Alexandria Real Estate Equities, Inc. - ARE STOCK NEWS

Alexandria Real Estate Equities (NYSE: ARE) has declared a quarterly cash dividend of $1.32 per common share for Q4 2024, representing a $0.02 increase from Q3 2024. The dividend will be paid on January 15, 2025, to stockholders of record on December 31, 2024.

The total dividend for 2024 amounts to $5.19 per common share, marking a 5% increase ($0.23) over 2023. The company maintains a favorable dividend payout ratio of 55% and expects to generate $2.1 billion in net cash for reinvestment from operating activities after dividends for the five-year period ending December 31, 2024.

Alexandria Real Estate Equities (NYSE: ARE) has announced a $500 million common stock repurchase program authorized by its Board of Directors. The program, running until December 31, 2025, allows the company to purchase its outstanding common stock through various methods including open market transactions, accelerated share repurchase, and negotiated transactions.

The timing, price, and size of purchases will be determined by market conditions and other factors. The program is not mandatory and can be suspended at any time. Any stock repurchases are expected to be funded on a leverage neutral basis through operating activities cash flow after dividends and asset sale proceeds.

Alexandria Real Estate Equities (NYSE: ARE) has secured a 10-year lease with Vaxcyte for 258,581 RSF at the Alexandria Center for Life Science – San Carlos mega campus. The agreement includes new space and extends the existing lease for Vaxcyte, an anchor tenant since 2021. The campus features 739,157 RSF currently 97.4% occupied and approximately 1.4 million RSF of future development opportunities. The facility offers state-of-the-art Labspace infrastructure, amenities including conference spaces, fitness center, and dining options, with convenient access to transportation and local attractions.

Alexandria Real Estate Equities (NYSE: ARE), a leading owner and developer of life science campuses, continues to support the development of new therapies in the $5 trillion life science industry. The company's tenants are responsible for five out of six innovative medicines approved by the FDA in 2024, and over 80% of FDA approvals for innovative medicines this year. Since 2013, Alexandria tenants have developed half of all FDA-approved novel therapies.

The company highlights the significant growth in innovative medicine approvals, with a 286% increase between 2017-2020 and 2021-YTD 2024 periods. The immunology market is expected to grow from $103 billion in 2024 to $257 billion by 2032, becoming the second-largest biopharmaceutical spending area by 2028.

Alexandria Real Estate Equities (NYSE: ARE) reported its 3Q24 and YTD 3Q24 financial results. Key highlights include a 10.9% increase in total revenues for 3Q24 to $791.6 million and a 9.3% increase YTD to $2.33 billion. Net income per diluted share was $0.96 for 3Q24 and $2.18 YTD. Adjusted FFO per diluted share was $2.37 for 3Q24 and $7.08 YTD. The company maintained a high occupancy rate of 94.7% and collected 99.9% of 3Q24 tenant rents and receivables.

ARE declared a 3Q24 dividend of $1.30 per share, yielding 4.4%. The company has significant liquidity of $5.4 billion and expects to fund capital requirements through property sales. Recent transactions include the sale of a property for $150 million and lease renewals worth 117,479 RSF with Fred Hutchinson Cancer Center. ARE's development pipeline is expected to deliver incremental annual net operating income of $510 million by 1Q28.

Alexandria Real Estate Equities, Inc. (NYSE: ARE) has been named one of the World's Most Trustworthy Companies in 2024 by Newsweek. This recognition follows its listing as one of America's Most Trustworthy Companies in 2023 and 2024. The selection was based on an extensive independent survey analyzing investor, customer, and employee trust.

Alexandria, a pioneer in developing collaborative mega campuses for life science innovation, has generated a total shareholder return of 1,420% since its IPO in May 1997. The company's success is attributed to its strategic relationships with leading life science companies and its focus on creating vibrant, well-amenitized mega campuses.

The company prioritizes employee well-being through comprehensive benefits and career development opportunities, resulting in a low five-year average voluntary turnover rate of 4.1%. Alexandria also demonstrates commitment to corporate responsibility, addressing challenges such as disease, hunger, and mental health through various initiatives and partnerships.

Alexandria Real Estate Equities (NYSE: ARE) has completed the sale of 1165 Eastlake Avenue East in Seattle to Fred Hutch Cancer Center for $150.0 million at a 4.9% capitalization rate. The 100,086 RSF Class A+ life science facility was developed by Alexandria and delivered in 2021. As part of the transaction, Alexandria entered a strategic joint venture partnership with Fred Hutch for 1201 and 1208 Eastlake Avenue East, maintaining a 30% ownership interest in both properties.

Fred Hutch executed early renewals at both properties, including a 15-year lease extension at 1201 Eastlake. The sale proceeds will be reinvested into Alexandria's development pipeline, which is expected to deliver $480 million in incremental annual net operating income by Q1 2028 from 5.3 million RSF of Class A/A+ properties under construction.

Alexandria Real Estate Equities (NYSE: ARE) has been honored with a 2024 Sustainable Design Impact Award from Nareit for its innovative approach to reducing emissions in its Labspace® developments. The award recognizes Alexandria's groundbreaking use of alternative energy sources in its Greater Boston and Seattle markets.

Key highlights include:

• 325 Binney Street in Cambridge, designed to be the most sustainable laboratory building in the area
• 15 Necco Street in Boston, a high-performance laboratory facility
• The Alexandria Center® for Life Science – South Lake Union mega campus in Seattle, featuring one of North America's largest wastewater heat recovery systems

These projects demonstrate significant emissions reductions, with 325 Binney Street and 15 Necco Street achieving 97% and 96% reductions respectively compared to the Massachusetts 2020 Stretch Code baseline. The Seattle campus is expected to reduce greenhouse gas emissions by 99% compared to the average laboratory building in the area.

Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced that its executive chairman and founder, Joel S. Marcus, will receive the inaugural Bisnow Life Sciences Icon & Influencer Award on September 11, 2024. This award recognizes Marcus and Alexandria's significant contributions to the life science real estate sector and broader industry. Marcus co-founded Alexandria in 1994, pioneering the life science real estate niche and transforming it into a mainstream asset class. The company's impact is evident in its ability to meet industry needs, foster strategic relationships, and create thriving life science ecosystems. Alexandria's tenants have been responsible for 50% of FDA-approved therapies since 2013. Marcus will also deliver a keynote speech at the International Life Sciences & Biotech Conference, discussing the industry's state and Alexandria's role in driving innovation for improved human health.