ARE - Alexandria Real Estate: Ordinary After All

2024-02-13 06:30:00 ET

Summary

• Despite their massive growth, Alexandria Real Estate has produced abysmal increases in per share cash earnings beyond those coming from rent increases.
• The company's unique mission statement does not prioritize creating value for shareholders.
• To make matters more difficult, the financials of Alexandria Real Estate will unintentionally mislead many analysts.

Well, phooey. Alexandria Real Estate ( ARE ) turns out to be just another ordinary REIT, with lower likely shareholder returns than some of them.

I had thought they were a much stronger grower than they are. But perhaps there was a clue in their unique mission statement (from the 8-K):

To create and grow life science ecosystems and clusters that ignite and accelerate the world’s leasing innovators in their noble pursuit to advance human health by curing disease and improving nutrition.

Nothing there about creating value for their owners, is there?

I set out to do a thorough article on Alexandria Real Estate ((ARE)) once they had reported 2023 earnings. But my knowledge and methods have improved a lot since my last serious look at them two years ago, for an article for our members. I know better what to look for now and go deeper better and faster....

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