NYSE$ARE

Alexandria Real Estate Equities Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Alexandria's financial performance was solid, marked by growth in revenue and strategic capital allocation.

Alexandria Real Estate Equities reported solid financial results for Q3 2023, with revenue growth of 8.2% compared to Q3 2022. The company saw a net income of $21.9 million and FFO per share of $2.26. Alexandria's balance sheet remains strong with significant liquidity.

  • Total revenues increased by 8.2% compared to Q3 2022.
  • The company has significant liquidity of $5.9 billion.
  • Occupancy of operating properties in North America was 93.7% as of September 30, 2023.
  • Value harvesting plan for 2023 is focused on the enhancement of our asset base.

Headline financials

Total Revenue

$714M

Previous: $660M+8.2%
EPS (adj)

$2.26

Previous: $2.13+6.1%
Capital Expenditures

-$2.86B

Previous: -$4.82B+40.7%
Free Cash Flow

-$2.83B

Previous: -$4.48B+36.7%
Net Income

$24.3M

Previous: $345M-93.0%
Operating Income

$139M

Previous: $126M+10.7%
Gross Profit

$475M

Previous: $470M+1.2%
Cash & Equivalents

$532M

Previous: $534M-0.3%
Total Assets

$36.8B

Previous: $34.4B+7.0%
Stock-Based Comp

$16.3M

Previous: $17.8M-8.4%

Revenue & EPS history

Alexandria · Revenue · Quarterly

$714M

Q3 2023+8.2%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Guidance for 2023 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2023. Key changes to our guidance include an increase to the midpoint of our guidance for funds from operations per share

Tailwinds

  • Occupancy percentage in North America as of December 31, 2023: 94.6% to 95.6%
  • Lease renewals and re-leasing of space: Rental rate increases 28.0% to 33.0%
  • Lease renewals and re-leasing of space: Rental rate increases (cash basis) 12.0% to 17.0%
  • Straight-line rent revenue $130 million to $145 million
  • Capitalization of interest $346 million to $366 million

Headwinds

  • General and administrative expenses $197 million to $207 million
  • Interest expense $70 million to $90 million
  • Incremental debt $660 million to $810 million
  • Dispositions and sales of partial interests $1,550 million to $1,750 million
  • Construction $2,785 million to $3,085 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 Q3 2023

Historical avgQ3 2023

-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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