NYSE$ARE

Alexandria Real Estate Equities Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Alexandria showcased a strong financial performance and strategic growth.

Alexandria Real Estate Equities reported a strong Q4 2019, with total revenues of $408.1 million and a net income per share of $1.74. The company's FFO per share, as adjusted, was $1.77. Alexandria's strategic investments and disciplined capital allocation drove significant growth and operational excellence.

  • Total revenues increased to $408.1 million, reflecting a growth of 19.9% over Q4 2018.
  • Net income per share reached $1.74, a significant improvement compared to a loss of $0.30 in Q4 2018.
  • FFO per share, as adjusted, rose to $1.77, up from $1.68 in Q4 2018.
  • The company completed acquisitions of 23 properties for $956.5 million, adding 3.3 million RSF, including 2.1 million RSF of value-creation opportunities.

Headline financials

Total Revenue

$408M

Previous: $340M+19.9%
EPS (adj)

$1.77

Previous: $1.68+5.4%
Occupancy North America

96.8%

No prior period
Operating Margin

70.0%

No prior period
Adjusted EBITDA Margin

68.0%

No prior period
Investment-grade tenants

50.0%

No prior period
Top 20 tenant WALT

11.6

No prior period
Portfolio WALT

8.1

No prior period
Rental Rate Changes

37.0%

No prior period
Rental Rate Changes (Cash)

21.7%

No prior period
Net Income

$216M

Previous: -$24.7M+975.3%
Gross Profit

$286M

Previous: $243M+17.9%
Stock-Based Comp

$10.2M

Previous: $9.81M+4.4%

Revenue & EPS history

Alexandria · Revenue · Quarterly

$408M

Q4 2019+19.9%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

The following updated guidance is based on our current view of existing market conditions and assumptions for the year ending December 31, 2020. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. Refer to our discussion of “forward-looking statements” on page 8 of this Earnings Press Release for additional details.

Tailwinds

  • Net cash provided by operating activities after dividends: $200 to $240 million
  • Incremental debt: $400 million
  • Real estate dispositions, partial interest sales, and common equity: $1,850 to $2,050 million
  • Issuance of unsecured senior notes payable: $550 to $650 million
  • Projected 2020 Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted

Headwinds

  • $2.2 billion unsecured senior line of credit and commercial paper program/other (150) (290) (220)
  • Incremental debt $400 $360 $380
  • Occupancy percentage in North America as of December 31, 2020(1) 95.4% to 96.0%
  • Earnings per share(2) $2.17 to $2.37
  • General and administrative expenses $121 to $126

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 Q4 2019

Historical avgQ4 2019

-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