Jun 30, 2023

Alexandria Q2 2023 Earnings Report

Alexandria's financial and operating results for Q2 2023 were announced.

Key Takeaways

Alexandria Real Estate Equities, Inc. reported total revenues of $713.9 million and net income attributable to Alexandria's common stockholders of $87.3 million, or $0.51 per share.

Total revenues increased by 10.9% compared to Q2 2022.

Net income attributable to Alexandria's common stockholders was $87.3 million, or $0.51 per share.

Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted was $382.4 million, or $2.24 per share.

Occupancy of operating properties in North America as of June 30, 2023, was 93.6%.

Total Revenue
$714M
Previous year: $644M
+10.9%
EPS
$2.24
Previous year: $2.1
+6.7%
Gross Profit
$119M
Previous year: $447M
-73.5%
Cash and Equivalents
$924M
Previous year: $420M
+120.0%
Total Assets
$36.7B
Previous year: $33.2B
+10.3%

Alexandria

Alexandria

Forward Guidance

Guidance for 2023 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2023.

Positive Outlook

  • Proceeds from dispositions and sales of partial interests are expected to increase by $225 million.
  • The revised midpoint to our 2023 guidance range for dispositions and sales of partial interests is $1.75 billion.
  • The revised midpoint to our 2023 guidance range for construction spending is $2.9 billion.
  • Occupancy percentage in North America as of December 31, 2023, is expected to be between 94.6% and 95.6%.
  • Net debt and preferred stock to Adjusted EBITDA – 4Q23 annualized is expected to be less than or equal to 5.1x.

Challenges Ahead

  • Incremental debt is expected to decrease by $15 million.
  • Net cash provided by operating activities after dividends remains unchanged at $375 million.
  • Cash expected to be held at December 31, 2023, remains unchanged at $275 million.
  • Rental rate increases are expected to be between 28.0% and 33.0%.
  • Same property net operating income increases are expected to be between 2.0% and 4.0%.