Alexandria Real Estate Equities, Inc.
), the Pasadena, CA-based real estate investment trust (REIT),
announced a cash dividend of 72 cents per common share for
second-quarter 2014. The dividend will be payable on Jul 15, to
shareholders of record on Jun 30. This marks a 3.0% hike from 70
cents per common share paid to the shareholders on Apr 15, 2014 and
an attractive 11.0% increase from 65 cents paid in second-quarter
The dividend hike is in line with Alexandria Real Estate Equities'
efforts to distribute its strong cash flows from operations to its
common shareholders. It also utilizes the cash flows for
reinvestment purposes. In first-quarter 2014, the company recorded
net operating income of $123.7 million, a 17.9% increase from the
prior-year quarter. Given its financial strength, it will not be
difficult for Alexandria Real Estate Equities to make the payments.
Again, the company's funds from operations payout ratio (which is
calculated by dividing the quarterly common stock dividend by
quarterly funds from operations) remains favorably low at 60% as of
Mar 31, 2014. It implies further potential of the company to raise
the quarterly cash dividend per common share.
Alexandria Real Estate Equities is engaged in the ownership,
operation, management, development, acquisition and selective
redevelopment of properties for the life-science industry. As of
Mar 31, 2014, the company had total assets worth 7.8 billion, up
9.4% from the year-ago quarter. Total revenue for this equity-REIT
in the quarter was $176.2 million, rising 17.4% from the prior-year
Alexandria Real Estate Equities currently carries a Zacks Rank #3
(Hold). Some better-ranked equity REITs include
The GEO Group, Inc.
Terreno Realty Corp.
Aviv REIT, Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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