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Dec 31, 2019

Alexandria Q4 2019 Earnings Report

Alexandria showcased a strong financial performance and strategic growth.

Key Takeaways

Alexandria Real Estate Equities reported a strong Q4 2019, with total revenues of $408.1 million and a net income per share of $1.74. The company's FFO per share, as adjusted, was $1.77. Alexandria's strategic investments and disciplined capital allocation drove significant growth and operational excellence.

Total revenues increased to $408.1 million, reflecting a growth of 19.9% over Q4 2018.

Net income per share reached $1.74, a significant improvement compared to a loss of $0.30 in Q4 2018.

FFO per share, as adjusted, rose to $1.77, up from $1.68 in Q4 2018.

The company completed acquisitions of 23 properties for $956.5 million, adding 3.3 million RSF, including 2.1 million RSF of value-creation opportunities.

Total Revenue
$408M
Previous year: $340M
+19.9%
EPS
$1.77
Previous year: $1.68
+5.4%
Investment-Grade Tenants
50%
Class A in AAA Locations
76%
Occupancy in North America
96.8%
Gross Profit
$286M
Previous year: $243M
+17.9%
Cash and Equivalents
$190M
Previous year: $234M
-19.0%
Total Assets
$18.4B
Previous year: $14.5B
+27.1%

Alexandria

Alexandria

Alexandria Revenue by Segment

Alexandria Revenue by Geographic Location

Forward Guidance

The following updated guidance is based on our current view of existing market conditions and assumptions for the year ending December 31, 2020. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. Refer to our discussion of “forward-looking statements” on page 8 of this Earnings Press Release for additional details.

Positive Outlook

  • Net cash provided by operating activities after dividends: $200 to $240 million
  • Incremental debt: $400 million
  • Real estate dispositions, partial interest sales, and common equity: $1,850 to $2,050 million
  • Issuance of unsecured senior notes payable: $550 to $650 million
  • Projected 2020 Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted

Challenges Ahead

  • $2.2 billion unsecured senior line of credit and commercial paper program/other (150) (290) (220)
  • Incremental debt $400 $360 $380
  • Occupancy percentage in North America as of December 31, 2020(1) 95.4% to 96.0%
  • Earnings per share(2) $2.17 to $2.37
  • General and administrative expenses $121 to $126