Alexandria Real Estate Posts $671.2M 3Q Revenue as Impairments Drive $3.74/Share Loss
ARE is trading near its 52-week low of $39.41 (10% above the low).
Summary
Alexandria reported third-quarter revenue of $671.2 million, landing alongside a $638.5 million net loss ($3.74 per share) driven by $637.9 million of impairments. The operating picture is the problem: same-property NOI fell 6.7% and occupancy sits at 87.1%, a weak read for a lab-space REIT. This follows the August $1 billion junior subordinated notes issuance at 7.250% and the September close of a $5 billion revolver maturing in 2032 — the balance sheet has been shored up, but the core portfolio is shrinking in cash flow terms. The impairment charge is non-cash, yet the NOI decline and sub-90% occupancy are what determine whether the dividend and the 7.25% coupon on the new notes stay comfortable.
At the time of this announcement, ARE was trading at $43.40 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $7.6B. The 52-week trading range was $39.41 to $78.51. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.