Westwood Holdings Group Inc. has established a new position in Alexandria Real Estate Equities, Inc. by acquiring 70,139 shares valued at approximately $5.1 million. This purchase occurred in the second quarter of 2023, as noted in the company’s recent disclosure to the Securities and Exchange Commission (SEC).
Several other institutional investors have also made significant moves regarding Alexandria Real Estate Equities (NYSE: ARE). Notably, IMS Investment Management Services Ltd. increased its stake by 48.3%, bringing its total holdings to 721,671 shares worth about $52.4 million. This increase followed the acquisition of an additional 235,093 shares during the same period. Meanwhile, the Bank of Montreal raised its investment by 10.7%, now owning 406,318 shares valued at $29.5 million, after purchasing 39,117 shares.
Other investors making notable transactions include Washburn Capital Management Inc., which invested approximately $949,000, and Penserra Capital Management LLC, which increased its position by 46.3%, owning 18,927 shares valued at $1.4 million. SYM FINANCIAL Corp also entered the fray with a new stake worth $359,000. In total, hedge funds and institutional investors own 96.54% of Alexandria’s stock.
Analysts Downgrade and Forecast Performance
Alexandria Real Estate Equities has been the subject of various research reports from Wall Street analysts. The Royal Bank of Canada lowered its price target from $98.00 to $65.00 and assigned a “sector perform” rating. Citizens JMP adjusted its recommendation from “outperform” to “market perform.” Citigroup maintained a “neutral” rating, while BMO Capital Markets began its coverage with an “outperform” rating and a target price of $100.00. BNP Paribas Exane cut its target from $82.00 to $72.00, giving it an “underperform” rating.
Currently, three analysts rate the stock as a Buy, seven as Hold, and four as Sell, leading to an average rating of “Reduce” and a consensus price target of $79.38.
Current Stock Performance and Financial Results
As of October 27, 2023, shares of Alexandria Real Estate Equities opened at $51.99. The company has a market capitalization of $8.98 billion and financial ratios including a debt-to-equity ratio of 0.65 and a price-to-earnings ratio of -21.08. The stock has experienced a significant decline from its one-year high of $112.42, with a current low at $51.63.
In its latest quarterly earnings report, Alexandria Real Estate Equities announced earnings per share (EPS) of $2.22, which fell short of the consensus estimate of $2.31 by $0.09. The company’s revenue for the quarter was $751.94 million, slightly below analysts’ expectations of $752.90 million. Compared to the same quarter last year, revenue decreased by 5.0%, with the previous year’s EPS reported at $2.37.
Looking ahead, Alexandria Real Estate Equities has provided fiscal year 2025 guidance estimating EPS between $8.98 and $9.04. Analysts predict the company will achieve an EPS of $9.32 for the current year.
The company also declared a quarterly dividend of $1.32 per share, which was paid on October 15, 2023, to stockholders of record as of September 30, 2023. This results in an annualized dividend of $5.28, reflecting a yield of 10.2%. The ex-dividend date was September 30, 2023, with a payout ratio of -213.77%.
Founded in 1994, Alexandria Real Estate Equities, Inc. is a leading life science real estate investment trust (REIT) focused on developing and managing properties in key innovation clusters across the United States, including locations such as Greater Boston, the San Francisco Bay Area, and New York City.
