-14.4%
Q2 2024-3.0%-5.0%-7.5%
Q1 2024+3.3%+0.5%+6.1%
Q4 2023-2.5%-2.3%-2.4%
Q3 2023+0.5%-3.6%+10.0%
Q2 2023+0.4%+2.7%-4.8%
Q1 2023-3.1%-0.2%-8.1%
Q4 2022+0.0%+4.4%-11.1%
Q3 2022+6.2%+10.4%+15.0%
Q2 2022+4.2%+10.4%+6.1%
Q1 2022-2.6%-7.0%-18.1%
Q4 2021+3.0%+0.6%+0.0%
Q3 2021+0.4%-2.0%+1.0%
Q2 2021+1.9%+2.2%+3.5%
Q1 2021-0.7%+1.0%-1.1%
Q4 2020-0.4%+2.7%-4.6%
Q3 2020-2.7%-5.6%+1.3%
Q2 2020+3.1%+5.3%+1.1%
Q1 2020+1.8%+1.0%+1.3%
Q4 2019+2.8%+2.7%+0.1%
Q3 2019-1.2%+0.1%+2.6%
Q2 2019+3.2%+1.0%+2.8%
Q1 2019-0.6%-0.7%+0.6%
Q4 2018-0.7%+1.3%+5.3%
Q3 2018+2.4%-0.8%+2.6%
Q2 2018+4.0%+4.0%+4.5%
Q1 2018+3.6%+3.0%+0.4%
Q4 2017-0.6%-1.9%-4.1%
Q3 2017+1.5%+2.6%+3.9%
Q2 2017+0.5%+0.2%-0.8%
Q1 2017+1.8%+2.1%+3.7%
Q4 2016-1.7%-1.9%+4.8%
Q3 2016+2.3%-1.8%+4.5%
Q2 2016-2.5%-0.8%-2.0%
Q1 2016+0.8%
Q4 2015-3.7%
Q3 2015+1.7%
Q2 2015+0.1%
Q1 2015-0.3%
Q4 2014-0.5%
Q3 2014-0.8%
Q2 2014+0.1%
Q1 2014+0.3%
Q4 2013+2.3%
Q3 2013-2.2%
Q2 2013-1.4%
Q1 2013+3.1%
Q4 2012-0.2%
Q3 2012+0.5%
Q2 2012+1.4%
Q1 2012+0.9%
Q4 2010-3.4%
Q4 2011-3.4%
Q3 2011-4.2%
Q2 2011-5.2%
Q1 2010-5.5%
Q1 2011+1.5%
Q4 2008-4.5%
Q3 2010-2.4%
Q3 2009-2.4%
Q2 2010-0.5%
Q2 2009-0.5%
Q4 2009-0.5%

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