2023-07-24 16:42:58 ET
Alexandria Real Estate Equities ( NYSE: ARE ) on Monday delivered Q2 adjusted funds from operations per share that topped the average analyst estimate and its 2023 guidance midpoint came in a penny above the consensus.
The life science campus-focused REIT said it now expects 2023 adjusted FFO per share of $8.93-$8.99, vs. $8.95 expected, narrowing from $8.91-$9.01 in the previous outlook issued on April 24. Note the midpoint of the guidance range stayed at $8.96.
Q2 adjusted FFO of $2.24, surpassing the $2.20 consensus, advanced from $2.19 in the prior quarter and from $2.10 a year ago.
Revenue of $713.9M, beating the $702.1M consensus, rose from $643.8M in Q1 and from $643.7M in the year-earlier period.
ARE edged up 0.7% in after-hours trading.
Total expenses stood at $716.9M, up from $534.2M in Q1 and from $509.3M in Q2 2022.
Occupancy of operating properties in North America was 93.6%, unchanged from the previous quarter.
Same-property net operating income increased 3.0% Y/Y in Q2 vs. 3.6% in Q1. On a cash basis same-property NOI growth was 4.9% vs. 6.6% in Q1.
During the quarter, Alexandria ( ARE ) completed 1.3M rentable square feet of leasing activity, 77% of which was generated from ARE's client base of some 825 tenants. That's up from the 1.2M leasing volume aggregated in Q1.
Rental rate increase on a cash basis came in at 16.6% vs. 24.2% in Q1.
Conference call on July 25 at 3:00 p.m. ET.
More on Alexandria Real Estate:
- SA's Quant system rates ARE a Hold
- Alexandria Real Estate gets new Buy rating at Jefferies
- Alexandria Real Estate Equities: The Market May Be Wrong About This 4.3% Yielding REIT
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Alexandria Real Estate Q2 earnings beat on leasing volume, higher rental rates