Alexandria Q1 2024 Earnings Report
Key Takeaways
Alexandria Real Estate Equities reported a strong first quarter in 2024, with total revenues of $769.1 million and a net income per share of $0.97. The company highlighted significant leasing activity and rental rate increases, along with a solid net operating income and a flexible balance sheet.
Total revenues increased to $769.1 million, a 9.7% growth compared to Q1 2023.
Net income attributable to Alexandria's common stockholders was $166.9 million, or $0.97 per share.
Funds from operations (FFO) attributable to Alexandria's common stockholders, as adjusted, reached $403.9 million, or $2.35 per share.
Strong leasing volume aggregated 1.1 million RSF during the quarter, with rental rate increases of 33.0%.
Alexandria
Alexandria
Forward Guidance
Alexandria updated its 2024 guidance to reflect current market conditions, with key updates to earnings per share, funds from operations per share, and funds from operations per share, as adjusted.
Positive Outlook
- Occupancy percentage in North America is projected to be between 94.6% and 95.6% as of December 31, 2024.
- Rental rate increases for lease renewals and re-leasing of space are expected to be between 11.0% and 19.0%.
- Net operating income increases for same properties are projected to be between 0.5% and 2.5%.
- Capitalization of interest is expected to be between $325 million and $355 million.
- Realized gains on non-real estate investments are projected to be between $95 million and $125 million.
Challenges Ahead
- General and administrative expenses are expected to be between $181 million and $191 million.
- Interest expense is projected to be between $154 million and $184 million.
- Straight-line rent revenue is expected to be between $169 million and $184 million.
- Construction costs are projected to be between $1.95 billion and $2.55 billion.
- The guidance excludes unrealized gains or losses on non-real estate investments after March 31, 2024.