We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alexandria (ARE) to Post Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Alexandria Real Estate Equities Inc. (ARE - Free Report) is scheduled to release third-quarter 2022 results on Oct 24 after the closing bell. Its quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Pasadena, CA-based urban office real estate investment trust (REIT), primarily focused on collaborative life science and technology campuses, delivered a surprise of 1.94% in terms of FFO per share. ARE’s performance in the quarter was mainly driven by healthy leasing activity and rental rate growth.
Alexandria has a decent surprise history. Over the preceding four quarters, ARE’s FFO per share surpassed the Zacks Consensus Estimate on each occasion, the average beat being 1.37%. This is depicted in the graph below:
Alexandria Real Estate Equities, Inc. Price and EPS Surprise
Alexandria has Class A properties in AAA locations. The high demand for Alexandria’s highly differentiated facilities, especially the key life science segment, is anticipated to have driven decent leasing and re-leasing activity and aided occupancy levels in the third quarter.
Favorable demand-supply dynamics and the company’s strong pricing power in its core markets are likely to have played a key role in its rental growth this quarter.
Alexandria is focused on maintaining its tenant quality. The majority of its rental revenues come from investment-grade or publicly-traded large-cap tenants. As a result, its long-term lease agreements with these tenants are expected to have generated impressive rent collections in the to-be-reported quarter.
Backed by the healthy demand for its properties, ARE is expected to have continued with its development and redevelopment activities in the third quarter.
Moreover, Alexandria is expected to have maintained adequate financial flexibility to enhance its market position in the quarter. This is expected to have supported its development pipeline as well.
These factors are anticipated to have aided revenues and the net operating income growth of ARE in the third quarter.
The Zacks Consensus Estimate for quarterly revenues currently stands at $638.8 million, suggesting a 16.6% increase from the prior-year period’s reported figure.
The Zacks Consensus Estimate for the quarterly FFO per share currently stands at $2.12, suggesting an 8.7% increase from the prior-year period’s reported figure.
However, ahead of the third-quarter earnings release, there is a lack of any solid catalyst to make investors bullish on the stock. Hence, the Zacks Consensus Estimate for the quarterly FFO per share has been unchanged over the past month.
What Our Quantitative Model Predicts
Alexandria does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat.
Earnings ESP: Alexandria has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are two stocks from the REIT sector — Public Storage (PSA - Free Report) , Extra Space Storage Inc. (EXR - Free Report) and Highwoods Properties, Inc. (HIW - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Public Storage is slated to report quarterly numbers on Nov 1. PSA has an Earnings ESP of +1.34 % and carries a Zacks Rank of 2 (Buy) presently.
Extra Space Storage, scheduled to report quarterly numbers on Nov 1, has an Earnings ESP of +1.31% and carries a Zacks Rank of 3.
Highwoods Properties is slated to report quarterly numbers on Oct 25. HIW has an Earnings ESP of +1.45% and carries a Zacks Rank of 3 presently.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alexandria (ARE) to Post Q3 Earnings: What's in the Cards?
Alexandria Real Estate Equities Inc. (ARE - Free Report) is scheduled to release third-quarter 2022 results on Oct 24 after the closing bell. Its quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Pasadena, CA-based urban office real estate investment trust (REIT), primarily focused on collaborative life science and technology campuses, delivered a surprise of 1.94% in terms of FFO per share. ARE’s performance in the quarter was mainly driven by healthy leasing activity and rental rate growth.
Alexandria has a decent surprise history. Over the preceding four quarters, ARE’s FFO per share surpassed the Zacks Consensus Estimate on each occasion, the average beat being 1.37%. This is depicted in the graph below:
Alexandria Real Estate Equities, Inc. Price and EPS Surprise
Alexandria Real Estate Equities, Inc. price-eps-surprise | Alexandria Real Estate Equities, Inc. Quote
Factors at Play
Alexandria has Class A properties in AAA locations. The high demand for Alexandria’s highly differentiated facilities, especially the key life science segment, is anticipated to have driven decent leasing and re-leasing activity and aided occupancy levels in the third quarter.
Favorable demand-supply dynamics and the company’s strong pricing power in its core markets are likely to have played a key role in its rental growth this quarter.
Alexandria is focused on maintaining its tenant quality. The majority of its rental revenues come from investment-grade or publicly-traded large-cap tenants. As a result, its long-term lease agreements with these tenants are expected to have generated impressive rent collections in the to-be-reported quarter.
Backed by the healthy demand for its properties, ARE is expected to have continued with its development and redevelopment activities in the third quarter.
Moreover, Alexandria is expected to have maintained adequate financial flexibility to enhance its market position in the quarter. This is expected to have supported its development pipeline as well.
These factors are anticipated to have aided revenues and the net operating income growth of ARE in the third quarter.
The Zacks Consensus Estimate for quarterly revenues currently stands at $638.8 million, suggesting a 16.6% increase from the prior-year period’s reported figure.
The Zacks Consensus Estimate for the quarterly FFO per share currently stands at $2.12, suggesting an 8.7% increase from the prior-year period’s reported figure.
However, ahead of the third-quarter earnings release, there is a lack of any solid catalyst to make investors bullish on the stock. Hence, the Zacks Consensus Estimate for the quarterly FFO per share has been unchanged over the past month.
What Our Quantitative Model Predicts
Alexandria does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat.
Earnings ESP: Alexandria has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ARE currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Warrant a Look
Here are two stocks from the REIT sector — Public Storage (PSA - Free Report) , Extra Space Storage Inc. (EXR - Free Report) and Highwoods Properties, Inc. (HIW - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Public Storage is slated to report quarterly numbers on Nov 1. PSA has an Earnings ESP of +1.34 % and carries a Zacks Rank of 2 (Buy) presently.
Extra Space Storage, scheduled to report quarterly numbers on Nov 1, has an Earnings ESP of +1.31% and carries a Zacks Rank of 3.
Highwoods Properties is slated to report quarterly numbers on Oct 25. HIW has an Earnings ESP of +1.45% and carries a Zacks Rank of 3 presently.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.