Alexandria Real Estate Equities, Inc
), a real estate investment trust (REIT), has recently increased
its quarterly dividend from 53 cents to 56 cents per share. This
translates to a 5.7% increase from the prior dividend payout. The
dividend is payable on January 15, 2013 to shareholders of record
on December 31, 2012.
In the past one year period, quarterly dividend increased by 23
cents, or approximately 12% from $1.86 per share in 2011 to $2.09
As of September 30, 2012, the company's funds from operations
payout ratio (quarterly common stock dividend divided by
quarterly funds from operations) was 50%. At the end of third
quarter 2012, cash and cash equivalents stood at $94.9 million.
We believe that the company has enough cash to provide optimum
Alexandria Real Estate expects to distribute excess cash to the
shareholders through the increased dividend and concurrently look
to maintain its cash flow for further reinvestments. Solid
dividend payouts are arguably the best enticement for REIT
investors as U.S. law requires REITs to distribute 90% of their
annual taxable income in the form of dividend to shareholders.
Pasadena, California-based, Alexandria Real Estate is one of the
largest owners of life-science related real estate companies in
the U.S. The company is 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,
bio-defence, and translational research entities.
Alexandria Real Estate currently has Zacks #4 Rank, which
translates into a short-term Sell rating. We have a long-term
Neutral recommendation on the stock. One of its competitors,
Liberty Property Trust
) holds a Zacks #3 Rank, which translates into a short- term Hold
ALEXANDRIA REAL (ARE): Free Stock Analysis
LIBERTY PPTY TR (LRY): Free Stock Analysis
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