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Dec 31, 2022
Alexandria Q4 2022 Earnings Report
Alexandria's financial performance remained solid, marked by growth in revenues and funds from operations, although net income experienced a decrease compared to the previous year.
Key Takeaways
Alexandria Real Estate Equities, Inc. reported solid financial and operating results for Q4 2022. Total revenues increased by 16.2% to $670.3 million. Net income attributable to Alexandria's common stockholders was $51.8 million, or $0.31 per share. Funds from operations attributable to Alexandria's common stockholders, as adjusted, was $353.6 million, or $2.14 per share.
Total revenues increased by 16.2% to $670.3 million.
Net income attributable to Alexandria's common stockholders was $51.8 million, or $0.31 per share.
Funds from operations attributable to Alexandria's common stockholders, as adjusted, was $353.6 million, or $2.14 per share.
Occupancy of operating properties in North America was 94.8%.
Alexandria
Alexandria
Forward Guidance
Alexandria Real Estate Equities provided guidance for the year ending December 31, 2023, projecting earnings per share of $3.41 to $3.61 and funds from operations per share of $8.86 to $9.06.
Positive Outlook
- Occupancy percentage in North America as of December 31, 2023 is expected to be between 94.8% and 95.8%.
- Rental rate increases for lease renewals and re-leasing of space are projected to be between 27.0% and 32.0%.
- Rental rate increases (cash basis) for lease renewals and re-leasing of space are expected to be between 11.0% and 16.0%.
- Net operating income increase is projected to be between 2.0% and 4.0%.
- Net operating income increase (cash basis) is expected to be between 4.0% and 6.0%.
Challenges Ahead
- General and administrative expenses are projected to be between $183 million and $193 million.
- Interest expense is projected to be between $74 million and $94 million.
- Construction costs are estimated to be between $2.4 billion and $3.55 billion.
- Acquisitions are projected to be between $200 million and $400 million.
- Issuance of unsecured senior notes payable is projected to be between $500 million and $1.0 billion.