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Alexandria Real Estate (ARE) Steps Up Investment in Agrifoodtech

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To benefit from the booming agrifoodtech sector, Alexandria Real Estate Equities, Inc.’s (ARE - Free Report) venture investment platform Alexandria Venture Investments invested in the agricultural and climate-innovative companies. The investment is in line with Alexandria Venture Investments’ target to double its investment activity in the ongoing year.

The strategic move found support in the strength of private capital, which flowed into the agrifoodtech sector with funds focusing on climate change.

The agricultural and climate innovation sectors areamong the essential sectors for improving nutrition, ending global hunger, combating climate change and advancing human health. Hence, this strategic effort will aid Alexandria in identifying top-tier investment opportunities. Moreover, it will provide ARE with the scope to assist in building the next-generation impactful agrifoodtech companies.

Per management, “Since 2000, Alexandria has been at the vanguard and heart of the agrifoodtech ecosystem, developing and operating sophisticated agtech infrastructure and investing in innovative companies advancing novel approaches with immense potential to address sustainability-, agriculture-, food- and nutrition-related challenges.”

Alexandria's agrifoodtech investment portfolio comprises promising companies like GreenLight Biosciences, Vindara, Bear Flag Robotics, Inari and Invaio Sciences.

Moreover, Alexandria focuses on Class A properties concentrated in urban campuses, primarily for the life science and technology entities. These locations are characterized by high barriers to entry and a limited supply of available space. This highly dynamic setting adds to the productivity and efficiency of the tenants, which in turn ensures steady rental revenues for ARE.

However, Alexandria has a huge development pipeline, causing exposure to the risk of rising construction costs and lease-up concerns.

Shares of this currently Zacks Rank #4 (Sell) Alexandria have rallied 15.1% over the past six months, outperforming the industry’s growth of 6.3%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Key Picks

Some better-ranked stocks from the REIT sector are OUTFRONT Media (OUT - Free Report) , Cedar Realty Trust (CDR - Free Report) and Apple Hospitality REIT (APLE - Free Report) .

The Zacks Consensus Estimate for OUTFRONT Media’s 2021 funds from operations (FFO) per share has been raised 13.8% over the past month. OUT flaunts a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the last four quarters, OUTFRONT Media’s FFO per share surpassed the consensus estimate thrice and reported in-line results once, the average surprise being 44.87%. Shares of OUT have appreciated 7.8% in the past six months, outperforming the industry’s rally of 6.3%.

The Zacks Consensus Estimate for Cedar Realty Trust’s current-year FFO per share has been raised 2.6% in the past month. CDR currently sports a Zacks Rank  of 1.

Over the last four quarters, Cedar Realty’s FFO per share surpassed the consensus estimate on two occasions and missed the mark on the remaining two, the average surprise being 6.40%. Shares of CDR have appreciated 55.1% in the past six months, outperforming the industry’s rally of 6.3%.

The Zacks Consensus Estimate for Apple Hospitality REIT’s 2021 FFO per share has moved 4.9% north in the past month. APLE currently carries a Zacks Rank of 2.

Over the last four quarters, Apple Hospitality’s FFO per share surpassed the consensus mark thrice and missed the same once, the negative surprise being 14.2%. Shares of APLE have inched up 4.1% in the past three months against the industry’s decline of 1.5%.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.