Real Estate Equities, Inc.
), a real estate investment trust (REIT), recently increased its
quarterly cash dividend from 49 cents to 51 cents per share in the
second quarter of 2012. This translates to a 4.0% increase from the
prior dividend payout. The increased dividend will be paid on
July 16, 2012, to shareholders of record as of June 29,
Over the past 12 months, the company had increased its cash
dividend per share by 6 cents, or approximately 13%. At the end of
first quarter 2011, Alexandria Real Estate's cash balance stood at
$77.4 million. We believe that the company has enough cash to
provide optimum shareholder value.
Alexandria Real Estate expects to distribute its excess cash to
the shareholders through the increased dividend and concurrently
look to maintain its cash flow for further reinvestments.
During first quarter 2011, the company reported FFO (funds from
operations) of $66.2 million or $1.08 per share compared with $63.1
million or $1.10 per share in the year-earlier quarter. Funds from
operations, a widely used metric to gauge the performance of REITs,
is obtained after adding depreciation and amortization and other
non-cash expenses to net income.
As of March 31, 2012, the company's fund from operations payout
ratio (quarterly common stock dividend by quarterly funds from
operations) stood at 46%.
Pasadena, California-based, Alexandria Real Estate is the
largest owner and leading life science real estate company, focused
principally on science-driven cluster development through the
ownership, operation, management, and selective acquisition,
development, and redevelopment of properties containing life
science laboratory space. The company leases the properties mainly
to universities, pharmaceutical, medical device, life science
product, biotechnology, service, biodefense, and translational
Alexandria Real Estate currently has Zacks #3 Rank, which
translates into a short-term Hold rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
Liberty Property Trust
) also holds a Zacks #3 Rank.
ALEXANDRIA REAL (ARE): Free Stock Analysis
LIBERTY PPTY TR (LRY): Free Stock Analysis
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