Alexandria Q3 2021 Earnings Report
Key Takeaways
Alexandria Real Estate Equities, Inc. announced financial and operating results for the third quarter ended September 30, 2021, with key highlights including a net income per share of $0.67 and FFO per share, as adjusted, of $1.95. The company experienced historic-high year-to-date leasing volume and continued strong rental rate growth.
Signed a 15-year full-building lease with Moderna, Inc. for its new headquarters and core R&D facility at 325 Binney Street.
Achieved historic-high year-to-date leasing volume with 5.4 million RSF of leasing activity.
Reported rental rate increases of 35.3% and rental rate increases (cash basis) of 19.3% for 3Q21 over expiring rates on renewed and re-leased space.
Maintained a strong and flexible balance sheet with $4.0 billion of liquidity as of September 30, 2021.
Alexandria
Alexandria
Alexandria Revenue by Segment
Forward Guidance
The following updated guidance is based on our current view of existing market conditions and assumptions for the year ending December 31, 2021. There can be no assurance that actual amounts will not be materially higher or lower than these expectations.
Positive Outlook
- Real estate dispositions and partial interest sales $2,170
- Construction $2,110
- Rental rate increases 33.0% to 36.0%
- Rental rate increases (cash basis) 19.0% to 22.0%
- Earnings per share $3.91 to $3.93
Challenges Ahead
- Occupancy 93.3% to 93.9%
- Gain on sales of real estate(0.02)
- Impairment of real estate – rental properties 0.18
- Unrealized gains on non-real estate investments (1.26)
- Significant realized gains on non-real estate investments (0.76)
Revenue & Expenses
Visualization of income flow from segment revenue to net income