NYSE$ARE

Alexandria Real Estate Equities Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Alexandria's financial performance for Q2 2024 has been reported.

Alexandria Real Estate Equities reported strong Q2 2024 results, including total revenues of $766.7 million, a 7.4% increase year-over-year, and adjusted FFO per share of $2.36. The company also saw strong leasing volume and solid rental rate increases, with 1.1 million RSF leased during the quarter.

  • Total revenues increased by 7.4% year-over-year to $766.7 million.
  • Leasing volume aggregated 1.1 million RSF during 2Q24.
  • Rental rate increases were 7.4% on a straight-line basis and 3.7% on a cash basis for 2Q24.
  • Occupancy of operating properties in North America was 94.6%.

Headline financials

Total Revenue

$767M

Previous: $714M+7.4%
EPS (adj)

$2.36

Previous: $2.24+5.4%
Capital Expenditures

-$1.44B

Previous: -$2.05B+29.5%
Free Cash Flow

-$1.4B

Previous: -$1.96B+28.6%
Net Income

$46.7M

Previous: $89.9M-48.1%
Operating Income

$183M

Previous: -$5.2M+3617.5%
Gross Profit

$549M

Previous: $483M+13.7%
Cash & Equivalents

$561M

Previous: $924M-39.3%
Total Assets

$37.8B

Previous: $36.7B+3.2%
Stock-Based Comp

$14.5M

Previous: $15.5M-6.4%

Revenue & EPS history

Alexandria · Revenue · Quarterly

$767M

Q2 2024+7.4%vs Q2 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

The following guidance for 2024 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2024.

Tailwinds

  • Guidance midpoint for dispositions, sales of partial interests, and common equity increased by $150 million to $1,550 million.
  • Expect to continue pursuing our strategy to fund a significant portion of our capital requirements for the year ending December 31, 2024 with dispositions and sales of partial interests in properties not integral to our mega campus strategy and are actively pursuing several dispositions and partial interest sale opportunities.
  • As of July 22, 2024, we completed dispositions aggregating $77.2 million, have additional pending transactions subject to letters of intent or purchase and sale agreement negotiations aggregating $806.7 million, and entered into new forward equity sales agreements aggregating $27.8 million, which, in aggregate, represents 59% of the $1.55 billion midpoint of our guidance range.
  • Represents $1.0 billion of unsecured senior notes payable issued in February 2024.
  • Highly leased value-creation pipeline delivered incremental annual net operating income of $16 million commencing during 2Q24 and is expected to deliver incremental annual net operating income aggregating $480 million by 1Q28

Headwinds

  • Earnings per share guidance decreased from a range of $3.60 to $3.72 to a range of $2.98 to $3.10.
  • Funds from operations per share guidance decreased from a range of $9.49 to $9.61 to a range of $8.89 to $9.01.
  • Lease renewals and re-leasing of space rental rate increases guidance decreased from a range of 11.0% to 19.0% to a range of 5.0% to 13.0% (cash basis).
  • Same property performance net operating income increases guidance decreased from a range of 0.5% to 2.5% to a range of 3.0% to 5.0% (cash basis).
  • Realized gains on non-real estate investments guidance decreased from a range of $95 million to $125 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 2024

Historical avgQ2 2024

-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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