Alexandria Real Estate Equities (NYSE:ARE) Board of Directors Approves Share Buyback Plan

Alexandria Real Estate Equities (NYSE:ARE) declared that its board has initiated a stock repurchase program on Monday, December 9th, RTT News reports. The company plans to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the real estate investment trust to purchase up to 2.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Alexandria Real Estate Equities Price Performance

Shares of ARE stock opened at $103.40 on Thursday. The company has a quick ratio of 0.20, a current ratio of 0.20 and a debt-to-equity ratio of 0.56. The stock has a market cap of $18.07 billion, a price-to-earnings ratio of 62.99, a PEG ratio of 3.89 and a beta of 1.15. The business’s fifty day moving average is $112.23 and its 200 day moving average is $116.17. Alexandria Real Estate Equities has a twelve month low of $102.89 and a twelve month high of $135.45.

Alexandria Real Estate Equities (NYSE:ARE) last issued its quarterly earnings results on Monday, October 21st. The real estate investment trust reported $0.96 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.38 by ($1.42). The business had revenue of $791.60 million during the quarter, compared to the consensus estimate of $766.97 million. Alexandria Real Estate Equities had a return on equity of 1.31% and a net margin of 9.62%. The firm’s revenue was up 10.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.26 earnings per share. Research analysts expect that Alexandria Real Estate Equities will post 9.47 EPS for the current fiscal year.

Alexandria Real Estate Equities Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Tuesday, December 31st will be given a dividend of $1.32 per share. This represents a $5.28 dividend on an annualized basis and a yield of 5.11%. The ex-dividend date of this dividend is Tuesday, December 31st. This is a positive change from Alexandria Real Estate Equities’s previous quarterly dividend of $1.30. Alexandria Real Estate Equities’s dividend payout ratio (DPR) is 317.07%.

Wall Street Analyst Weigh In

Several analysts have weighed in on ARE shares. BMO Capital Markets upgraded Alexandria Real Estate Equities to a “hold” rating in a research report on Wednesday, September 25th. Robert W. Baird lowered their price target on shares of Alexandria Real Estate Equities from $137.00 to $130.00 and set an “outperform” rating for the company in a report on Friday, November 8th. Citigroup cut shares of Alexandria Real Estate Equities from a “buy” rating to a “neutral” rating and dropped their price target for the company from $130.00 to $125.00 in a research report on Friday, September 13th. JMP Securities lowered their price objective on shares of Alexandria Real Estate Equities from $140.00 to $130.00 and set a “market outperform” rating for the company in a research note on Friday, November 15th. Finally, JPMorgan Chase & Co. lowered shares of Alexandria Real Estate Equities from an “overweight” rating to a “neutral” rating and dropped their target price for the stock from $133.00 to $121.00 in a report on Wednesday, November 27th. Nine analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $125.82.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.