ARE Earnings Prediction
The chart below shows how ARE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ARE sees a -1.03% change in stock price 10 days leading up to the earnings, and a -0.49% change 10 days following the report. On the earnings day itself, the stock moves by +0.07%. This data can give you a slight idea of what to expect for the next quarter's release.
ARE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
821.00M
6.69%
0.79%
Gross Margin
30.51%
-10.24%
-13.50%
Operating Margin
26.52%
0.91%
-11.24%
Net Margin
-1.96%
-64.62%
-107.48%
EPS
-0.38
-29.63%
-139.58%
No Data Available
ARE Earnings Analysis
Alexandria Real Estate Equities Inc Corporation (ARE.N) Earnings Conference Call
Positive
FFO Per Share Growth: Almost 6% FFO per share growth achieved in a challenging macro environment, demonstrating resilience and operational strength.
Revenue and EBITDA Growth: Total revenues and adjusted EBITDA increased by 8% and 11.6% respectively over 2023, driven by solid same property performance and execution of development strategies.
Leasing Volume Increase: Leasing volume for the year reached 5,053,954 square feet, a 17.3% increase from the previous year, indicating strong demand and tenant retention.
Transaction Volume Highlights: The company executed over $1,100,000,000 in transactions during Q4, contributing to a total of approximately $1,400,000,000 for the year, showcasing effective capital recycling efforts.
Dividend Growth Rate: The average annual increase in dividends per share has been 5.4% since 2020, reflecting strong cash flow management and commitment to returning value to shareholders.
Negative
Low Leasing Activity: Development and redevelopment leasing activity for Q4 was low at 13,000 square feet, indicating lingering conservatism from life science company boards and a delay in expansion plans.
Leasing Challenges Ahead: Projects expected to fully deliver in 2025-2026 are only 89% and 70% leased or under negotiations, while projects delivering in 2027 or beyond are just 15% leased or under negotiation, highlighting a significant leasing challenge ahead.
NOI Growth Decline Projected: Same property NOI growth for 2025 is projected to decline by 2% and remain flat on a cash basis, reflecting anticipated challenges in maintaining revenue levels amid lease expirations.
Asset Impairment Losses: In Q4, impairments aggregating $186 million were recognized, primarily related to properties sold and land parcels, indicating a significant loss in asset value.
Occupancy Guidance Challenges: The occupancy midpoint guidance for year-end 2025 is set at 92.4%, which includes approximately 2% vacancy from key projects, suggesting potential challenges in maintaining occupancy levels.
ARE FAQs
How does ARE typically perform around its earnings report dates?
Is Alexandria Real Estate Equities Inc (ARE) Q4 2024 Earnings Call Summary positive or negative?
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ARE Earning Call Sentiment
Earnings call transcript: Alexandria RE Q4 2024 misses EPS estimates
ARE.N
0.05%Positive
The earnings call indicates strong financial performance with an 8% increase in total revenues and 11.6% in adjusted EBITDA. The company maintains solid leasing activity and rental rate growth. The shareholder return plan is positive with consistent dividend growth and a substantial share buyback program. Despite some concerns from the Q&A, such as unclear management responses, the overall sentiment remains positive with optimistic guidance and strong leasing trends. The positive factors outweigh the negatives, suggesting a likely stock price increase in the short term.
