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%.

Total Revenue
$670M
Previous year: $577M
+16.2%
EPS
$2.14
Previous year: $1.97
+8.6%
Gross Profit
$466M
Previous year: $401M
+16.1%
Cash and Equivalents
$825M
Previous year: $361M
+128.4%
Total Assets
$35.5B
Previous year: $30.2B
+17.6%

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.