Alexandria Real Estate Equities, Inc.
), a real estate investment trust (REIT), has recently increased
its quarterly dividend from 51 cents to 53 cents per share.
This translates into a 4.0% increase from the prior dividend
payout. The dividend is payable on October 15, 2012 to shareholders
of record on September 28.
ALEXANDRIA REAL (ARE): Free Stock Analysis
LIBERTY PPTY TR (LRY): Free Stock Analysis
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As of June 30, 2012, the company's funds from operations payout
ratio (quarterly common stock dividend divided by quarterly funds
from operations), was 49%. Alexandria Real Estate increased its
quarterly dividend per share by 8 cents or approximately 18% over
the past 15 months.
At the end of second quarter 2012, Alexandria Real Estate had cash
and cash equivalents of $80.9 million. The company expects to
distribute its excess cash to the shareholders through increased
dividend. We believe that the company has enough cash to provide
optimum shareholder value.
A steady dividend payout facilitates the long-term strategy of
Alexandria Real Estate to provide risk-adjusted returns to its
shareholders. Solid dividend payouts are arguably the best
enticement for REIT investors as U.S. laws require REITs to
distribute 90% of its annual taxable income in the form of
dividends to shareholders.
Pasadena, California-based Alexandria Real Estate is a 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.
Alexandria Real Estate currently retains a 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.
Note: 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.