Fintel reports that on July 26, 2023, JMP Securities maintained coverage of Alexandria Real Estate Equities (NYSE:ARE) with a Market Outperform recommendation.
Analyst Price Forecast Suggests 34.66% Upside
As of July 6, 2023, the average one-year price target for Alexandria Real Estate Equities is 166.64. The forecasts range from a low of 138.37 to a high of $195.30. The average price target represents an increase of 34.66% from its latest reported closing price of 123.75.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Alexandria Real Estate Equities is 2,316MM, a decrease of 15.63%. The projected annual non-GAAP EPS is 2.69.
Alexandria Real Estate Equities Declares $1.24 Dividend
On June 5, 2023 the company declared a regular quarterly dividend of $1.24 per share ($4.96 annualized). Shareholders of record as of June 30, 2023 received the payment on July 14, 2023. Previously, the company paid $1.21 per share.
At the current share price of $123.75 / share, the stock's dividend yield is 4.01%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.80%, the lowest has been 2.09%, and the highest has been 4.23%. The standard deviation of yields is 0.48 (n=236).
The current dividend yield is 2.53 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 1.48. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.14%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1407 funds or institutions reporting positions in Alexandria Real Estate Equities. This is an increase of 3 owner(s) or 0.21% in the last quarter. Average portfolio weight of all funds dedicated to ARE is 0.45%, a decrease of 12.56%. Total shares owned by institutions decreased in the last three months by 7.17% to 172,198K shares. 
The put/call ratio of ARE is 0.53, indicating a bullish outlook.
What are Other Shareholders Doing?
APG Asset Management US holds 7,250K shares representing 4.19% ownership of the company. In it's prior filing, the firm reported owning 7,358K shares, representing a decrease of 1.49%. The firm decreased its portfolio allocation in ARE by 14.22% over the last quarter.
VGSIX - Vanguard Real Estate Index Fund Investor Shares holds 6,851K shares representing 3.96% ownership of the company. In it's prior filing, the firm reported owning 6,913K shares, representing a decrease of 0.91%. The firm decreased its portfolio allocation in ARE by 15.17% over the last quarter.
Principal Financial Group holds 5,985K shares representing 3.46% ownership of the company. In it's prior filing, the firm reported owning 5,784K shares, representing an increase of 3.35%. The firm decreased its portfolio allocation in ARE by 15.31% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 5,355K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 4,986K shares, representing an increase of 6.89%. The firm decreased its portfolio allocation in ARE by 14.50% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 4,043K shares representing 2.34% ownership of the company. In it's prior filing, the firm reported owning 3,821K shares, representing an increase of 5.47%. The firm decreased its portfolio allocation in ARE by 11.71% over the last quarter.
Alexandria Real Estate Equities Background Information
(This description is provided by the company.)
Alexandria Real Estate Equities, Inc. an S&P 500® urban office real estate investment trust, is the first, longest-tenured and pioneering owner, operator and developer uniquely focused on collaborative life science, technology and agtech campuses in AAA innovation cluster locations. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle.
Additional reading:
- Second Amended and Restated Credit Agreement, dated June 28, 2023, among the Company, as Borrower, Alexandria Real Estate Equities, L.P., as a Guarantor, Citibank, N.A., as Administrative Agent, and the lenders and other parties thereto
- List of Guarantor Subsidiaries of the Company
- Table of Contents June 30, 2023
- ALEXANDRIA REAL ESTATE EQUITIES, INC. Select Operating Results for the Second Quarter Ended June 30, 2023
- ALEXANDRIA’S HIGH-QUALITY, DIFFERENTIATED, AND ESSENTIAL LABSPACE® ASSET BASE, SUPPORTED BY STRONG LIFE SCIENCE INDUSTRY FUNDAMENTALS, IS WELL POSITIONED
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
