NYSE$ARE

Alexandria Real Estate Equities Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Alexandria reported solid financial and operating results, driven by strong leasing activity, rental rate growth, and strategic transactions.

Alexandria Real Estate Equities, Inc. announced strong financial and operating results for the third quarter ended September 30, 2020, with a net income per share of $0.63 and FFO per share, as adjusted, of $1.83. The company's operational excellence and strong, flexible balance sheet with significant liquidity contributed to the positive results.

  • Total revenues increased by 39.6% compared to 3Q19.
  • Net income attributable to Alexandria's common stockholders was $79.3 million, or $0.63 per share.
  • Funds from operations (FFO) attributable to Alexandria's common stockholders, as adjusted, was $230.7 million, or $1.83 per share.
  • The company had $3.9 billion of liquidity as of September 30, 2020, proforma for the unsecured senior line of credit amended in October 2020.

Headline financials

Total Revenue

$545M

Previous: $390M+39.6%
EPS (adj)

$1.83

Previous: $1.75+4.6%
Capital Expenditures

-$3.06B

Previous: -$2.2B-38.9%
Free Cash Flow

-$2.98B

Previous: -$2.25B-32.4%
Net Income

$81.1M

Previous: -$47.2M+271.7%
Operating Income

$194M

Previous: $99.6M+95.3%
Gross Profit

$416M

Previous: $263M+58.1%
Cash & Equivalents

$446M

Previous: $411M+8.7%
Total Assets

$21.9B

Previous: $17.1B+28.4%
Stock-Based Comp

$13M

Previous: $10.9M+18.8%

Revenue & EPS history

Alexandria · Revenue · Quarterly

$545M

Q3 2020+39.6%vs Q3 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Alexandria updated its 2020 earnings per share guidance to $3.09 to $3.11 and FFO per share, as adjusted, to $7.29 to $7.31.

Tailwinds

  • Occupancy percentage in North America as of December 31, 2020, is expected to be between 94.8% and 95.4%.
  • Rental rate increases for lease renewals and re-leasing of space are projected to be between 30.5% and 33.5%.
  • Rental rate increases (cash basis) for lease renewals and re-leasing of space are expected to range from 16.0% to 19.0%.
  • Net operating income increase is projected to be between 1.0% and 3.0%.
  • Net operating income increase (cash basis) is expected to be between 4.5% and 6.5%.

Headwinds

  • Straight-line rent revenue is projected to be between $98 million and $108 million.
  • General and administrative expenses are expected to be between $126 million and $131 million.
  • Capitalization of interest is projected to be between $117 million and $127 million.
  • Interest expense is expected to be between $170 million and $180 million.
  • Net debt and preferred stock to Adjusted EBITDA – 4Q20 annualized Less than or equal to 5.3x

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 Q3 2020

Historical avgQ3 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro