NYSE$ARE

Alexandria Real Estate Equities Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Alexandria's financial and operating results for Q3 2022 were announced.

Alexandria Real Estate Equities, Inc. reported total revenues of $659.9 million, net income of $341.4 million, and FFO per share of $2.13 for the third quarter ended September 30, 2022. The company also completed 1.7 million RSF of leasing activity and maintained a high occupancy rate of 94.3% in North America.

  • Total revenues increased by 20.5% to $659.9 million compared to 3Q21.
  • Net income attributable to Alexandria's common stockholders was $341.4 million, or $2.11 per share.
  • Funds from operations (FFO) attributable to Alexandria's common stockholders, as adjusted, was $344.7 million, or $2.13 per share.
  • Completed 1.7 million RSF of leasing activity during 3Q22, with 87% generated from existing tenants.

Headline financials

Total Revenue

$660M

Previous: $548M+20.5%
EPS (adj)

$2.13

Previous: $1.95+9.2%
Capital Expenditures

-$4.82B

Previous: -$5.3B+9.0%
Free Cash Flow

-$4.48B

Previous: -$5.2B+13.8%
Net Income

$345M

Previous: $103M+234.2%
Operating Income

$126M

Previous: $163M-22.7%
Gross Profit

$470M

Previous: $454M+3.4%
Cash & Equivalents

$534M

Previous: $326M+63.8%
Total Assets

$34.4B

Previous: $28.6B+20.3%
Stock-Based Comp

$17.8M

Previous: $9.73M+82.8%

Revenue & EPS history

Alexandria · Revenue · Quarterly

$660M

Q3 2022+20.5%vs Q3 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Alexandria Real Estate Equities updated its guidance for the year ending December 31, 2022, projecting earnings per share of $3.56 to $3.58 and funds from operations per share, as adjusted, of $8.40 to $8.42.

Tailwinds

  • Expects occupancy percentage in North America as of December 31, 2022 to range between 95.0% and 95.6%.
  • Anticipates lease renewals and re-leasing of space to yield rental rate increases between 30.0% and 35.0%.
  • Projects rental rate increases on a cash basis for lease renewals and re-leasing of space to range from 18.0% to 23.0%.
  • Forecasts net operating income increase between 6.0% and 8.0%.
  • Estimates net operating income increase on a cash basis to range from 6.8% to 8.8%.

Headwinds

  • Straight-line rent revenue is projected to be between $139 million and $149 million.
  • General and administrative expenses are expected to range from $172 million to $180 million.
  • Interest expense is projected to be between $90 million and $100 million.
  • Net cash provided by operating activities after dividends is expected to range from $275 million to $325 million.
  • Construction spending is projected to be between $2.9 billion and $3.1 billion.

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 2022

Historical avgQ3 2022

-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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