Zacks Investment Research Downgrades Alexandria Real Estate Equities (ARE) to Hold

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Alexandria Real Estate Equities (NYSE:ARE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.

According to Zacks, “Alexandria Real Estate Equities’ fourth-quarter 2018 adjusted funds from operations (FFO) of $1.68 per share missed the Zacks Consensus Estimate by a whisker. Quarterly revenues also fell short of expectations. However, on a year-over-year basis, adjusted FFO per share increased 9.8% from $1.53 in the prior-year quarter. Results reflect decent internal and external growth. However, expenses related to rental operations and interest rose 10.9% and 11.5% year over year, respectively. Notably, strong fundamentals of the life-science industry are helping the company’s Class A properties in upscale locations to enjoy high occupancy. The company also recently announced expansion of its Seattle Life Science cluster campuses. Also, shares of Alexandria have outperformed its industry in the past three months. Yet, the company’s notable development pipeline exposes it to the risk of rising construction costs.”

A number of other research firms have also weighed in on ARE. CIBC reiterated a “buy” rating and issued a $23.00 price target on shares of Alexandria Real Estate Equities in a research report on Tuesday, January 15th. Royal Bank of Canada upgraded shares of Alexandria Real Estate Equities from an “outperform” rating to a “top pick” rating in a research report on Friday, December 14th. Evercore ISI set a $148.00 price target on shares of Alexandria Real Estate Equities and gave the stock a “buy” rating in a research report on Monday, October 15th. Citigroup upgraded shares of Alexandria Real Estate Equities from a “neutral” rating to a “buy” rating and upped their price target for the stock from $133.00 to $144.00 in a research report on Monday, December 3rd. Finally, ValuEngine lowered shares of Alexandria Real Estate Equities from a “buy” rating to a “hold” rating in a research report on Wednesday, January 2nd. Two research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the stock. Alexandria Real Estate Equities has a consensus rating of “Buy” and an average target price of $105.14.

ARE opened at $134.51 on Tuesday. The company has a market capitalization of $14.92 billion, a price-to-earnings ratio of 20.38, a PEG ratio of 3.14 and a beta of 0.91. Alexandria Real Estate Equities has a 1-year low of $109.04 and a 1-year high of $134.70. The company has a debt-to-equity ratio of 0.70, a current ratio of 0.29 and a quick ratio of 0.29.

Alexandria Real Estate Equities (NYSE:ARE) last posted its quarterly earnings results on Monday, February 4th. The real estate investment trust reported ($0.30) earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.69 by ($1.99). The firm had revenue of $340.50 million during the quarter, compared to the consensus estimate of $348.01 million. Alexandria Real Estate Equities had a return on equity of 5.28% and a net margin of 28.57%. The business’s revenue for the quarter was up 14.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.53 earnings per share. Equities research analysts anticipate that Alexandria Real Estate Equities will post 6.94 earnings per share for the current fiscal year.

In related news, CEO Stephen Richardson sold 7,500 shares of the company’s stock in a transaction on Tuesday, December 4th. The shares were sold at an average price of $125.09, for a total transaction of $938,175.00. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP John H. Cunningham sold 5,000 shares of the company’s stock in a transaction on Monday, February 11th. The shares were sold at an average price of $132.26, for a total transaction of $661,300.00. Following the sale, the executive vice president now directly owns 51,045 shares in the company, valued at approximately $6,751,211.70. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 47,500 shares of company stock worth $6,068,075. 1.41% of the stock is owned by insiders.

Institutional investors have recently added to or reduced their stakes in the stock. Riverview Trust Co purchased a new stake in Alexandria Real Estate Equities during the fourth quarter valued at $32,000. We Are One Seven LLC purchased a new stake in Alexandria Real Estate Equities during the fourth quarter valued at $59,000. SRS Capital Advisors Inc. raised its stake in Alexandria Real Estate Equities by 53.8% during the fourth quarter. SRS Capital Advisors Inc. now owns 683 shares of the real estate investment trust’s stock valued at $79,000 after purchasing an additional 239 shares in the last quarter. Loeb Partners Corp purchased a new stake in Alexandria Real Estate Equities during the fourth quarter valued at $115,000. Finally, ETF Managers Group LLC raised its stake in Alexandria Real Estate Equities by 18.6% during the fourth quarter. ETF Managers Group LLC now owns 1,069 shares of the real estate investment trust’s stock valued at $123,000 after purchasing an additional 168 shares in the last quarter.

Alexandria Real Estate Equities Company Profile

Alexandria Real Estate Equities, Inc (NYSE:ARE), an S&P 500 company, is an urban office real estate investment trust (“REIT”) uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $19.1 billion and an asset base in North America of 32.2 million square feet (“SF”) as of September 30, 2018.

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