NYSE$ARE

Alexandria Real Estate Equities Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Alexandria reported a net loss per share of $0.54 and FFO per share, as adjusted, of $2.28 for Q4 2023.

Alexandria Real Estate Equities, Inc. announced financial results for the fourth quarter and year ended December 31, 2023, featuring a net loss per share of $0.54 and FFO per share, as adjusted, of $2.28 for the quarter. The company celebrated its 30th anniversary and highlighted operational excellence, a strong balance sheet, and a value-creation pipeline.

  • Total revenues reached $757.2 million, a 13.0% increase year-over-year.
  • Operating margin was 71% and adjusted EBITDA margin was 69%.
  • Leasing volume aggregated 889,737 RSF during 4Q23.
  • Incremental annual net operating income of $145 million was delivered from development and redevelopment projects placed into service.

Headline financials

Total Revenue

$757M

Previous: $670M+13.0%
EPS (adj)

$2.28

Previous: $2.14+6.5%
Capital Expenditures

$0.00

No prior period
Net Income

-$42.7M

Previous: $51.8M-182.4%
Operating Income

-$114M

Previous: $95.3M-219.5%
Gross Profit

-$223M

Previous: $466M-147.8%
Stock-Based Comp

$34.6M

Previous: $11.6M+198.6%

Revenue & EPS history

Alexandria · Revenue · Quarterly

$757M

Q4 2023+13%vs Q4 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Alexandria provided guidance for 2024, including earnings per share of $3.49 to $3.69 and FFO per share of $9.37 to $9.57, with key assumptions for occupancy, rental rate increases, and same property performance.

Tailwinds

  • Occupancy percentage in North America as of December 31, 2024 is expected to be between 94.6% and 95.6%.
  • Rental rate increases for lease renewals and re-leasing of space are projected to be between 11.0% and 19.0%.
  • Net operating income increases for same properties are anticipated to be between 0.5% and 2.5%.
  • The company expects to issue new unsecured senior notes payable in 2025 to fund the repayment of its $600 million unsecured senior notes payable due on April 30, 2025.
  • Fixed-charge coverage ratio – 4Q24 annualized is expected to be greater than or equal to 4.5x.

Headwinds

  • The guidance excludes unrealized gains or losses on non-real estate investments after December 31, 2023.
  • It is subject to market conditions, which may affect the ability to refinance debt maturities.
  • The company's ATM program became inactive in January 2024 upon expiration of the associated shelf registration.
  • Realized gains on non-real estate investments are projected to be between $95 million and $125 million, excluding significant impairments realized on non-real estate investments.
  • Fixed-charge coverage ratio – 4Q24 annualized is expected to be less than or equal to 5.1x.

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 2023

Historical avgQ4 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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