Alexandria Q3 2024 Earnings Report
Key Takeaways
Alexandria Real Estate Equities reported a strong third quarter in 2024, characterized by significant leasing activity and growth in key financial metrics. The company's leasing volume exceeded its previous four-quarter average by 48%, and it maintained high occupancy rates in its North American properties. Strategic dispositions and capital recycling also contributed to the company's financial health.
Reported 3Q24 total revenues of $791.6 million, a 10.9% increase year-over-year.
Achieved occupancy of operating properties in North America at 94.7%.
Recorded strong leasing volume of 1.5 million RSF during 3Q24, a 48% increase from the previous four-quarter average.
Tenant receivables as a percentage of 3Q24 rental revenues remained low at 0.9%.
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Forward Guidance
Alexandria updated its 2024 guidance to reflect current market conditions, projecting earnings per share between $2.60 and $2.64 and funds from operations per share, as adjusted, between $9.45 and $9.49. It anticipates funding remaining capital needs with real estate dispositions and expects occupancy to be between 94.6% and 95.6%.
Positive Outlook
- Expects to fund remaining capital requirements for the year ending December 31, 2024 with real estate dispositions.
- Completed real estate dispositions aggregating $319.2 million.
- Pending transactions subject to non-refundable deposits aggregating $577.2 million.
- Executed letters of intent and/or purchase and sale agreements aggregating $602.5 million.
- Forward equity sales agreements aggregating $28 million.
Challenges Ahead
- Reduction in the midpoint of our guidance range for straight-line rent revenue by $22 million.
- Reduction in the midpoint of our guidance range for general and administrative expense by $5 million.
- Excludes unrealized gains or losses on non-real estate investments after September 30, 2024 that are required to be recognized in earnings and are excluded from funds from operations per share, as adjusted.
- Includes $106.8 million of real estate impairments recognized in October 2024.
- Does not expect to issue additional equity in 2024 beyond the existing forward equity sales agreements outstanding.
Revenue & Expenses
Visualization of income flow from segment revenue to net income