ARE's Q4 results reflect a year-over-year rise in revenues, backed by decent leasing activity and higher rental rates despite higher interest expenses.
While the top- and bottom-line numbers for Alexandria Real Estate Equities (ARE) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Alexandria Real Estate Equities (ARE) came out with quarterly funds from operations (FFO) of $2.39 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $2.28 per share a year ago.
While ARE's Q4 earnings are likely to have gained from healthy demand for its high-quality life science and lab office properties, high interest expenses are a concern.
Beyond analysts' top -and-bottom-line estimates for Alexandria Real Estate Equities (ARE), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended December 2024.
Dividend stocks boomed from early July 2024 to late November 2024. However, since then, they have pulled back sharply. I discuss the bad news that may continue weighing on many dividend stocks.
Alexandria Real Estate Equities offers a 5.3% yield, making it an attractive long-term investment despite recent share price declines and a challenging market. ARE's financials remain strong with solid AFFO and revenue growth, and management has confidence in the stock's undervaluation and future upside. The REIT's balance sheet is robust, with low net debt to EBITDA and significant liquidity, positioning it well against peers like Healthpeak Properties and Omega Healthcare Investors.
Alexandria Real Estate's bull thesis was flawed. FFO estimates for ARE have dropped 20% over the last 18 months. The key bear fodder came from the REIT's 2025 guidance.
Falling interest rates and Trump's policies could boost demand, making REITs with strong balance sheets and attractive valuations poised for significant returns. Alexandria Real Estate, a life science REIT, offers stable cash flows, high occupancy, and a strong balance sheet, despite recent underperformance. Rexford Industrial, focused on Southern California, boasts diversified tenants and impressive growth, though faces risks from geographic concentration and potential tariff impacts.
Kevin Maloney, founder and CEO at PMG, joins CNBC's ‘The Exchange' to discuss his 2025 commercial real estate outlooks, top real estate trends to watch, and more.
REITs have strongly recovered. As a result, some have become overvalued. I highlight 3 REITs to sell before 2025.
Going into 2024, the consensus was that REITs would surge higher. While the base rates have dropped, the REIT investment case has failed. Yet, as long as the objective is to extract durable income, I would argue that now is the right time to make huge moves in the REIT segment.